KARACHI, July 12: Another three trade bodies— knitwear, bedwear and readymade garments — involved in export of value-added textile goods have joined the elite club of ‘dollar one billion’ after they successfully exported over $1 billion worth of textile goods during the outgoing fiscal ended on June 30, 2003.

According to official statistics, the textile exports kept their historical position of being a major contributor of over 65 per cent in country’s total exports. But the most significant development which took place during fiscal 2002-03, when the country for the first time managed to cross psychological barrier of $10 billion ($11.031 billion) in export was that another three trade bodies involved in value-added textile made-ups exports have joined the elite club of ‘dollar one billion’.

Up to last year, fabric was the only textile item, which stood above $1 billion mark ($1.130 billion), but this year knitwear exports exceeded the mark at $1.136 billion, followed by bedwear at $1.320 billion and readymade garments at $1.094 billion.

Although fabric exports earned $1.330 billion with a growth of 17.70 per cent, the growth rate in bedwear was significantly high by 43.79 per cent at $1.320 billion earning $400 million more over the previous year. The knitwear exports also recorded fabulous growth of 34.32 per cent at $1.136 billion and ranked second highest in earning. The readymade garments registered a growth of 25.09 per cent at $1.094 billion.

But the most significant development is that whereas raw cotton exports have come to almost negligible the cotton yarn exports are also showing nominal growth of 0.05 per cent at $0.930 billion, which could be said to be near to stagnant position. This indicates that exports of raw material (cotton) or semi-finished goods (cotton yarn) are dwindling whereas exports of value-added textile goods have now started to gain momentum.

However, exporters are of firm believe that the high achievement in exports was only possible because of extra market access of 15 per cent given by the European Union (EU) and a zero tariff on around 70 per cent of goods exported by Pakistan. Besides, a loud whispering is going on in business circles that over-invoicing was another factor for higher growth in exports.

After making such a remarkable performance exporters are fearing that next year may not turn out to be as good because the Export Promotion Bureau (EPB) has stopped to allocate quotas out of carry-over and over-programming.

The chairman, Pakistan Bedwear Exporters Association (PBEA), Aziz L Jamal told Dawn the government last year allowed up to 20 per cent over-programming (OP), which was another factor for achieving above $10 billion exports. However, this year the OP is not being allowed as the EU has refused to give any concession because Pakistan did not acquired their Airbus aircraft for the PIA.

The PBEA chief said that the EU has also refused to allow special flexibility quota which was again damaging exports and after summing up the negative impact of these developments, he feared, next year’s export figures may not be as encouraging as of this year.

Presently what is disturbing, Aziz Jamal said, was that such negative developments are not only damaging country’s exports but are also creating crisis for exporters who despite having export orders in hand are unable to meet them as quota prices of fast running categories have scrabbled sky-high and benefiting brokers and quota barons.