Pakistan expects 25% Increase in Textile Exports  
Pakistan Times Business & Commerce Desk

ISLAMABAD: Pakistan expects exports of textiles, which account for two-third overseas sales, to increase 25 percent next year as planned lower taxes encourage companies to boost output and expand into new markets.

Taxes on raw material used by textile producers will be "rationalized" in the coming budget and Russia, Turkey and Central Asian nations will be approached to buy more, private TV news channel reported.

Pakistan's textile manufacturers have invested about $6 billion in the past five years to boost capacity and take advantage of abolishing global quotas, which were eliminated in January 2005.

Southeast Asia's second-largest economy may ship $15 billion textiles in the year starting July 1, from an estimated $12 billion last year.

Textile makers in Pakistan began modernizing factories and expanding capacity in 2001 in preparation for end of quotas and to compete with other countries and textile shipments rose to $8 billion in the first nine months of this fiscal year, from $7.5 billion a year earlier.

Recap

An earlier report had said that Pakistan's exports during July-April, 2006-2007 totalled $ 13.909 billion as against $ 13.456 billion during the corresponding period of last year showing an increase of 3.36%.

According to the provisional figures compiled y the Federal Bureau of Statistics, exports decreased by 2.35 % in April, 2007 $ 1.497 billion when compared with March 2007 $ 1.533 billion but increased by 3.73 % as compared to April, 2006 $ 1.443 billion.

In rupee term, exports during July-April, 2006-2007 valued at Rs 843.296 billion as against Rs 804.844 billion during the corresponding period of last year showing an increase of 4.78 %.

During April, 2007 exports amounted to Rs 90.880 billion as against Rs 93.049 billion in March, 2007 and Rs 86.591 billion during April, 2006 showing a decrease of 2.33 % over March, 2007 but and increase of 4.95 % over April, 2006.

Main commodities of exports during April, 2007 were cotton cloth (Rs. 8,755 million), knitwear (Rs.8,550 million), bedwear (Rs. 8,434million), cotton yarn (Rs. 7,538 million), readymade garments (Rs.6,559 million), art silk & synthetic textile (Rs. 3,588 million), rice basmati (Rs. 3,284 million), rice others (Rs. 3,077 million), towels (Rs. 2,679 million) and madeup articles (excl. towels, bedware) (Rs. 2,499 million.

Imports during July-April, 2006-2007 went up by 8.92 % to $ 24.993 billion as against $ 22.946 billion during the corresponding period of last year.

In April 2007, the imports decreased by 1.88 % to $ 2.573 billion as compared to March, 2007 $ 2.623 billion but increased by 13.94 % as compared to April, 2006 $ 2.259 billion.

In terms of rupee, imports jumped up by 10.42 % to Rs 1.515 trillion during July-April, 2006-2007 as against Rs 1.372 trillion during the corresponding period of last year.

In April 2007, imports into Pakistan amounted to Rs 156.223 billion as against Rs 159.175 billion in March, 2007 and Rs 135.514 billion during April 2006 showing a decrease of 1.85 % over March 2007 but an increase of 15.28 % over April, 2006.

Main commodities of imports during April, 2007 were petroleum products (Rs. 20,719 million), petroleum crude (Rs. 17,203 million), other apparatus (Telecom) (Rs.8,199 million), plastic materials (Rs. 6,052 million), iron & steel (Rs. 5,231 million), power generating machinery (Rs. 4,770 million), palm oil (Rs.4,85 million), mobile phone (Rs. 4,273 million), electrical machinery & apparatus (Rs. 3,209 million) and medical products (Rs. 3,042 million).

The balance of trade figures cumulative from July-April, 2006-2007 were (-)672.116 billion in terms of rupees and (-) 11.084 billion in US dollars.

The balance of trade in April, 2007 was (-)65.343 billion in terms of rupees and (-) 1.076 billion in US dollars.●