0
ISLAMABAD: Textile and clothing exports of the country plunged by 20 per cent in December this year over the same month last year, as continuing global recession cut demand from key markers, like Europe and United States.
In absolute terms, exports of these products fell to $944.267 million in December this year from $1.169 billion over the corresponding month last year, suggested data of Pakistan Bureau of Statistics on Thursday.
Textile and clothing sector exports declined for the third consecutive month sending fears to policy-makers that shrinking export proceeds in the sector may result in layoffs.
It would also cause balance of payments problem in the months ahead.
No official word came from the Ministry of Commerce over fall in export proceeds, which had recorded an impressive growth last year because of rising cotton prices in the international market.
Overall growth of textile and clothing dipped by 4.68 per cent to $5.963 billion in July-December period this year as against $6.255 billion recorded over the same period last year.
A sector-wise analysis shows negative growth in export of raw cotton, cotton yarn, and cotton carded and value-added finished products, like garments, knitwear, bed wear and towels. The only area, where some impressive growth was recorded was in export of yarn other than cotton yarn and tents during the month under review over last year.
Last year, textile and clothing exports reached $15 billion, mainly driven by rise in cotton prices in the international market.
At the same time, there was a significant decline in import of machinery in the valueadded sector to increase quality and capacity of production.
Statistics show that textile industry machinery declined by over 10 per cent in the first half year over the last year, reflecting that industrialists have no plan for expansion in the current year.
