Pakistan’s Textile Exports are Likely to Decrease by $3 billion in Fiscal Year
- 03, April , 2023
Newstoday: Pakistan's textile exports have decreased by $3 billion in the current fiscal year (FY23), after comparing to $19.4 billion in the previous fiscal year (FY22).
The All Pakistan Textile Mills Association (ATPMA) stated in a letter to Prime Minister Shehbaz Sharif that the decrease in textile exports has been progressively accelerating, with shipments in February totaling $1.2 billion, more than 28 percent less than exports in the same month last year. According to ATPMA, more capacity has been constructed or is being installed through a $5 billion (TERF/LTTF) investment, although it is not yet operational due to currency challenges and energy shortages. According to the group, the drop in exports is due to a prohibition on the import of raw materials and vital replacement parts, a lack of adequate supply of electricity at competitive prices, and the collapse of the sales tax return system. The textile sector has called for immediate action to reverse this trend before "irreversible damage" to installed capacity is caused by bankruptcies and permanent loss of orders.