In the outgoing fiscal year 2022-2023, Pakistan witnessed a decline in non-textile exports by 9.87 percent, amounting to $11.23 billion compared to $12.46 billion in the preceding year, as reported by the Pakistan Bureau of Statistics (PBS).
The non-textile sector faced a stagnant trend in export proceeds since the start of FY23 due to weakened demand in the buyers’ market, resulting in no year-on-year growth from September 2022 onwards.
In the value-added leather sector, both leather garments and raw leather exports witnessed a decrease of 7.03 percent and 19.45 percent, respectively, during FY23.
The European Union’s stringent compliance protocols, focusing on environmental, social, and work ethics, have posed challenges for the Pakistan Tanners Association, with only 50 out of around 800 members meeting the new requirements by the December 2023 deadline.
Many tanneries are forced to shut down due to these high compliance standards, with only a few small units remaining in Kasur, Gujranwala, and Khyber Pakhtunkhwa, catering to local industries and the Afghan market.
The export of carpets and rugs experienced a decline of 12.66 percent, while cement exports dipped by 15.23 percent in FY23. On the positive side, surgical instruments’ export showed a modest growth of 5.85 percent over the same period last year, with Pakistan being a significant supplier of global surgical instruments.
However, there were some notable growth areas in exports during FY23. The export of footwear increased by 13.74 percent, primarily due to a rise of over 14 percent in leather footwear exports, especially to European countries.
Additionally, engineering goods’ exports saw an increase of 5.15 percent from the previous year. Pharmaceutical products experienced substantial growth during the outgoing year, with exports rising by 21.98 percent. Similarly, the export of sports goods grew by 10.93 percent, with football sales surging by 24.25 percent.