Lack of government support, sharply rising production costs, unstable legal and enforcement situations, political unrest and continued power supply disruptions resulted in a 36% decline in ready-made apparel exports in August 2008 compared to July.
According to official statistics, in August 2008, Pakistan exported US$99.579 million in ready-made clothing, and the export volume in July was US$154.966 million, a decrease of US$55.387 million, or about 34.74%. Similarly, Pakistan’s exports of ready-made clothing fell by 8.52% in August 2008. The export value in August 2007 was US$108.854 million, a year-on-year decrease of US$9.275 million.
In July-August of the current fiscal year, Pakistan’s ready-made clothing exports fell by 3.64%, to approximately US$9.696 million. In July-August 2008, Pakistan exported $254.454 million in ready-made garments, compared with $264.15 million in the same period last year.
Pakistani ready-made garment manufacturers and exporters believe that the rise in production costs is responsible for the decline in ready-made garment exports. They said exporters in the readymade apparel sector are frustrated with the continued decline in exports and unclear government policies. They say the recent unrest in the country has had a negative impact on future export transactions. They expressed concern about the country’s turbulent economy and said the government was unconcerned about the sharply rising trade deficit. Pakistan’s exports fell while imports rose.
Exporters also resented the government’s hike in gas and electricity tariffs, which had a negative impact on industry output. They said the rise in diesel prices has not only hurt the growth of industry but also severely affected the common man. They asked the government to articulate a clear industrial policy and stabilize the country’s economy.
