Textile exports disappoint yet again

The recently released textile export numbers paint a bleak picture of the sector. Even though there was an increase of 24 percent and 30 percent on a year-on-year and month-on-month basis respectively in June-17; overall textile exports remained almost stagnant showing a measly increase of 0.4 percent for FY17 over the previous year.

More alarming is the fact that the FY17 figure of $12.45 billion is 6 percent lower than the previous 3 year average number of $13.2 billion. The slide continues as all the prescriptive advice falls on deaf ears in policymaking quarters.

The value added garments sector and bedwear were the only areas that registered positive growth while cotton yarn, cotton cloth, knitwear, towels as well as the others segment registered negative or stagnant growth. The garments sector registered an increase in exports of 6 percent for FY17 on year-on-year basis.

The All Pakistan Textile Mills Association (APTMA) revealed in a recent presentation that Pakistan has lost its global textile export share by 23 percent which poses serious risks to the future sustainability and viability of the textile industry in the country.

It was also of the view that implementation of the PM’s export package is yet too implemented in letter and spirit. For despite a shortfall of cotton there has been re-imposition of a 4 percent customs duty coupled with a 5 percent sales tax.

The entire textile industry has been desperately asking for the release of pending refunds, implementation of the export package, continuation of zero-rating regime, appointment of a Textile Minister, and lowering of energy tariffs –the major issues that have sank the industry. But there has been little progress on these fronts and with every passing day the country loses out on more international markets. It seems for now the slide will continue given the political turmoil the government is in, improving textile exports will surely be on the back-burner.