Pakistani textile exports which had shown slight increases over two consecutive months, have once again declined on a month-on-month basis. According to the latest data from the Pakistan Bureau of Statistics, textile exports for February 2024 decreased by 3.31% compared to January 2024, amounting to $1.41 billion in February versus $1.46 billion in January.
However, on an annual basis, textile exports exhibited growth, registering a 19.20% increase compared to February 2023, when exports were recorded at $1.18 billion.
The textile industry is a vital component of Pakistan’s economy, contributing approximately 60% to the overall economy. Despite its significance, the sector’s performance has been below expectations, with a recurring trend of declining exports.
Although the textile sector briefly returned to positive territory in December 2023 after almost a year of negative export figures, it reverted to negative territory after just two months.
Detailed analysis reveals that exports of raw cotton remained stagnant in February 2024, with a 100% decline compared to the previous month. Cotton yarn exports decreased by 3.46% month-on-month but showed a substantial 41.16% increase year-on-year. Similarly, cotton cloth exports experienced an 8.63% increase compared to January 2024 and a 12.13% growth annually.
In contrast, sectors like knitwear, bedwear, and readymade garments remained in negative territory on a month-on-month basis, though they showed positive growth annually.
The data breakdown underscores that most value addition sectors within the textile industry are experiencing declines. Factors contributing to this situation include high energy costs, making Pakistani products less competitive, and a lack of innovation in product offerings. Economists suggest that unless Pakistan explores new markets and focuses on value addition in line with global demand, it will be challenging for the textile sector to significantly increase its share in the country’s export market.
