ISLAMABAD: The exports of textile and clothing fell 14.83 per cent in January to $1.32 billion compared to $1.55bn in the same month last year, data released by the Pakistan Bureau of Statistics (PBS) showed on Friday.

The overall export proceeds shrank for the fifth consecutive month in a row. The drop shows the government would find it difficult to achieve the export target this fiscal year leading to more pressure on foreign exchange reserves of the country.

The drop in textile and clothing exports is gaining momentum over the past five months owing to multiple factors including high energy costs, stuck-up refunds 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.

As part of the agreement with the IMF, the government has announc­ed discontinuing subsidies on energy from March for the export sector. The piling of containers at ports is also contributing to the decline in exports.

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 11.47pc negative growth in value in January but grew by 32.26pc in quantity, while knitwear dipped 13.10pc in value and 13.54pc in quantity, bedwear posted a negative growth of 20.05pc in value and 15.83pc in quantity.

However, towel exports slightly increased by 0.08pc in value and 3.82pc in quantity, whereas those of

cotton cloth dipped by 26.70pc in value and 30.86pc in quantity. Among

primary commodities, cotton yarn exports declined by 12.34pc, while yarn other than cotton by 40.08pc.

Published in Dawn, February 18th, 2023