Pakistan
is the world’s fourth largest cotton producer, but it is far behind Bangladesh
on the list of textile-exporting countries. It should be noted that Bangladesh
doesn’t produce cotton. However, it still earned $8.041billion through textile
export in the previous fiscal year. On the other, Pakistan was only able to
earn $1.365billion only 17 percent of
Bangladesh’s export. China, Bangladesh, India, Vietnam and Pakistan
collectively exported $46.5bn to the EU. Pakistan’s share was only 2.8 percent.
This reflects the poor performance of the country’s textile sector. Last year,
the prime minister took the notice of decline of $377 million in the textile
sector. The PM announced an incentive package of Rs180 billion. However, this
year’s performance was also unsatisfactory. This calls for an in-depth analysis
to ascertain the reason for the decline in exports. The fact that Bangladesh is
ahead of Pakistan should be an eye-opener for textile manufacturers. If the
current situation does not improve, the country may lose the benefits of GSP
plus.
According
to some media reports, industries are exempted from loadshedding. The Ministry
of Commerce should take serious notice of this issue and determine the reasons
for the huge decline. The country must develop a focused approach to boost
textile exports as they significantly contribute to the country’s GDP. The grey
areas, if any, must be addressed to further enhance exports. All shareholders
must put in their best to boost textile exports for the economic survival of
Pakistan.
Source: Pakistan Tribune, Pakistan Saturday, 29 April 2017