LAHORE:
Pakistan’s textile sector, a key contributor to export revenues, continues to face a negative trajectory in the third month of the fiscal year 2023-24, with a month-on-month decrease of 12%.
Provisional data released by the All Pakistan Textile Mills Association (APTMA) on Wednesday revealed that textile exports for September 2023 amounted to $1.35 billion, compared to $1.53 billion in the same month of the previous year.
Throughout the calendar year, textile exports have been following a negative trend, witnessing an 18% decline. They amounted to $11.90 billion compared to $14.53 billion in the corresponding months.
For the first quarter of the current fiscal year, textile exports dropped by 10%, totalling $4.12 billion, in contrast to $4.53 billion in the same quarter of the previous fiscal year.
The downward trajectory in textile exports did not come as a surprise to industry stakeholders, as they had been anticipating these figures. Several factors have contributed to this decline, including import bans, exchange rate fluctuations, high energy costs, elevated interest rates, reduced cotton production, and overall political and economic uncertainty.
The textile sector, as a vital component of Pakistan’s economy, has borne the brunt of these challenges. Stakeholders suggest that, for the remaining three months of this calendar year, there is a high likelihood that textile exports will continue to be affected. Local manufacturers have been unable to meet demands due to various domestic factors, eroding trust among international buyers.
Despite the current challenges, textile exporters remain hopeful that the industry will experience a positive turnaround in the coming calendar year. They anticipate that this change may help shift export figures in a positive direction once again.
Published in The Express Tribune, October 5th, 2023.
Like Business on Facebook, follow @TribuneBiz on Twitter to stay informed and join in the conversation.
