Pakistan's textile exports plummet 28pc in Feb
Last updated on: 07 March,2023 09:37 am
The country’s textile exports in the first eight months of FY23 decreased by 11pc to $11.24 billion
LAHORE (Web Desk) - Pakistan’s textile sector exports recorded a significant decline of 28 per cent, clocking in at $1.2 billion in February 2023 as compared to $1.67 billion recorded in the same month of 2022.
A provisional data released by the All Pakistan Textile Mills Association (APTMA) reveals that the country’s textile exports in the first eight months of FY23 decreased by 11pc to $11.24 billion, declining from $12.60 billion recorded in 8MFY22.
The decline in textile exports is concerning for the South Asian economy, which is already facing depleting foreign exchange reserves. Its central bank has reserves of just $3.81 billion remaining, barely enough for a month of imports. However, the level will get a slight boost with another loan inflow from China.
Industrialists have expressed concern over the ongoing slump in the textile sector, after cotton arrival in Pakistan also decreased 34.5% year-on-year, showed data released by the Pakistan Cotton Ginner’s Association (PCGA) on Friday.
In December, the APTMA urged the federal government for a level playing field by implementing a uniform gas price of $7 per MMBtu for the export industry across the country.
The association also warned that the decision of the government to suspend the regionally competitive energy tariff (RCET) of electricity for Export Oriented Units (EOUs) will hurt the textile industry, particularly in Punjab.
The premier textile body wrote a letter to Prime Minister Shehbaz Sharif in December last year with warning that the country’s textile exports could fall below $1 billion a month from 2023 onwards.
It was conveyed to the premier that the textile industry is currently operating at less than 50pc capacity utilisation.