Pakistan’s textile exports see a 6.33% decline in the initial four months of FY2023-24
Published on: November 18, 2023.
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Pakistan’s textile exports in the first four months (July-October) of the current fiscal year have seen a decline of approximately 6.33 percent, according to the Pakistan Bureau of Statistics (PBS). The total value of textile exports during this period stood at $5.565 billion, compared to $5.940 billion in the same period of the previous fiscal year.
Overall exports for the country during the July-October fiscal year 2023-24 amounted to $9.6 billion (provisional), reflecting a marginal decrease of 0.48 percent from $9.554 billion in the corresponding period of the previous year.
However, there is some positive news as well. Textile exports experienced a growth of 5.61 percent in October 2023 on a month-on-month (MoM) basis, reaching $1.437 billion compared to $1.360 billion in September 2023. On a year-on-year (YoY) basis, textile exports increased by 5.92 percent in October 2023 compared to $1.356 billion in October 2022.
In October 2023, total exports for the country amounted to $2.690 billion (provisional), reflecting an 8.64 percent increase from $2.476 billion in September 2023 and a 12.84 percent increase from $2.384 billion in October 2022.
Cotton yarn exports showed significant growth of 42.85 percent during the first four months of the current fiscal year, reaching $407.564 million compared to $285.315 million in the same period of the previous fiscal year. On a YoY basis, cotton yarn exports registered an 87.88 percent growth, standing at $92.160 million compared to $49.052 million. However, on a MoM basis, there was a negative growth of 18.85 percent compared to $113.567 million in September 2023.
Rice exports recorded a growth of 30.12 percent during the first four months of the current fiscal year, totaling $710.788 million compared to $546.261 million.
Food group exports also increased by 30.29 percent, reaching $1.944 billion compared to $1.492 billion in the same period of the previous fiscal year.
The major commodities in exports for October 2023 included knitwear, readymade garments, bed wear, rice others, cotton cloth, oil seeds, nuts, and kernels, towels, cotton yarn, rice basmati, and made-up articles (excluding towels and bedwear).
The decline in the textile and clothing sector’s exports is mainly attributed to rising production costs and a liquidity crunch. To address these challenges, the government plans to offer regionally competitive energy prices to textile exporters and resolve cash flow issues through the release of pending sales tax refunds. However, the implementation of this decision is still pending.
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