Textile exports fall 18pc in November
ISLAMABAD: The exports of textile and clothing fell 18.15 per cent in November to $1.42 billion compared to $1.74bn in the same month year, data released by the Pakistan Bureau of Statistics showed on Friday.
The overall export proceeds from the country shrank for the third consecutive month in a row. The drop shows the government would find it difficult to achieve the export target this fiscal year.
The drop in textile and clothing exports is gaining momentum over the past three months owing to multiple factors including high energy costs, and a slump in global demands despite the massive depreciation of the rupee.
Exporters believe that one of the main reasons behind falling exports was the exchange rate instability. The discontinuation of duty drawbacks on local taxes and levies by the government has also created liquidity issues for the export sector.
No official statement was issued from the commerce ministry to explain the reasons for the decline in export proceeds. Commerce Minister Naveed Qamar since taking responsibility for the ministry has constantly been on foreign tours.
The PBS data showed the exports of readymade garments recorded no growth in value in November and however grew by 49.70pc in quantity, while knitwear dipped 12.80pc in value and 20.20pc in quantity, bedwear posted a negative growth of 29.39pc in value and 37.48pc in quantity.
Towel exports went down by 12pc in value and 15pc in quantity, whereas those of cotton cloth dipped by 25pc in value and 32.68pc in quantity.
Among primary commodities, cotton yarn exports declined by 60.71pc, while yarn other than cotton by 19.09pc. The export of made-up articles — excluding towels — dipped by 17.81pc, and tents, canvas and tarpaulin increased by a massive 18pc during the month under review. The export of raw cotton in November recorded a growth of 100pc during the months under review.
The import of textile machinery declined by 41.16pc in November FY23 — a sign that expansion or modernisation projects were not a priority.
The lower production of the textile sector was due to a sharp drop in the import of raw materials as raw cotton arrivals declined by 10.88pc in quantity.
Published in Dawn, December 17th, 2022