In the first 10 months of the current fiscal year, Pakistan’s textile exports plunged by 7.72 per cent. Low product diversity and inability to explore new export avenues are a key concern facing the country’s textile industry. The country’s exporters are losing competitiveness in international markets as the industry, accounting for nine per cent of GDP and more than 60 per cent of exports is facing a liquidity crunch.

In April, textile exports increased 3.07 per cent over March, but they decreased 3.48 per cent over the same month a year ago. Exports of raw cotton, cotton yarn, cotton cloth, knitwear and bed wear fell 47 per cent, 32 per cent, 9.89 per cent, 1.91 per cent and 4.34 per cent respectively in July to April 2015-’16. Exports of readymade garments and towels rose 4.87 per cent and 0.37 per cent respectively in the period under review.

Total exports declined 12.99 per cent in the first 10 months of the current fiscal year while imports of raw cotton, synthetic fiber, worn clothing and others surged 27 per cent. Many buyers avoid Pakistan because of the security situation and hence entrepreneurs have to travel to Dubai to meet them, which complicates sourcing.