Encouraging trend for the textile exports

The month of September saw encouraging trend for the textile export, which was up by 6.31% over the same month of previous year as well as 10.83% in August of current fiscal.

Although the textile export remained flat during the first quarter of current financial year, despite the cash incentives and subsidies by the Government. According to a Federal Bureau of Statistics (FBS) report, the total textile exports amounted to $2.705 billion in July-September 2008-09 as against over $2.726 billion in the corresponding quarter of the last fiscal year.

The high cost of production caused by increasing rates of utilities as well as expensive raw materials are making the local products uncompetitive in the foreign markets, said the report. Referring to the  economic situation, the report said the textile exports failed to plug the widening gap in trade deficit, caused by burgeoning import bill mainly on account of petroleum products, but the devaluation of the rupee provided the much need support to textiles exporters.