Textile and clothing exports faced a substantial setback in the first month of the current fiscal year, declining by 11.44%.
This decline was attributed to several factors, including elevated production costs, liquidity constraints, and weakened global demand. Data from the Pakistan Bureau of Statistics revealed that the total value of textile and clothing exports in July dropped to $1.31 billion, down from $1.48 billion during the same period the previous year.
This downward trend was not limited to the first month, as the entire fiscal year FY23 saw textile and clothing exports contract by 14.63%, reaching $16.50 billion. Consequently, Pakistan’s overall merchandise exports also declined by 12.71% year-on-year to $27.54 billion in FY23.
The textile export sector grappled with negative growth from the outset of the fiscal year. Specifically, the data highlighted that while the exports of readymade garments decreased in value by 9.80% in July, they increased in quantity by a staggering 101.94%. Similarly, knitwear saw a decline of 16.13% in value but a rise of 26.01% in quantity.
Bedwear experienced negative growth of 14.60% in value and 9.93% in quantity. Towel exports decreased slightly by 2.93% in value and 0.31% in quantity, while cotton cloth exports saw a substantial decline of 22.56% in value and 16.32% in quantity.
Among primary commodities, cotton yarn exports showed promise, surging by 35.96%, while yarn other than cotton declined by 2.31%. The export of made-up articles, excluding towels, dipped by 7.54%, but tents, canvas, and tarpaulin witnessed an increase of 9.02% in July 2023 compared to the previous year.
Interestingly, the import of textile machinery saw a sharp decline of 63.54% in July FY24, indicating that expansion and modernization projects were not a priority at this time. In addition to the textile sector, imports of petroleum products also saw a significant dip, falling by 44.89% year-on-year in July.?