ISLAMABAD, June 13: With rising cotton prices in the international market and depreciation of rupee, the government has projected that textile and clothing exports would fetch $15.490 billion in the fiscal year 2011-12, an increase that is expected to generate some additional employment for low skilled people.

In absolute terms, export proceeds of textile and clothing sector would record a marginal growth of five per cent next year, partly because of highest ever export growth by the sector in the outgoing fiscal year.

But contrary to this, Chairman, All- Pakistan Textile Mills Association (Aptma) Gohar Ijaz said that export proceeds from textile and clothing could be much higher from the government projected figures and could reach $20 billion next year if government facilitates exports.

Talking to Dawn, Mr Ijaz said government needs to reduce interest rate to five per cent from current 14 per cent, supply 100 per cent gas to industries in Punjab and to develop positive mindset towards textile in the country.

These measures, according to the Aptma chairman, do not require any funds but a political will that could make the industry more viable and generate additional employment.

Official statistics reveal that this year textile and clothing exports are expected to reach $14.752 billion by end June 2011 as against budgetary target of $10.880 billion for exports from the sector, indicating an increase of 35.5 per cent.

Last year, Mr Ijaz said he was the only person claiming that export proceeds from textile and clothing sector could reach $14 billion.

However, he warned that we are at crossroads as export proceeds could reach $20 billion or fell to zero next year, if government did not take timely corrective measures.

He said that 80 per cent of the textile sector industries are located in Punjab. Of these, 43 per cent units were closed owing to closure of gas supply to these units.

He said because of high interest rate and shortage of gas, industrialists are turning bankrupt.

Against textile and clothing sector, export proceeds target for the traditional products was projected at $10.128 billion for next year as against $9.646 billion. As a result, the total export target for the next year was projected at $25.618 billion as against $24.398 billion export proceeds for the outgoing fiscal year.

The statistics show that government is expecting that export of raw cotton will yield $251.4 million in the year 2011-12.

Increase in cotton prices in international market has stagnated. Therefore, there will be an increase of $10 million in export of raw cotton.

At the same time, for cotton yarn and cotton cloth, two low valued added products, government expects that the export proceeds could reach $2.064 billion and $2.430 billion, respectively.

For the high value-added sector, the government projected that export of readymade garments would fetch $1.836 billion, knitwear $2.459 billion and bedwear $3.678 billion during the year 2011-12.

However, nominal growth was projected for other sectors of textile and clothing.