KARACHI: Country’s textile exports showed signs of recovery on the back of phenomenal growth in raw cotton and yarn but the value-added segments continued reeling in the first nine months of the current fiscal year.

Textile products exports totaled $7.597 billion in July-March of the current financial year against $7.190 billion in the same period of last year, registering 5.66 percent growth, according to Federal Bureau of Statistics (FBS) on Wednesday. Growth in overall textile exports was triggered by a phenomenal growth in the raw cotton increasing 141.59 percent, cotton yarn going up by 28.96 percent and yarn other than cotton yarn growing 102 percent during the period under review.

On the other hand, the other export products in textile category either fell or posted considerably nominal growth, especially the value-added textile products depicted dismal show during the said months. Cotton cloth exports were down 13.42 percent to $1.307 billion in the first nine months against 1.509 billion in the same period of the last year. Knitwear exports fell almost two percent to $1.290 billion against $1.315 billion previous year and bedwear exports also decreased by 1.45 percent to $1.257 billion as compared to $1.275 billion last year. Cotton carded or combed registered 43 percent fall.

Towels export increased by 3.80 percent, tents, canvas & tarpulin 2.88 percent, readymade garments 4.21 percent, art silk & synthetic textiles 75.67 percent etc. Exporters said growth in textile exports could have been even higher if the government had not restricted yarn exports by allowing only a specific quota in the month of January this year.

“In view of inability of value-added sectors to compete their foreign counterparts, it was yarn which could have earned precious foreign exchange for the country”, they said and regretted this option has been discarded on the pressure of downstream textile industries on the pretext of shortage of yarn for the local needs.

Value-added exporters, however said domestic issues like high financing cost, power shortage and growing utility charges, little market access to western markets are making Pakistani products uncompetitive against its competitors and if the situation gets corrected, value-added sector could earn much higher foreign exchange.