Tag: Textile Exports

  • Textile manufacturers unhappy as government policy threatens 18 billion dollar export sector

    Textile manufacturers unhappy as government policy threatens 18 billion dollar export sector

    Textile exporters expressed great displeasure over the government’s decision to stop the supply of natural gas to their power plants. Islamabad’s decision puts the USD 18 billion textile export industry at risk by leaving it to function on the national power grid.

    While the motivations are not entirely clear, experts believe that by cutting the gas supply to these independent power plants, the government is trying to increase its power supply revenues. This is because these power producers operate outside of the national grid, which makes it a tough activity to tax and regulate.

    For business owners in the textile sector, reverting to the national grid is a huge setback. This is due to the unreliability of the distribution companies that are infamous for power outages and fluctuations. While fluctuations might not be an alarming issue in residential areas, for the textile industry, they can render expensive machinery useless.

    This is primarily the reason why many textile manufacturers banded together to set up these independent power plants, as they were a stable source of power. However, with the government’s metaphorical axe coming down on these power plants, textile business owners will have no choice but to comply.

    Moreover, as per the Pakistan Textile Exporters Association (PTEA), the national grid will result in higher production costs due to transmission and distribution losses – inefficiencies the grid is known for.

    For exporters, this spells bad news as a rise in production costs will result in a loss in the competitive edge that Pakistan’s textiles have in international markets. This is because Pakistani textiles will not be as attractive to competitors due to the higher price tag when compared to other countries offering the same product for less.

    With Pakistani textile company Keywin Trading Ltd and other local players signing USD 40 million worth of agreements with Chinese firms at TEXPO 2024 (Textile Expo), the decision to cut gas supply to independent power plants comes at a bad time.

    This is primarily because, aside from switching to the costlier national grid, textile manufacturers have no real alternative to turn to anymore. Exporters who lose out on international contracts due to higher prices might have to shut their factories down and lay off thousands of workers.

    Is the crusade against these power plants even worth it if it means that the textile sector gets caught in the crossfire? Before anyone jumps to answer this question, perhaps it is best to note that the textile sector is singlehandedly responsible for 60% of the country’s exports.

  • Pakistan aiming for $25 billion textile exports in this fiscal year

    Pakistan aiming for $25 billion textile exports in this fiscal year

    Dr Gohar Ejaz, the Caretaker Federal Minister for Commerce, Industries, and Production, has set a bigger target of achieving $25 billion in textile exports for the current fiscal year, a substantial increase from the $16 billion target of the previous year. 

    Speaking at a meeting with the Pakistan Textile Exporters Association, led by Khurram Mukhtiar, Dr Ejaz outlined his strategic vision. He pledged to revitalise dormant industries within the nation within a tight one-month deadline, expressing confidence in surpassing last year’s export figure of $16 billion.

    Assuming the role with a bold $80 billion export objective, Dr Ejaz assured a systematic approach to address impediments hampering industrial operations. He expressed eagerness to directly engage with stakeholders, even offering to visit facilities as a symbol of his dedication to the industrial landscape’s rejuvenation. He requested a comprehensive list of inactive industries and their specific challenges to better tackle the issues.

    Furthermore, the minister vowed to promptly resolve pending financial obligations owed to industries by various departments, including the Federal Board of Revenue (FBR) and customs. 

    He extended an open invitation to associations and business leaders, emphasising his readiness to collaborate and find solutions for their concerns.

    With a focus on swift resolutions for challenges related to gas, electricity, energy, and fund allocation, Dr Ejaz reaffirmed his commitment to fostering a thriving and supportive business environment.

  • Pakistan’s export market takes a hit: Textile group exports down 14.83% in January

    Pakistan’s export market takes a hit: Textile group exports down 14.83% in January

    According to the Pakistan Bureau of Statistics (PBS), the country’s textile group exports declined by approximately 8.17 per cent during the first seven months (July-January) of fiscal year 2022-23, totaling $10.039 billion as compared to $10.933 billion during the same period of the previous year.

    The data also showed that textile group exports witnessed a year-on-year decline of 14.83 per cent in January 2023, amounting to $1.321 billion, compared to $1.551 billion during the same month in the previous year. Additionally, on a month-on-month basis, the textile group registered a negative growth of 2.53 per cent compared to $1.356 billion in December 2022.

    Cotton yarn exports experienced a negative growth of 34.66 per cent during July-January, totaling $449.419 million compared to $687.857 million during the same period in the previous year. On a year-on-year basis, cotton yarn exports registered a negative growth of 12.34 per cent, while on a month-on-month basis, it registered a growth of 27.22 per cent.

    Rice exports declined by 15.82 per cent during the first seven months of fiscal year 2022-23, totaling $1.083 billion compared to $1.286 billion during the same period in the previous fiscal year. Overall, the country’s exports during July-January 2022-23 totaled $16.499 billion (provisional) compared to $17.739 billion during the corresponding period of the previous year, showing a decrease of 6.99 per cent.

    In January 2023, the country’s exports amounted to $2.244 billion (provisional) compared to $2.313 billion in December 2022, reflecting a decrease of 2.98 per cent and a decline of 14.15 per cent compared to $2.614 billion in January 2022. The primary commodities of exports during January 2023 were knitwear, readymade garments, bed wear, cotton cloth, rice others, towels, cotton yarn, made-up articles (excluding towels and bedwear), rice basmati, and surgical goods and medical instruments.