Textile sector in the country is in a miserable state because of the falling textile exports. The profitability of textile sector curve droops downward in the 1st quarter of the current financial year with a negative growth of 14 percent.
The falling textile exports, has dipped the foreign exchange earnings and there is a noticeable drop in the employment rate in the country.
According to a survey, the profit of spinning sector declined, by 36 percent in the first quarter of financial year 2005-06, weaving sector's profitability by 474 percent and composite sector's profit dipped by 8 percent. This has caused a collective decline of 14 percent in overall textile sector of the country.
An increase in gas price played a major role, for the increase in the finance cost for all the sectors. In addition to that they are also facing an intense competition in the world market due to cheap Chinese and Indian products.
marketing@alchempro.com
