Textile exports plunge 29.1pc in April

ISLAMABAD: Textile exports, Pakistan’s primary source of foreign exchange, experienced significant decline of 29.1 percent to $1.23 billion in April 2023, when compared to $1.74 billion exported in the same month last year.

The Pakistan Bureau of Statistics (PBS) announced on Saturday that this marks the seventh consecutive month in which both the monetary value and quantity of textile sales dwindled. Likewise, cumulative exports of the textile sector during July-April FY23 also contracted by 14.2 percent, amounting to $13.7 billion as opposed to $15.98 billion recorded in the corresponding period last year.

This rapid decline could have significant economic implications, as it serves as the foremost earner of foreign exchange and a major provider of employment opportunities.

All major components within the textile group, including cotton cloth, knitwear, bedwear, towels, and readymade garments, witnessed a decline in exports. In April 2023, textile sector exports declined by 1.99 percent compared to the previous month, during which exports amounted to $1.258 billion. Declines in textile exports have been substantial since October 2022, with reductions of 15.23 percent, 18.15 percent, 16.47 percent, 14.8 percent, 29.9 percent, 22.6 percent, and 29.1 percent in November, December, January, February, March, and April, respectively, compared to the corresponding months of the previous year.

Exports of cotton cloth in April 2023 decreased 30.2 percent to $146.7 million, compared to $210.1 million in April 2022. Likewise, over the previous month’s exports of $157.96 million, its exports in the month under review declined by 7.1 percent. Knitwear exports in April also declined by 34 percent to $321.76 million, bedwear fell by 21.7 percent to $218 million, readymade garments decreased by 29.45 percent to $247.4 million, towels declined by 26.5 percent to $79.6 million, and cotton yarn exports decreased by 34.7 percent to $63.75 million over the same month of last year.

Over the previous month, cotton cloth exports were down 7.1 percent, readymade garments 10.5 percent, and cotton yarn 6.35 percent. However, knitwear exports increased 3.3 percent, bedwear 10.8 percent, and towels exports went up 1.02 percent over March 2023.

It is to be noted that in FY22, textile sector’s exports were at a historic high of $19.35 billion, with an increase of over 25 percent against FY21’s exports of $15.4 billion.

To revive textile exports and minimise economic impact, Pakistan must boost competitiveness, explore new markets, diversify products, improve productivity, and resolve supply chain issues. Food groups’ exports in April 2023 increased by 9.2 percent to $463.1 million against $509.9 million recorded in April 2022. Of the group, rice exports were $223.9 million against $259.7 million in April 2022, down 13.8 percent. Quantitative sales of rice abroad also declined 28.9 percent

in April. Basmati rice exports during the month were down by 18.2 percent to $65.4 million and other rice exports by 11.8 percent to $158.5 million over the corresponding month’s sales. Exports of fish and fish preparations increased by 26.6 percent to $51 million, its volumetric sales also increased 53.4 percent. Sugar exports in April 2023 were reduced by 70 percent to $20.16 million against $62.1 million in March 2023. In April, the economy’s sugar exports were 40,716 tonnes and in March its exports were 129,746 tonnes.

Sports goods exports in April 2023 over the corresponding month reduced by 9.0 percent to $32.7 million, of which football exports dip by 3.9 percent to $18.5 million. Surgical goods exports declined 8.2 percent to $40.2 million, and chemicals and pharmaceuticals went down by 46.4 percent to $81.86 million.

Cement exports however increased 237 percent to $15.05 million in April 2023 against $4.46 million in April 2022. Its volumetric sales during the month also increased 285 percent over the corresponding month of last year.

Import

Petroleum group’s imports in April 2023, were down 60 percent compared to the corresponding month of last year. The value was $891.5 million against $2.22 billion in April 2022. Over the previous month, its imports declined by 26 percent.

Crude oil imports declined 48 percent to $277 million, petroleum products 75.2 percent to $312.6 million, and LNG 32.86 percent to 258.6 million. LPG imports however increased by less than half a percent to $43.2 million against imports in April 2022.

Over March 22, import of petroleum products in April 2023 fell 35.4 percent, crude 26.6 percent, LNG 14.2 percent, and LPG imports dropped by 1.66 percent.

April 2023 machinery group imports dropped 60 percent YoY to $352.2 million against $875.8 million. In March 2023, imports were $340.9 million. Textile machinery imports went down 71.1 percent to $15.9 million, power generation machinery 62 percent to $30.3 million, electrical machinery 20 percent to $117.1 million, agriculture machinery 48.2 percent to $4.45 million, construction and mining machinery 52 percent to $6.73 million and telecom machinery imports also declined by 87.5 percent to $34.5 million.

Mobile sets imports were reduced by 95 percent to $10.58 million from $212.9 million in the same month last year. Over the previous month, imports of mobile sets declined by 28.7 percent.

Transport sector imports, including cars and vehicles, and parts declined by 83 percent YoY in April 2023 to an almost historic low of only $63 million. Last year in the same month, imports were $365.3 million. In 10 months, the transport sector’s total imports were $1.54 billion, 54.4 percent less than last year’s $3.37 billion.

On road motor vehicles (build units, CKD/SKD), $62.7 million were spent during the month. Last year in the same month, the spending on these vehicles was $275.4 million, showing a reduction of 77.4 percent. Under the completely built units (CBU) during April 2023 imports of buses, trucks, and other heavy vehicles reduced by 31.7 percent to $3.75 million while motor cars imports increased by 141.8 percent to $7.3 million over the same month of last year.

Under the CKD/SKD models, imports of buses, trucks, and other heavy vehicles declined 24.2 percent to $14.88 million, and motor car imports fell 46.1 percent to $23.6 million. Motorcycle imports also stood at $2.23 million. Besides, the parts and accessories imports stood at $9.98 million.