Pakistan’s textile sector exports witnessed a significant decline of 21%, clocking in at $1.29 billion in March 2023 compared to $1.63 billion recorded in the same month of the previous year, showed provisional data released by the All Pakistan Textile Mills Association (APTMA) on Tuesday.

Data showed the country’s textile exports in the first nine months of FY23 decreased by 12% to $12.5 billion, declining from $14.23 billion a year earlier.

The decline in the key textile exports is concerning for the South Asian economy, which is dealing with low foreign exchange reserves.

Forex reserves held by the State Bank of Pakistan (SBP) are treading at $4.2 billion, barely enough for a month of essential imports.

Pakistan’s textile exports significantly decline in January: APTMA

Last week, APTMA warned that the country’s textile exports could fall by $3 billion this year as compared to last year, while urging authorities to take immediate and urgent intervention.

“The decline in textile exports has been progressively accelerating,” APTMA Patron in Chief Gohar Ejaz had said in a letter to Prime Minister Shahbaz Sharif.

“The progressive decline in exports is a consequence of the moratorium on import of raw materials and essential spare parts, lack of adequate supply of energy at competitive prices and failure of the sales tax refund system, all have contributed significantly to the closure of over 50% of industry.

“Given the trajectory of decline, Pakistan is likely to fall short by $3 billion in textile exports from the exports achieved last year of $19.4 billion without taking into account any increase from newly installed capacity,” warned Ejaz.

Meanwhile, Pakistan’s exports during July-March (2022-23) were recorded at $21.046 billion against the exports of $23.350 billion in July-March of 2021-22, showing a decline of nearly 10%, according to the trade data released by PBS on Monday.