KARACHI: Pakistan’s textile industry is anticipating stunning growth of about $4.0 billion in the exports of its products in 2010-11 attributable to the increased value of products, quantitative growth and market access to the EU and China.
In 2009-10 the exports of textile products amounted to $10.40 billion while in 2010-11, the sector’s exports are forecast to touch $14.40 billion, sources indicated to Pakistan Today on Tuesday. In the period July 2007 – June 2008, textile exports stood at $10.62 billion.
In the first four months of FY11, the textile exports have exhibited growth of $786 million (28 percent in term of rupees). With regards to the value of exports, they rose to $4.107 billion from July-October 2010 as compared to $3.321 billion in the corresponding period of FY10. In the remaining period of the current year, apparel exports are expected to gather steam in the wake of a 15-25 percent rise in their value in the international market and a significant growth in sale volumes, said sources.
Recently, the European Union (EU) granted enhanced market access to Pakistani textile products, allowing exporters to gain further ground in an important market. Exporters have also indicated that textile exports to China are expected to pick up in FY11 and have a positive effect on the exports bill.
“Keeping in view several positive developments, the APTMA had estimated an increase of approximately $4.0 billion in textile exports in 2010-11,” an exporter opined. Official data also leads to the conclusion that from July- 2010, the exports of readymade garments showed an increase of 38.41 percent over last year’s comparable period and surged to $541 million. Cotton cloth also expanded by 26 percent in terms of US dollars and exports went up to $734 million in this fiscal, from $580 million in July- period of last fiscal years.
Demand for Pakistani knitwear, bed-wear and towels has also surged by 22 percent, 15 percent and 13.64 percent, respectively in first four months of this fiscal period. In terms of value, knitwear exports generated $753 million, bed-wear contributed $664 million while towels fetched 244 million dollars from July-October 2010.
There achievements must be placed in the backdrop of the damage wrought by massive floods, the marked rise in the price of cotton and Indian reluctance to fulfill contractual commitments of supplying one million bales to Pakistan. In this context, Pakistan exporters have not only met orders, but have maximised exports.
While Indians have shirked Pakistani cotton buyers, manufacturers have met the shortfall by turning to cotton exporters in United States, Egypt and the Central Asian states to meet a deficit of four million bales, an exporter pointed out. It is noteworthy that cotton prices in the international market touched a new peak of $1.75 per pound last Friday, driven by speculative buying.
In the past two weeks, prices have risen by 12 percent, from $1.55 per pound to $1.75. The rally was driven primarily by speculation that India was deliberating upon whether to extend its shipping period of three million bales of exports beyond 15 December, 2010 or cancelling all unshipped cotton contracts to offer those as renewed sales.
Minister tries to placate APTMA: Federal Textile Minister Rana Farooq Saeed Khan scrambled to placate textile manufacturers angered by persistent gas load-shedding and raised tariff rates, sources told Pakistan Today. The textile minister rushed to Lahore and held an important meeting with the All Pakistan Textile Mill Association (APTMA) members to address major issues concerning the industry, sources indicated.
Textile Ministry Federal Secretary Dr Waqar Masood and other senior officials of the ministry also accompanied the minister in his meeting with APTMA representatives. Gas supply cuts, an expected hike in the gas tariff from January 2011 and the reluctance of Indian exporters to supply cotton to Pakistani importers (mainly textile producers) are dominating the agenda of the meeting, sources added.
Sources said the industry will observe a total strike in case gas cuts continue to hurt both exports and industry.
