Raza Khan

The export of textile items from Pakistan to other countries witnessed a decline of 7% during the first half of the current fiscal, WealthPK reports. According to the provisional data released by All Pakistan Textile Mills Associations (APTMA), the country’s textile exports dropped to $8.73 billion during the first six months of the current fiscal from $9.38 billion during the corresponding period of the previous financial year.

The volume of Pakistan’s textile exports reached the highest level of $19.329 billion during the previous fiscal year. However; the textile sector couldn’t sustain the trend of positive growth and its exports started to decline in October after recording a single-digit growth during the first three months of the financial year 2022-23.

The country’s textile exports dropped by 15% in December 2022 as compared to the same month of the previous year. Textile exports declined to $1.37 billion during December 2022 from $1.62 billion in the corresponding month of 2021. Textile exports in November 2022 also declined by 18% and dipped to $1.42 billion from $1.74 billion during the same month of the last fiscal.

According to the data, Pakistan’s textile exports surged by only 1%, 8% and 9% in July, August and September, respectively. However; exports appallingly dropped by 15%, 18% and 15% in October, November and December, respectively.

In the calendar year 2022, textile exports grew by 7.49% and reached $18.65 billion from $17.35 billion in the same month of the year 2021. Textile exports also recorded a positive growth in the first nine months of 2022 and began to decline in the last three months.

Asad Naqvi, APTMA’s senior analyst, termed the decline in textile exports alarming. He attributed it to various problems including energy supply issues. He said that other factors, which hampered textile exports, included an increase in prices of petroleum products, currency devaluation, expensive raw materials and the global financial crisis.

Exporters said that they feared an 8% to 10% decline in textile exports during the current fiscal owing to various domestic and global challenges. “Economic situation of the country and trend of decline in overall exports indicate that Pakistan will not be able to sustain the positive growth in textile exports during the current year,” Hamid Zaman, a member of APTMA, told WealthPK.

He said that the shrinking of the country’s foreign exchange reserves, high prices of energy and raw material and low demand for textile products in major markets due to the global recession could further decline Pakistan’s exports. APTMA has repeatedly warned the government that textile exports could further decline by $400 million to $500 million each month if the problem of energy shortage is not resolved.

The textile sector is a major contributor to the country’s overall exports. The sector hosts over 50% of the industrial workforce in Pakistan. Textile exports in the previous fiscal accounted for 60.92% of the country’s total exports of $31.76 billion, according to the data available with WealthPK. Under the Textiles and Apparel Policy 2020-25, a target of $25 billion has been set for textile exports.

Credit: Independent News Pakistan-WealthPk