Exports of Pakistan’s textile sector continued to maintain a downward trajectory, clocking in at $1.48 billion in August compared to $1.58 billion recorded in the same month of the previous year for a year-on-year decline of 6%, showed provisional data released by the All Pakistan Textile Mills Association (APTMA) on Saturday.

Data showed the country’s textile exports in the first eight months of calendar year 2023 decreased by 19% to $10.58 billion, declining from $13 billion in the same period of 2022.

The year-on-year decline is concerning for the South Asian economy, which faces a shortage of foreign exchange. The low level has already caused its currency, the rupee, to depreciate more than 25% in the inter-bank market since the start of 2023.

However, on a monthly basis, the textile exports improved 13%, as compared to $1.31 billion recorded in July.

Although forex reserves held by the State Bank of Pakistan (SBP) have improved, currently at $7.8 billion amid inflows from the International Monetary Fund (IMF) and bilateral partners including Saudi Arabia and UAE, reserves remain under pressure on account of external debt servicing.

Days ago, Caretaker Federal Minister for Commerce and Industries and Production, Dr Gohar Ejaz, who is also the patron-in-chief of APTMA, set an ambitious target of $25 billion in textile exports for the current financial year against the $16 billion target for the last fiscal year.

The minister also pledged a swift revival of all shuttered industries within the country, with a tight deadline of just one month.

Comparing this year’s projected export figures with the previous year’s $16 billion, he expressed confidence in surpassing this milestone.

Gohar emphasised that all challenges obstructing textile sector operations would be systematically addressed.