Pakistan’s textile and clothing exports, a major driver of the country’s economy, have seen a slowdown in recent months, raising concerns within the industry.
After a promising double-digit increase in March, exports grew by a meagre 0.37% in April compared to the same month last year, according to data from the Pakistan Bureau of Statistics (PBS). This translates to a figure of $1.24 billion, suggesting stagnant demand from international buyers.
The slowdown is even more pronounced when compared to the previous month, with a decline of 4.84%. Over the first ten months of the fiscal year (10MFY24), exports have dipped slightly by 0.19%.
The textile industry blames rising production costs, fueled by higher energy prices and a lack of readily available cash (liquidity crunch), for the sluggish growth. They have warned the government that further decline is likely unless their concerns, including delayed tax refunds, are addressed promptly.
Despite the overall slowdown, there were some bright spots. Exports of readymade garments and knitwear grew in volume, though the value increase for knitwear was minimal.
The data also revealed a decrease in imports of textile machinery, indicating a potential postponement of expansion or modernization plans within the industry.
Interestingly, imports of raw cotton fell sharply, while imports of synthetic fibres and second-hand clothing saw significant increases.
The overall picture paints a complex situation for Pakistan’s textile sector. While total exports for the first ten months of the year are up, the slowdown in textile and clothing exports, a crucial sub-sector, is a cause for concern. The industry is urging the government to address their challenges to prevent further decline.
