Mohsin Siddiqui (Chief Reporter)
Pakistan’s textile and clothing exports showcased significant growth in February, marking the third consecutive month of double-digit expansion. Data released by the Pakistan Bureau of Statistics (PBS) revealed a 19.20% increase in textile exports, amounting to $1.407 billion compared to $1.18 billion in the same month last year.
Despite this notable surge, the textile and clothing exports experienced a slight decline of 0.65% in the first eight months of FY24, totaling $11.14 billion compared to $11.21 billion in the corresponding period last year. The decline was attributed to rising production costs, driven by increased energy prices and liquidity constraints.
The Ministry of Commerce had previously announced plans to offer competitive energy tariffs to textile exporters and resolve cash flow issues by releasing pending sales tax refunds. However, these measures are yet to be implemented, delaying relief for the industry.
The PBS data highlighted positive growth across various textile categories in February. Readymade garments, knitwear, bedwear, and towels all experienced notable increases in both value and quantity, reflecting a promising trend in the sector. However, yarn exports witnessed a significant rise of over 41.16% year-on-year.
Moreover, the import of textile machinery surged by 23% in February, indicating a renewed focus on expansion and modernization projects within the industry. This growth in machinery imports was observed after a hiatus of two and a half years.
In addition to the textile sector, Pakistan’s overall export performance showed resilience, with a 9% increase to $20.35 billion in the first eight months of FY24 compared to the previous year.
On the import front, oil imports declined by 10.93% in the same period, attributed to decreased imports of petroleum products. However, imports of machinery, including mobile phones, saw a substantial surge, with mobile phone imports recording a remarkable increase of 156.43%.
The surge in mobile phone imports represents a significant portion of overall machinery imports, underlining the evolving consumer market dynamics. With consistent efforts to address industry challenges and capitalize on export opportunities, Pakistan’s textile sector aims for sustained growth in the global market.
