Textile export of $4 million in doldrums
01 December, 2011
FAISALABAD: Textile export orders worth $4 million for Christmas sales destined to Europe and USA are going to be defaulted due to 3 days a week gas shutdown and phenomenal increase in prices of electricity, gas and petroleum products.
These apprehensions were expressed by the Chairman Pakistan Textile Exporters Association Rana Arif Tauseef while talking to newsmen here today. Christmas season export consignments are extremely important for textiles as huge quantities of home textiles, made ups and garments are bought by European and American consumers to cater the needs of retailers and cost conscious customers who plan to buy their winter season cloths during the month of December, he explained.
Foreign wholesalers and importers place bulk orders to fill their inventory racks in autumn season in anticipation of Christmas boom every year. Buying orders for textile goods placed with Pakistani textilers were under manufacturing process but gas outages were hindering the completion and timely delivery of export consignments.
Frequent increase in the prices of electricity and gas were also adversely affecting the textile exports, he contended and added that these hikes were spiking the cost of production, making textile exports costly. PTEA chief stressed that with the induction of new world trade order, international trade scenario has become wide open and all the nations of the world were competing to get a foot hold in the consumer markets.
Pakistani traders export goods according to international standards but due to gas supply shortages and frequent hikes in energy prices, they were not able to compete with rival exporters of textiles. Rana Arif lamented the fact that Bangladesh despite being a non cotton producing country was fetching more forex from textile exports than Pakistan.
This was due to favourable industrial and export policies of their Government and facilitation in supply of raw materials and inputs at low cost enabling the Bangladeshi exporters to compete successfully.
But the exporters in Pakistan were highly handicapped due to unreliable raw material prices, protective duties on alternative raw materials, dyes and chemicals and other inputs topped by severe energy shortages capped with frequent price hikes and inadequate availability of monetary assistance coupled with blockage of exporter’s working capital in various refund and drawback regimes. In such situation, it was praiseworthy of Pakistani exporters for keeping on their exports and earning precious and much needed forex for their country.
Rana Arif urged the Government to take immediate remedial measures to stop gap the declining trend in textile exports and facilitate the exporters providing necessary raw material and inputs at cheaper rates and to assure uninterrupted energy supply at low cost and provide monetary assistance, viable financial credit, rapid drawback and refunds, peaceful law and order and industry working conditions to help boost the country’s exports and strengthen the economy.