LAHORE:
After slight increases in export figures for two consecutive months, Pakistan’s textile exports again entered negative territory on a monthly basis.
According to the latest data released by the Pakistan Bureau of Statistics on Monday, textile group exports for February 2024 fell by 3.31% compared to January 2024, with the February figures totaling 1.41 billion versus $1.46 billion in January.
On an annual basis, textile exports managed to remain in positive territory, showing an increase of 19.20%. Export figures for February 2023 were recorded at $1.18 billion.
The textile industry is a cornerstone of Pakistan’s economy, with stakeholders claiming that it contributes about 60% of the total. However, despite this important role, it is not performing as expected and the situation is getting worse.
After nearly a year of negative export volumes, the sector entered positive territory in December 2023. However, it remained positive for only two consecutive months before returning to negative territory.
Analysis of the data shows that raw cotton exports remained flat in February 2024 at zero billion dollars, down 100% month-on-month.
Cotton yarn exports for February 2024 totaled $78,428 million, down 3.46% from $81,295 million in January. However, year-on-year, they increased by 41.16%, with the February 2023 figure at $55,597 million.
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Exports of cotton fabrics showed an increase of 8.63% in February 2024 ($173,501 million) compared to January 2024 ($159,719 million) and an annual increase of 12.13%.
The knitwear sector also remained in negative territory, with February 2024 figures at $335,964 million against $365,050 million in January 2024, down 7.97%. However, on an annual basis, it showed an increase of 21.24%.
Exports of the bedding industry also fell by 3.27% month-on-month, with February 2024 figures at $243,823 million compared to $252,076 million in January 2024. However, they increased by 24.53% year-on-year. basis, with February 2023 figures at $195.8 billion.
On a month-on-month basis, the ready-to-wear industry declined by 7.92%, coming in at $307,000 million in February 2024 compared to $333,411 million in January 2024. However, it also managed to register an annual increase of 20.32 %.
Analysis of textile group data further suggests that almost all value added sectors remain in the negative zone. There may be many reasons behind this, one of which is the traditional justification of higher energy costs by stakeholders, which makes Pakistani products uncompetitive.
Another reason is the lack of innovation or value addition in textiles. The majority of Pakistani textile entrepreneurs continue to sell the same old fashioned products in the global markets. These old products are competitive on price, with small margins. Many economists believe that unless Pakistan finds new markets with an emphasis on value addition in line with global demand, it will be very difficult for this sector to increase its share in the country’s total export figures.
Published in The Express Tribune, March 19u2024.
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