According to the details, exports of cotton decreased by 29.36 percent in value terms and 12.99 percent in quantity. While the cotton cloth exports also declined by 14.45 percent in value and 37.57 percent in quantity, exports of bed wear dropped by 16.94 percent in value and 15.15 percent in quantity, towels exports went down by 19.03 percent in value and 23.51 percent in quantity, exports of garments slid by 5.20 percent in value and 12.57 percent in quantity..The only item showed increase was knitwear sector with 28.53 percent increase but 7.41 percent decline in value. In spite of that European Union had granted GSP concessions to Pakistani textiles under which Pakistan could export its textile products duty free to EU markets. Pakistan’s exports to the European Union (EU) have increase 29 percent during January to September 2014, after receiving the Generalized Scheme of Preferences (GSP) Plus from the EU. But the real potential of the facility could not be materialized due to a severe energy crisis since April 2014. There was surge in exports to the EU during the first three months followed by a constant decline. Pakistani exporters could not avail this opportunity to benefit from this concession because of several problems such as electricity and gas shortages that reduced the productivity of units.”.The units were unable to meet the demand of foreign buyers. The Association said that the distribution companies coupe this shortfall through appropriate planning by taking stock of actual demand area wise, industry wise and market wise. On the other hand, All Pakistan Textile Mills Association (APTMA) has appreciated the government decision of imposing regulatory duty (RD) of 10 percent on yarn and fabric as wise and justified decision. This decision would save the textile industry of Pakistan where 40 percent capacity of spinning, weaving and processing mills had been closed down. This can be proved by the financial results for the first quarter of 2015-16 of textile companies in spinning; weaving and composite units that had shown around Rs40 million loss on an average. About 27 basic textile mills losses compelled them to close their units.”.Earlier APTMA demanded imposition of 15 percent regulatory duty on the import of subsidized fine count cotton yarn, particularly from India. The Indian textile industry manufacturers get a subsidy of Rs26.72 per kg in the form of lower interest rate, value added tax benefit, duty exemption on electricity bills, reduced transportation cost of cotton and yarn and power cost besides central subsidies. The total value comes to around Rs 120 million per annum for a mill of 25,000 spindles. The annual import of fine count cotton yarn from India reached 30,000 ton in 2014 against 6,500 ton in 2012. Import data of the first six months of the current FY indicated that 3,000 ton per month is coming into Pakistan from India.
Date:11/7/2015
Source:Lubbock Avalanche-Journal