Textile exports see slight growth in FY24 amid tough fiscal measures

Pakistan’s textile and clothing exports recorded a growth of 0.93% in the fiscal year 2024, totalling $16.55 billion, up from $16.50 billion the previous year, according to the latest figures from the Pakistan Bureau of Statistics. 

This modest increase highlights the challenges faced by the sector, including new taxation measures and rising energy costs, which may hinder its competitiveness against regional counterparts.

The government has recently increased the tax rate on exporters’ personal income for the fiscal year 2024-25, a move that industry analysts predict will impact export figures in the upcoming months.

The PBS data reveals that June saw a downturn in textile exports, which fell by 3.91% to $1.41 billion from $1.47 billion in June 2023, marking the end of a five-month streak of increases. 

On a month-on-month basis, June exports also saw a decrease of 9.23%.

Specific categories within the textile sector showed mixed results for FY24. Readymade garments exports increased by 2.05% in value and 1.99% in quantity, while knitwear exports slightly declined by 0.66% in value but surged by 41.44% in quantity. 

Bedwear exports grew by 4.12% in value and 15.27% in quantity, reaching $2.8 billion. Additionally, towel exports grew by 5.55% to $1.06 billion in value and 14% in quantity. However, cotton cloth exports declined by 7.7% to $1.866 billion in value, despite a 16.15% increase in quantity.

Conversely, the import of textile machinery plummeted, indicating a reduction in industry investments towards expansion or modernisation.