Textile and garment exports fell 9.49 percent in the first two months of the current fiscal year compared to the same period last year, owing to growing production costs and liquidity restrictions, according to statistics issued by the Pakistan Bureau of Statistics on Friday.
In absolute terms, textile and garment exports declined to $2.766 billion in July-August from $3.05 billion in the same months last year. The drop suggests that there would be no rebound in export proceeds in the first half of FY24.
Caretaker Commerce Minister Gohar Ijaz recently stated that the government will soon provide textile exporters regionally competitive energy prices as well as ease their cash flow difficulties by releasing delayed sales tax refunds.
Textile and garment exports fell 14.63 percent year on year to $16.50 billion in FY23. Pakistan’s total merchandise exports fell 12.71 percent year on year to $27.54 billion in FY23, down from $31.78 billion the previous fiscal year.
Petroleum imports fall as demand falls.
According to PBS data, readymade garment exports decreased 11.95 percent in value but increased 25.71 percent in quantity in July-August, while knitwear decreased 13.42 percent in value but increased 38.22 percent in quantity, and bedwear decreased 8.44 percent in value but increased 2.72 percent in quantity.
However, towel exports reached 6.52 percent in value and 17.82 percent in quantity, while cotton cloth exports decreased by 20.26 percent in value and 12.14 percent in quantity. During the study period, raw cotton exports fell by more than 44 percent.
Cotton yarn exports increased by 25.79 percent among basic commodities, whereas yarn other than cotton decreased by 13.68 percent. In July-August 2023, the export of made-up products (excluding towels) fell by 2.20 percent, while tents, canvas, and tarpaulin fell by 1.52 percent.
Textile machinery imports fell by 74.63 percent in July-August FY24, indicating that expansion or modernization projects were not prioritised.
Furthermore, the import of raw cotton also dipped by 65.88pc in July-August FY24 from a year ago. However, the import of synthetic fibre was increased by 16.77pc followed by 109.92pc in synthetic silk yarn and 48.24pc in worn clothing.