ISLAMABAD, May 21: Export of textile and clothing dropped 10 per cent in the first 10 months of this fiscal year due to weak demand from recession-hit key markets Europe and US.
As a result, export proceeds from textile and clothing sector fell to $10.143 billion in July-April period of 2011-12, down by 9.59 per cent from $11.219 billion in the same period last year, data of Pakistan Bureau of Statistics showed on Monday.
The government has projected textile export target of $16 billion for this fiscal year over the last year’s export proceeds of $14 billion.
But textile people estimate that export proceeds would hardly touch $12 billion-mark.
Consequently, the overall exports also fell 3.60 per cent to $19.369 billion in the July-April period as against $20.091 billion over the corresponding period last year.
The government has projected an overall export target of $25 billion, which doesn’t seem achievable in the last two months of 201-12.
Local manufacturers of raw materials and value-added sectors have already projected a 25 per cent drop in export to Europe alone due to debt crisis.
Over 6.33 per cent decline was also witnessed in terms of rupee despite depreciation of rupee against the dollar in the past few months, indicating that the fall in the health of rupee did not support Pakistani textile and clothing products to penetrate in the international markets.
A sector-wise analysis showed negative growth in export of all products of textile and clothing sectors except raw materials.
At the same time, there was a 15 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 readymade garments declined by five per cent, knitwear 13.13 per cent, bedwear 13.81 per cent and towels 8.43 per cent during the period under review.
Export of raw cotton witnessed a growth of 32.33 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 up by 100.78 per cent during the period under review.However, export of cotton yarn declined by 22.78 per cent, cotton cloth 5.35 per cent, cotton carded or combed 72.77 per cent during the period under review. Export of cotton yarn other than cotton yarn declined by 7.33 per cent, art silk declined by 7.70 per cent, made up articles by 7.14 per cent, other textile materials 8.77 per cent, respectively.