Textile exports fell by 22.61% in March, reports

According to data released by Pakistan Bureau of Statistics (PBS), textile and apparel exports decreased by 12.42 percent year-on-year to $12.47 billion in the first nine months of current fiscal year.

According to data released by Pakistan Bureau of Statistics, a sharp decline of 22.61 percent was recorded in exports in March. Exports fell to $1.26 billion from $1.62 billion in the same month last year. On the other hand, if we look at textile exports on a month-to-month basis, it has increased by 6.6%.

According to Federal Bureau of Statistics, total exports also declined for the seventh consecutive month by 9.85 percent to $21.05 billion from $23.35 billion in the corresponding months of last year. This continued decline reflects large-scale layoffs in the export sector.

It will be difficult for the government to meet the set export target, which is also putting pressure on the country’s dwindling foreign exchange reserves.

The main reason for this is the rising cost in the manufacturing sector and non-availability of raw materials.

There are several major reasons for the decline in textile and apparel exports, including rising energy prices, stalled refunds, non-availability of raw materials and a sharp depreciation of the rupee, and reduced global demand.

Under the agreement with the IMF, the government has stopped energy subsidies for the export sector from March 1. Stacking of containers at the ports is also leading to a decrease in exports, on the other hand, no official statement has been issued by the Ministry of Commerce to explain the reasons for the decrease in exports.

Textile exports witnessed negative growth in the first month of the current financial year i.e. July, month of August recorded a slight increase due to backlog. Decline in exports is a worrying factor, causing deterioration in the country’s balance of external payments.

The data of the Federal Bureau of Statistics show that in the current fiscal year, the export of ready-made garments recorded a decrease of 7.20 percent, while the quantity increased by 56.79 percent, while the export of knitwear decreased by 9.10 percent, but the quantity increased by 10.61%, while exports of beware grew by a negative 7.31%.

Cotton yarn exports declined by 36.92 percent, while yarn exports declined by 31.69 percent. Exports of make-up articles and towels declined by 14.71 percent during the first nine months of the fiscal year compared to a year ago, but exports of tents, canvas, and tarpaulin increased by 25.10 percent.

Pakistan Textile Exporters Association Patron General Khurram Mukhtar has said in his statement that the decline in textile exports is the result of the government’s lack of strategy and failure to prioritize effectively. He further said that it seems that the government’s economic managers are running the economy on a day-to-day basis.