Pakistan’s textile and apparel (T&A) industry is facing significant challenges in competing with regional rivals due to stringent taxation measures introduced this fiscal year, reports WealthPK.
As per data from the Pakistan Bureau of Statistics (PBS), T&A exports by Pakistan declined 3.09 per cent in July 2024. Once the cornerstone of the country’s export economy, the sector has been severely impacted by new tax policies and rising energy costs.
Despite an installed capacity valued at $25 billion, T&A exports from Pakistan have stagnated over the past two years. Exporters attribute this stagnation to structural issues within the industry. In absolute terms, exports fell to $1.27 billion in July, down from $1.31 billion in the same month last year, marking a month-on-month decline of 10.13 per cent.
This drop continues a trend of negative growth, including a 0.93 per cent decrease in June, despite a significant rebound in May when the sector experienced double-digit growth. However, the textile industry continues to struggle, largely due to unfavorable government policies.
A closer look at PBS data reveals mixed results across various textile sub-sectors. For instance, RMG exports rose by 7.57 per cent in value and 8.47 per cent in quantity, while knitwear exports declined by 1.88 per cent in value and 6.37 per cent in quantity.
Bedwear exports saw a 1.20 per cent decline in value but a 4.07 per cent increase in volume. Towel exports dropped by 3.67 per cent in value and 2 per cent in volume, and cotton cloth exports fell by 0.56 per cent in value and 4.72 per cent in volume.
Yarn exports suffered a sharp decline of 42.54 per cent in July compared to the same period last year. Conversely, exports of tents, canvas, and tarpaulins increased by 14.22 per cent, and other textile items saw a significant 53.20 per cent rise, indicating a shift in export composition.
On the other hand, imports of synthetic fibersfell by 33.23 per cent, while synthetic silk yarn imports decreased by 17.68 per cent. Imports of second-hand clothing rose by 13.47 per cent.
