Pakistan’s Textile Exports Drop by 4.97% while Rice Exports Surge by 76.5% in FY24 H1
Published on: January 20, 2024.
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Textile Exports Decline, Rice Exports Soar in Pakistan
In the first half of the fiscal year, Pakistan witnessed a decline in textile exports and a significant surge in rice exports. The Pakistan Bureau of Statistics (PBS) data revealed that textile sales in the international market fell by nearly 5 percent, amounting to a loss of $430 million. On the other hand, rice exports saw a notable increase, with a rise of $710 million or 76.5 percent.
Textile Exports
During the July-December period of 2023-24, textile exports reached $8.28 billion, compared to $8.71 billion in the same period last year. However, there was a slight 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.
The major value-added segments in the textile industry experienced mixed results. Readymade garments, cotton cloth, and made-up articles (excluding towels) witnessed a decline in sales, while knitwear, bedwear, and towels saw an increase. The data also revealed that cotton yarn exports increased by 78.6 percent in December 2023.
Rice Exports
Rice exports, on the other hand, witnessed a significant surge during the July-December period. The total exports reached $1.638 billion, marking a rise of $710 million or 76.5 percent. Basmati rice exports increased by 54.7 percent to $80.8 million, while other varieties’ exports increased by 247 percent to $438 million.
In terms of volume, rice exports also recorded substantial growth. In December 2023, exports increased by 156 percent to 0.85 million tons, compared to 0.33 million tons in December 2022. In the first half of FY24, exports rose by 48.3 percent to 2.57 million tons.
The ban on rice exports by rival country India played a significant role in the surge of rice exports from Pakistan. This resulted in increased foreign exchange earnings for the country. However, the local market experienced a spike in staple prices, impacting the budgets of millions of Pakistanis.
Conclusion
While Pakistan faced a decline in textile exports, the surge in rice exports provided a boost to the country’s economy. The ban on rice exports by India created an opportunity for Pakistan to strengthen its position in the international rice market. It is crucial for Pakistan to continue exploring opportunities in both the textile and rice sectors to ensure sustained economic growth.
Source: The News
