Non-textile exports decline amidst mixed economic trends

Pakistan’s non-textile exports have experienced a downturn in the first half of the fiscal year 2023-24. This decline comes despite an uptick in the nation’s primary exports of textiles and clothing, as per the latest data from the Pakistan Bureau of Statistics.

During the July-December period of FY24, key sectors like leather garments and gloves saw a reduction in exports by 9.71%, with raw leather exports also decreasing by 23.17%.

The carpet and rug sector faced a 21.61% drop in exports, while sports goods exports decreased by 2.35%, including a significant 21.9% fall in football shipments.

In the same period, the export of surgical instruments, a major global product supplied by Pakistan, remained negligible.

This stagnation is attributed to these products being re-marketed by well-known brands in Western countries.

The footwear industry, which had shown growth in FY23, reported a 16.49% contraction in exports in the first half of FY24. However, not all sectors experienced declines.

Engineering goods saw a modest 3.12% increase in exports, and the jewellery sector reported a substantial 46.53% surge. Exports of gur and related products also rose by 30.09%.

In contrast, the exports of gems, furniture, molasses, and handicrafts faced significant reductions, with decreases of 26.52%, 44.14%, 73.86%, and 53.03% respectively. Cement exports, which had slumped in FY23, rebounded strongly with a 58.77% increase.

The export of petroleum crude remained at zero, but exports of petroleum products witnessed a remarkable surge of 228%.

Additionally, the period saw a robust growth in food product exports, which has had a notable impact on the domestic availability and pricing of essential food items like beef, chicken, and rice.

The overall scenario indicates a challenging phase for Pakistan’s non-textile sector, with the export proceeds remaining stagnant since the onset of FY24.

This mixed economic trend highlights the complexities in the country’s export dynamics, underscoring the need for strategic adjustments to address these emerging challenges.