“Textile exports show downward trend in September so far”
KARACHI: Pakistan’s textile exports have fallen about twelve percent so far in September from the same month a year earlier, The News learned on Wednesday.
Textile mills are struggling to increase their exports due to a host of problems, in particular the failure to open letters of credit for the import of spare parts and machinery.
This was revealed by textile industrialists in Karachi and Faisalabad, the country’s two main textile manufacturing centres, when approached about barriers to exports.
The high cost of cotton after its crop was badly damaged in Sindh due to flooding has also contributed to the difficulties in the sector.
“Textile exports have declined by 12% in the current month of this year compared to the corresponding month of last year,” said Asif Inam, Chairman of All Pakistan Textile Mills Association (APTMA)-South Zone. at TheNews.
The chief boss of the Faisalabad-based Pakistan Textile Exporters Association (PTEA) expressed concern over the drop in exports, while Zubair Motiwala, a textile miller, based in Karachi, also predicted the fall. exports given the textile crisis. industry.
Pakistan’s textile sector was on a growth trajectory in recent years and even survived the onslaught of Covid-19 when it managed to show growth during this difficult period.
But now, Inam said the textile sector was not only facing a cash crunch but also problems in opening letters of credit, as banks were reluctant to issue the necessary guarantee documents for the import of spare parts, machinery and raw materials. He pointed out that the problems were worse for the spinning sector, with units closing.
Motiwala also reiterated that letters of credit were not opened for raw materials and spare parts, which undermined plans for expansion and modernization of the sector. If the expansion did not take place, it meant that growth had stopped and it would also reduce exports of textile products, he said.
The gas crisis and high electricity bills are also behind the woes of the textile sector, he pointed out. “Textile exports cannot grow in the face of the shortage and high price of gas and electricity,” he added.
Khurram Mukhtar, however, said that the issues regarding HS 84 and 85 codes have been resolved by holding meetings with the State Bank of Pakistan, and this would pave the way for the clearance of spare parts.
In the first two months of the current fiscal year, total textile exports rose 4.2 percent to $3.056 billion from $2.93 billion in the same period last year. In the fiscal year ended June 30, 2022, the country’s textile exports grew by 26% to $19.3 billion compared to the corresponding month of the previous year.