Rana Arif Tauseef, Chairman Pakistan Textile Exporters Association, recently highlighted the precipitous decline in Pakistan’s textile exports. Over the last four months, Pakistan’s textiles exports have dropped by $800 million. This downward trend is particularly disturbing given that textiles have always formed an important component of Pakistan’s overall exports which have decreased by $354.5 million.
However, there is some hope for Pakistan’s beleaguered textile industry as the trade package between Pakistan and the European Union awaits final approval from the European Parliament. The package, which has already been cleared by the WTO, will provide concessions to Pakistan on 75 textile items including yarn, fabric, denim fabric, leather, ethanol and knitted and woven garments. Advisor to the Prime Minister on Textiles, Dr. Ikhtiar Baig recently asserted that these concessions could enhance the national exchequer by one billion euros.
India’s recent ban on cotton exports opens up possibilities of more export opportunities for Pakistan’s dwindling exports. India, the world’s second largest cotton exporter, has banned the export of cotton in order to support its local textile industry. The Indian government imposed a similar ban last year as well. This year, Pakistan has yielded a high quality bumper crop and could potentially secure export orders from countries China and other countries in the region.