Exports of textiles, clothing shrink 11pc in July
Textile and clothing exports shrank 11.44 per cent during the first month of the current fiscal year due to higher production costs, liquidity constraints and lower global demand.
In absolute terms, the value of textile and clothing exports fell to $1.31 billion in July from $1.48bn in the corresponding month last year, data released by the Pakistan Bureau of Statistics showed on Monday.
The exports of textile and clothing contracted by 14.63pc year-on-year to $16.50bn in FY23. Pakistan’s total merchandise exports dipped by 12.71pc year-on-year to $27.54bn in FY23 from $31.78bn in the preceding fiscal year.
The textile export sector experienced a troubling trend of negative growth right from the beginning of the current fiscal year.
The PBS data showed the exports of readymade garments shrank 9.80pc in value in July but grew by 101.94pc in quantity, while knitwear dipped 16.13pc in value but grew 26.01pc in quantity, bedwear posted a negative growth of 14.60pc in value and 9.93pc in quantity.
However, towel exports slightly decreased by 2.93pc in value and 0.31pc in quantity, whereas those of cotton cloth dipped by 22.56pc in value and 16.32pc in quantity.
Among primary commodities, cotton yarn exports surged by 35.96pc, while yarn other than cotton declined by 2.31pc. The export of made-up articles — excluding towels — dipped by 7.54pc, and tents, canvas and tarpaulin went up by 9.02pc in July 2023 from a year ago.
The import of textile machinery declined by 63.54pc in July FY24 — a sign that expansion or modernisation projects were not a priority.
Furthermore, the import of raw cotton also dipped by 61.16pc in July FY24 from a year ago. However, the import of synthetic fibre was increased by 24.99pc followed by 90.72pc in synthetic silk yarn and 106.39pc in worn clothing.
Petroleum imports tumble
Imports of the petroleum group dipped 44.89 per cent year-on-year in July due to an economic slowdown that curtailed consumption amid unprecedented inflation.
At the same time, the local production and export of petroleum products also witnessed a declining trend. In absolute terms, the total import value of the petroleum group fell to $0.791bn in July from $1.43bn in the same month FY23.
The PBS data showed the imports of petroleum products declined by 51.02pc in value during July and 21.29pc in quantity. Import of crude oil decreased by 88.47pc in quantity while the value decreased by 87.60pc.
Similarly, liquefied natural gas (LNG) imports surged by 47.32pc during July FY24 on a year-on-year basis. On the other hand, liquefied petroleum gas (LPG) imports declined 1.96pc in the month under review.
Machinery imports plunged 21.36pc to $493.46 million in July from $627.5m in July 2022 mainly due to a decline in almost all categories of machinery excluding office machinery and mobile phones.
The import of mobile phones increased by over 75.59pc in July. Machinery imports of textile, power generating, agriculture and electrical appliances dipped.
The transport sector’s imports tumbled 32.18pc to $140.17m in July against $206.69m in the same month last year. The decline was seen in CBU (completely builtup units) as well as CKD because of lower local production of vehicles as the government has restricted the opening of letters of credit.