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Textile Ministry caught napping as exports plunge
Oct '09
The Federal Government of Pakistan despite declaring the first ever textile policy and which was expected to provide an impetus to the distressed textile sector has been caught napping as exports from the industry, in the period July-September, have fallen by 11.43 percent.

The textile industry is the highest export revenue generator from the country along with also being the biggest employer among all industrial sectors of the country.

Cotton prices have hit the roof in recent days as exports are surging from the sector. The increase in prices is worrying the textile industry, as this has the potential to hit margins very badly and in turn exports could also get affected if they are not able to meet buyer's demands with concern to prices.

The July-September period is the first quarter of the new fiscal year and in the period, exports of cotton fabrics has fallen by 35 percent, bedwear 15 percent, knitwear 13 per cent, tents and canvas 33 per cent and overall the sector experienced a decline of 11.4 per cent.

Cotton production in the current season is not expected to cross 12 million bales, while the textile industry consumes around 15-16 million bales, which means a shortfall of 3-4 million bales. Unrestricted raw cotton exports could aggravate the issue further, say experts.

Fibre2fashion News Desk - India

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