Overview of the cotton & textile industry

12 Jun '08

4 min read

In other words, Pakistan's textile exports could not benefit from higher international prices. The dismal performance of textile exports can be attributed, beside their structural issues, to rising cost of production owing to increase in domestic cotton prices and stifling power shortages; the deteriorating law and order situation in the country resulting in reported diversion of export orders to other countries; poor quality of cotton on account of contaminated cotton issue has also adversely affected the export of the spinning industry.

Furthermore, textile exports appear to have also suffered from the slow down in the US economy which has been the largest destination for Pakistani exports during the last few years. Export of the petroleum group, accounting for 6 percent of total exports, contributed 18.2 percent in the overall exports growth for the year. Export of petroleum products and Naphtha registered an impressive growth of 83 percent and 16 percent, respectively.

Unlike textile manufactures, exports of other manufactures, accounting for 19 percent of total exports, posted a stellar growth of 33.2 percent in the current fiscal year. Accordingly, it contributed over 50 percent to this year overall exports growth. The major performers under this category of exports include leather tanned; leather manufacturer.

The performance of textile manufacturers has been far from satisfactory during the fiscal year 2007-08. This point's to the fact that a natural diversification of exports is underway and Pakistan appears to be moving away from conventional textile products to new non-conventional items such as other manufactures, petroleum products and food group.

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