Pakistan’s textile sector experienced a decline in exports, with August figures at $1.48 billion compared to $1.58 billion from the previous year, marking a 6% year-on-year decrease. Over the first eight months of 2023, textile exports fell by 19% to $10.58 billion, down from $13 billion in the same period in 2022.
This decline is a concern for Pakistan’s economy, leading to a depreciation of the rupee due to a shortage of foreign exchange.
However, there was a 13% monthly improvement in textile exports in August compared to July, when exports were at $1.31 billion. While the State Bank of Pakistan’s forex reserves have improved to $7.8 billion, external debt servicing continues to exert pressure on reserves despite inflows from international sources like the IMF, Saudi Arabia, and the UAE.
Caretaker Federal Minister for Commerce and Industries and Production, Dr. Gohar Ejaz, has set an ambitious target of $25 billion in textile exports for the current fiscal year, aiming to surpass the previous year’s target of $16 billion. He has also pledged a swift revival of shuttered industries within the country, addressing challenges faced by the textile sector.
