More Than Expected: By 28.1% on an annual basis and 9.1% on a monthly basis, Pakistan’s textile exports declined in February 2023, The Express Tribune reported on March 7, citing data from the analytical center Arif Habib Ltd.
It is reported that in February exports of the textile industry amounted to $1.2 billion (90.5 billion rubles), the lowest value since May 2021, when $1.05 billion worth of products were shipped. (79 billion rubles).
Head of Research at Arif Habib Ltd. Tahir Abbas explained this situation with the conditions of the world textile market and the problems of the world economy.
“This is not only happening in Pakistan, many other countries like Bangladesh and Vietnam are also facing a similar situation.”Abbas stressed.
For his part, Nasheed Malik, a textile market analyst at Topline Securities, said that the drop in exports to Pakistan is mainly due to lower orders from Europe and the United States. He also added that the situation is negatively affected by internal reasons, first of all, the restrictions on the import of raw materials and equipment imposed by the Pakistani government.
“The drop in textile exports is worrying for the Pakistani economy, as well as for workers in the industry, many of whom have already lost their jobs.”Malik said.
Cotton production in Pakistan is reported to have fallen by 34.5% due to the effects of last year’s floods. In addition, the timing of orders for raw materials by large textile producers was affected: they placed orders at a time when cotton prices were at their peak, and when the raw materials arrived in Pakistan, prices had dropped between 20 and 25%. due to the global industry recession.
Federation of Pakistan Chambers of Commerce and Industry (FPCCI) Chairman Irfan Iqbal warned that following IMF guidelines would further damage exports.
“Electricity subsidy [для производителей] it was supposed to end in June 2023, but the government abruptly withdrew it already in March [под давлением МВФ]”_” Iqbal said.
Remember, according to the Pakistan Bureau of Statistics, Pakistan’s exports have been declining for seven consecutive months, since August 2022. According to the latest data, the drop already reaches 18.67% in annual terms. In February, exports amounted to $2.31 billion (175 billion rubles)
Source: Rossa Primavera
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