ISLAMABAD: Pakistan’s exports of value-added textile products rose 7.5 per cent to $4.517 billion in 2014-15 from $4.202bn a year ago, the Pakistan Bureau of Statistics said on Monday.

Exports of readymade garments grew 10.5pc to $2.101bn from $1.909bn, and of knitwear rose 5.37pc to $2.416bn compared to $2.293bn during the previous year.

Official figures show that the government held out support of Rs6bn, mostly to the value-added textile sector, during FY15 as against Rs3bn over the previous year. This clearly shows the government’s intention to remove imbalance in the exports sector to create jobs for the youth.

Another reason behind the rise in the exports of value-added textile products is preferential access to the 28-nation European Union under GSP+ scheme.

The government has also implemented an incentives-laden, five-year textile policy to promote the segment. A textile package of Rs40.6bn would require an ongoing firm commitment from the finance ministry and other relevant authorities. However, another Rs23bn development infrastructure projects envisaged in the policy will need a nod from the Planning Commission, which is not an easy task. The government announced Rs188bn for the previous textile policy (2009-2014), but actually released Rs28bn.

Similarly, the announcement of deemed import basis for PSF (Polyester Staple Fibre) will enhance man-made fibre content in export products, as the world is continuously shifting from cotton to man-made fibre, and the ratio has reversed from 60-40 to 40-60 within 10 years. In Pakistan, the ratio is 86-14, which is quite low as per international demands.

The import of textile machinery fell by around 20pc year-on-year during FY15, which suggests that there is little interest for investment in diversification or improving the quality of products.

As a result of these and international factors, the exports of primary commodities like raw cotton and cotton yarn dropped 28.29pc and 7.76pc during previous year. Cotton yarn exports were $1.842bn in 2014-15 as against $1.997bn during the preceding year.

Similarly, exports of cotton cloth declined by 11.38pc to $2.454bn from $2.769bn.

Trade analysts believe that this way Pakistan is exporting jobs to other countries by encouraging and facilitating exports of raw materials or semi-finished products.

Exports of bed-wear also declined during 2014-15 by 1.97pc. However, exports of towels rose by 1.78pc and made-ups by 0.26pc during the year. The strong price effect over quantity effect is the major reason for exports growth of these items.

Contrary to this, exports of cotton carded dipped by 10.38pc and yarn (other than cotton) by 2.31pc. However, exports of tents and canvas were up by 74pc in FY15.

The value of overall textile and clothing products fell to $13.476bn in 2014-15 as against $13.720bn, reflecting a decline of 1.78pc.

Published in Dawn, July 28th, 2015

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