Textile export target likely to be missed by $1.5 billion

The textile export target of $10.5 billion, set for 2009-10, is likely to be missed by $1.5 billion, following yarn shortage, increase in electricity and gas tariff, and unscheduled load shedding, Business Recorder has learnt. Sources in the textile industry said that an estimated target of $3.8 billion was fixed for apparels export, which is likely to touch $3 billion, registering a shortfall of $0.8 billion.
Similarly, estimated export target of $5.2 billion was set for other value-added sectors including fabrics, home textiles, towels, etc, which will touch $4.2 billion. And, an estimated export target of $1.5 billion was set for other raw material associated with the cotton sector.
Sources said that due to shortage and high prices of yarn in the local market, coupled with increase in electricity and gas prices, it seems difficult to achieve the desired targets. Chairman of Pakistan Cotton Fashion Apparel Manufacturers and Exporters Association, Dr Shahzad Arshad, said that the initial total export target was $22 billion, but later it was reduced by the government to $18 billion, of which textile sector contributes more than 60 percent.
He said that Pakistan missed the apparel export target for Christmas and, if measures were not taken to ensure availability of raw material, there would be a further shortfall in meeting Pakistani apparel export targets. Shahzad said that value-added garments sector including home made textile, towels, bedwear and fabrics was expecting orders of about $4 billion for spring 2010, against orders of about $3 billion placed last year.
However, due to shortage of raw material and unbridled increase in gas and electricity prices, the exporters have been unable to meet expectations. "The unscheduled interruption in electricity and gas supply are the other hurdles in utilising the full production capacity of textile sector", he said, adding that due to the prevailing law and order situation most foreigners did not place the usual orders for Christmas as well as for the spring 2010. He urged the government to do something on war footing to get duty-free entry of textile goods from Pakistan to USA and European Union markets.