According to Pakistan’s “News” report, the latest statistical report of the State Bank of Pakistan (Central Bank) shows that Pakistan’s total export trade in the last fiscal year (July 2009 to June 2010) was US$19.6 billion. Among them, textile exports were US$10.1 billion, accounting for 52% of total exports, a year-on-year increase of 4 percentage points.
Looking at the breakdown of textile products, Pakistan’s cotton yarn exports last fiscal year were US$1.2 billion, a year-on-year increase of 25%; raw cotton exports were US$208 million, a year-on-year increase of nearly 100%; knitted exports were US$2.06 billion, a year-on-year increase of 0.29 %; bedding exports were US$1.64 billion, a year-on-year increase of 7.48%; cotton exports were US$1.879 billion, a year-on-year decrease of 11%; ready-made garment exports were US$962 million, a year-on-year decrease of 2%; yarn exports of other textures were US$46.8 million, a year-on-year decrease of 33%.
According to reports, Pakistan’s textile export volume fell by 10% in the last fiscal year, but prices rebounded slightly. This is the main reason for the increase in the proportion of Pakistan’s textile exports in total exports. At present, Pakistan’s high value-added textile sector and textile mills have different opinions on whether the government should extend the export adjustment tax on cotton yarn. The former emphasized that Pakistani spinning mills exported excessive cotton yarn to competing countries such as China, resulting in tight supply of raw materials in the high value-added textile sector, affecting the export of their products, and requested the government to extend the export adjustment tax. The latter insisted that the government should not extend the export adjustment tax, saying that the policy had caused the closure of dozens of spinning mills.
Data shows that Pakistan’s yarn exports account for 30% of the global market share, but high value-added textile exports account for only 1% of the global market share of a total value of US$375 billion. In this regard, Pakistani textile industry insiders said that Pakistan has become an exporter of textile raw materials.
