KARACHI, March 12: Export of textile products is down by more than 10 per cent in February indicating the setting in of a marked declining trend, which, the exporters fear, will gather momentum in the coming days.

Exporters doubt if total exports for 2001-2002 by the end of June next would touch the figure of 8.75 billion dollars.

A price war in Europe and the US, the two principle markets of Pakistani textile products, harassment of exporters by the various official agencies and the worsening law and order situation in the country are being blamed for the export slump. Business leaders complain of receiving threat calls from various groups which are distracting them from their normal business activities.

With the breaching of Rs60 a dollar parity on Monday when greenback value came down to Rs 59.95, the exporters foresee a fresh wave of rupee appreciation setting in. “This is bound to affect the exports in coming days,” a leading exporter explained.

Export of nine textile products during February amounted to $396.30 million. These products fetched $442.73 million in January and $460.80 million in February last year.

In February six out of these nine main textile products showed negative export growth. Cotton cloth export is down by more than 23 per cent, knitwear by over 31 per cent, tents and tarpaulin by about 59 per cent, towels by about 5 per cent, bed wear by over 9 per cent and synthetic textiles by 6.24 per cent. Export of other variety of textile products is also down by more than 30 per cent.

“Don’t forget February has only 28 days,” a leading exporter said when asked to explain the reasons of declining trend particularly in the context of getting greater market access to the EU and the US since January. He was told that export proceeds in February this year are down by over 14 per cent than export earnings realized in February last year.

Exporters contend that the advantage of tariff concessions obtained from the EU have largely been offset by the erosion of dollar value in last few months. “It has started a price war among the exporters of Pakistan and also between Pakistani exporters and those of other countries particularly China, India and a few other countries,” explained an exporter.

According to the exporters, the price war unleashed since the beginning of this year has considerably brought down the average unit export value of the textile products.

Wajid Jawwad, a former Chairman of the Export Promotion Bureau and leader of the Council of Textile Associations (CTA) said that production cost at home is escalating but price war is forcing them to cut down on their export price. “There is very small margin to operate in the export business,” he said.

Ali Ashraf, another commercial exporter, said that industry in Pakistan is being virtually strangulated by the various official agencies and rise in production cost.

A large number of exporters are of the view that government is totally indifferent towards the business problems. The EPB had been a forum that offered all opportunities to the exporters to interact with the government even at the highest level.

Late last week a meeting of the exporters was arranged with President General Musharraf. Most of them represented the multinational companies and selected favourites.

Exporters complain that they were being harassed by the official agencies that include a variety of tax collectors, labour departments and other departments. Many of them complain of receiving threat calls. Exporters wanted to bring these problems to the knowledge of the government at the highest level.

Unable to find a receptive ear, an indifferent attitude of the government, setting in of a fresh dollar exchange value depreciation wave, growing lawlessness the exporters hardly see any prospect of turnaround in next few months.