Pakistan’s textile sector has experienced a substantial decline in export earnings, indicating a challenging period for the industry. According to data released by the Pakistan Bureau of Statistics (PBS), textile exports in May 2023 decreased by 19.57% to $1.32 billion, compared to $1.64 billion in the same month last year. This decline marks the eighth consecutive month of reduced textile sales, raising concerns within the industry.
Cumulatively, the total textile exports from July to May of FY23 have seen a significant drop of 14.7%, amounting to $15.03 billion, in contrast to $17.62 billion during the same period in FY22. This downward trend raises questions about the factors contributing to the decline in Pakistan’s textile exports.
Decrease in Major Textile Components Exports
The export figures reveal a decline across all major textile components. Cotton cloth exports in May 2023 decreased by 24.5% to $174.7 million, compared to $231.3 million in May 2022. Similarly, knitwear exports witnessed a decrease of 22.34% to $322.7 million, while bedwear fell by 28.4% to $201.5 million. Readymade garments and towels also experienced declines of 16.8% and 5.2%, respectively. Cotton yarn exports decreased by 5.8% to $100.4 million, further contributing to the downward trend in textile exports.
Minor Improvements in May 2023
Although the overall picture appears bleak, there were some minor improvements in May 2023 compared to the previous month. Textile exports increased by 7.1% to $1.32 billion, indicating a slight recovery. Notably, readymade garments, cotton yarn, knitwear, and towels experienced increases ranging from 3.4% to 9.9%. However, bedwear exports declined by 7.6% during the same period, dampening the positive trend.
Impact on Other Sectors
The decrease in textile exports also had repercussions on other sectors. In May 2023, exports of food groups, including rice, witnessed a decline of 16.46% to $384.3 million compared to the same month in 2022. Rice exports alone decreased by 20.1% to $179.6 million. On the positive side, exports of fish and fish preparations increased by 25% to $50.6 million. However, sugar exports experienced a significant reduction of 95.7% to $0.87 million.
Cement exports, on the other hand, showcased remarkable growth in May 2023, with a 145.9% increase to $18.1 million compared to the previous year. The volumetric sales of cement also witnessed a substantial rise of 208% during the same period.
Impact on Imports
The textile sector’s decline in exports is mirrored by the import sector. In May 2023, petroleum group imports experienced a notable decrease of 46.8% compared to the same month in the previous year. Crude oil imports dropped by 28.6%, petroleum products by 59.3%, and liquefied natural gas (LNG) by 38.2%. However, imports of liquefied petroleum gas (LPG) increased by 26.2%.
Machinery group imports also witnessed a decline of 29.6% in May 2023, with imports of textile machinery, power generation machinery, and agriculture machinery experiencing substantial reductions. Mobile set imports, however, saw a significant increase of 308% compared to the previous month.
Conclusion
Pakistan’s textile sector is facing challenges with a continuous decline in export earnings. The decrease in textile exports, including major components such as cotton cloth, knitwear, bedwear, and readymade garments, paints a concerning picture for the industry. The impact of this decline can be felt across various sectors, including food groups and imports. Efforts are needed to analyze the causes behind this decline and explore strategies to revitalize the textile sector for sustainable growth.
Published in PakWeb, June 17th, 2023. Originally reported by The News.
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