Textile exports from Pakistan have once again slipped into negative territory, with March 2024 figures showing a month-on-month (MoM) decline of 7.67%. This marks the second consecutive month of slowed global sales for this major sector of the economy. In March, textile exports amounted to $1.299 billion, compared to $1.407 billion in February. However, on a year-on-year (YoY) basis, exports saw a slight increase of 2.74%.
The textile industry has only seen positive export growth in two months over the past several months: December 2023 and January 2024. Exporters anticipated improvements during these months, mainly due to “Black Friday” and Christmas season sales. However, concerns persist regarding the long-term trade scenario. Exporters emphasize the need for a clear, business-friendly policy and subsidized energy tariffs to substantially boost textile exports.
During the recent two months of export growth, Gohar Ejaz, Patron-in-Chief of the All Pakistan Textile Mills Association (Aptma), served as the caretaker federal minister of commerce, trade, and production. Despite his tenure of nearly seven and a half months, the interim administration failed to provide relief to the textile industry, particularly in rationalizing energy tariffs.
Also Read: Textile Exports Constrained by High Costs
Rising energy prices pose a significant challenge to the industry, exacerbating its difficulties. A Faisalabad-based textile mill owner expressed concerns about the potential worsening of the situation in the coming months, with export revenue expected to continue its downward trend.
A breakdown of the data reveals a bleak picture for the textile industry. Exports of the readymade garments sector, which typically performed well, dropped by 6.43% to $287.265 million in March 2024 compared to February’s $306.99 million. However, the sector managed a slight YoY increase of 3.37% in shipments.
Similarly, exports of art, silk, and synthetic textiles declined to $30.298 million in March from $33.639 million in February, marking a drop of 9.93%. Compared to March last year, exports in this category decreased by 17.10% The bedwear category also faced challenges, with shipments plummeting by 11.71% to $215.259 million in March compared to $243.823 million in February. Nevertheless, the bedwear sector saw a YoY increase in exports by 8.77%.
