ISLAMABAD: Exports of textile and clothing declined by 6.89 per cent to $4.271 billion during the first four months (July-Oct) of 2015-16 from $4.587bn in the same period last year, Pakistan Bureau of Statistics data showed on Monday.

On a monthly basis, the exports dropped by 10.63 per cent to $1.051 billion in October 2015 from $1.176bn in the same month last year.

Exports of value-added textile sector, after increasing for three consecutive months, also witnessed a negative growth. The sector exports grew 3pc in July-Sept 2015-16.

During October 2015, readymade garments exports fell by 0.36pc, knitwear 9.50pc and bedwear 8.92pc.

Cotton yarn exports fell 28.78pc and cotton cloth dropped by 1.79pc. Towels and tents exports fell by 18.14pc and 14.21pc, respectively.

Exports of carded cotton plunged by 99.27pc, yarn (other than cotton) by 39.11pc, tents and raw cotton by 52.92pc.

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

While talking to Dawn, Pakistan Apparel Forum Chairman Muhammad Jawed Bilwani predicted that the exports of the value-added textile would drop further owing to government’s irrational policies.

He said the government has increased the sales tax from 2pc to 3pc in the budget, which led to piling up of exporter’s refunds with the tax department.

The government has also imposed 10pc regulatory duty on yarn imports from India, mostly used by knitwear and woven apparel segments, to further increase the cost of doing business, he said. “Thus, price of domestically produced yarn increased manifold.”

“India has recently provided 3pc to 5pc incentive to exporters, while Pakistan has yet to announce the trade policy, which was supposed to be effective from July 1, 2015.”

Bedwear Association Patron in Chief Shabir Ahmad lamented that the Ministry of Commerce was not serious about the dwindling exports.

However, he also said that there is an uncertainty in international market as well. The buyers especially from Europe are not placing orders, he added.

In 2014-15, value-added textile exports rose 7.5pc to $4.517bn from $4.202bn in the preceding year.

OIL AND EATABLES: Import bill of these two products plunged by 34.95pc to $4.617bn during July-Oct 2015-16 from $7.098bn in the same period last year.

The total import bill declined by 12.88pc to $14.56bn from $16.713bn.

Imports of food products fell 12.74pc to $1.705bn from $1.954bn, mainly due to lower imports of palm oil and wheat.

Oil imports, of both crude and finished petroleum product, plummeted by 43.39pc to $2.912bn from $5.144bn in July-Oct 2014-15.

Published in Dawn, November 24th, 2015