Exports of Pakistan’s textile sector showed growth in October, clocking in at $1.43 billion compared to $1.36 billion recorded in the same month of the previous year, a year-on-year increase of over 5%, showed provisional data released by the All Pakistan Textile Mills Association (APTMA) on Thursday.

This is the first month when textile exports have posted a year-on-year increase during 2023.

Data showed the country’s textile exports in the first ten months of the calendar year 2023 decreased by 16% to $13.34 billion, down from $15.88 billion in the same period of 2022.

During the ongoing fiscal year 2023-24 (July-October), textile exports declined by 7% to $5.55 billion in 4MFY24, as compared to $5.94 billion in 4MFY23.

Meanwhile, on a monthly basis, the textile exports improved over 5%, as compared to $1.36 billion recorded in September.

Last month, APTMA in its meeting with the government authorities sought electricity tariff competitive with regional countries and without cross subsidy of Rs10.85 per unit being extended to non productive sectors.

The government was made aware of energy issues faced by the textile industry — specifically high power tariffs of 16 cents/kWh that are currently being charged to the industry, and the uncertainty surrounding the availability and pricing of gas/ RLNG.

Pakistan’s textile exports are crucial as they make up for the bulk of the country’s exports. The year-on-year decline is concerning for the South Asian economy, which faces a shortage of foreign exchange, and has to rely on debt-creating dollar inflow to shore up reserves.

Although forex reserves held by the State Bank of Pakistan have improved, currently at $7.5 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.