Pakistan's Textile Exports in March 2024

Staff Report

Pakistan has witnessed a marginal increase of 3% in textile exports in March 2024 compared to the same month last year.

According to provisional data compiled by the All Pakistan Textile Mills Association (APTMA), Pakistan’s textile exports stood at $1.3 billion in March 2024.

They are up 3 percent year on year basis compared to $1.26 billion in the same month of the previous year 2023.

These exports were down around 8 percent during March compared with $1.41 billion in textile exports in February 2024.Pakistan Textile Exports up by 25% to $11b

The country’s exports had increased 20 percent in February 2024 amounting to $1.41 billion against $1.18 billion during the same month last year.

The exports have shown an increase during the four consecutive months when comparing every year.

The exports were down over 3% in February as compared to $1.46 billion in January.

Textile exports recorded a decline of 0.3% or $0.04 billion to $12.44 billion during the first nine months of the ongoing financial year 2023-24.

Industry officials have attributed higher input costs to a decline in textile exports.

The textile industry is fearing further decline in textile exports due to higher energy costs.

The export sector had paid a regionally competitive energy tariff (RCET) of 9 cents per unit in 2021-22.

This led to record growth in textiles and apparel exports by 54%, from $12.5 billion in FY20 to $19.3 billion in FY22.

However, power tariffs for export-oriented firms have increased by over 14 cents/kWh.

This has led to a decline in textiles and apparel exports to $16.5 billion in FY23.

Power tariffs for industrial consumers have hiked from 14 cents/kWh to approximately 17.5 cents/kWh (Rs46/kWh).

Additionally, consumers also faced a fuel price adjustment (FPA) of Rs7.056/kWh for Jan 2024.

The power regulator has recently notified an increase in uniform tariff by Rs Rs.2.7492/kWh to burden the consumers with Rs.85.2 billion for the 2nd quarter FY 2023-24.

The textile industry fears that the recent increase in power tariff will have negative impact on exports further due to higher input costs.

The power tariff in Pakistan for the textile industry is more than twice the average faced by competing firms in regional economies such as Bangladesh (8.6 cents/kWh), India (average of 10.3 cents/kWh; 6 cents/kWh for textile and apparel firms in Maharashtra), and Vietnam (7.2 cents/kWh).