Pakistan’s textile exports plunge 28% in February

Pakistan’s textile sector exports witnessed a significant decline of 28%, clocking in at $1.2 billion in February 2023 in comparison to $1.67 billion recorded in the same month of the previous year, showed provisional data released by the All Pakistan Textile Mills Association (APTMA) on Monday.

The association added that the country’s textile exports in the first eight months of FY23 decreased by 11% to $11.24 billion, declining from $12.60 billion recorded in 8MFY22.

The decline in textile exports is concerning for the South Asian economy, which is already facing depleting foreign exchange reserves. Its central bank has reserves of just $3.81 billion remaining, barely enough for a month of imports. However, the level will get a slight boost with another loan inflow from China.

Industrialists have expressed concern over the ongoing slump in the textile sector, after cotton arrival in Pakistan also decreased 34.5% year-on-year, showed data released by the Pakistan Cotton Ginner’s Association (PCGA) on Friday.

Last month, the All Pakistan Textile Mills Association (APTMA) urged the federal government for a level playing field by implementing a uniform gas price of $7 per MMBtu for the export industry across the country.

APTMA also warned that the decision of the government to suspend the regionally competitive energy tariff (RCET) of electricity for Export Oriented Units (EOUs) will hurt the textile industry, particularly in Punjab.

Back in December, APTMA wrote a letter addressed to Prime Minister Shehbaz Sharif, warning that the country’s textile exports could fall below $1 billion a month from 2023 onwards, highlighting a range of issues facing the sector that is currently operating at less than 50% capacity utilisation.