Pakistan’s textile exports plunged by 19 percent in November 2022 as compared to the corresponding period last year. So says All Pakistan Textile Mills Association (APTMA).

At a time when the country is faced with immense economic challenges and looking toward the IMF and friendly countries for inflows of dollars to meet its external liabilities, the continuous fall in textile exports is alarming and expected to add to its economic woes.

The textile sector plays a significant role in supporting the economy and continues to be in the spotlight owing to country’s dependence on foreign exchange.This vital sector, which also provides massive job opportunities, contributed around 60 percent to total exports during the last fiscal year. The devaluation against the dollar which would have given Pakistan’s textile exporters a competitive advantage over its competitors in terms of pricing has not helped. Instead the sector is faced with a crisis that includes liquidity constraints, energy shortages and non-functioning of new projects.The recent floods also destroyed the cotton crop with only five million bales available this year while the demand of the industry is above 14 million bales.

Also foreign exchange issues have curtailed the import of cotton and other essential inputs.