KARACHI: The exports of value-added textile sectors, including knitwear, bed wear, garments and home fabric have witnessed 5per cent to 14 per cent growth from July 2014 to February 2015.
The experts are of the view that this momentum will go on because of continuous stability in the rupee’s value against the dollar for the past few months.
After remaining between Rs106-107 a dollar, the Pakistani currency appreciated swiftly by about 8% in the first few months of 2014, which hit textile exports badly despite Pakistan’s success in winning the Generalised Scheme of Preferences (GSP) Plus status from the European Union.
However, from July and August 2014 onwards, the relatively stable rupee, which has depreciated only 3% since then, has provided an opportunity for the exporters to opt for a long-term strategy.
Analysts say the government has assured the International Monetary Fund (IMF) of rationalising gas prices from April 15 and that will reduce earnings of almost every gas-consuming industry.
The value-added textile industry is one of them primarily because the exporters are unable to pass the tariff increase on to customers in highly competitive global markets.
Despite the jump in exports of value-added products in the first eight months, other textile goods like raw cotton, yarn and cotton cloth have suffered a double-digit decline in shipments, keeping the overall export growth in check.
Total textile exports from July to February remained restricted to $9.2 billion compared to $9.1 billion in the same period of previous year, up just 0.5%.
