Textile exports rise 5% in October after months of contraction

• Textile shipments rose to $1.43 billion in October: APTMA.
• Exports in the first 4 months of the current fiscal year decreased by 7%.
• The downward trend in exports continued into September.

Islamabad: Textile exports registered 5% growth for the first time in 10 months, signaling a possible recovery for the industry hit by rising input costs and the global recession. The news reported on Friday.

According to the data from the All Pakistan Textile Mills Association (APTMA), shipments increased to $1.43 billion in October compared to the previous year. This was the first month of positive growth since January.

However, textile exports in the first quarter of the current fiscal year, which began in July, fell 7 percent to $5.55 billion compared to the same period last year. The data also shows that during the 10-month period of calendar year 2023, textile exports fell by 16% to $13.14 billion from $15.88 billion recorded in the same period of calendar year 2022.

In January 2023, textile exports fell 15% to $1.32 billion from $1.55 billion in the same month of calendar year 2022. In February, exports fell 30% to $1.18 billion from 1 .67 billion dollars in the same month of 2022. February recorded the highest negative growth.

The downward trend in exports continued into September: in March, exports fell by 23%. in April, 29%; in May, 20%; in June, 14%; in July, 11%; in August, 7%; and in September, 11%.

“It is a matter of pride that due to collective efforts, we are seeing positive trends associated with a significant reduction in our trade deficit,” Gohar Ejaz, Minister of Commerce and Industries, said on X, formerly Twitter.

Ejaz said the country is now witnessing economic stabilization as the trade deficit narrowed to $7.42 billion in the first four months of the current financial year (24) from $11.36 billion in the same period in 2023 because imports during July-October 2023 declined to $17.03 billion from $20.91 billion in the same period of 2022. Similarly, exports during July-October 2023 remained at $9.61 billion, which was 9, $55 billion in the same period in 2022.

Last month, APTMA asked the government to reduce electricity tariffs for the textile industry to make it competitive with regional countries.

APTMA has sought a cross-subsidy free electricity tariff of Rs 10.85 per unit extended to non-productive sectors.

The textile industry currently pays 16 cents per kilowatt-hour (kWh) for power, higher than tariffs in Bangladesh, India and Vietnam.

Originally published on The news