ISLAMABAD, July 20: The country’s export of textile and clothing dropped 10.38 per cent in 2011-12, from a year ago, owing to weak demand from recession-hit key markets of Europe and US.
As a result, the exports proceeds from these sectors fell to $12.356 billion in 2011-12 from $13.788 billion over the corresponding period of last year, suggested data of Pakistan Bureau of Statistics released on Friday.
The government has projected $16 billion export proceeds from this sector in 2011-12.
As a result of poor performance of the textile and clothing sector, overall exports also fell 4.71 per cent to $23.641 billion in 2011-12 as against $24.810 billion the previous year.
The government has projected an overall export target of $25.8 billion for the year under review, which was missed by $2.159 billion.
Officials said that crisis in the eurozone and stiff competition in textile products from China, India and Bangladesh also caused decline in export proceeds from the country.
Contrary to this, the rupee also depreciated by over 6.39 per cent in the past few months, but it did not support textile and clothing products to penetrate in the international markets.
A sector-wise analysis showed negative growth in exports of all products of textile and clothing sectors except raw materials.
At the same time, there was a 2.67 per cent decline in import of machinery in the value-added sector to increase quality and capacity of production. This indicates that local manufacturers were also not expanding their production capacity.
Product-wise details showed that export of raw cotton increased 26.65 per cent because of high demand for cotton, especially in China following a ban by Indian government on cotton exports.
Also export of tents, canvas were up by 110.47 per cent during the period under review and other textile materials 5.65 per cent, respectively in 2011-12 over the previous year.