PAKISTAN: Costly Cotton lifts Pakistan`s Textile Exports to 6.28 billion USD.

“Cotton prices around the globe have increased phenomenally during July-June 2010, making finished products expensive than last year,” said Dr Ayub Mehar, an economist and former head of research at the Federation of Pakistan Chambers of Commerce and Industry (FPCCI).

Major products that helped the textile exports grow include knitwear, bed wear, towels and readymade garments, according to the data compiled by the Federal Bureau of Statistics. Export of these items soared by 24, 16, 7.23 and 35 percentage points, respectively.

Textile exports account for 58 percent of the country’s total exports of 10.9 billion dollars in the first half of the current fiscal year.

Flash floods hit Pakistan’s cotton crop in July-August last year, resulting in a loss of around two million bales. In spite of that, the country managed to export $166 million worth of cotton during the review period, showing a growth of 14 against the same period last year. Similarly, cotton yarn export also increased by over 26 percent to reach $960 million.

“Rising export of raw cotton is in value terms only amid the absence of major exporters like Brazil and India,” said Dr Mehar.

Amir Hussain Siddiqui, an economist at the Trade Development Authority of Pakistan (TDAP), said the prices of textile products are directly linked with raw material.

The significant rise in textile exports helped the country achieve current account surplus of $26 million during July-December 2010.

It also helped the rupee maintain its current level against the US dollar.

Analysts see commodity prices sustaining on the higher side as crude oil continues to scale new peaks in the remaining half of the current fiscal year.