ISLAMABAD: According to data from the Pakistan Bureau of Statistics (PBS), textile and clothing exports in Pakistan grew by 10.51% during the first five months of the current fiscal year (FY25), reaching $7.61 billion compared to $6.88 billion in the same period last year.
Growth Momentum Despite Challenges
After a decline of 3.09% in July 2024, textile exports bounced back with strong growth in subsequent months. The sector saw a 13% increase in August, 17.92% in September, 13.11% in October, and 10.81% in November. Despite this positive trend, experts caution that the sector faces significant challenges in competing with regional competitors due to the implementation of tough taxation measures in the current fiscal year. Additionally, disruptions in supply from Bangladesh have created new opportunities for Pakistani garment exports.
Structural Issues Impacting Growth
Despite having a $25 billion installed capacity, Pakistan’s textile and clothing exports have remained stagnant over the past two years due to ongoing structural issues within the industry, as highlighted by industry stakeholders.
Performance by Textile Categories
- Readymade Garments: Exports saw a notable increase of 23.10% in value and 13.61% in quantity during 5MFY25.
- Knitwear: Exports grew by 18.42% in value and 8.87% in quantity.
- Bedwear: A solid growth of 15.05% in value and 14.86% in quantity was recorded.
- Towels: Exports rose by 7.08% in value and 6.90% in quantity.
- Cotton Cloth: Value-based exports increased by 4.18%, though the quantity contracted by 2.09%.
- Yarn: Exports of yarn saw a sharp decline, falling by 38.70% during 5MFY25.
- Made-up Articles: Exports (excluding towels) grew by 11.61%, while exports of tents, canvas, and tarpaulin increased by 9.63%.
Imports and Trends
While textile exports flourished, there were notable shifts in imports as well:
- Synthetic Fibre: Imports shrank by 18.20%.
- Synthetic and Artificial Silk Yarn: Imports increased by 4.30%.
- Other Textile Items: The import of other textile items surged by 68.73%.
- Raw Cotton: Imports of raw cotton rose by 104.33%.
- Second-Hand Clothes: There was a 20.22% increase in imports of second-hand clothing.
Overall Export Performance
In the broader context, Pakistan’s total exports for the period of July-November FY25 saw a 12.82% increase, reaching $13.72 billion, up from $12.16 billion in the same months of the previous year.
Despite challenges, textile exports continue to be a crucial driver of Pakistan’s economic growth, showing resilience in a volatile global market.
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