Textile exports record 5.9% growth in Oct

Shipments reach $1.56b, but exporters sceptical amid challenges

LAHORE:

The textile sector of Pakistan posted a month-on-month growth of 5.9% in export revenues in October 2024.

Data released by the State Bank of Pakistan suggested that exports in October 2024 clocked in at $1.56 billion against the revised figure of $1.47 billion for September 2024.

On a year-on-year basis, the sector also manages to be in the positive territory by showing a growth of almost 7%, as October 2023 exports stood at $1.45 billion.

During the first four months of FY25, the total exports came in at $5.81 billion, up 5.1% compared to the same months of FY24.

As per the textile industrialists, these figures are surprising as all key markets of the country, ie, Lahore, Faisalabad and Karachi are not satisfied with the way the government is handling the affairs of the textile industry.

"I sometimes feel that these numbers are not correct and are misleading; we are having a tough time while managing the export orders, but the official figures are telling the other story," said a textile exporter.

He added that it is just like inflation figure, which is now in single digit, but when a person enters the market, he or she observes abnormally high prices of commodities.

Some exporters said that there is a need to further strengthen and streamline the export data, so the nation can see the real picture. "There might be a possibility that the increase in export revenues is due to the Christmas shipments, nevertheless, things for exporters are not that good," he added.

Exporters are facing many challenges. The first is the political instability in Pakistan, the second one is the ongoing Ukraine war, and the third one is the prolonged shipment time, which has now extended to six weeks from just 18 days earlier.

"Inflation is now a global issue, and as per Western economists Christmas sales are likely to decline by 30%," he added. Exporters believe that it is highly unlikely that the coming months may also post a surplus at least in the textile sector as things are very shady.

"The current account is showing a surplus, that is due to the rice and IT sectors, the rest are showing the same old declining trend," he said, adding "what we can do in a scenario when the government is only worried for its own survival".