Achieving export target of $25 billion appears to be a Herculean task in the perspective of $7.61 billion export performance in the first five months of current fiscal. This was opined by the Chairman Pakistan Textile Exporters Association (PTEA), Khurram Mukhtar and Vice Chairman, Sohail Pasha talking to newsmen here on Tuesday.
Exports of the country are declining month on month basis. In July it declined by 20.78 percent, August 5.21 percent, September 14.15 percent and October 8.18 percent, they said. Similarly Textile Exports are also plunging every month. In July, it recorded decrease of 12.07 percent, August 4.54 percent, September 16.85 percent and October 19.37 percent.
Export of Value Added items also showing down ward trend during the first four months. In first four months period of July-October, export of Bed sheets declined by 9 percent, Towels 9.82 percent, Knitwear 7.94 percent, Made Ups 7.15 percent and Garments 3.02 percent. If the above trend continues in the remaining months of the financial year then the export target seems to be a far cry, it was contended.
This situation has come about, as a natural consequence of lop side policies of allowing free for all in export of basic raw material of Cotton and Yarn, they said. Unbridled export of Yarn has not only created supply crunch but also escalated the prices in the domestic market to unprecedented heights.
The price of 20 single Yarn have touched on all time high mark of Rs 850 per bundle, they stated. Talking cue from the trend in Cotton Yarn prices, Polyester Fiber prices were also raised. Despite the fact that prices of Polyester have come down internationally and in China.
With abnormal high jump in raw material prices, the cost of Value Added textile products enhanced enormously and the export of finished goods become unviable in the face of tough competition in the international market and hence the over all decline in exports of Textiles, it was analysed.
PTEA had time and again pleaded that only surplus raw material should be exported after fulfilling the requirements of the domestic industries, they stated. We had pleaded that buffer stock should be created and accumulated surplus over the years should only be exported.
The PTEA leaders contended that over the competitor countries were quick to apply halt to export of basic raw material in case the domestic industry was hurt. By exporting our precious raw material, we were doing double damage of feeding our own rivals and starving our own industry, they said. With export of our precious raw material, we were depriving our workers and millions of families their livelihood by rendering them jobless, they said.
