Govt needs to focus on non-textile exports

LAHORE: Pakistani government and media are extremely textiles centric as they highlight the nine percent decline in textile exports, but ignore the almost 18 percent decline in non-textile exports.

The overall decline in textile exports during the first seven months of this fiscal is around $800 million whereas other exports declined by $1.3 billion.

Only two decades back textiles was also the most dominant export sector for India but it is now relegated among 10 major export sectors. The Indian government did not neglect its textile sector during this period but provided maximum facilitation. Still its textile exports have hardly reached $40 billion while its total exports have crossed $300 billion from hardly $60 billion two decades ago.

The India planners recognised that textiles account for only around seven percent of the global trade of over $18 trillion. They also realised that most low income countries continuously entered the textile arena on the strength of lower labour cost, and as the economy grows they would be challenged by them. Twenty years ago Bangladesh and Vietnam were non-entities in the textile world. Today, the combined textile exports of the two are around $54 billion, which is $14 billion higher than India and $41 billion higher than Pakistan.

Textiles have a drawback as it is the first sector to take the hit in global recession.

The Indians vigorously facilitated the IT sector, auto sector, engineering goods, and food and home appliances. Today $285 billion Indian exports are generated by the non-textile sector. Indian IT exports at the start of century were hardly $1 billion, but today they have crossed $80 billion. Auto parts exports were less than $200 million which are now much higher, its engineering exports are above $10 billion, processed food and fruits account for above $10 billion. It has overtaken Pakistan as the largest basmati rice exporter. Its footwear exports are booming and its handicrafts are most sought after in the world. It is a force to reckon with in exports of gems and jewellery. It is an important global player in tyres and tubes of all types. India is a large exporter of defence equipment too.

Compared with India we are where we were in 1990’s. We have not made inroads in any other sectors.  Though we have potential to make our mark in sports goods, cutlery and surgical goods, our combined exports in these sectors are less than $300 million.

Indian chemicals and pharmaceutical raw materials are imported by all third world countries. Indian exports are more diversified both in products and in geography, while US, EU and China account for 50 percent of Pakistani exports.

Another important point worth noting is that the GSP Plus zero duty status in European Union was granted to Pakistan not only for textiles but for all items, minus armament and narcotics, but the government and media kept trace of increase or decrease in textiles only.

The leading economic ministers like finance minister, petroleum minister and commerce minister meet mostly the textile entrepreneurs and rarely other sectors. Only a special textile package was announced while other sectors remained neglected.

Despite all this, Pakistan has been losing its share in global textile trade since 2007-08, from 2 percent to 1.7 percent. The current decline in textile exports is a global phenomenon but mostly relates to basic textiles that have declined sharply in the past one year from Pakistan, India and China. The apparel exports have remained almost stable in Pakistan and increased in Bangladesh and Vietnam. The apparel exports from China and India however have declined. All this while, the other sectors are surviving without any government facilitation or support.