Pakistan’s textile exports in January 2023 fell by three per cent monthon month.

This was mainly due to an eight per cent drop in exports of readymade garments and knitwear. Textile exports remained weak in January mainly due to the demand and supply challenges being faced by the sector.

Global recession, which reduced the purchasing power in key export markets, also resulted in lower bookings of orders.Inventory piled up at large global retailers, while gas shortages and increased costs of working capital in the country also played a role in the decline.

As compared to January 2022, Pakistan’s textile exports dropped by 15 per cent year on year. A year on year decline in value-added bed-wear, knitwear and readymade garments was recorded at 20 percent, 13 per cent, and 11 per cent respectively. In volumetric terms, bed-wear and knitwear declined by 16 per cent and ten per cent respectively.

The continuous decline in textile exports is expected to continue in the coming months. Pakistan’s exporters feel the increase in gas and electricity tariffs will also make the country’s textile exports even more uncompetitive against those of regional countries. In the first seven months of fiscal year 2023, Pakistan’s textile exports fell by eight per cent.