Textile Exports Fall 15 Percent in July-May FY2022-23

Pakistan’s textile exports in the first 11 months of FY 2022-23 stand at $15.01 billion against $17.61 billion in the same period last year. Exports declined by 20 percent on a monthly basis, looking at $1.31 billion in May 2023 against $1.64 billion in the same month last year. Textile exports increased in the first three months of the current fiscal year from July, August, and September by 1 percent, 8 percent, and 3 percent respectively compared to the same months in the previous year but have been on a downward lane with a 15 percent dip in October 2022 to a 29 percent decline in April 2023, reported The News. From November 2022, December 2022, and January 2023, exports plunged by 18.39 percent, 16.05 percent, and 15 percent respectively with the biggest decrease of 30 percent in February 2023 when the government announced the harsh mini-budget. All Pakistan Textile Mills Association (APTMA) expects exports to decline by $3 billion compared to last year’s record of $19.4 billion and that does not include the increase from newly installed capacity. APTMA states that this continuous dip is due to the ban on imports of raw materials and spare parts which are industry requirements.  The non-existent sufficient supply of energy at competitive prices and the failure of the sales tax refund system has also contributed to the reduction in industrial output with the closure of 50 percent of the industry. Banks are refusing Letters of Credit or retiring cotton or PSF imports through cash against documents while industrial stocks are diminishing.