High prices drive away interested European buyers, say exporters

Pakistan’s textile producers have received encouraging response from European consumers but regional rivals edge out Pakistani companies in many cases due to cost advantage. According to representatives of different companies that had put up stalls at the Heimtextil exhibition, an increase in prices of yarn and cotton, has pushed up production cost by 15 to 20%, making it tough for exporters to finalize orders at competitive prices. Specifically, Spanish buyers have been willing to offer a 3 to 4% higher price compared to the previous order, but over the past year production cost in Pakistan had gone up in the range of 15 to 20%.