Textile exports dip 16pc in December
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.