Country likely to achieve $20bn textile export target: PTEA chief

FAISALABAD: Textile exports have bounced back after a sharp hit and likely to achieve the target of over US$ 20 billion mainly due to Government’s export-oriented policies and strong economic recoveries in the major export markets. Textile export industry is entering into a sustainable economic growth phase after attaining stability and will keep moving forward to achieve a high growth rate.

Expressing satisfaction on rising trend in country’s exports, the Chairman Pakistan Textile Exporters Association (PTEA), in a press statement here on Monday, said that country has seen a rapid recovery of exports since the removal of corona virus-related restrictions as its outbound shipments in recent months have actually risen faster than those of regional competitors Bangladesh and India.

October shipments have recorded highest ever average monthly level of US$ 2.465 billion as well as highest ever in a single quarter at US$ 9.461 billion; whereas textile exports posted a 24.24 per cent growth in October, rising to US$ 1.60 billion.

Same trend was observed in 1st quarter of FY 2022 as textile exports grew by 26.55% to US$ 6.021 billion, compared to US$ 4.758 billion during the same period last year. Higher textile exports came on the back of quantum growth in high value-added products, particularly knitwear, home-textiles, bedwear, towels and made-up articles.

Rejecting the negative propaganda that country’s exports have gone down in terms of quantity, he said that exports of bed wear increased to US$ 1091 to US$ 899.555 million, showing growth of 21.30 percent in value and was 185,126 M.T increased by 23.53% in volume, towels by 14.17 percent, from US$ 283.255 million to US$ 323.385 million in value and 7.75 % in volume from 66,545 MT to 71,701 MT, readymade garments by 22.34 percent, from US$ 947.070 million to US$ 1158.603 million in value and 20.5% in volume from 11,460 Th.Doz to 13,809 Th.Doz, made-up articles (excluding bedwear and towels) by 11.55 percent, from US$ 240.776 million to US$ 268.582 million whereas the exports of all other textile materials increased by 27.73 percent, from US$ US$ 249.956 million.

He pointed that at the same time raw cotton, cotton yarn and cotton cloth showed a declining trend. This is the indication that value-added sector is the main engine of growth. He demanded that unit of measurement (UOM) as benchmark should be in KG instead of Sq meters, Dozens etc in order to have true comparison of quantity exports.

He pointed out that export goods worth about US$ US$ 500 million were stuck at port due to unavailability of vessels or container release orders (CRO) and could not be shipped in October. This is now releasing and country will witness highest-ever export figure in coming months.

Appreciating Govern-ment assistance in gaining the continuous positive growth in exports, PTEA Chief said that Government is serious about pushing exports came up with export facilitation policies including Export Facilitation Scheme and competitive energy prices in the key export industries like textiles. These initiatives significantly helped to improve the liquidity conditions and enhanced the capacity utilization of the sector.

Reduction in weighted average tariff has reduced the cost of manufacturing, steamed up the industrialization, generated employment and enhanced exports. Tariff reforms should continue in the coming years, he demanded.

He said further, declining share of China in the US apparel market and shifting focus from apparel to global textile market had created room to Pakistan and other competitors to enhance their shares in apparel exports.

Textile export sector has picked up the momentum and the trend will continue in the coming months owing to an upbeat textile policy coupled with other growth measures announced by the Government. Growth rates are indicative signs of continued economic growth he concluded.

Copyright Business Recorder, 2021