The export of textile products declined by 10.29 per cent to $2.449 billion during the first quarter (July-September) of the current fiscal year against $2.73 billion over the same period last year.
Official figures released here on Monday showed that export of almost all textile products except cotton yarn and cotton carded recorded a negative growth despite the massive subsidy and support package, which the government had announced for propping up the export.
Analysts projected further decline during the second quarter (October-November) because of what they termed the government ill-conceived policy and said that the policy had created an export bias towards the textile industry. They said that the subsidy programme had only helped in reducing the price of Pakistani products abroad.
Interestingly, the market share of countries selling expensive products swelled during the first year after the end of quota regime, like India and China, especially in the European Union countries. Pakistani products, depite being offered at lowest prices, failed to gain foothold in the EU market.According to analysts, it indicated that Pakistani manufacturers were neither focusing on improving their products?quality nor their timely delivery.
The overlapping functions of three ministries -- commerce, textile and textile industries -- also hindered export promotion. The government had established a separate ministry to improve the quality, enhance production of textile industry but the textile ministry has so far only focused on getting subsidies, ostensibly for increasing exports. Increasing exports and securing greater market access for products was the duty of the commerce ministry.
Details break-up of figures for export of textile products showed that the export of readymade garments declined by 7.84 per cent during the first quarter of the current fiscal against figures for last year.
The export of raw cotton and cotton cloth declined by 56.16 per cent and 14.61pc, respectively. The export of cotton yarn rose by 19.57pc during this period.
The export of knitwear, bedwear and towels decreased by 10.08pc, 19.06pc and 4.82pc, respectively, during the quarter under review against the same period last year. The export of made-up articles, including other textiles, declined by 33.54 per cent, art, silk and synthetic textile by 24.57 per cent, and other textile materials was reduced by 16.89 per cent during July-Sept 2006, over the same period last year.
