Textile sector exports for January 2024 soared to $1.46 billion, marking a 3.97% month-on-month increase over December 2023 figures of $1.399 billion. This positive trend in the second consecutive month, however, falls short of the industry’s expectations, given its significant role in Pakistan’s economy.
According to data from the Pakistan Bureau of Statistics, textile exports also saw a year-on-year increase of 10.10%, with January 2023 figures at $1.32 billion. However, the first seven months of fiscal year 2023-24 witnessed a negative growth of 2.99%, dropping from $10.04 billion to $9.72 billion compared to the same period in the previous fiscal year.
Analysis of half-year data reveals a decline of 82.89% in the export of raw cotton on a month-on-month basis, with January 2024 figures at $2.34 million compared to $13.7 million in December 2023. Similarly, cotton yarn exports fell by 14.65% to $81.29 million, while cotton cloth exports surged by 11.23% to $159.72 million.
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Exports of knitwear saw a marginal decline of 0.46%, amounting to $365.05 million in January 2024. Conversely, the bedwear sector experienced a positive growth of 11.37%, reaching $252.08 million, and towel exports increased by 9.68% to $96.07 million. The readymade garments sector posted a significant growth of 11.69%, amounting to $333.41 million.
Despite hopes for a recovery in the textile sector this year, industry experts remain cautious due to persistent challenges, such as high energy tariffs. The recent general elections in Pakistan brought anticipation for positive economic changes. However, the subsequent split mandate and nationwide protests alleging poll rigging have raised concerns among business communities.
Furthermore, the recent hike in gas prices, from Rs2400/MMBTU to Rs2950/MMBTU, threatens to undermine the competitiveness of Pakistan’s textile sector. Industry insiders fear that this will make it challenging for the sector to compete in regional markets, potentially leading to a downward trend in export figures in the coming months.
Published in The Express Tribune, February 17th, 2024.
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