Bangladesh's home textile sector is struggling to regain lost work orders, primarily due to a significant shift of business to Pakistan over the past two years. This change followed a dramatic 150 per cent increase in gas prices in Bangladesh, which led many local exporters to halt new orders due to soaring production costs. In contrast, Pakistan benefits from abundant cotton supplies and lower production costs, making it a more attractive option for global importers.
Recent data highlights Pakistan's competitive edge, with its textile exports reaching a 26-month high of $1.64 billion in August 2023, up 13 per cent year-on-year. Factors contributing to this growth include government policies and the country's strategic position amidst political instability in Bangladesh and sanctions on China.
In contrast, Bangladesh's home textile exports fell by 2.05 per cent to $851.01 million in the fiscal year 2023-24. Once exceeding $1 billion in FY21, exports suffered a decline due to rising gas prices and ongoing labor unrest, limiting local mills capacity. Currently, Bangladesh's monthly export figures have dropped from the planned $30 million to $25 million, illustrating the challenges faced by the industry as it attempts to recover.
