Muhammad Asad Tahir Bhawana

Pakistan's depleting foreign reserves will bleed more due to the increasing textile export shrinkage, threatening the economy and livelihoods of millions of people, reports WealthPK. Textile exports fell by 30 percent in February, 21 percent in March 2023, and 29 percent in April year-over-year. The exports have recorded a decline for eight consecutive months. Owing to the short supplies of cotton and restrictions on raw material procurement, the All-Pakistan Textile Mills Association (APTMA) paints a miserable picture of the industry.

Over seven million people, including poor and vulnerable communities, particularly women, have lost their jobs as a result of upheaval in the textile industry. However, the majority of them are unable to voice their concerns or seek legal relief. Taking to WealthPK, Omar Farooq, a small industry owner in Faisalabad, said, “Owing to the ongoing economic uncertainty and rising inflation, I had to reduce my employees by almost half because the output has dropped due to unavailability of the raw materials and expensive inputs. I can no longer afford full employment in my firm.”

Several factors are contributing to the textile sector's decline, including the decline in cotton production, closure of manufacturing units, low salaries, and unsuitable government policies. Textile exports account for 60 percent of total exports. According to experts, the crippled textile sector would hurt the economy for a long time in terms of a rise in unemployment and a sharp decline in exports along with hurting other textile-linked industries.

According to a letter addressed to Prime Minister Shehbaz Sharif by Gohar Ejaz, Patron in-Chief of All Pakistan Textile Mills Association (APTMA), there has been a progressive decline in textile exports. Ejaz warned that if the current trajectory continues, Pakistan is projected to fall short of $3 billion in textile exports compared to $19.4 billion achieved last year, without considering any potential increase from the newly installed capacity.

The Pakistan Bureau of Statistics (PBS) has reported that during the first 10 months (July-April) of the Fiscal Year 2022-23, the trade deficit narrowed by 39.62% to $23.713 billion from $39.272 billion during the same period of the previous year. Additionally, the trade data recently released by the PBS has revealed that exports during July-April of 2022-23 amounted to $23.174 billion, indicating an 11.71% decline from the exports of $26.247 billion recorded during July-April of 2021-22.

Credit: Independent News Pakistan-WealthPk