ISLAMABAD, Aug 23: Country’s non-textile products exports edged up by 84.6 per cent during the first month of the current fiscal year over last year, Statistics Division data revealed on Saturday.

In absolute terms, the export value of these products increased to $999.504 million in July this year from $4.972 million last year, mainly due to a substantial increase in export of food commodities.

This shows that the new fiscal year started with an impressive growth in export of traditional products, mostly agriculture products, despite the fact that the input cost of such products witnessed a substantial increase.

However, textile and clothing exports dipped by 2.62pc to $905.912 million as against $930.32 million in the same month last year.

Despite dismal performance of textile and clothing sector, the overall export proceeds recorded an impressive growth of 29.48pc.

Export of food group inched up by 121.14pc. Export of rice went up by 226.43pc, fish products 65.45pc, fruit 13.14pc, oil seeds 330.39pc, sugar 100pc, meat 18.13pc and all other food items 8.53pc.

Export of petroleum products increased by 91.68pc, sports goods 22.41pc, leather products 11.68pc, footwear 24.43pc, surgical instruments 21.64pc, engineering goods 30.61pc, cement 103.52pc, molasses 217.31pc, jewelry 399.51pc, gur 5.61pc during July 2008 over the same month last year.

This shows a natural diversification of the export base, as share of textile and clothing in total exports declined to 47.5pc in the month from 63.22pc last year despite subsidies to the sector worth billions of rupees.

While the share of non-textile products soared to 52.44pc in July 2008 from 36.8pc last year, without any financial package from the government.

Analysts say that subsidies are not the real issue, but there is a need to address the structural weaknesses in the textile sector. This also means that the production capacity of the sector has reached a saturation point.

With the exception of raw cotton and cotton cloth, all other major components of textile manufactures registered a negative growth despite a major depreciation of rupee and an appreciable gain made by the currencies of the competitor countries, like India and China.

Product-wise details showed that export of readymade garments declined by 0.21pc in July 2008, cotton yarn by 17.49pc, knitwear 8.93pc, bed-wear 8.52pc, made-up articles 0.57pc, other textile material 32.25pc, over the same month last year.

However, export of raw cotton was up by 120.18pc, cotton cloth 3.73pc, cotton carded 51.46pc, yarn other cotton yarn 15.46pc, towels 51.46pc, tents 22.79pc and art-silk by 16.84pc.