The unit price of Pakistani textile products recorded a sharp decline in the financial year 2008-09 due to intense competition and inability of the local export sector to honour their export commitments. Exporters said that though world economic recession has caused some damage in the form of declining demand in the western markets, however, it is more to do with the issues confronting the export sector domestically.

Nisar Sheikhani, Chairman All Pakistan Textile Processing Mills Association, pointed out that some of the orders from the foreign buyers are spill over orders, which bring lesser price. While explaining the spill over orders term, Sheikhani said there is an uncertainty attached with Pakistan export houses, in terms of delivery of orders in time, and in many cases foreign buyers opt for the other destinations to meet their requirements.

Another exporter said that plunge in unit price could be attributed to foreign buyers, who are more interested to import raw materials instead of finished products due to inability of local exporters to deliver the orders in time as well as quality parameters of their customers.

Exporters also cited the infrastructure problems like port congestion and worsening law and order situation, inordinate delay in shipment of exportable goods, subsequently shrinking the demand of the export items. According to statistics provided by the exporters, the unit price of almost all value-added textile products registered sharp decline in the last fiscal over the previous year.