KARACHI: The world’s fourth largest cotton producing country, Pakistan, saw another dismal year registering 8% decline in textile exports in the past year, whereas exports of non-cotton producing countries Bangladesh and Vietnam surged significantly. Excluding ready-made garments, exports of all other textile segments went down drastically in Fiscal Year 2015-16 (FY16) including raw cotton, cotton yarn, cotton cloth, and the like.
Stakeholders termed the federal government totally responsible for this worrying situation, saying that poor policies of the incumbent government had brought Pakistan’s most valuable sector on the verge of collapse. Increased sales tax led to piling up of exporters’ refunds with the tax department. Further, due to imposition of 10% regulatory duty on yarn imports from India, the cost of doing business, and consequentially the price of domestically produced yarn increased manifold, they added.
Meanwhile, All Pakistan Apparel Forum (APAF) has written a letter to the Prime Minister of Pakistan appealing to revive the exemption of regulatory duty on import of cotton yarn. APAF is a joint forum of Pakistan Hosiery Manufacturers & Exporters Association, Pakistan Knitwear and Sweater Exporters Association, Pakistan Cotton Fashion Apparels Manufacturers & Exporters Association and Pakistan Readymade Garments Manufacturers & Exporters Association.
Chairman APAF Muhammad Jawed Bilwani said the government had admittedly succeeded in boosting the foreign exchange reserves and also achieved their revenue target for Fiscal Year 2016, however, the rapid decline in exports was a matter of great concern.
The value added textile sector, which is a backbone of Pakistan’s economy with more than 50% of total exports and provides the highest levels of employment, is presently battling for its survival in the global market against stiff competition from neighbouring countries.
‘Globally, there is no duty on import of raw material as duty is imposed only on export of raw material, therefore we request you to revive exemption of regulatory duty on import of cotton yarn which was issued via Notification SRO 15(l) 2010 dated 6th January, 2010. Kindly once again allow exemption of regulatory duty’, requested Bilwani.
According to Pakistan Bureau of Pakistan (PBS)’s data, textile exports of Pakistan to world declined by 7.42% to $12.46 billion in Fiscal Year 2016 as against $13.46 billion in corresponding year. Ready made garments registered 4.83% increase to $2.19 billion compared to $2.09 billion in Fiscal Year 2015.
Export of raw cotton declined massively by 48%, cotton yarn exports dipped by 32%, cotton cloth’s export decreased by 10%, cotton cord went down by 98%, yarn other than cotton yarn fell by 24%, knitwear exports decreased by 2%, bed wear dropped by 4% and towels’ exports saw a 0.41% decline.