Pakistan’s textile exports are on a downward spiral and don’t show signs of improvement for 2017.
Last year, the nation’s textile exports decreased by $600 million due to Pakistan’s trade deficit of $28.3 billion, the Daily Times reported.
All Pakistan Textile Mills Association (APTMA) chairman Aamir Fayyaz said textile exports could further decline by $1.2 billion in 2017 if the government doesn’t execute policy changes on exports and energy expenses.
“This gap cannot be bridged until export-led growth policy initiatives are undertaken at the earliest,” Fayyaz said. “Due to unrealistically high energy price in the province, where 70 percent of the country’s textile industry is located, the Punjab-based textile industry was exposed to a severe disparity in energy prices.”
Since 2013, Pakistan’s energy prices have been rising and the nation pays 4 cents more per kilowatt hour than competing nations. In the Punjab vicinity, higher energy prices caused more than 70 textile mills to shutter in the past six months, dramatically impacting Pakistan’s textile manufacturing capacities.
Fayyaz said cotton and man-made fibers, two basic raw materials of Pakistan’s textile industry, were imported because of national shortages.
“The acute domestic shortfall of cotton being procured at higher than import parity is having a crippling effect on the entire textile value chain,” he said.
Pakistan’s current tax dilemma is also impacting the nation’s place in the global textiles market, since such payments could not be transferred to international buyers.
Further, a lack of interest in the nation’s manufacturing sector persists, as Pakistan continues to favor free trade agreements with other nations over its domestic textiles industry.
The demise of Pakistan’s textile exports follows the recent closure of many textile factories in Pakistan. Since 2014, almost 100 factories have closed and over 500,000 jobs were axed from the nation’s textile sector.
The Pakistan Bureau of Statistics also reported that the country’s total exports were down 7.33% in August 2016 compared to August 2015 and ready-made garment exports declined more than 10 percent to $288 million last year.
Following the four-year anniversary of the Rana Plaza tragedy, the European Commission is taking additional steps to foster more sustainable supply chains in the global garment industry.Read more
Unless you’re Amazon (or a few others) right now, releasing quarterly reports probably isn’t a most favored moment. Here’s a look at how the e-commerce giant, VF Corp. and Carter’s fared in their most recent quarters.Read more
HSN CEO Mindy Grossman is stepping down, Sears promoted Rob Riecker to the role of CFO and Debenhams appointed two new executive directors.Read more
The first quarter of this year wasn’t a positive one for the U.S. economy. In fact, it was the least positive it’s been in three years.Read more
In a time when consumers are willing to bypass their favorite stores in search of better styling, quality or prices elsewhere, brands are leaning on loyalty programs to keep shoppers engaged.Read more