Page 14 - TEXtalks. November-December 2022

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Bangladesh garment exporters see

gloom ahead in form of negative growth

Bangladesh's apparel exports posted a 2.15 They apprehend that this decline may continue till
percent year-on-year negative growth in the first 21 May 2023 as the buyers are not offering commer-
days of December. In the first three weeks of cially viable prices.
December readymade garments export declined to
$2.49 billion from $2.54 billion during the same Exporters fear that December performance
period of last year, the statistics released by indicates the bearish trends in coming months.
Bangladesh Garment Manufacturers and Exporters They appealed to the central bank for support. The
Association (BGMEA) reveal. central bank said, term loans that were repayable in
the September-December quarter this year cannot
The statistics point out that the export of RMG was be classified if 50% of the installments are paid in
negative in 13 out of 21 days in December and due time. The remaining half of the installments will
positive in eight days. An interesting stat in this have to be paid within one year after the maturity of
regard is that RMG exports registered a huge surge the loans. However, the garment factory owners
of 327 percent growth in a single day and a decline said they need time till June next year for repaying
of 51 percent on another day. the due amount.

Keeping up with global trends,

Pakistan’s textile exports decline

Pakistan’s textile exports are declining in line with the regional trends as Indian textile and apparel exports
declined for five straight months. Vietnamese exports registered decline. Only Bangladesh exports remained
stable. According to the statistics released by PBS Pakistan’s textiles exports declined for the second month
in November, dropping 18.15 percent to $1.42 billion from $1.736 billion in November 2021.

From July to November 2022, the textile sector’s total exports were down 5.1 percent to $7.36 billion from
$7.76 billion during the same period last year. The Indian textile exports registered a 7.8 percent decline in
the last five months.

Indian textile exports declined by 15 percent in November, Vietnamese declined by over 18 percent and
Pakistan’s exports also declined by similar margin. Comparing it with the previous month, Pakistan’s
exports were up 4.7 percent over November 2021’s exports of $1.357 billion.

Textile exports are more important for Pakistan and Bangladesh as these exports account for 66 percent
of Pakistan’s total exports and 80 percent of Bangladesh’s total exports. Moreover, over 70 percent of the
textiles we produce is exported, Bangladesh exports even more textiles it produces but for India textile
exports account for only 22 percent of its total textile production and around 10 percent of its total
exports. This the reason that Pakistan and Bangladesh struggle economically when textile exports come
under stress.

November/December 2022