Pakistan’s clothing exports surge by over 10%

WEB DESK: In a recent announcement, the Pakistan Bureau of Statistics (PBS) unveiled data indicating a notable growth in textile and clothing exports for the second consecutive month in January.

The sector recorded a robust increase of 10.10 per cent, with exports reaching $1.45 billion compared to $1.32 billion in the corresponding month of the previous year.

This positive momentum was further highlighted by a month-on-month growth rate of 3.33 per cent.

Despite this recent surge, a closer look at the performance in the fiscal year 2024’s first seven months reveals a contrasting trend.

Textile and clothing exports experienced a decline of 2.99 per cent, amounting to $9.73 billion as opposed to $10.03 billion in the same period last year.

Analysts attribute this contraction to mounting production costs, primarily driven by increased energy expenses and a prevalent liquidity crunch in the industry.

The sustainability of the recent upswing remains uncertain, raising questions about the sector’s future performance in the upcoming months.

While the Ministry of Commerce had previously announced measures to address challenges faced by textile exporters, including regionally competitive energy prices and the resolution of cash flow issues through the release of pending sales tax refunds, these initiatives are yet to be implemented.

Industry insiders are keenly observing the unfolding developments, anticipating the potential impact of the proposed government interventions. The sector awaits concrete actions to mitigate challenges and foster a more conducive environment for sustained growth.

As the fiscal year progresses, stakeholders are hopeful for a positive turnaround in the textile and clothing export landscape, provided the anticipated measures are implemented effectively.

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