Pakistan has suffered a 16.90 per cent fall in overall exports and 12 per cent in textiles alone. Bed-linen exports declined by 21 per cent, towels by 9.01 per cent, knitwear by 8.20 per cent and readymades by 6.14 per cent during July 2015 compared to exports in June 2015. Surprisingly, exports of raw cotton shot up by 68 per cent and cotton combed or carded by 100 per cent.

The sales tax rate had been increased by 50 per cent in the Budget for 2015-16. This has blocked a huge amount of exporters’ liquidity. This in turn is expected to damp export figures in coming months. Many countries have devalued their currencies against the dollar. India devalued by 7.06 per cent, China by 5.61 per cent, Vietnam by 6.44 per cent, Sri Lanka by 2.62 per cent, Turkey by 36 per cent and Bangladesh by 0.15 per cent. But Pakistan’s currency has appreciated by 3.18 per cent.

Pakistan’s textile exporters want a special tariff and priority in supply of gas and power. They say the government should stop giving preference to exports of raw materials and should instead work for promoting apparel exports. They say raw cotton and combed and carded cotton should not be exported when these raw materials are needed by the value added domestic textile sector.