ISLAMABAD (PEN) : Pakistan’s textile exports experienced a significant drop in February, falling by $272.6 million compared to January. The total value of exports reached $1.41 billion, a sharp decline from January’s $1.68 billion.
Decline Across Multiple Categories
The reduction in exports was widespread, with the textile sector reporting losses across several categories. Knitwear exports, in particular, saw the largest drop, decreasing by $102.7 million. Ready-made garments also faced a considerable downturn, with a $67.8 million reduction in exports. Additionally, bedwear exports fell by $39 million, cotton cloth exports dropped by $16.3 million, and towel exports declined by $4.6 million.
Rising Production Costs Behind the Decline
One of the main factors contributing to the decline is the increasing cost of electricity, which is putting significant pressure on textile manufacturers. Exporters have raised concerns that high energy costs are making it more difficult to secure international orders, ultimately affecting the country’s trade performance.
According to the Pakistan Hosiery Manufacturers Association (PHMA), the rising electricity prices are exacerbating production costs, thereby harming the competitiveness of Pakistan’s textile products in the global market.
The Need for Policy Intervention
Industry experts stress that if the government provides cheaper electricity and ensures a steady supply of raw materials, Pakistan’s textile sector could potentially exceed $30 billion in annual exports. The textile industry remains a key pillar of the country’s economy, and stakeholders are urging the government to take immediate steps to support exporters and sustain the sector’s growth.
In conclusion, the textile sector’s struggles highlight the urgent need for policy adjustments to ensure long-term stability and growth. Without significant changes to electricity pricing and the availability of raw materials, Pakistan’s textile industry may continue to face challenges in maintaining its export performance.
