ISLAMABAD, July 17: Textile and clothing exports dipped by 2.5 per cent to $10.561 billion in 2007-08 from $10.787 billion over the same period last year, the Statistics Division’s data revealed on Thursday.

Despite the overall dismal performance of textile and clothing sector, the export target of $19.2 billion was achieved during the year under review on the back of unexpected growth in exports of non-textile products.

The non-textile products export edged up by 39.9 per cent to $8.659 billion from $6.189 billion of last year. The export proceeds of the year under review rose by $2.24 billion over the last year, which was actually the growth in non-textile products exports.

Of the non-textile products, export of rice went up 61.53 per cent, petroleum products 40.06 per cent, sports good up by 4.23 per cent, leather manufactures 24.05 per cent, footwear 8.21 per cent, engineering goods 42.54 per cent cement 181.69 per cent.This shows the natural diversification of exports base as now the share of textile and clothing in total exports declined to 55 per cent in the year under review from 64 per cent last year despite dolling out billions of rupees subsidies to the sector.

While the share of non-textile products soared to 45 per cent in 2007-08 from 36 per cent last year without having any financial support or package from the government.

Analysts said it shows that subsidies are not the real issue but there is a need to address the issue of structural weaknesses in the textile sector. This means that the production capacity of textile sector has also reached a saturation point, they said.

With the exception of raw cotton and other textile material, all other major components of textile manufactures registered negative growth in the year under review. This declined occurred despite the fact that rupee also depreciated more than 20 per cent during the year while the currencies of the competitors countries like India, China appreciated tremendously.

In addition, the deteriorating law and order situation also resulted in reported diversion of export orders to other countries.

Product-wise details showed that export of readymade garments declined by 3.16 per cent to $1.498 billion in the year 2007-08 from $1.547 billion last year, cotton yarn by 9.37 per cent to $1.294 billion from $1.428 billion, bedwear by 5.43 per cent to $1.887 billion from $1.995 billion and cotton cloth 4.64 per cent to $1.932 billion from $2.026 billion, respectively.

However, the export of knitwear was up marginally by 1.82 per cent to $1.831 billion from $1.789 billion, raw cotton 38.85 per cent to $69.737 million from $50.226 million, towels 0.77 per cent to $615.415 million from $610.712 million, art, silk and synthetic textile 16.74 per cent to $489.982 million from $419.724 million, made up articles 4.24 per cent to $536.114 million from $514.313 million and other textiles 12.25 per cent to $274.001 million from $244.100 million, respectively.

And export of cotton carded declined by 21.76 per cent to $12.320 million from $15.746 million and yarn other than cotton yarn 27.06 per cent to $49.162 million from $67.397 million during the year 2007-08 over the last year.