KARACHI: Pakistan’s textile exports for January 2023 recorded just $1.32 billion, a 3% month-over-month fall.
Exports totaled Rs 309 billion in rupees, up 2% month over month.
According to Nasheed Malik, a textile analyst at Topline Research, “Value-added textile exports decreased by 3% MoM to $932 million, mostly due to an 8% decline in the exports of readymade garments and knitwear and a 5% decline MoM.
Nonetheless, exports of towels and bedclothes increased by 1% and 11% MoM, respectively. Moreover, the market for basic textiles increased by 5% MoM to $231 million in January 2023.
Securities Textile Analysis of Textile According to Ali Asif, the sector’s supply and demand issues were the key reason why textile exports remained sluggish in January. Lower order bookings were a result of the global recession, which decreased the spending power in important export markets.
Gas shortages and elevated expenses of working capital in the nation also contributed to the reduction, he said, adding that inventory built up at major international shops.
According to a Topline Securities research, value-added exports recovered in terms of volume, with knitwear, towels, and bed-wear seeing MoM increases of 13%, 10%, and 8%, respectively. When it comes to basic textiles, cotton yarn exports rose by 39% MoM while cotton cloth exports fell by 6% MoM.
Pakistan’s textile exports decreased by 15% year over year in comparison to January 2022, rising 13% year over year in currency terms as a result of a 13% YoY decrease in value-added and 24% YoY in the basic segment as global demand slowed, according to a Topline Securities research.
Value-added bedwear, knitwear, and ready-made clothing all experienced YoY declines of 20%, 13%, and 11%, respectively. Volumetrically, knitwear and bedwear both experienced declines of 16% and 10% YoY.
The cause for the ongoing drop in textile exports is a slump in worldwide demand, and the trend is anticipated to endure for the foreseeable future. Arsalan Hanif, a textile industry analyst, cautioned that the country’s textile exports will become even less competitive versus regional nations as a result of the increase in gas and power prices. According to Faisal Moiz Khan, President of the North Karachi Association of Commerce and Industry, “the mini budget and significant increase in gas and electricity tariff are disastrous for the economy and industry” (NKATI). Industries will be forced to close if the government does not reverse the tax and tariff increases made through the small budget. He warned that this will also cause millions of workers to lose their jobs and negatively impact exports.
The president of NKATI stated that the government has raised the prices for gas and electricity while simultaneously indicating that the subsidy will be phased out, which will raise the cost of manufacturing even more.
Pakistan exported $10.04 billion worth of textiles in the first seven months of FY2023, down 8% year over year but up 21% in rupee terms.
