Pakistan’s textile exports clocked in at a provisional $1.54 billion, a drop of 10%, in July 2022 compared to $1.71 billion in June 2022, stated the All Pakistan Textile Mills Association (APTMA) on Tuesday.
On a yearly basis, textile exports were up 5%, compared to $1.47 billion recorded in July 2021, showed the provisional data released by APTMA. In July 2022, the percentage of textile exports in total exports reached 66%, it added.
“The decline in exports can be attributed to lack of energy supplies, which reduced textile export growth from double digits to single digits. If reliable and affordable supplies aren’t made available, this could further contribute to negative growth in the ensuing months,” said APTMA.
Just days ago, APTMA said exports in July are expected to suffer a major dent, and may drop to $1.5 billion.
The development comes weeks after APTMA urged authorities to restore gas and RLNG supply of the export-oriented industry on an urgent basis, stressing that a loss of almost $1 billion in exports would take place, resulting in further damage to the economy.
Pakistan’s textile sector accounts for a major share of country’s exports, which are vital for the cash-strapped economy. Pakistan suffers from low foreign exchange with policymakers mostly scrambling to ensure dollar inflows. In such an environment, many experts have stressed on exports, especially in a rupee-depreciating environment.
On Friday, APTMA, in a statement, also warned that Pakistan is on the brink of economic collapse.
“With depleting foreign currency reserves, rising inflation, the exchange rate in free-fall and irrationally high-interest rates, the country is headed towards a path similar to the economic downfall of Sri Lanka,” APTMA said in a release.