Pakistan textile exports have fallen around 12 percent so far in the month of September compared to the same month of the previous year, said a leading national daily of the country.
During the first two months of the current financial year, the textile sector’s total exports increased by 4.2 percent to $3.056 billion from $2.93 billion in the same period last year. In the financial year ended on June 30, 2022, the country’s textile exports registered 26 percent growth to $19.3 billion over the corresponding month of the previous year.
This was disclosed by the textile industrialists in both Karachi and Faisalabad, the two main textile making centres of the country, when they were approached about hindrances in exports. Textile millers have been struggling to increase their exports because of a host of issues, especially the non-opening of letters of credit for the import of spare parts and machinery.
“Textile exports are down by 12 percent in the current month of this year over the corresponding month of last year,” Asif Inam, chairman of All Pakistan Textile Mills Association (APTMA)-South Zone told The News.
Pakistan’s textile sector was on a growth trajectory for the last few years, and even survived the onslaught of Covid-19 when it managed to post growth in that difficult time.
But now, Asif Inam said the textile sector was not only facing a liquidity crunch, but also problems in opening letters of credit, as banks were reluctant to issue the necessary guarantee documents for the import of spare parts, machinery and raw materials. He pointed out that the issues were worse for the spinning sector, with units being closed down.
