Pakistan’s textile sector continues to face challenges as exports recorded a year-on-year decline of 12% in September, dropping to $1.35 billion compared to $1.53 billion in the same month the previous year, according to provisional data released by the All Pakistan Textile Mills Association (APTMA) on Wednesday.
The decline in textile exports is a cause for concern, especially given that textile exports make up a significant portion of Pakistan’s overall exports. In the first nine months of the calendar year 2023, textile exports decreased by 18%, falling from $14.53 billion in the same period of 2022 to $11.9 billion.
This downward trend in textile exports is particularly worrying for Pakistan, as the country faces a shortage of foreign exchange and relies on non-debt creating dollar inflow to bolster its reserves.
On a monthly basis, textile exports also saw a decline of nearly 8% in September compared to August when exports stood at $1.46 billion.
Although Pakistan’s forex reserves, held by the State Bank of Pakistan (SBP), have improved and currently stand at $7.67 billion, they continue to be under pressure due to external debt servicing.
Minister for Commerce Dr. Gohar Ejaz, who is also the patron-in-chief of APTMA, expressed optimism for the textile sector, highlighting the achievement of crossing the five million bales mark in cotton arrivals on October 1, 2023. He emphasized that this growth showcases the dedication and hard work of Pakistani farmers and the resilience of the country’s cotton industry.
