Political turmoil in Pakistan affects textile exports

by:JIYALI     2021-08-08
At the end of 2007, Pakistan’s exports of textiles and clothing suffered a severe decline, partly due to political uncertainty after the assassination of former Prime Minister Bhutto. Pakistan’s domestic industries are also facing problems with insufficient electricity and rising cotton prices.   According to reports, Pakistan’s exports of textiles and garments fell by 24.8% in a single month in December 2007. In the second half of 2007, exports fell by 4.8%, with exports amounting to US$5.26 billion. Exports of ready-made garments declined by 5.2%, of which woven garments declined by 1.4% and knitted garments declined by 7.74%. In terms of textiles, cotton yarn exports declined by 5.09%, with an export value of US$665 million; cotton cloth declined by 10.85%, with an export value of US$885 million; bedding declined by 10.91%, with an export value of US$915 million; towels declined by 14.8%, with an export value of US$270 million. . As for miscellaneous products and synthetic fiber textiles, they increased significantly by 28.49% and 41.69%, respectively, and the export value was US$277 million and US$304 million. Insufficient energy The textile and garment industry is not only severely affected by the riots after the death of former Prime Minister Bhutto, but also facing energy crises, including reduced water release from reservoirs, interruption of the power transmission line of HUBCO, gas power plants suffering from reduced gas in the winter peak season and unavailability due to transportation Fuel inland power plants, etc. It is expected that these issues will be resolved by the end of February.  Cotton is out of stock   The textile and garment industry also faces the problem of insufficient raw cotton. Pakistan consumes 16 million bales of cotton a year. It is estimated that its domestic cotton production this year is about 11.6 million bales, and about 4 million bales need to be imported.  Other challenges   Other challenges that must be faced include increasing inflation and the increase in financial costs caused by the 50 basis points of the National Bank of Pakistan (SBP) raising interest rates, as well as increasing competition with China.   Government support    The Pakistani government subsidizes textile industry Ru0026D (Ru0026D) expenditure based on the net FOB export value of the product: needle/plain woven garments 6%, printing and dyeing home textiles 5%; printing and dyeing fabrics and white home textiles 3%. According to this system, the amount of subsidies provided by the Pakistani government during the period from June to December 2007 was approximately US$114 million. In addition, they also provide short-term and long-term preferential loan services to textile companies.
Custom message
Chat Online 编辑模式下无法使用
Chat Online inputting...
Thank you for your enquiry. We will get back to you ASAP