KARACHI  - Textile exports depict an encouraging picture; the total textile exports of the country grew by 3.9pc Year-on-Year to $13.8 billion in FY14 as against $13.3 billion during the corresponding period of last year.

The major exports were made to EU by textile exporter as the same surged by 18pc YoY and reached to record level of $5 billion in FY14.

This was mainly due to GSP plus status (duty free access) awarded by EU. However, by excluding EU, the textile exports posted a decline of 3.5pc during the said period, said an InvestCap report. During the outgoing year cotton cloth remained the major product which supported the overall export followed by knitwear, bed wear, cotton yarn and readymade garments. About major negatives for textile exports, the report states, due to highly sensitivity with the US dollar, local textile exports are taking hit of rupee appreciation against US dollar. Although, the government incentivised the sector with offering low interest rate loan to exporters but most of the exporters are unable to utilise the said facility therefore hitting their margin. Moreover, strengthening PKR is making the local textile product less competitive in the international market.

Power crisis, the local textile is also facing the hurdle from power and gas outages which is not only hitting production but also increasing the cost of production as companies have to rely on costlier furnace oil to run their generators.

Law and order situation another factor- the ongoing military operation in North Waziristan is increasing the risk of safety therefore business activities seem shrinking in the country.