According to newspaper reports, exports of textile and clothing show a decline of 8.76 percent during the first eight months of the current fiscal year, apparently due to the shortage of electricity and delay in disbursement of export refund claims. The textile exports have been declining for the last two years despite achieving the preferential market access to the European Union. The country earned $9.166 billion from textile exports during the first eight months of the fiscal year 2014-15, but has declined to $8.363 billion during the same period this year. According to experts, the government is showing bleak performance in export sector, especially it has failed to reap benefits of the Generalised System of Preferences Plus (GSP+) status it achieved from the European Union. The details of the exports also show decline in the exports of low value-added products, including cotton cloth, yarn, cotton carded and various other goods. The export of raw cotton has recorded decline at a large-scale.
The statistics show that exports of bed-wear and knitwear have also declined, but on the positive side, the exports of readymade garments and towels have shown a modest growth during the year. However, the total exports have decreased during the first eight months of the current fiscal year as compared to the last year. On another note, the State Bank has issued stern warning against those who are allegedly involved in manipulating the financial rules in external trade by drawing more than the approved foreign exchange for imports and making short remittances against exports. State Bank of Pakistan Governor Ashraf Mahmood Wathra says that the bank detected many cases wherein importers received payments of foreign currency thrice against a single import shipment and exporters remitted only one tranche of foreign exchange against two or three shipments during the last two years. The governor offered assistance for the textile units which want to introduce new technology to boost exports.
The fact remains that concerted efforts are required involving both businessmen and the officials to implement the government policies for the benefits of not only individuals in the business community, but also the government. The government announces policies for the betterment of the economy, but there are whizz-kids who want to stuff everything in their pockets overnight without giving anything to the government in return. The country is facing tough challenges in the international market and the business community is facing difficulties at home. However, the government and the businessmen will have to go in tendon if they seriously want to improve the national economy.
