Pakistan’s textile industry sees 5.43% decline in monthly exports 

WEB DESK: In November 2023, Pakistan’s textile sector experienced a 5.43 per cent month-on-month decline in total exports, amounting to $1.37 billion, as per data released by the State Bank of Pakistan (SBP).  

This downturn follows the $1.45 billion recorded in the previous month. On a year-on-year basis, textile exports for the same period decreased by 3.52 per cent in November 2023. 

Over the cumulative period of 5MFY24, textile exports faced a substantial 10.14 per cent year-on-year decline, totaling $6.9 billion, compared to $7.67 billion in 5MFY23. 

Contrastingly, the overall exports, according to the Balance of Payments (BOP), exhibited positive growth, reaching $2.73 billion in November 2023.  

This represents a significant 21.53 per cent year-on-year increase from $2.25 billion in November 2022. However, on a monthly basis, exports saw a marginal 1.16 per cent decline. 

Of note is the surplus in the current account balance, amounting to $9 million in November. This stands in stark contrast to deficits of $184 million in October and $157 million in November 2022.  

The positive balance marks a turnaround after four consecutive months of deficits, with the last reported surplus dating back to June 2023. 

Read more: Pakistan’s current account records surplus

In November 2023, textile products remained the dominant export category, constituting 50.31 per cent of the total exports.  

Key contributors included knitwear ($335.71 million), readymade garments ($279.33 million), and bedwear ($236.55 million).  

Knitwear and ready-made garments experienced a decline of 12.38 per cent and 9 per cent, respectively, while bedwear exports increased by 1.65 per cent year-on-year compared to November 2022. 

The food group emerged as the second-most contributing category in total exports, reaching a value of $704.93 million in November 2023.  

This reflects a substantial growth of 96.75 per cent year-on-year compared to $358.28 million in November 2022.

On a monthly basis, the exports from this group rose by 11.88 per cent compared to October 2023. 

Rice remained a significant contributor under the food group, with exports at $394.84 million in November 2023, marking a 53.58 per cent month-on-month increase and a 3.34x year-on-year growth. 

The export of oil seeds, nuts, and kernels stood at $60.83 million in November, growing by 196.31 per cent year-on-year and 51.4 per cent month-on-month.  

Surgical goods and medical instrument exports fell by 5.51 per cent year-on-year to $37.43 million, and leather manufacturers witnessed an 11.95 per cent decline, reaching $48.81 million in November 2023. 

Conversely, sports goods foreign earnings increased by 9.65 per cent year-on-year to $38.62 million. However, compared to October 2023, there was a 1.41 per cent month-on-month decrease. 

The chemical and pharmaceutical products category experienced 10.33 per cent year-on-year growth, reaching $123.64 million in November 2023 compared to $112.07 million in the same period last year. 

Notably, the Petroleum Group’s share in the country’s total export basket was 3.13 per cent in November 2023, with earnings of $85.62 million, reflecting a 43.59 per cent year-on-year increase.