Negative image of the country as 'a cauldron of terror' has become a major barrier of export trade notwithstanding the competitiveness and quality edge of Pakistan's textiles, said Chairman of Pakistan Textile Exporters Association (PTEA), Khurram Mukhtar.

He said that the largest chunk of textile exports, particularly the home textile, was marketed to US but lately the country's image as international trade destination has been tarnished due to terror on the country's northern borders. As a result of this, the buyers are hesitant to place orders and are also unwilling to come to Pakistan, for security reasons, to inspect the manufacturing facilities and to build their inventories.

Pinpointing other factors adversely affecting the traditional edge enjoyed by Pakistan's textiles, long hours of electricity and gas supply suspension had slowed down the pace of industrial growth and as a result, the manufacturing activity has been reduced to 40% and affected industrial units being export-oriented are unable to meet their export commitments on account of production stoppages due to non-availability of energy. Pakistani exporters are losing their credibility in international market.

Even being the 4th largest cotton producing country in the world, the upstream value-added industrial chain is confronted with shortage of raw material. He said that cotton and cotton yarn are the main raw material for the textile chain. Export of theses items at large scale in last few months has been the main cause of current crisis. Severe shortage of cotton and cotton yarn and 25% to 30% hike in their prices are adversely affecting the exports of textiles which have already declined by 11.45% in the first quarter of fiscal year.

He said that Bangladesh government is giving incentive support of 17% to its exporters. There are no labour laws and their labour wages are almost half as compared to Pakistan. and as a result, they are continuously raising their share in international trade.  However, we have better infrastructure and double production capability than Bangladesh but some internal factors such as energy crisis, high cost of inputs, lack of raw material, heavy burden of levies and taxes and deteriorating law and order situation are creating hurdles on the path of betterment.

Pakistan’s share in the total export trade of home textile and clothing only 3%.