KARACHI, July 6: After a brief uncertain period following the phase out of textile quota from January 2005, Pakistan’s textiles have managed to gain a foothold in the world export market, showing a growth of almost 10 per cent between January and May 2005.

The next six months -— July to December 2005 –- are expected to see a further boost in Pakistan’s textile export trade and many exporters and market watchers are convinced that a projection of $10 billion for textiles export in 2005-06 will eventually prove to be a too small target to achieve.

“Pakistan’s textiles are now poised for a big jump forward in the export trade after getting all the incentives and concessions in the 2005-06 budget,” Textile Industry Minister Mushtaq Cheema told Dawn on Wednesday from Islamabad.

With almost four billion dollars investment in the last five years, exporters’ hard toil and Pakistani craftsmen’s skill in keeping themselves update for latest designs and fashions, the minister believes that Pakistan’s textiles are not only consolidating further in the traditional markets — the US and the EU — but are also making an entry into new markets.

Africa is the new target for many Pakistani export houses. They are buoyant by fiscal reforms in the budget that has given them a level-playing field in the synthetic fabrics trade and are eyeing African markets.

Textile exporters are confident of netting $4.5 to $5 billion during six months — January to June 2005. Textile exports fetched more than $3 billion during January to April this year. Textile exports took a big jump of over 20 per cent in May to $838.50 million. Looking at orders in the pipeline there are reasons to believe that textile exports have maintained same tempo in June also.

A big jump ahead in textiles is likely to be seen from July onward. The only lurking fear is the swelling of Pakistan’s rivers that can damage the cotton crop. Other fear comes from the possible turmoil and troubles during the election campaign of the local bodies’ elections that are fraught with consequences of destabilization.

Cotton fabrics have emerged as the second leading textile item that may fetch close to $2 billion export earning in the fiscal year 2004-05. Almost one billion dollars was netted during January-May 2005.

Garments are coming up in a big way in Pakistan’s exports and earned about $2.50 billion during July-May 2004-05. More than $984 million came through the export of readymade garments, while about $1.5 billion came from knitwear. In the last four months — January to April — the garments export fetched about $830 million. Readymade exports gained acceleration and were up by more than 30 per cent in May.

“Textile exporters are still grappling with the issue of their stuck up refunds from sales tax and other levies,” the textile industry minister said. He expressed the hope that the Central Board of Revenue would be able to resolve the issue in the next few weeks.

“Imagine, the textile exporters will now operate with a much better cash flow position than what they were till now,” Mr Cheema said and hoped that the budgetary measures had placed the exporters at a much advantageous position and now it was up to them to make optimum use of this position.

He said government’s export planners had expected some problems in the export market after January 2005 following the phase out of textile quota regime. There bound to be a price-war, as buyers were ready to take full advantage. But now the prices of textiles have come to stay and there is stability in the market. Pakistan’s exporters too have quickly adjusted themselves to the changing market conditions and are now ready to reap profits for themselves and their country.

About the impact of rising energy cost, the minister said that it was a global phenomenon and every country faced the same situation and Pakistan was not an exception.

The textile industry minister is holding a meeting in Karachi on Saturday to finalize a blueprint for setting up a garment city. “We are negotiating with the Port Qasim to get a plot for the proposed garment city,” he disclosed. The minister will also discuss the progress on development of textile city coming up in the vicinity of Port Qasim.