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August 23, 2014

Textile exports drop two percent

 
August 23, 2014

LAHORE: The share of textiles in total exports of Pakistan increased to 64 percent in July; although textile exports registered a drop of 2.37 percent mainly due to weakening spinning and weaving sectors, textile trade body said on Friday.
Exports fell by 7.8 percent in the first month of this fiscal year to $1.929 billion in July 2014 from $2.094 billion in July 2013. The monthly textile exports slid to $1.169 billion from $1.197 billion. All high power consuming sectors, including weaving and spinning, experienced a drop in exports.
“The European Union’s generalised scheme of preferences status saved the exports from a plunge,” said SM Tanveer, chairman of All Pakistan Textiles Mills Association.
Yarn exports dived by 35.32 percent to $211.58 million in July 2014. Exports of fabric fell 43 percent in quantity and 8.13 percent in value.
Since weaving sector operated at 60 percent of production capacity due to power supply shortfall, fabric production went down.
Exports of knitwear, bed wear, towels and readymade garments rose by 21.66 percent, 14.54 percent, 7.43 percent and 3.76 percent, respectively, in July; the surge was owing to zero-rated access the value-added textile sector got from EU this year.
However, warned Tanveer if the basic textile sector is not revived, the value-added sectors of textiles would come under pressure, which buy raw materials from the former.
Leading knitwear exporter Mohammad Khurram said the ongoing political turmoil in the country would badly impact the exports in August. In the first 20 days of this month, the exports have been nominal.
Container owners are hesitant to enter Punjab because of the fear of impounding of their containers by the provincial government, Khurram said.
He said Pakistan is losing a huge exports’ opportunity since there is no dearth of orders from the foreign buyers.
Leather sector’s player Shiekh Arshad said the increase of 3.73 percent in leather

products’ exports was due to 11.29 percent up in leather garments’ exports to EU.
Leather footwear exports registered a healthy jump of 49 percent because of GSP plus status.
Nabeel Hashmi said since power is a major input in manufacturing of plastics, the power shortage caused a 33 percent fall in plastic exports in July 2014 from July 2013.
Power supplies to industries remained very low as domestic sector was the priority during Ramzan.
Exports of all engineering goods suffered badly due to power crisis. Electric fans’ exports were down by 26 percent, transport equipment by 39 percent and other electrical machinery by 33 percent.
High energy cost coupled with massive cut in supply of power would keep the exporting industries under pressure.
The government would have to improve its power management to ensure better supplies to the exporting industries, Hashmi said.