Textile exports shrink to $15bn

Textile and clothing exports contracted by 14.72 per cent year-on-year to $15.03 billion during the first 11 months of the outgoing fiscal year. The decline in production is mainly attributable to a surge in the cost of production and a liquidity crunch, according to data released by the Pakistan Bureau of Statistics (PBS) on Monday. The export figures for May paint a bleak picture as they witnessed a sharp decline of 19.57pc to $1.32bn from $1.64bn in the corresponding month of the previous year. The government is facing an uphill battle in meeting its export target, which could further exacerbate the strain on the country’s depleting foreign exchange reserves. The textile and clothing sector, a key contributor to exports, is grappling with multiple challenges. These include soaring energy costs, delayed refunds, scarcity of raw materials, and a global decline in demand, despite the significant depreciation of the local currency. The combination of these factors is impeding the growth of exports and posing a serious threat to the country’s economic stability. The textile export sector experienced a troubling trend of negative growth right from the beginning of the current fiscal year, except for a slight increase in August 2022 due to a backlog from the previous month.