Pakistan Textile And Garment Export Rate Is Very Low.

Among the major exporting countries, the export price of Pakistan's textile and garment industry has been reduced to the lowest level, thus affecting the textile and garment industry attracting new investment and improving the competitiveness and productivity of textile and clothing.

Industry insiders said Wednesday that the subsidy policy of the former government of Pakistan has led to a decline in export prices of textile and garment enterprises, not only reducing the consumer price of products, but also making Pakistan a supplier of cheap products to the global market.

Insiders said that in recent years, imported textile machinery showed a downward trend.

No one is willing to invest in textile and garment enterprises.

Analysts said that before guaranteeing any new subsidies to the textile and garment industry, the government should audit the largest subsidies and R & D funds to determine the impact of subsidies on export growth and reinvestment.

Statistics show that over the past 3 years, the government has subsidized over 34 billion rupees (597 million 820 thousand US dollars) for textile and clothing research and development, aiming at promoting exports.

They say that the export financial arrangement is another huge subsidy, which is also the cause of inflation in the country.

The low price of textile and clothing leads to low profit, which in fact affects the investment of new technology. At the same time, low unit price also leads to low return rate and low capital composition, and ultimately leads to low product quality.

An official report claims that in the 27 member states of the European Union and the United States, the proportion of high value-added products (clothing) in Pakistan is lower than that in low value-added products (non clothing).

Competitors in Pakistan, such as China, India, Bangladesh and Vietnam, are exporting high value-added products, which are larger than low value-added products.

In the United States, the lowest price per square metre of cotton products in Pakistan is US $0.91, compared with 1.90 in India, 2 in Bangladesh, 3 in Vietnam and 1.50 in China.

This shows that the unit price of Pakistan is half of the world price of 1.80 US dollars, and the European market is the same, which is completely contrary to Pakistan's textile and garment industry claiming that they are competitive in the international market.

Pakistan's textile and apparel exports to the European Union and the United States account for 68% of its total exports.

Statistics show that in 2004, Pakistan's share in the world textile and garment export market was 3.1% and 1.2% respectively.

After the abolition of the quota system, Pakistan's market share remained virtually unchanged.