According to Pakistan’s “Business Record” report, affected by the global economic recession, Pakistan exported a large amount of textiles to the United States, the European Union, and Russia, but was rejected by importers, and exporters may suffer huge losses.
According to reports, due to the sudden refusal of importers to accept the goods, about 200 containers of goods are currently stranded at ports in the above-mentioned countries and regions. Based on a value of US$300,000 per box, Pakistani textile exporters have suffered losses of up to US$60 million.
Affected by the tight domestic power supply situation, the production cost of Pakistan’s textile industry has increased significantly, greatly weakening the export competitiveness of its products. Shrinking international demand has undoubtedly made matters worse. Textiles are Pakistan’s key export product, and a sharp decline in exports will lead to a sharp decline in Pakistan’s exports.
In the first seven months of this fiscal year (July 2008-January 2009), Pakistan’s textile exports were US$5.82 billion, a year-on-year decrease of 3.79%, of which textile exports in January 2009 fell by 8.98% month-on-month.
