Textile Exports Register Sharp Fall In January
A decline in textile exports continued in January showing a drastic drop in basic textile exports both in quantity and value terms. The value-added exports have shown a subdued growth against the corresponding period, claims an export data released by the Federal Board of Statistics. The data claims that exports of cotton yarn and cotton cloth dropped by 32.29 percent and 20.55 percent, respectively, against the corresponding month.
“On the value-added side, the towel industry has also registered a negative growth of 15.7 percent against the corresponding period while knitwear, bed wear and readymade garments have grown meagrely by 8.45 percent, 3.15 percent and 2.98 percent respectively in quantity terms,” it said.
In value terms, the exports of cotton yarn and cotton cloth dropped by 47.81 percent and 6.87 percent. The bed wear and towel have also registered negative trend by 6.30 and 17.6 percent. However, the knitwear improved by 2.89 percent and readymade garments by 4 percent in January against the corresponding month. Textile industry exports have shown a mixed trend in exports during the first half of the current fiscal in quantity terms. But the situation is quite hopeless in value terms since a majority of the sectors, both in basic textile and value-added sector, have registered a negative growth.
The textile experts say there has been a constant dismal trend in textile exports over the past one year and both the energy cost and liquidity crunch have played havoc with the textile industry. They also talk about the government being un-proactive in responding to the textile industry problems.
“While competing countries have strengthened their industries by all ways and means to maintain their leading position in the region,” they said. However, they said they hope the availability of regasified liquid natural gas at $6.6 per MMBTU from March onwards will cut the energy costs of the textile industry, particularly in the Punjab. “The availability of working capital from banks can improve the situation further to revive the export potential,” they said