Pakistan’s exports of textile goods decreased by 17 per cent year on year in December 2022.

Lower demand in the world market and import restrictions in Pakistan have been blamed for the slack performance of the textile industry, which has around a 50 per cent share in Pakistan’s exports every year. On a month on month basis, textile exports slipped by six per cent in December 2022 as compared to November 2022. Overall, in the first half of the financial year 2022-23, exports of the textile industry dipped by seven per cent year on year.

A delay in export proceeds due to the uncertainty about the exchange rate also played a role in reining in exports. Textile exports went down primarily due to the curbs on opening letters of credit for raw material imports, a gas shortage and a slowdown in import orders from European countries amid an inventory pile-up.

Pakistan expects textile exports to remain muted in the coming months. A higher working capital requirement will continue to pile pressure on textile players while the clearance of raw material at ports is still awaited owing to the unavailability of foreign exchange.A large number of containers having imported polyester yarn have been help up at ports and the delay in their clearance has caused huge losses to importers.