Pakistan’s textile exports while continuing downward journey had declined by 1.54 percent during four months (July to October) of the financial year 2014-15 mainly due to the deteriorated power crisis prevailing in the country.

The country has exported textile made goods worth of $4.6 billion during July-October 2014-2015 as against $4.7 billion of the corresponding period of the previous year registering decline of 1.54 percent, according to the Pakistan Bureau of Statistics (PBS). Textile sector of the country is confronting with longstanding issue for last few years, which resulted in less exports of the textile sector despite Pakistan received GSP plus status from the European Union.

The government was anticipating enhancing country’s exports by $1 billion annually following getting GSP plus status. However, things moved in opposite direction, as exports plunged in last several months mainly due to the ongoing energy shortage. The country’s overall exports have shrunk by 6.86 percent in July-October to $7.98 billion from $8.56 billion of the corresponding period last year.

However, the government seems unable to address the business community problems in short-run, as it could not provide gas to the textile units due to scarcity of gas in the country despite Prime Minister Nawaz Sharif had taken notice in this regard. A high-level committee constituted by premier under the chair of Finance Minister could not make consensus regarding supplying gas to the textile industries. The government believes that domestic consumers would face worsen gas loadshedding if it provided to industries in winter season.  Sources in All Pakistan Textile Mills Association (Aptma) informed exports would further decline in next three four months due to the unavailability of gas to the textile units.

 “Industry is apprehended to lose a total of $2.5 billion exports in case the industry remains non-operational during winter”, said a representative of the Aptma. He added that such a situation would create havoc in the industry, as it would inflict negative impact on the country’s exports.

According to the PBS figures, textile exports had recorded increase of 6.51 percent in October 2014, as it registered at $1.18 billion in last month against $1.11 billion of the corresponding period last year.

The PBS data showed that export of raw cotton registered a negative growth of 8.28 percent, cotton yarn 17.1 percent, cotton cloth 15.64 percent, cotton carded or combed 96.06 percent, yarn 13.36 percent and bed wear 0.72 percent. Meanwhile, following of the commodities recorded positive growth: knitwear 10.89 percent, towels 4.23 per cent, tents, canvas & tarpaulin 159 percent, readymade garments 8.11 percent, art, silk & synthetic textile, 33.42 percent, madeup articles 1.77 percent, other textile materials 13.78 percent during the four months of 2014-2015.

Meanwhile, according to the data, the country had spent $1.21 billion on exporting food commodities during the month of July-October 2014. The break-up of food group showed that following food commodities have recorded negative growth: rice 4.23 percent, fruits 12.2 percent, vegetables 41.73 percent, pulses 100 percent, tobacco 17.64 percent, wheat 100 percent, oil seeds, nuts and kernels 24.59 percent, meat and meat production 13.07 percent, and all other food commodities 13.29 percent during the period under review. However, spices recoded growth of 13.83 per cent sugar 122.52 percent.

According to the Pakistan Bureau of Statistics, the country had spent $5.07 billion on importing oil during four months of the current financial year, which is 1.79 percent lesser than the imports of same period of last year. The break-up $5.07 billion showed that country imported petroleum products worth of $3.19 billion and petroleum crude $1.88 billion.