Pakistan and India are rivals in all fields, including textile exports. After the COVID-19 pandemic, Pakistan gained momentum and reached new export targets, while in India, the situation was worse, and Indian Textile Sector witnessed a colossal loss during the crisis. However, Jan 2022 has been showing a different story so far.
Pakistan’s textile exports have dipped by 61% in the first nine days of the current month of January 2022. According to projections, textile production decreased by $290 million in the first nine days of 2022, with value-added textiles accounting for $213 million and other textiles accounting for $77 million. This loss translates into a considerable decline in both value and volume. APTMA says that textile mills in Punjab are experiencing unanticipated disruptions, inordinate breakdowns, gas shortage, fluctuating voltage, and flickering, resulting in significant losses to the industry.
70pc of the textile industry is based in Punjab, and the suspension of gas puts 80pc of the industry at risk of a complete halt. Rendered cannot deliver goods on order; orders once lost are a permanent loss to Pakistan and brutal to reverse.
Indian Textile sector recovered well in 2021 and showed promising results. During April-December 2021, the total textiles and apparel, including handicrafts exports, was $29.8 billion compared to $21.2 billion for the same period last year. This implies robust growth of approximately 41% over last year.
Compared to April-December 2019, textile exports increased by 14.6% in April- December 2021.
Textiles exhibited an increase in export of 31%, cotton yarn/ fabrics/ made-ups, handloom products exhibited an increase of 43%, and jute products exhibited an increase of 33% from April- December 2021 to April-December 2019. The Indian government has set the target of billion for textiles and apparel, including handicrafts, and approximately 68% of the annual target has already been achieved.
The last quarter of FY always has higher activity than the earlier quarters. Hence, the industry is hopeful that targets will be duly met.
Pakistan’s government should do whatever it takes to bring the industry back to normal. The declining exports are not favorable due to the jolting economic conditions of the country.
There is plenty of work required by the stakeholders to avoid shifting export orders to the grooming markets of Vietnam, Bangladesh, Sri-lanka, and India.
