Pakistan: Textile Exports Drop By 2.5%

The Pakistan Bureau of Statistics announced Thursday that exports of 2007-08 textile and clothing fell by 2.5% to $10 billion 561 million, compared with exports of $10 billion 787 million during the same period last year.

Although the overall performance of the textile and garment industry is very poor, the export target of US $19 billion 200 million has been completed because of unexpected growth in the export of non textile products.

Exports of non textile products increased 39.9% from last year's US $6 billion 818 million 900 thousand to US $8 billion 659 million.

During the reporting period, exports increased by US $2 billion 240 million over the same period last year, making specific contributions to non textile exports.

In non textile products, rice exports increased by 61.53%, oil products increased by 40.06%, sports goods increased by 4.23%, leather products increased by 24.05%, shoes increased by 8.21%, engineering products increased by 42.23%, and cement increased by 181.69%.

This shows that the export of the country is diversified, and the proportion of textile and clothing exports is now down to 55%, compared with 64% last year, but the state has provided billions of rupees to the textile and garment industry.

In 2007-08, non textile products increased sharply by 45%, up 36% last year, but the government did not provide any financial subsidies.

Analysts say this shows that subsidies are not a real problem, but the weakness of the textile industry structure must be solved.

This means that the production capacity of the textile industry has also reached a saturation point.

In addition to raw cotton and other textile materials, Chengdu, a major textile product group, has seen a negative growth.

Although the rupee has depreciated more than 20% this year, the currencies of other major competitive countries have risen sharply, such as India and China.

Moreover, the deterioration of the law and order environment is also the cause of export orders shifting to other countries.

Exports of products were subdivided. In 2007-08, clothing exports decreased by 3.16% to $1 billion 498 million, which was $1 billion 547 million last year, and cotton yarn decreased by 9.37% to $1 billion 294 million. Last year it was $1 billion 428 million, and bed sheets were reduced by 5.34% to 1 billion 887 million dollars. Last year it was 1 billion 995 million dollars, and cotton cloth was reduced by 4.64% to 1 billion 932 million dollars, which was $20 billion last year.

However, the export of knitted garments increased by 1.82% to $1 billion 831 million, up from $1 billion 789 million last year, and raw cotton increased by 38.85% to $69 million 737 thousand, up from 50 million 226 thousand dollars last year, and towel towels increased by 0.77% to 615 million 415 thousand dollars. Last year it was 610 million 720 thousand dollars, and the products of art, silk and textiles increased 16.74% to 489 million 982 thousand dollars. Last year it was US dollars, and finished products increased to US dollars.

In 2007-08, exports of cotton and combed yarn decreased 21.76% from last year to $12 million 320 thousand, up from $15 million 746 thousand last year, and non cotton yarn decreased by 27.06% to $49 million 162 thousand, up from 67 million 397 thousand US dollars last year.