ISLAMABAD, March 28: Export of textile and clothing plunged by over seven per cent in the first eight months this year, from a year ago because of continuing global recession which cut demand from key markets, like Europe and the US.

Export proceeds from textile and clothing sector fell to $7.978 billion in July-Feb period this year, down by 7.50 per cent from $8.625 billion over the same period last year, suggested data of Pakistan Bureau of Statistics here on Wednesday.

The government has projected a target of $16 billion for the sector as against last year`s export proceeds of $14 billion.

Stakeholders estimate that export proceeds from the sector would hardly touch $12 billion mark.

As a result of this decline, overall exports also declined by 0.48 per cent to $15.188 billion in the July-Feb period this year as against $15.263 billion over the corresponding period last year.

Local manufacturers have projected a 25 per cent drop in export to Europe alone this year due to eurozone debt cri-sis. They fear that shrinking export proceedsin the sector may result in layoffs.

Over 4.95 per cent decline was also witnessed in terms of rupee despite depreciation of rupee against the dollar in the past few months, indicating that the fall in the health of rupee did not support Pakistani textile and clothing products to penetrate in the international markets.

A sector-wise analysis shows negative growth in export of cotton yarn, cotton cloth, cotton carded, tents, art and silk, made-up articles during the period this year over last year.

A similar dip was witnessed in exports of knitwear, bed-wear, towels and value-added products.

However, export of raw cotton, tents and yarn other than cotton yarn witnessed growth during the July-Feb period this year over the same months last year.

A paltry growth was also recorded in export of garments, value-added products during the months under review.

Textile analysts said the slight growth in garments was artificial as local manufacturers had received orders much before October 2011, but those products were shipped in February.

There was also a possibility of growth in value-added products following approval of 75 products by the European Union for dutyfree import from Pakistan.

At the same time, there was a significant decline in import of machinery in the value-added sector to increase quality and capacity of production. This indicates that local manufacturers were also not expanding their production capacity.

It was observed that domestic industry was not in a position to honour their commitment because of high cost of production.

Product-wise detailsshowed that export of readymade garments witnessed a growth of 1.48 per cent, other textile materials 3.36 per cent, yarn other than cotton yarn 8.03 per cent and tents 155.98 per cent during the July-Feb period this year over last year.

Export of raw cotton witnessed a growth of 27.68 per cent because of high demand for cotton, especially in China following a ban by Indian government on cotton exports.

However, export of knitwear declined by 10.81 per cent, bed-wear 9.85 per cent, towels 5.23 per cent during the period under review over last year. Export of cotton yarn declined by 24.94 per cent and cotton cloth 0.73 per cent and cotton carded by 61.19 per cent; art, silk products 8.90 per cent, made-up articles 8.98 per cent.