Pakistan experiences 4.97% textile decline but witnesses a significant 76.5% rise in rice exports during FY24 H1.
Published on: January 20, 2024.
Filed under:
Pakistan’s Textile Exports Decline, Rice Exports Soar Amid Indian Ban
The textile exports of Pakistan have witnessed a decline of nearly 5 percent in the first half of the fiscal year, according to data released by the Pakistan Bureau of Statistics. Meanwhile, rice exports have experienced a notable increase due to a ban on rice exports imposed by neighboring India.
During the period of July-December 2023-24, textile sales in the international market fell by $430 million, or 4.97 percent, reaching a total of $8.28 billion. In contrast, rice exports saw a remarkable rise of $710 million or 76.5 percent, reaching $1.638 billion.
The PBS data also revealed a modest recovery in textile exports in December 2023, with a year-on-year increase of 3.3 percent, bringing the monthly total to $1.4 billion. On the other hand, rice exports experienced a substantial surge, witnessing a remarkable increase of 190.5 percent ($340.1 million) during the month, reaching $518.64 million.
Basmati rice exports during the month increased by 54.7 percent to $80.8 million, while exports of other varieties increased by 247 percent to $438 million. In the first half of the fiscal year, basmati rice exports increased by 30 percent to $367.4 million, while exports of other types of rice increased by 96.9 percent to $1.27 billion.
In terms of volume, rice exports also saw a substantial increase of 156 percent to 0.85 million tons in December 2023, compared to 0.33 million tons in December 2022. In the first half of the fiscal year, rice exports increased by 48.3 percent to 2.57 million tons.
The surge in rice exports is mainly attributed to the ban imposed by India on rice exports. However, this increase in exports has led to a spike in staple food prices in the local market, affecting the budgets of millions of Pakistanis.
On the other hand, Pakistan’s textile exports have mostly experienced a decline over the past 15 months, with minor increases in October and December 2023. In the previous fiscal year, total textile exports fell by 14.6 percent to $16.5 billion.
The detailed data from the Bureau reveals that in December 2023, sales of major value-added textile segments, including readymade garments, cotton cloth, and made-up articles, declined compared to the previous year. However, knitwear, bedwear, and towel exports witnessed an increase. Cotton yarn exports also increased compared to December 2022.
In terms of other sectors, Pakistan saw an increase in exports of meat and meat preparations, vegetables, tobacco, football, chemicals and pharmaceuticals, and cement. However, there were declines in exports of fruits, fish and fish preparations, surgical goods, leather manufacturing, and footwear.
In terms of imports, Pakistan witnessed a decline in petroleum group imports, specifically petroleum products, crude oil, LNG, and LPG. Machinery imports, particularly mobile sets and electrical machinery, increased in December 2023. Agriculture machinery imports also increased, while textile machinery and power generation machinery imports decreased. The transport sector saw an increase in imports of road motor vehicles and completely built units.
Overall, Pakistan’s textile exports have faced challenges, while rice exports have flourished, primarily due to India’s ban on rice exports.
Source: The News
