According to preliminary data released by the All Pakistan Textile Mills Association (APTMA) on Thursday, Pakistan’s textile sector exports experienced a significant decline of 12.4%, coming in at $1.36 billion in January 2023 as opposed to $1.55 billion recorded in the same month of the previous year.
According to the data, the nation’s textile exports dropped from $10.93 billion in 7MFY22 to $10.08 billion in the first seven months of FY23, an 8% reduction.
The South Asian economy, which is already dealing with declining foreign exchange reserves, is concerned about the drop in textile exports. Just 3.7 billion dollars are left in reserves at the central bank, barely enough to cover imports for three weeks.
The country’s already ineffective supply chains have been badly damaged by the worsening global economic situation, which is principally the result of the Ukraine conflict paired with floods in Pakistan. A large portion of Pakistan’s agricultural land has been damaged by flooding, according to what he wrote.
“The nation could only produce 5 million cotton bales domestically, despite the industry’s need for 14 million.
APTMA previously warned that the nation’s textile exports could slip below $1 billion per month starting in 2023 in a letter to Prime Minister Shehbaz Sharif. The letter also highlighted a number of problems affecting the sector, which is now running at less than 50% capacity utilization.