textile exports increased 9% month over month in October, according to SBP
Published on: December 1, 2023.
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Total Textile Export Increases by 9.05% MoM in October 2023
According to data released by the State Bank of Pakistan (SBP), the country’s total textile export witnessed a growth of 9.05% month-on-month (MoM) in October 2023, reaching $1.45 billion. This is compared to the $1.33 billion recorded in the same period last year. However, on a year-on-year (YoY) basis, the exports of the textile sector decreased by 2.53% in October 2023.
In the 4th month of the fiscal year 2023-24 (4MFY24), the textile exports faced a decline of 11.65% YoY, amounting to $5.52 billion. This is in comparison to the $6.25 billion achieved in the 4th month of the fiscal year 2022-23 (4MFY23).
Exports Increase by 21.09% YoY in October
The total exports, as per the Balance of Payments (BOP), for October reached $2.76 billion, reflecting a significant year-on-year growth of 21.09%. This is compared to the $2.28 billion achieved in October 2022. Additionally, on a monthly basis, exports registered a growth rate of 11.82%.
It is important to note that the current account deficit for October 2023 widened by 60.87% month-on-month (MoM) to reach $74 million, in comparison to the deficit of $46 million in September 2023.
Textile Products: Major Export Goods for Pakistan
Textile products remained the leading exportable goods for Pakistan in October 2023, accounting for 52.62% of the total export. Under the textile category, the key contributing products were knitwear ($356.98 million), readymade garments ($289.65 million), and bedwear ($262.88 million).
However, all three sectors witnessed a decline of 9.13%, 7.66%, and 4.64% respectively, in comparison to October 2022.
Food Group: Second Most Contributing Export Group
The food group emerged as the second most contributing group in terms of total exports. The export value of this group in October was $630.08 million, reflecting a significant increase of 94.95% compared to October 2022 ($323.19 million). On a monthly basis, the exports from this group increased by 28.17% compared to September 2023 ($491.59 million).
Rice: Major Source of Foreign Exchange Earnings
Under the food group, rice remained the major source of foreign exchange earnings for Pakistan. In October 2023, the export value of rice stood at $257.08 million, reflecting a month-on-month increase of 59.75% and a year-on-year increase of 2.42 times.
Other Prominent Export Categories
Other notable export categories include Oil Seeds, Nuts and Kernels, which witnessed a significant year-on-year growth rate of 3.67 times and a month-on-month growth rate of 29.70%. The export of surgical goods & medical instruments increased by 20.96% YoY. Additionally, leather manufacturers experienced an 8.50% YoY growth and a 20.14% MoM growth in their exports.
On the other hand, sports goods foreign earnings faced a decline of 8.79% YoY. However, the export of sports goods improved by 12.15% when compared to September 2023. Inflow through the chemical and pharmaceutical products reported a YoY decrease of 2.11%.
Petroleum Group: Minimal Contribution to Exports
The share of the Petroleum group in the country’s total export basket for October 2023 stood at only 0.53%. During this period, the country earned $14.75 million from the export of petroleum products, facing a decline of 17.63% YoY and 47.78% MoM.
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