The value of textile exports fell by 3% in January, reaching $932 million. This figure is 15% lower than it was in January 2022.
KARACHI: Pakistan’s textile exports for January 2023 recorded just $1.32 billion, a 3% month-over-month decline.
Exports totaled Rs 309 billion in rupees, up 2% month over month.
According to Nasheed Malik, a textile analyst at Topline Research, “Value-added textile exports decreased by 3% MoM to $932 million, primarily due to an 8% decline in the exports of readymade garments and knitwear and a 5% decline MoM.
However, exports of towels and bedclothes increased by 1% and 11% MoM, respectively. Additionally, the market for basic textiles increased by 5% MoM to $231 million in January 2023.
In an interview with The Express Tribune, Securities Textile Textile Analyst Ali Asif stated that the sector’s supply and demand issues were the main reason why textile exports remained weak in January. Lower order bookings were a result of the global recession, which decreased the purchasing power in important export markets.
Gas shortages and elevated costs of working capital in the nation also contributed to the decline, he said, adding that inventory built up at major international retailers.
According to a Topline Securities report, value-added exports recovered in terms of volume, with knitwear, towels, and bed-wear seeing MoM increases of 13%, 10%, and 8%, respectively. When it comes to basic textiles, cotton yarn exports rose by 39% MoM while cotton cloth exports fell by 6% MoM.
Pakistan’s textile exports decreased by 15% year over year in comparison to January 2022, rising 13% year over year in rupee terms as a result of a 13% YoY decrease in value-added and 24% YoY in the basic segment as global demand slowed, according to a Topline Securities report.
Value-added bedwear, knitwear, and ready-made clothing all experienced YoY declines of 20%, 13%, and 11%, respectively. Volumetrically, knitwear and bedwear both experienced declines of 16% and 10% YoY.
The reason for the ongoing decline in textile exports is a slump in global demand, and the trend is anticipated to last for the foreseeable future. Arsalan Hanif, a textile industry analyst, cautioned that the country’s textile exports will become even less competitive against regional nations as a result of the increase in gas and electricity prices. According to Faisal Moiz Khan, President of the North Karachi Association of Trade and Industry, “the mini budget and significant increase in gas and electricity tariff are disastrous for the economy and industry” (NKATI). Industries will be forced to close if the government does not reverse the tax and tariff increases made through the mini budget. He warned that this will also cause millions of workers to lose their jobs and negatively impact exports.
The president of NKATI stated that the government has raised the prices for gas and electricity while also indicating that the subsidy will be phased out, which will raise the cost of production even more.
Pakistan exported $10.04 billion worth of textiles in the first seven months of FY2023, down 8% year over year but up 21% in rupee terms.
