KARACHI, Nov 8: Amidst all reports of cancellation and deferment of export orders from abroad, an economic slowdown at home and building up of inventory in the textile units, Pakistan has performed well this year, virtually across-the-board, in utilisation of textile export quotas to the US, Canada and EU, both in terms of quantity and value.
Official figures show Pakistan’s textile export quota utilisation increased by more than 12 per cent in terms of total quantity and 6.27 per cent in terms of value in the first ten months of this year (2001) to Europe and North America.
In terms of hard cash, exporters fetched a hefty amount of about $990 million from the US market, $806 million from EU and $46.27 million from Canada in ten months of 2001. This is significantly higher than $940.19 million earned from the US, $750.47 million from EU and $39.90 million earned from Canada in 10 months of the year 2000.
Turkey is the only country where exporters have shown negative growth in terms of value and quantity. But Turkey’s share in Pakistan’s exports to quota countries is virtually insignificant and has no impact on overall trade.
This export performance comes in wake of a study of the All Pakistan Textile Mills Association (Aptma), which says a buildup of 58 per cent higher inventory in the textile units till end October this year as compared to inventory reported by textile mills in same period of 2000.
Aptma reports that its members complain of unsold yarn being stockpiled in the mills yards and that weavers are not able to dispose of their fabrics. Spinners and weavers complain acute cash flow problems beset their operations and seek concessions from the government.
Official figures of export quota utilization, the biggest single largest avenue of the textile exports for Pakistan, show a marked improvement in ten months of 2001 as over same period last year.
A real headway was made in Canada where according to the official figures Pakistan improved its earnings by almost 16 per cent in value and increased quantity volume by 15.45 per cent. By end October this year total amount realized from quota utilization from Canada was $46.27 million. It was $39.90 million in the same period last year.
On a rough average, Pakistani exporters utilized almost 60 per cent of the available quotas in 10 categories in Canada up to end October this year. In the same period last year, the quota utilization was only 56 per cent.
Bedsheets, under garments, trousers and shorts and T-shirts were the hot items that showed 75 to 90 per cent utilization earning the bulk of foreign exchange.
Exporters have utilized more than 75 per cent of available quotas in respect of 17 categories in the US. In 10 categories the utilization is more than 90 per cent in just ten months with threat of embargo looming over. Utilization of bedsheets was almost 103 per cent of the quota by end October and is already under an embargo notice.
In the EU markets, exporters have utilized more than 70 per cent of available export quota in respect of cotton yarn, cotton fabrics, knitted shirts, knitted jerseys, blended fabrics, shorts and trousers, woven terry toilet linen, bed linen and dresses. There are only two categories — blouses and shirts — where utilization is less than 20 per cent.
Officials and exporters say that quota items have been shipped and delivered apparently without any major hurdle even after September 11 incident in the US. The hurdles that obstructed Pakistani goods also affected the movement of goods coming from the other countries to the US.