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Exports of textiles, clothing slump

Exports of textiles, clothing slump

ISLAMABAD: Pakistan’s textile and clothing exports fell seven per cent year-on-year to $11.5 billion in the first 11 months (July-May) of this fiscal year, the Pakistan Bureau of Statistics said on Tuesday.

Exports of these products, which account for more than half of overall exports, stood at $12.4bn during July-May 2014-15. They have been on the wane for the last two years.

Exports of intermediate commodity like cotton yarn fell by 32.05pc in value and 32.02pc in quantity.

One reason behind the decline is that China’s demand for yarn and fabric is continuously diminishing. Cotton cloth exports declined 9pc in value, but grew 3.32pc in terms of quantity during July-May 2015-16 as compared to the same period of last year.

Raw cotton exports dropped 48pc in value and 47.5pc in quantity during the period under review. Knitwear exports edged lower by 1.7pc in value but posted a growth of 12pc in quantity.

Exports of bedwear also fell 3.4pc in value but a slight growth of 1.7pc was observed in quantity. Shrinking global demand has affected the exports of textile items.

Export earnings of readymade garments grew 5pc in value and 4pc in quantity during the 11-month period under review. Towels exports fell 0.5pc in value, but posted a growth of 3.4pc in quantity.

The Ministry of Commerce believes that the grant of GSP+ status by the European Union has had a positive impact on exports of readymade garments, both in terms of value and quantity.

In low value-added products, exports of carded cotton fell 98pc in value, yarn (other than cotton yarn) 24pc and that of made-up articles (excluding towels and bedwear) by 3pc. Exports of all these products also declined in quantity.

Pakistan’s overall exports dropped 12.4pc to $19.2bn in July-May 2015-16 from $21.9bn a year earlier.

Oil and foodstuffs

Oil and eatables imports dropped 22pc to $11.7bn in July-May 2015-16 from $14.9bn a year ago.

Pakistan imported goods worth $40.3bn during the period under review as against $41.5bn, reflecting a decline of 3pc.

The import bill of food products rose 7pc to $4.9bn in July-May 2015-16 from $4.2bn a year ago, mainly driven by higher imports of soya bean oil, pulses, tea and spices.

Statistics showed that the oil import bill plunged 36pc year-on-year to $6.8bn during the period under review from $10.7bn.

Crude oil imports were down 44pc while those of petroleum products fell 32pc during the period.

Published in Dawn, June 22nd, 2016

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