Textile and clothing exports posted a modest growth of 0.93 per cent in FY24, indicating that the sector may not be able to compete with regional rivals due to the implementation of harsh taxation measures in the current fiscal year.
In absolute terms, textile and clothing exports rose 0.93pc to $16.55bn in FY24 from $16.50bn in the corresponding period of last year. In June, the export proceeds of textile and clothing fell to $1.41bn, a decline of 3.91pc from $1.47bn over the corresponding month of last year. On a month-on-month basis, exports dipped 9.23pc.
The PBS data showed that exports of readymade garments rose 2.05pc by value in FY24 and 1.99pc by quantity, while knitwear dipped 0.66pc by value but grew 41.44pc by quantity. Bedwear posted a growth of 4.12pc in value and 15.27pc in quantity.
Towel exports rose 5.55pc in value and 14pc in quantity in FY24, whereas cotton cloth went down by 7.
72pc in value but rose 16.15pc in quantity, respectively.
The import of textile machinery declined by 5452pc in FY24, indicating that expansion or modernisation projects were not a priority.
The government has introduced various measures, including increasing the tax rate on exporters’ personal income in 2024-25. The impact of these measures will be visible in the coming months.
Former commerce minister Gohar Ejaz told media that textile and clothing exports have stayed the same in the last two years despite having a $25 billion installed capacity. He added that exports from the same sectors had been static for the past two years.
He said to increase the country’s exports, the government must give competitive energy rates, drawbacks on taxes, and sales tax refunds. New taxation measures may hurt the sector’s performance in 2024-25.
The impact of the highest-ever energy cost is evident in the export results for June, which fell 3.91pc from the previous year, according to Pakistan Bureau of Statistics data.
