Textile exports dip 7.7% as pessimism prevails

Industry awaits business-friendly policy, subsidised energy tariffs

LAHORE:

Textile exports from Pakistan have again slipped into the negative territory as March 2024 figurers showed a month-on-month (MoM) decline of 7.67%, marking the second consecutive month when global sales of the major sector of the economy slowed down.

Textile exports came in at $1.299 billion in March against shipments valuing at $1.407 billion to overseas markets in February. On a year-on-year (YoY) basis, exports edged up 2.74%.

Textile manufacturers have been able to achieve a positive growth in exports for two months only – December 2023 and January 2024 – over the past many months. Exporters had rightly expected some improvement in those months, primarily on the back of “Black Friday” and Christmas season sales.

At the same time, they aired concern over the long-term trade scenario, categorically saying that until a clear-cut business-friendly policy and subsidised energy tariffs were announced, it would be a distinct dream to ramp up textile exports substantially.

Incidentally, in the recent two months when textile exports grew, All Pakistan Textile Mills Association (Aptma) Patron-in-Chief Gohar Ejaz was the caretaker federal minister of commerce, trade and production.

"I fear things will become worse in the coming months and export revenue will continue to plunge"

Though his tenure spanned nearly seven and a half months, the interim administration during that period was not able to provide some relief to the textile industry by at least rationalising the energy tariffs.

“Rising energy prices are now hitting this industry harder than before; we know it seems like a usual demand from us, but we do not have any other option,” said a Faisalabad-based textile mill owner.
“I fear things will become worse in the coming months and export revenue will continue to plunge.”

Data breakdown showed a bleak picture of the textile industry. Exports of the readymade garments sector, which used to show positive results, dropped 6.43% to $287.265 million in March 2024 as compared to exports worth $306.99 million in February. On a YoY basis, the sector managed to notch up a 3.37% rise in shipments.

Similarly, art, silk and synthetic textile exports fell to $30.298 million in March from $33.639 million in February, registering a drop of 9.93%. When compared with March last year, exports went down by 17.10%.

The bed wear category was no better either, as its shipments dived 11.71% to $215.259 million in March against overseas sales valuing at $243.823 million in February. The bed wear sector, however, managed to increase its YoY exports by 8.77%.

Published in The Express Tribune, April 19^th, 2024.

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