Positive developments over the exports front for Pakistan
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In October, Pakistan's textile sector experienced growth in exports, totaling $1.43 billion, marking a 5% increase compared to the same month in the previous year, as per provisional data released by the All Pakistan Textile Mills Association (APTMA) on Thursday. This marks the first month in 2023 when textile exports have seen a year-on-year increase. Data reveals that the country's textile exports in the first ten months of the calendar year 2023 declined by 16% to $13.34 billion, down from $15.88 billion during the same period in 2022. In the ongoing fiscal year 2023-24 (July-October), textile exports declined by 7%, amounting to $5.55 billion in 4MFY24, compared to $5.94 billion in 4MFY23. Additionally, on a monthly basis, textile exports increased by over 5% compared to the $1.36 billion recorded in September. During a recent meeting with government authorities, APTMA requested competitive electricity tariffs, on par with regional countries, and urged for the elimination of the Rs10.85 per unit cross-subsidy extended to non-productive sectors. The government was informed about the challenges faced by the textile industry, such as high power tariffs of 16 cents/kWh and uncertainties surrounding gas/RLNG availability and pricing. Pakistan's textile exports hold significant importance as they constitute a major portion of the country's exports. The year-on-year decline is a matter of concern for the South Asian economy, which faces foreign exchange shortages and relies on debt-creating dollar inflows to bolster its reserves. While the forex reserves held by the State Bank of Pakistan have improved to $7.5 billion, external debt servicing continues to put pressure on these reserves, despite inflows from the International Monetary Fund (IMF) and bilateral partners, including Saudi Arabia and the UAE.
