Textile Exports In Pakistan Plunge 28% in February

textile exports

BUSINESS(B-Trams):Provisional data released on Monday by the All Pakistan Textile Mills Association (APTMA) revealed that Pakistan’s textile sector exports experienced a significant decrease of 28%, totaling $1.2 billion in February 2023 compared to $1.67 billion in the same month of the previous year.

The association added that the country’s textile exports decreased by 11% to $11.24 billion in the first eight months of FY23, down from $12.60 billion in 8MFY22.

The South Asian economy, which already faces depleting foreign exchange reserves, finds the drop in textile exports troubling. Its central bank only has $3.81 billion in reserves, barely enough for a month’s worth of imports. However, a new influx of Chinese loans will give the level a slight boost.

According to data released on Friday by the Pakistan Cotton Ginner’s Association (PCGA), industrialists have expressed concern regarding the ongoing slump in the textile sector. Cotton arrivals in Pakistan have also decreased 34.5% year-over-year, according to the data.

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The All Pakistan Textile Mills Association (APTMA) urged the federal government to implement a uniform gas price of $7 per MMBtu for the export industry across the country in order to ensure a level playing field.

The textile industry, particularly in Punjab, will suffer as a result of the government’s decision to suspend the regionally competitive energy tariff (RCET) for Export Oriented Units (EOUs).

APTMA warned Prime Minister Shehbaz Sharif in a letter in December that the country’s textile exports could fall below $1 billion per month starting in 2023. The letter highlighted a number of issues facing the industry, which is currently operating at less than 50% capacity utilisation.


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