Textile Exports Surge Over 10% in Pakistan

In recent months, the textile and clothing sectors in Pakistan have shown a remarkable recovery, with exports increasing by 10.44% during the first four months of the current fiscal year. This growth comes despite earlier concerns that the industry was facing a downturn. According to data from the Pakistan Bureau of Statistics, exports from these sectors had initially declined by 3.09% in July, the first month of the fiscal year. However, a significant rebound occurred, with growth rates of over 13% in August, 17.92% in September, and 13.11% in October.

Experts have pointed out that while the recent surge in exports is encouraging, the textile industry may still face challenges in competing with regional rivals. This is largely due to the implementation of stringent taxation measures in the current fiscal year. Nevertheless, the disruption in supply from Bangladesh has created an opportunity for Pakistani garments, leading to increased demand.

Despite having a substantial installed capacity of $25 billion, textile and clothing exports have remained stagnant over the past two years. Khurram Mukhtar, the patron-in-chief of the Pakistan Textile Exporters Association, highlighted that structural issues within the industry have contributed to this stagnation. He criticized the discontinuation of gas supply to efficient captive power plants by the private sector, describing it as "policymaking without thoughtful analysis." Mukhtar expressed concerns that such decisions could have severe repercussions for the sustainability of the export supply chain, jeopardizing billions of rupees invested by the private sector and sending a negative message to the international community.

In absolute terms, textile and clothing exports reached $6.15 billion during the first four months (July-October) of FY25, up from $5.56 billion in the same period last year. The government has introduced various measures, including an increase in the tax rate on exporters' personal income for 2024-25, which may further impact the industry.

Breaking down the figures, exports of readymade garments saw a significant rise of 25.40% by value and 19.94% by quantity. Knitwear exports increased by 18.69% in value and 10.03% in quantity, while bed items posted a growth of 13.17% by value and 13.60% by quantity. Towel exports also surged, rising by 5.47% in value and 4.96% in quantity. However, yarn exports faced a sharp decline of 45.59% compared to the same period last year.

Interestingly, the import of synthetic fiber experienced a negative growth of 23.07%, while imports of synthetic and artificial silk yarn grew slightly by 0.03%. The import of raw cotton increased significantly by 68.94%, and the import of second-hand clothes also saw a growth of 24.89% during this period.

Overall, total exports from Pakistan grew by 13.56% to $10.88 billion in the July-October FY25 period, up from $9.58 billion in the same timeframe last year. This positive trend in exports is a hopeful sign for the textile and clothing industry, but it also underscores the need for strategic planning and policy adjustments to ensure sustainable growth in the future.

As the industry navigates these challenges, it is crucial for stakeholders to engage in thoughtful policymaking that considers the long-term implications of their decisions. By addressing structural issues and fostering a competitive environment, Pakistan can enhance its position in the global textile market and secure a brighter future for its exporters.