ISLAMABAD: The exports of textile and clothing fell 16.47 per cent in December to $1.35 billion compared to $1.62bn in the same month last year, data released by the Pakistan Bureau of Statistics (PBS) showed on Thursday.
The overall export proceeds shrank for the fourth 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 four 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.
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 7.92pc negative growth in value in December but grew by 50.5pc in quantity, while knitwear dipped 19.54pc in value and but grew 24pc in quantity, bedwear posted a negative growth of 17.77pc in value and 22.74pc in quantity.
Towel exports went down by 14.05pc in value and 13.09pc in quantity, whereas those of cotton cloth dipped by 13.97pc in value and 19.42pc in quantity.
Among primary commodities, cotton yarn exports declined by 60.71pc, while yarn other than cotton by 19.09pc. The export of made-up articles — excluding towels — dipped by 49.92pc, and tents, canvas and tarpaulin by 26.04pc.
Published in Dawn, January 20th, 2023
