February 03, 2008	Sunday	Muharram 24, 1429

KARACHI, Feb 2: Export of major textile and clothing items has gone down drastically despite 3.67 per cent increase in overall exports during the first six months July-Dec of the current fiscal.

According to the provisional figures the total exports during July-December stood at $8.715 billion or 3.67 per cent higher over the corresponding period when exports stood at $8.407 billion. However, major textile and clothing categories, which constitute around 65 to 70 per cent of total exports, registered decline.

The textile sector is depressed on reports of closures and the owners of existing units have lost hope of any major incentive from the government for their revival. The value-added sector, which mostly comprises of small and medium-size units, is the hardest hit as it could not compete in the world market.

About 10 major textile categories recorded a steep fall during the period under review with yarn and towels registering highest fall of 19.61 per cent and 14.80 per cent, respectively.

The official figures (provisional) further disclosed that the bedware exports declined to $915m or 10.91pc over the corresponding period last year when their exports stood at $1.027bn. Similarly, knitwear (hosiery) was lower at $975m or 7.74 per cent over the same period last year when they stood at $1.057 billion.

Export of cotton cloth during July-December registered a fall of 10.85 per cent at $886m from $993 million achieved earlier.

Nonetheless, there are other export items, which registered increase during July-December period but export volume and earning from these goods are very small when compared with those items registering fall.

Business leaders are highly critical of the tight monetary policy announced by the State Bank on Friday, and said that this would further aggravate the working of the industry, which is passing through its most critical period. Already many units belonging to apparel and other value-added textile sector have already closed, observed Jawaid Bilwani, chairman Pakistan Hosiery Manufacturers Association (PHMA).

He said that woes of industry would multiply and this would directly affect country’s export, which was already facing huge trade deficit to the tune of $7 bn in the first half of current fiscal.

Shabir Ahmed, chairman Pakistan Bedwear Exporters Association (PBEA) said that with the rising interest rates the cost of doing business would further increase. He said globally the countries were lowering rates to induce and energise economic activity but our planners were doing other way round.