ISLAMABAD: Textiles and clothing exports fell 12.42 per cent year-on-year to $12.47 billion in the first nine months of the current fiscal year, data released by the Pakistan Bureau of Statistics (PBS) showed on Tuesday.

The exports recorded a steep decline of 22.61pc to $1.26bn in March from $1.62bn in the corresponding month of last year. However, on a month-on-month basis, textile exports rose 6.6pc.

The overall exports also fell for the seventh straight month by 9.85pc to $21.05bn in July-March against $23.35bn in the corresponding months of last year. This consistent decline reflects massive layoffs in the export sector.

The government would find it difficult to achieve the export target which would increase pressure on the dwindling foreign exchange reserves of the country.

Higher input costs and raw material shortages blamed for situation

The textile and clothing exports were falling due to multiple factors including high energy costs, stuck-up refunds, non-availability of raw materials and a slump in global demand despite the massive rupee depreciation.

As part of the agreement with the IMF, the government has discontinued subsidies on energy from March 1 for the export sector. The piling up 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.

The textile exports started posting negative growth in the first month of the current fiscal year — July — barring August when a slight increase was recorded because of the backlog of the preceding month. Export contraction is a worrisome factor, which will create problems in balancing the country’s external account.

The PBS data showed the exports of readymade garments recorded 7.20pc negative growth in value in 9MFY23 but grew by 56.79pc in quantity, while knitwear dipped 9.10pc in value but grew 10.61pc in quantity, bedwear posted a negative growth of 17.03pc in value and 23.30pc in quantity.

However, towel exports slightly decreased by 9.07pc in value and 13.016pc in quantity, whereas those of cotton cloth dipped by 14.34pc in value and 25.38pc in quantity.

Among primary commodities, cotton yarn exports declined by 36.92pc, while yarn other than cotton by 31.69pc. The export of made-up articles — excluding towels — dipped by 14.71pc, and tents, canvas and tarpaulin went up by 25.10pc in 9MFY23 from a year ago.

The import of textile machinery declined by 54.21pc in 9MFY23 — a sign that expansion or modernisation projects were not a priority.

In a statement, Pakistan Textile Exporters Association Patron-in-Chief Khurram Mukhtar said that the declining textile exports were the result of the government’s lack of strategy and inability to prioritise effectively, adding that it seems the economic managers are simply running the government on a day-to-day basis.

Published in Dawn, April 19th, 2023