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News Clips 23 June, 2015

 Non-textile exports dive in July-May ]
[ Textile becoming a thing of the past: APTMA ]
[ Decline in textile exports irks Senate panel ]
[ Readymade garments export registers 8.51pc increase ]

Non-textile exports dive in July-May   [ top ]

DAWN, June 23, 2015
ISLAMABAD: Pakistan’s export of non-textile products witnessed a negative growth of 9.62 per cent during the first 11 months of the outgoing fiscal year from a year ago. Export proceeds from these products fell to $9.472 billion in July-May 2014-15 from $10.480bn in the corresponding months of last year, suggested data compiled by the Pakistan Bureau of Statistics. Last year, export of non-textile products reached $11.40bn from $11.42bn in the previous year, showing a decline of 0.18pc. Product-wise details showed a decline of 11.01pc year-on-year in export of petroleum products. Exports of petroleum products witnessed a decline of 23.51pc, led by naphtha, during the period under review. However, exports of petroleum crude witnessed an increase of 100pc. Export of carpets and rugs witnessed a negative growth of 4.80pc during July-May 2014-15 period of this fiscal year from a year ago. Export of sports goods dipped by 8.29pc year-on-year during the months under review. Foreign sales of footballs were also down by 12.49pc. Export of tanned leather witnessed a negative growth of 9.52pc in July-May 2014-15 from a year ago. Leather products’ export declined by 4.37pc during the period under review. 

All value-added leather products witnessed decline in exports in July-May. However, export of leather gloves witnessed a growth of 8.35pc during the period under review.

Export of footwear swelled by 11.90pc, mainly driven by 12.51pc increase in export of leather footwear. This is the only sector which witnessed an impressive growth during the period under review compared to a year ago.

The growth in footwear was mainly because of preferential market access in the EU market because of GSP+ scheme.

Export of surgical goods and medical instruments went up by 1pc. However, export of engineering goods dipped by 29.50pc. 

Year-on-year export of gur was down by 14.85pc, cement 9.94pc, molasses 61.03pc, and jewellery 97.91pc. However, exports of furniture increased by 5.20pc and handicraft 447pc during the period under review. 

In the food basket, export of rice declined by 5.53pc. The decline was witnessed in export of basmati. However, export of non-basmati rice grew by 3.79pc during the period under review.

Export of oil, wheat, tobacco, leguminous vegetables, and vegetables also witnessed decline during the period under review. 

Textile becoming a thing of the past: APTMA   [ top ]

Business Recorder, June 21, 2015
All Pakistan Textile Mills Association is saying it is worried about a declining trend in exports of the textile industry and that the industry is fast becoming a "history since the government has turned its back" on it. "The association has blowing the whistle constantly over decline in the textile industry exports but the government has done little to arrest the trend," he added. 

"Latest export data from the Federal Board of Statistics has revealed that textile exports have registered a decline of six percent in value terms in May 2015 against the corresponding period. In quantity terms, exports of cotton cloth, towel and art, silk and synthetic textile have also lost their positions against the corresponding period." 

He said textile and clothing exports were stagnant since 2006 against regional competitors, doubling their exports. "High cost of doing business and absence of conducive environment has impaired a 30-percent production capacity resulting into loss of textile exports worth $3325 million. Issues like gas and electricity supply cuts, energy affordability, incidentals of taxation and over-valued Pak rupee have hampered growth and textile industry has been left behind technologically in the region." 

He has urged the government to ensure zero rating of export-oriented textile industry for all incidentals including taxes, duties, surcharges, levies and cess by extending drawbacks receipts realised by the State Bank of Pakistan at five percent on yarn, 10 percent on fabrics and 15 percent on made-ups and garments and to provide support of long-term finance facility for replacement of old machines in textile mills. 

Decline in textile exports irks Senate panel   [ top ]

Business Recorder, June 20, 2015
The Senate Standing Committee on Textile Industry Friday expressed serious reservations over 14 percent decline in textile exports during the current year saying that such a situation predicts that the government would not be able to take full advantage of GSP + granted to Pakistan. The committee met with Mohsin Aziz in the chair where it was informed that textile exports during last nine months stood at $1.37 billion with 14 percent decline in overall textile-related products export. 

The senators were of the view that non-existence of full-time minister contributed to decline in exports. They recommended the government to appoint full-time minister for textile sector as the development of whole economy depends on textile sector. Members of the committee said that GSP + facility will not give any incentive to Pakistan if the textile sector could not perform well. Non-provision of gas and power load shedding especially in Punjab was responsible for decrease in textile related products and its exports. 

Briefing the committee about the ministry and its attached departments, Secretary Ministry of Textile Aamir Marwat said that Rs 15 million have been collected annually under Textile Cess, however, efforts were afoot to increase the collection. Chairman of the committee expressed serious concerns that despite assurance from government side to double textile export, the government failed to do so and in presence of GSP+ facility the textile export declined. Such a situation is of great concern for the policymakers of the country. The chairman expressed apprehension that if the situation remained the same, there is a possibility that the government may waste the GSP+ facility. 

The committee also expressed serious apprehensions over short supply of gas have badly impacted Pakistan''s economy. Senator Hari Ram informed the committee that India provide subsidy on textile and wheat production but in case of Pakistan the situation is totally opposite. India increased its textile production three times during last 13 years however in Pakistan the increase in cotton production is very nominal. 

Secretary Textile told the committee that since 2005, the government spent Rs 3.6 billion on Karachi Textile City but only land was acquired so far. He also told the senators that K-electric wants to establish coal-based power generation plant and acquired 200 acre land out of total 1,250 acres for Karachi Textile City. 

Chairman of the committee suggested that the government may provide more incentives to Karachi, Faisalabad and Lahore textile cities and encourage small capitalists to invest there. The chairman also suggested for enhanced textile sowing areas and maintained stability in textile products. About Faisalabad Textile University, the committee directed that machinery in the university should be upgraded so that the engineers may get their training on these machines. The committee directed to provide details of Pakistan Central Cotton Committee (PCCC) Multan and Pakistan Cotton Standard Institute in next meeting of the committee. 

Readymade garments export registers 8.51pc increase   [ top ]

The Nation, June 22, 2015
The readymade garments export has registered an increase of 8.51 percent in terms of value with 22.843 million dozens various types of items worth $ 1548.282 million during first three quarters of this year.

The number of various types of readymade garments exported during the same period last year was 21.434 million dozens and their worth was $ 1426.826 million. According to official data, the readymade garment industry has emerged one of the important small scale industries in the country with demand both at home and abroad. The local requirements of readymade garments are almost met by this industry.

The garment industry is also a good source of providing employment opportunities to a large number of people at a very low capital investment. It mainly uses locally produced raw materials.

Most of the machines used by this industry are imported or locally made and assembled.

The data reveals that production of garments by units depends on export orders directly or indirectly and these orders have somewhat risen in terms of value, but they have fluctuated widely in terms of quantity.