Export orders for garments for the Christmas season have dropped by 30 to 40 per cent while production cost has increased due to 10-15 per cent rise in yarn prices, exporters say.
They say they are disappointed because despite offering competitive prices to foreign buyers, the importers are reluctant to place orders considering Pakistan an unreliable supplier.
Pakistan Readymade Garments Manufacturers and Exporters Association’s former chairman Ejaz Khokar said the exporters had never failed in meeting export orders on time. He said they tried to convince foreign buyers that terrorist activities had not impacted productive sectors of the economy.
During his recent visit to Europe and the US, he disclosed, the foreign buyers said they could not risk their Christmas sales due to acute power shortage in Pakistan, adding exporters from competing economies like India and Bangladesh were highlighting the power crisis in the country.
Khokar said garment orders for Christmas this year were 40 per cent less than last year. Average garment exports for Christmas amount to $1.2 billion, which will fall to $750-800 million this year.
On the other hand, he said, when the exporters persuaded the foreign buyers to book some orders, yarn rates were increased abruptly in the local market. The price of 10 count yarn has increased from Rs575 to Rs670-680 a kg.
Leading knitwear exporter MI Khurram said it would be impossible to achieve the export target this year. The value added textile sector, which accounts for over 25 per cent of total exports, is facing a shortfall of 40 per cent in export orders.
He said summer sales had declined by 40 per cent and orders for coming Christmas sales had also dropped by the same margin, adding cotton prices were on the rise on rumours of leaf curl virus attack which would further push up yarn rates.
Another textile exporter Sheikh Zafar Mehmood said he had received 30 per cent less orders compared to last year and the abrupt increase in yarn prices had badly impacted his financial viability. Yarn prices rose from Rs675 per kg a month ago to Rs810 per kg. Even last week, the prices were Rs720.
He said his enterprise would honour export commitments, but it would not be possible to accept more orders if yarn prices remained high.
All Pakistan Textile Mills Association (Punjab) Chairman Akber Sheikh attributed the volatility in yarn prices to undeveloped domestic commerce. Narrating his personal experience, he said a local bank refused to make payments on the goods supplied against a letter of credit on the plea that the buyers had not made payments.
He said local suppliers could not enter into time-bound agreements with local buyers because they refused to take delivery if prices went down. Similarly, the suppliers stopped supplies if prices went up. “This is hampering long-term planning of the exporters who buy inputs from local markets.”
He said the central bank should take measures to regulate and strengthen domestic commerce for a sustained economic growth.
They say they are disappointed because despite offering competitive prices to foreign buyers, the importers are reluctant to place orders considering Pakistan an unreliable supplier.
Pakistan Readymade Garments Manufacturers and Exporters Association’s former chairman Ejaz Khokar said the exporters had never failed in meeting export orders on time. He said they tried to convince foreign buyers that terrorist activities had not impacted productive sectors of the economy.
During his recent visit to Europe and the US, he disclosed, the foreign buyers said they could not risk their Christmas sales due to acute power shortage in Pakistan, adding exporters from competing economies like India and Bangladesh were highlighting the power crisis in the country.
Khokar said garment orders for Christmas this year were 40 per cent less than last year. Average garment exports for Christmas amount to $1.2 billion, which will fall to $750-800 million this year.
On the other hand, he said, when the exporters persuaded the foreign buyers to book some orders, yarn rates were increased abruptly in the local market. The price of 10 count yarn has increased from Rs575 to Rs670-680 a kg.
Leading knitwear exporter MI Khurram said it would be impossible to achieve the export target this year. The value added textile sector, which accounts for over 25 per cent of total exports, is facing a shortfall of 40 per cent in export orders.
He said summer sales had declined by 40 per cent and orders for coming Christmas sales had also dropped by the same margin, adding cotton prices were on the rise on rumours of leaf curl virus attack which would further push up yarn rates.
Another textile exporter Sheikh Zafar Mehmood said he had received 30 per cent less orders compared to last year and the abrupt increase in yarn prices had badly impacted his financial viability. Yarn prices rose from Rs675 per kg a month ago to Rs810 per kg. Even last week, the prices were Rs720.
He said his enterprise would honour export commitments, but it would not be possible to accept more orders if yarn prices remained high.
All Pakistan Textile Mills Association (Punjab) Chairman Akber Sheikh attributed the volatility in yarn prices to undeveloped domestic commerce. Narrating his personal experience, he said a local bank refused to make payments on the goods supplied against a letter of credit on the plea that the buyers had not made payments.
He said local suppliers could not enter into time-bound agreements with local buyers because they refused to take delivery if prices went down. Similarly, the suppliers stopped supplies if prices went up. “This is hampering long-term planning of the exporters who buy inputs from local markets.”
He said the central bank should take measures to regulate and strengthen domestic commerce for a sustained economic growth.
