Pakistan’s textile and clothing exports saw a slight increase of 0.93% in the fiscal year 2024, reaching $16.55 billion, up from $16.50 billion the previous year, according to the Pakistan Bureau of Statistics. Despite this modest growth, the textile sector is grappling with several challenges, including new taxes and rising energy costs, which are affecting its competitiveness in the global market.
In June, the exports experienced a 3.91% year-on-year decline, dropping to $1.41 billion. This decline ended a five-month streak of continuous growth, highlighting the sector’s volatile nature. The performance of key categories within the textile and clothing industry varied. Exports of readymade garments and bedwear showed positive growth, indicating strong demand in these segments. However, exports of knitwear and cotton cloth saw declines, reflecting some of the challenges the sector is facing.
Additionally, there was a notable decrease in the import of textile machinery, which suggests that investments in the industry are slowing down. This drop in machinery imports could be a sign that textile manufacturers are hesitant to invest in new equipment due to the uncertain economic conditions and rising operational costs.
Overall, while the slight growth in textile and clothing exports is a positive sign, the sector needs to address its current challenges to sustain and enhance its competitiveness. The mixed performance of various product categories and the reduction in machinery imports underscore the need for strategic investments and supportive policies to boost the industry’s growth and resilience.
