ISLAMABAD: Pakistan’s export of textile and clothing dropped 9.961 per cent in the first 11 months of the current fiscal year due to weak demand from recession-hit key markets Europe and US.
The exports proceeds from these sectors fell to $11.273 billion in July-May period this year from $12.472 billion over the corresponding period of last year, suggested data of Pakistan Bureau of Statistics released on Wednesday.
Last year exports from textile and clothing sector crossed $14 billion. For the current fiscal year, the government has projected a target of $16 billion.
But textile people estimate that export proceeds would hardly touch $13 billion-mark by end June 2012.
As a result of poor performance of the textile and clothing sector, overall exports also fell 3.37 per cent to $21.500 billion in the July-May period as against $22.388 billion over the corresponding period last year.
The government has projected an overall export target of $25.8 billion, which doesn’t seem achievable in the last one month of 2011-12.
Officials said that crisis in the Eurozone and stiff competition in textile products from China, India and Bangladesh in the international market also causes decline in export proceeds from the country.
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.
Contrary to this, over 6.03 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 exports of all products of textile and clothing sectors except raw materials.
At the same time, there was a 9.63 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 31 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 101.75 per cent during the period under review and other textile materials 4.77 per cent, respectively.
The export of readymade garments declined by 6.45 per cent, knitwear 13.19 per cent, bedwear 15 per cent and towels 9.51 per cent during the period under review. And export of cotton yarn declined by 19.89 per cent, cotton cloth 3.13 per cent, cotton carded or combed 61.58 per cent and art silk declined by 15.9 per cent during the period under review.