Textile exports dip again despite yearly growth
PHOTO: FILE
After experiencing slight increases in export figures for two consecutive months, Pakistan’s textile exports have once again entered negative territory on a month-on-month basis.
According to the latest figures released by the Pakistan Bureau of Statistics on Monday, textile group exports for February 2024 declined by 3.31% compared to January 2024, with February figures totalling $1.41 billion against January’s $1.46 billion.
On a yearly basis, textile product exports managed to remain in positive territory, showing an increase of 19.20%. Export figures for February 2023 were recorded at $1.18 billion.
The textile sector is a cornerstone of Pakistan’s economy, with stakeholders claiming it contributes around 60% overall. However, despite this significant role, it is not performing as expected, and the situation is deteriorating.
After nearly a year of negative export figures, the sector entered positive territory in December 2023. However, it only remained positive for two consecutive months before returning to negative territory.
Breakdown of the data shows that raw cotton exports remained flat in February 2024 at zero billion dollars, marking a 100% decline on a month-on-month basis.
Cotton yarn exports for February 2024 amounted to $78,428 million, a decline of 3.46% from January’s $81,295 million. However, on a yearly basis, they increased by 41.16%, with February 2023 figures at $55,597 million.
Read: ‘50% textile firms may shut down in coming weeks’
Cotton cloth exports saw an increase of 8.63% in February 2024 ($173,501 million) compared to January 2024 ($159,719 million), and a yearly growth of 12.13%.
The knitwear sector also remained in negative territory, with February 2024 figures at $335,964 million against January 2024’s $365,050 million, a decline of 7.97%. However, on a yearly basis, it showed an increase of 21.24%.
Bedwear sector exports also declined by 3.27% month-on-month, with February 2024 figures at $243,823 million compared to January 2024’s $252,076 million. However, they increased by 24.53% year-on-year, with February 2023 figures at $195,800 million.
On a month-on-month basis, the readymade garments sector declined by 7.92%, with February 2024 figures at $307.000 million compared to January 2024’s $333.411 million. However, it also managed to post a yearly increase of 20.32%.
The breakdown of textile group data further suggests that nearly all value addition sectors remain in the negative zone. There may be many reasons behind this, one being the traditional excuse of higher energy costs from stakeholders, which makes Pakistani products uncompetitive.
Another reason is the lack of innovation or value addition in textile products. The majority of Pakistani textile entrepreneurs continue to sell the same old-fashioned products in global markets. These old products are price-competitive, with little margins. Many economists believe that if Pakistan does not find new markets with a focus on value addition as per global demand, it will be very tough for this sector to increase its share in the overall country’s export figures.
Published in The Express Tribune, March 19th, 2024.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation