Textile sector faces worrying decline
PHOTO: FILE
The textile sector of Pakistan is losing its momentum in global export markets, as November 2023 data suggests another 3.45% drop in export revenues. Despite being considered the backbone of the country’s industrial sector, lacklustre performance throughout this calendar year has initiated a debate within economic circles regarding the future of this crucial industry in Pakistan.
As per data released by the State Bank of Pakistan (SBP), textile sector export revenues in November 2023 stood at $1.37 billion against $1.5 billion in October this year. On a year-on-year basis, the sector has once again posted negative growth of 3.51%, with figures in November 2022 recorded at $1.42 billion. From July to November of FY2023-24, the sector’s performance was recorded at $6.9 billion against $7.7 billion during the same period of FY-23, showing a decline of 10.14%.
Textile exporters already fear a minimum loss of $2 billion in this fiscal year, attributing the negative trend to the government’s lack of interest in the textile sector. They blame below average performance of key trade institutions in providing opportunities in export markets and finding new markets.
While subsidised energy tariffs have been a consistent demand from textile exporters, their enjoyment of these benefits has failed to yield the desired results of greater exports, focusing on value addition of textile products as per the demand of new generations in export markets.
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Further details of the data released on Monday indicates that out of 24 sub-sectors of the textile group, only six managed to remain positive on a month-on-month basis. The rest of the important sub-sectors remain in a negative trajectory. Cotton yarn and cotton cloth month-on-month exports in November declined by 0.66% and 7.5%, respectively. Other important sub-sectors like knitwear, bedwear, and towels registered negative growth of 5.95%, 10%, and 9.1%, respectively, in November 2023.
Similarly, the readymade garments sub-sector, which previously showed some promising results, also remains in the negative zone, dipping by 3.6% in November 2023. The recently established Special Investment Facilitation Council (SIFC), according to industry stakeholders, is also not focusing on the textile sector. Commerce Minister and Industries, Dr Gohar Ejaz, also plan to enhance overall export sector revenues to $100 billion, which currently stands at $30 billion. Nevertheless, economists suggest that it would not be an easy task to do, and given the current state of affairs of the Pakistani economy, the interim commerce minister’s desire appears to be a distant dream.
Published in The Express Tribune, December 19th, 2023.
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