ISLAMABAD: Pakistan’s textile and clothing exports fell 1.30 per cent to $1.064 billion in January on a year-on-year basis, the Pakistan Bureau of Statistics (PBS) reported on Thursday.

The fall in exports was mainly driven by value-added products.

Last year, the government announced a textile policy that gave a 4pc rebate on the exports of readymade garments on a 10pc incremental increase over the preceding year. The rebate was 2pc and 1pc on the incremental increase in the exports of home textiles and fabric, respectively. No support was announced on raw material or yarn exports.

Under this policy, the government paid Rs2.5bn to exporters in the last fiscal year. Jan 15, 2017 onwards, the government not only increased the rebate to 7pc for readymade garments, but also allowed cash support of 4pc on yarn and grey cloth under the Rs180bn package announced by the prime minister.

Product-wise details show that the exports of readymade garments fell 3.60pc while those of knitwear dropped 3.44pc in January. Exports of bedwear went up 2.17pc, but those of towels fell 1.36pc.

In primary commodities, exports of cotton yarn witnessed a year-on-year increase of 4.37pc while those of cotton cloth fell 3.10pc, cotton carded 100pc and yarn other than cotton yarn 35.15pc.

Exports of made-up articles, excluding towels, witnessed negative growth of 13.36pc while those of tents, canvas and tarpaulin grew 39.37pc.

Exports of raw cotton also recorded a year-on-year decline of 49.77pc. Art, silk and synthetic textile exports declined 14.11pc.

One reason for the fall in exports of value-added textile products is that Pakistan’s preferential access to the European Union under the GSP-Plus scheme did not boost the country’s exports owing to a slump in demand in the 28-nation bloc.

In the seven months to January, the value of exported textile and clothing products fell 1.54pc year-on-year to $7.224bn. One of the reasons cited for the textile package was the need for countering the rising cost of production. The package will be effective from January 2017 to June 2018.

Overall export proceeds in July-Jan fell 3.21pc to $11.685bn.

In April 2016, the Ministry of Commerce announced a Strategic Trade Policy Framework, which has yet to be implemented.

Published in Dawn, February 24th, 2017