Provisional data released by the All Pakistan Textile Mills Association (APTMA), shows that exports of the Pakistan textile sector witnessed a significant decline of 28 per cent, standing at US $ 1.2 billion in February 2023, as opposed to US $ 1.67 billion in the same period of the previous year.
Textile exports from the country decreased to US $ 11.24 billion in the first eight months of FY23, a decrease of 11 per cent from US $ 12.60 billion in 8MFY22.
This decline in textile exports is a concern for Pakistan which is already suffering from a depletion of foreign exchange reserves. Reserves in the central bank stand at US $ 3.81 billion which is barely enough to manage a month’s worth of imports. That may change, however, due to a loan inflow from China.
The ongoing slump in the textile sector has industrialists concerned, since the arrival of cotton in Pakistan has also decreased 34.5 per cent year-on-year, according to data from Pakistan Cotton Ginner’s Association (PCGA).
The All Pakistan Textile Mills Association (APTMA) has also urged the Federal Government to implement a uniform gas price of $7 per MMBtu for the export industry across the country, in order to implement a level playing field.
The APTMA also wrote a letter to the PM, in December to warn that the textile exports of the country could fall below US $ 1 billion for a month from 2023 onwards for the sector which is already operating at less than 50 per cent capacity utilisation.
