The All Pakistan Textile Mills Association (APTMA), Pakistan’s textile sector exports fell significantly in July, by 15%, to $1.31 billion from $1.54 billion in the corresponding month of the previous year.
Pakistan’s textile exports slump: According to data, the Pakistan’s textile exports slump from $11.48 billion in the first seven months of 2022 to $9.09 billion in the first seven months of 2023.
As it struggles with low reserves, the fall is problematic for the South Asian economy, which depends heavily on exports to produce necessary foreign currency.
The State Bank of Pakistan (SBP) has significantly increased forex reserves, which now stand at $8.2 billion, thanks to contributions from the International Monetary Fund and bilateral partners like Saudi Arabia and the UAE. However, the cost of servicing external debt continues to squeeze reserves.
According to the most recent data made available by the Pakistan Bureau of Statistics, the nation’s exports decreased by 12.68% month over month (MoM) in the first month of the current fiscal year 2023–24 and were $2.057 billion as opposed to $2.356 billion in June 2023.
Exports decreased by 8.57% year over year (YoY) and totaled $2.057 billion in July 2023 compared to $2.250 billion in July 2022, or $2.057 billion.
Pakistan’s trade deficit decreased from $1.863 billion in June 2023 to $1.607 billion in July 2023, a 13.35% decrease on a month-over-month basis.