ISLAMABAD: Pakistan’s textile and clothing exports have experienced a notable upturn for the second consecutive month, according to data released by the Pakistan Bureau of Statistics (PBS) on Friday. The sector saw a commendable growth of 10.1% in January, with exports reaching $1.45 billion, marking a significant increase from $1.32 billion recorded in the same month the previous year.
This positive trend follows a 3.33 % year-on-year increase in December, signaling a potential resurgence in the country’s export proceeds. However, despite these recent improvements, the sector faced a challenging start to the fiscal year 2024, with a negative growth of 2.99 % in the first seven months, dropping from $10.03 billion to $9.73 billion.
The decline in exports during the initial months of the fiscal year was primarily attributed to escalating production costs, driven by higher energy costs and a liquidity crunch. In response, the Commerce Ministry announced plans to offer regionally competitive energy prices to textile exporters and expedite pending sales tax refunds to address cash flow issues. However, the implementation of these measures is still pending.
In the previous fiscal year 2023, textile and clothing exports contracted by 14.63 %, contributing to an overall decline in total merchandise exports, which fell by 12.71 % to $27.54 billion from $31.78 billion in the preceding year.
Sector Breakdown:
Readymade Garments: Exports surged by 13.85 per cent in value and 28.06 per cent in quantity.
Knitwear: Recorded growth of 8.39 per cent in value and an impressive 69.84 per cent in quantity.
Bedwear: Posted positive growth of 19.26 per cent in value and 25.63 per cent in quantity.
Towels: Experienced an increase of 5.41 per cent in value and 11.45 per cent in quantity.
Cotton Cloth: Marginal increase of 0.46 per cent in value but a significant surge of 49.26 per cent in quantity.
Import Trends:
Textile Machinery: Declined by 34.81 per cent in January, indicating a lack of emphasis on expansion or modernization projects.
Synthetic Fibre and Yarn: Saw an increase, reflecting potential shifts in production strategies.
Raw Cotton and Yarn: Exports increased substantially, suggesting a focus on raw material exports rather than value-added products.
Oil Imports and Machinery Arrivals:
Oil Imports: Experienced a notable decline of 12.06 per cent in the first seven months of FY24, attributed to reduced transportation amid economic slowdown.
Machinery Imports: Increased by 16.61 per cent, mainly driven by a surge in telecom equipment imports, particularly mobile phones. However, other categories of machinery recorded negative growth.
Transport Sector Imports: Witnessed a significant decline, indicating potential challenges in the transportation industry amidst economic fluctuations.
The recent improvements in textile and clothing exports offer a glimmer of hope for Pakistan’s economy, but sustained efforts and policy interventions are crucial to ensure continued growth and resilience in the face of economic challenges.
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