Arsalan Ali

Pakistan’s exports continued to decline during February 2023, with the textile sector, the major contributor to exports, also bearing the brunt of negative growth. Shortages of natural gas and electricity, unavailability of raw materials, along with restrictions on letters of credit (LCs), have contributed to a sustained period of declining exports, WealthPK reported.

Overall, the country’s exports dropped by 18.67%, staying at $2.305 billion during February 2023, down from $2.834 billion during the same month of the previous fiscal year, according to the Trade Development Authority of Pakistan (TDAP). Textile products saw a significant decline in exports, falling by 28% to $1.20 billion during the month under review, compared to $1.67 billion during the same period of 2022.

Pakistan’s textile sector faced a significant decline in February 2023, with bed, table, toilet, and kitchen linen among the worst affected. Exports of these products fell by 20% to $303.9 million during February 2023, from $379.8 million during the same month in 2022. The textile industry also witnessed a decline in exports of woven fabrics of cotton. The figures indicate a drop of 31.9%, with exports declining to $112.6 million during the month under review from $165.4 million during the same period of the previous year.

Exports of curtains, including drapes and interior blinds, also saw a significant decrease of 28% during February 2023. The export value fell to $205.7 million from $285.8 million during the corresponding period of the preceding year. A decline of 23% was recorded in the exports of articles of apparel and clothing accessories of leather or composite leather. The export volume of apparel and clothing accessories went down to $42.7 million during the month under review from $55.7 million during the same month of 2022.

In addition, exports of men’s suits, ensembles and jackets also posted negative growth of 32% during February. The export volume was recorded at $55.1 million during the month under review against $81 million during the corresponding period of last year. A 29% decline was also recorded in the exports of T-shirts, singlets, and other vests, knitted or crocheted. The exports of T-shirts dropped to $46.9 million during February 2023 from $66.2 million during the same month of 2022.

Furthermore, exports of cotton yarn other than sewing thread also fell by 55% during the month under review and reduced to $54 million from $121.2 million during the same month of last year. Export of men’s or boys’ shirts, knitted or crocheted, declined by 19% to $48.3 million during February 2023 against $59.8 million during the same month of the previous fiscal year, TDAP reported.

Apart from the textile products, the export of copper, refined, and copper alloys, unwrought, also registered a negative growth of 57% and remained at $40.7 million during February 2023 compared to $94.5 million during the same period of last year. Exports of copper, unrefined, copper anodes for electrolytic refining rose with significant growth of 5720% and reached $210.3 million during February 2023 against $3.6 million during the same period of last year.

A positive growth of 316% was also witnessed in the export of maize. Export volume was recorded at $20.2 million during the period under review compared to $4.9 million during February 2022. Muhammad Javed Bilwani, Chairman of Pakistan Apparel Forum, attributed the decline in textile products exports during February to restrictions on LCs, shortages of natural gas and electricity, and unavailability of raw materials. Javed Bilwani said the withdrawal of the Regional Competitive Energy Tariff has resulted in an increase in manufacturing costs, which has ultimately led to an increase in output costs.

Credit: Independent News Pakistan-WealthPk