Big demand, costly cotton lift textile exports to $8bn
18 March, 2011
KARACHI: Rising demand and record cotton prices pushed Pakistanís textile exports higher by 21 percent to around eight billion dollars during July-February period of current fiscal year, the central bank data showed on Thursday.
KARACHI: Rising demand and record cotton prices pushed Pakistan’s textile exports higher by 21 percent to around eight billion dollars during July-February period of current fiscal year, the central bank data showed on Thursday.
Analysts said many textile producing countries failed to meet the global demand due to inclement weather hitting their crops on a massive scale, allowing Pakistan to fill the supply gap.
“Poor cotton crop in most parts of the world hit the global textile industry and buyers turned to Pakistan to keep their supplies intact,” said Dr Ayub Mehar, a former chief economist at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI). But, Mehar was quick to warn that the benefit can be temporary if manufacturers fail to keep their new buyers satisfied.
The other factor that pumped the growth in textile exports was the phenomenal increase in the global price of cotton, which helped the exporters fetch better return on their produce.
“The cotton prices hit a record level in world markets this year,” an analyst at JS Research said.
Pakistan’s textile sector is bogged down with problems like energy shortage, high interest rates and lingering economic and political issues. Experts say the issues must be addressed on priority for a sustainable growth in exports.
The central bank provisional data showed that the growth in exports was mainly in finished items and raw materials. In terms of value, the main contributor in textile exports was knitwear, which rose to $1.73 billion during July-February 2010/11.
Export of cotton cloth grew to $1.473 billion, besides healthy rise in exports of bedwear, cotton yarn and readymade garments.
Analysts said that the European Union member countries bought Pakistani products despite regulatory issues as other exporting countries failed to supply goods. The products shipped to the EU include bedwear, readymade garments and knitwear.