LAHORE: Pakistan’s textile exports have shown a remarkable growth of 10% year-on-year in January 2024, reaching US$1.45 billion, according to the latest data released by the Pakistan Bureau of Statistics (PBS).
The increase in textile exports is mainly due to the low base effect of the same period last year, when the country faced a severe shortage of cotton and a slowdown in global demand due to the Covid-19 pandemic.
The PBS data revealed that the export of value-added textile products, which include ready-made garments, knitwear, bedwear and towels, rose by 12% year-on-year to US$1.04 billion in January 2024. These products accounted for more than 70% of the total textile exports.
The export of basic textile products, such as cotton yarn, cotton cloth and raw cotton, also increased by 6% year-on-year to US$0.24 billion in January 2024. However, these products witnessed a decline of 4% month-on-month, due to a drop in volumes and prices.
The export of other textile products, such as tents, canvas and ropes, increased by 3% year-on-year to US$0.16 billion in January 2024.
The textile sector, which is the largest export-oriented industry in Pakistan, has been facing various challenges, such as high energy costs, low cotton production, and stiff competition from regional rivals.
The industry has been demanding a cut in interest rates, a reduction in energy tariffs, and a consistent implementation of the textile policy to boost its competitiveness and profitability.
The industry has also been benefiting from the lower prices of local cotton, which have been below the international prices for the past few months. However, the gap between the local and international prices is narrowing, as the global cotton market is witnessing a surge in demand and supply disruptions.
The cotton crop in Pakistan, which is the fourth-largest producer of the commodity in the world, has shown a significant improvement in the current marketing year, as the cotton arrivals have increased by 75% year-on-year to 8.38 million bales till February 2024, compared to 4.76 million bales in the same period last year.
Leave a Reply