ISLAMABAD: Pakistan’s textile exports fell by 7% year-on-year in November 2023, according to the latest data released by the Pakistan Bureau of Statistics (IPBS). The total value of textile exports stood at US$1.3 billion, compared to US$1.4 billion in the same period last year. The drop was attributed to lower global prices and a challenging domestic business environment.
The decline was mainly driven by the value-added textile segment, which comprises towels, readymade garments, and knitwear. This segment saw a 12% decrease in exports, reaching US$0.92 billion in November 2023. On the other hand, the basic textile segment, which includes cotton yarn, recorded a 100% increase in exports, reaching US$0.24 billion. Other textile exports, such as carpets and rugs, also fell by 12%, reaching US$0.16 billion.
The overall textile exports increased in volume terms, mainly due to the basic textile segment, which grew by 74% year-on-year. The value-added and other textile segments also registered a 7% and 1% growth in volume, respectively.
However, on a month-on-month basis, both the value-added and the basic textile segments witnessed a decline in exports in November 2023. The value-added segment saw a 6% decrease in value and a 9% decrease in volume, while the basic segment saw a 14% decrease in value and an 8% decrease in volume. The decline was attributed to lower prices and reduced demand for some products, such as knitwear, bedwear, and towels. The only exception was the readymade garments segment, which saw a 5% increase in value.
The outlook for the textile sector remains mixed, as analysts at Insight Research expect a recovery in volume terms due to the upcoming Christmas season. However, they also warn that the rising energy prices have increased the cost of production and reduced the competitiveness of Pakistani textile manufacturers in the international market.
They hope that the expected cut in interest rate and the improved cotton production in the current marketing year will ease some of the pressure on the industry margins. They also note that the local cotton prices are lower than the international prices, which gives an advantage to the local textile manufacturers.