TEXTILE MINISTER TAKES SERIOUS NOTE OF DECLINING TEXTILE EXPORTS
Islamabad, the 16th October, 2014
The Federal Minister for Textile Industry Abbas Khan Afridi has taken serious note of declining textiles exports. The Minister has also showed concern that after the grant of GSP+ instead of increase, textile exports have showed declining trend although it was expected that textile exports would increase by at least $ 1 billion during calendar year 2014.
During first two months of current financial year i.e. July-August 2014-15 textile exports have decreased by 5% compared to corresponding period of previous financial year. Yarn and cloth categories were the major losers in which exports are decreased by 26% and 13% respectively. The Readymade Garments sector had a slight reduction of 2%. The decrease in textile exports also has a negative impact on cotton prices.
As a consequence of energy shortage the textile production capacity of various sub-sectors has reduced. It is estimated that the impact of less availability of energy to the export oriented textile sector means potential loss of around $ 2 billion exports per annum which can easily be made to EU in presence of GSP+.
The Minister is scheduled to hold meetings with the textile sector stakeholders throughout the next week, including visits to Lahore and Faisalabad. He has also called a meeting of Federal Textile Board on 27th October in Islamabad to discuss the performance of textile sector and the proposed Textile Policy.