Amir Khan

Pakistan's textile and clothing exports have taken another hit, marking the third consecutive month of decline since July this year. This concerning trend is attributed to the rising production costs and liquidity crunch, according to the data released by the Pakistan Bureau of Statistics (PBS), reports WealthPK. The export value of textile and clothing goods decreased by 9.95 percent in the first quarter of the Fiscal Year 2024 (July-September) from $4.58 billion in the same period last year to $4.12 billion. In September alone, textile and clothing exports contracted by 10.88 percent, with figures dropping to $1.36 billion from $1.52 billion in the corresponding month of the previous year, Ms. Saira Imdad Ali, Joint Secretary at the Ministry of Industries and Production, told WealthPK. She added that in the previous fiscal year (2023), the textile and clothing sector already faced a substantial decline of 14.63 percent, with the total merchandise exports falling by 12.71 percent from $31.78 billion to $27.54 billion.

The PBS data also revealed that while exports of readymade garments declined by 11.21 percent in value in July-September, they increased by 8.24 percent in quantity. “Similarly, knitwear exports fell by 15.83 percent in value but grew by 34.14 percent in quantity. Bedwear posted a negative growth of 10.02 percent in value but saw a slight increase of 1.39 percent in quantity,” she said. In contrast, towel exports rose by 2.89 percent in value and 16.24 percent in quantity, while the cotton cloth exports dipped by 18.15 percent in value and 7.50 percent in quantity. The export of raw cotton and yarn, on the other hand, showed resilience with increases of over 12 percent and 33.5 percent, respectively, during the first quarter of FY2024.

Exports of made-up articles, excluding towels, declined by 5.40 percent; art, silk, and synthetic textiles by 23.08 percent; and tents, canvas, and tarpaulin by 8.24 percent in July-September compared to the previous year. She stressed that “the import of textile machinery plunged by a staggering 75.38 percent during July-September, suggesting that expansion and modernization projects were not a priority. The import of raw cotton also decreased by 68.73 percent in the same period, indicating challenges within the industry.” In conclusion, Pakistan's textile and clothing industry continues to face significant challenges, with declining exports, rising costs, and liquidity issues, despite government promises of support. As the nation navigates these hurdles, it remains to be seen whether the sector can regain its footing and contribute to the country's economic recovery.

Credit: INP-WealthPk