Clothing exports surge by over 10% in Pakistan.
The Pakistan Bureau of Statistics (PBS) recently disclosed data indicating a significant uptick in textile and clothing exports for January, marking the second consecutive month of growth in the sector. Exports surged by 10.10 percent, totaling $1.45 billion compared to $1.32 billion in the same period last year. Additionally, the month-on-month growth rate stood at 3.33 percent.
However, a closer examination of the fiscal year 2024’s initial seven months reveals a divergent pattern. Textile and clothing exports witnessed a decline of 2.99 percent, amounting to $9.73 billion compared to $10.03 billion in the corresponding period last year.
Analysts attribute this contraction to escalating production costs, primarily fueled by rising energy expenses and a prevailing liquidity crunch within the industry. Despite the recent surge, the sustainability of this growth remains uncertain, casting doubts on the sector’s future performance in the coming months.
Although the Ministry of Commerce had previously announced measures to address challenges encountered by textile exporters, such as ensuring regionally competitive energy prices and resolving cash flow issues through the release of pending sales tax refunds, these initiatives are yet to be implemented.
Industry stakeholders are closely monitoring unfolding developments, eagerly awaiting the potential impact of the proposed government interventions. The sector anticipates concrete actions to alleviate challenges and create a more favorable environment for sustained growth.
As the fiscal year progresses, stakeholders remain hopeful for a positive turnaround in the textile and clothing export landscape, contingent upon the effective implementation of anticipated measures.
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