Textile exports plummet 22.6pc in March

ISLAMABAD: Pakistan textile exports suffered a decline for a sixth consecutive month in March 2023, dropping by 22.6 percent to $1.257 billion year-on-year, as well as witnessing a decline in volumetric sales, the Pakistan Bureau of Statistics (PBS) said on Monday.

From July to March of 2022-23, the sector's total exports decreased by 12.4 percent to $12.476 billion compared to the same period last year, which had seen the exports of $14.24 billion. The rapid decline in the textile sector exports could have significant economic implications, as it is the top foreign exchange earner and provider of jobs.

The detailed data showed that all the major components of the group including cotton cloth, knitwear, bedwear, towels, and readymade garments exports declined sizably.

In March 2023, the textile sector's exports reached $1.257 billion, reflecting a 6.5 percent increase from the previous month of February 2023, when the exports were at $1.18 billion.

Since October 2022, textile group exports have fallen sharply, declining by 15.23 percent, 18.15 percent in November, 16.47 percent in December, 14.8 percent in January, 29.9 percent in February, and 22.6 percent in March compared to the respective corresponding months of the previous year.

Exports of cotton cloth in March 2023 decreased by 24.8 percent to $157.95 million, compared to $210.1 million in March 2022. However, there was a 2.1 percent increase in exports from February 2023, when cotton cloth exports were $154.7 million.

In March 2023, compared to the corresponding month of the previous year, there was a decline in exports of various textile products: knitwear decreased by 26.7 percent to $311.4 million, bedwear fell by 24.6 percent to $196.8 million, readymade garments decreased by 19.8 percent to $276.4 million, towels declined by 23.4 percent to $78.8 million, and cotton yarn exports decreased by 26.3 percent to $68.1 million.

Over the previous month, towel exports in March declined by 5.8 percent, whereas cotton yarn exports up by 2.96 percent, knitwear by 12.4 percent, readymade garments by 8.3 percent, cotton cloth by 2.1 percent and bedwear exports increased by 0.53 percent over February 2023.

In FY22, the textile sector’s exports were at a historic high of $19.35 billion, with an increase of over 25 percent against FY21’s exports of $15.4 billion.

Food groups’ exports in March 2023 however increased by 14.8 percent to $588.76 million against $512.75 million recorded in March 2022. Of the group, rice exports were $243.6 million against $250.7 million in March 2022, showing a decline of 2.8 percent.

Cement exports declined by 10.44 percent during the month to $17.75 million against $19.8 million in the corresponding month.

However, over the previous month (Feb 23) exports of $17.1 million, increased by 4.06 percent. In eight months, cement total export stood at $135.44 million against $199.4 million depicting a decline of 32 percent. Cement volumetric exports also declined 44.3 percent in these nine months.

IMPORTS

The economy’s petroleum group total imports in March 2023 were $1.206 billion against $1.86 billion in the same month last year, depicting a decline of 35 percent.

Over the previous month, its imports decline by 4.6 percent over the previous month’s (Feb) imports of $1.26 billion.

Over March 2022, crude oil imports in March 2023 were down by 28.85 percent to $377.1 million, petroleum products by 53 percent to $484 million, and LPG reduced by 28.5 percent to $43.9 million, however, LNG imports increased by 25.3 percent to $301.3 million.

Over the previous month, petroleum products imports increased by 4.6 percent, while crude imports declined by 1.57 percent, LNG by 15.9 percent and LPG imports reduced by 27.8 percent.

In July-March 2022/23, the petroleum group’s total imports were reduced by 11.66 percent to $13.08 billion over the same period as last year’s imports of $14.8 billion. During the nine months, petroleum products imports declined by 19.9 percent to $5.84 billion and LNG by 14.1 percent to $2.85 billion, while crude oil imports increased by 4.7 percent to $3.86 billion and LPG imports up by 3.8 percent to $533 million.

Machinery imports also decreased 63 percent year on year in March 2023 to $341 million—the lowest imports in more than a decade. In the same month of last year, the economy had spent $920.8 million on its imports. In the previous month (February), its imports were $421.4 million. The fast decline in machinery imports signals the stagnation-like situation of the economy where the growth is low while inflation is much higher and loss of jobs.

Over March 2022, textiles machinery imports in March 2023 reduced by 57.5 percent to $18.7 million, Power generation machinery by 61.3 percent to $23.35 million, electrical machinery by 32.3 percent to $112.5 million, agriculture machinery by 58.5 percent to $3.3 million, construction and mining machinery 71.3 percent to $4.8 million and telecom machinery imports also declined 86.5 percent to $36.1 million.

Mobile sets imports were reduced by 92 percent to $14.85 million from $184 million in the same month last year. However, over the previous month, its imports declined by 52.8 percent.

Interestingly, on the imports of transportation products’ including cars and vehicles, and parts, the economy spent $93.8 million in March 2023, however, it was 77.8 percent less than last year’s imports of $423 million. In nine months, its total imports were $1.54 billion, 54.4 percent less than last year’s imports of $3.37 billion.

On road motor vehicles (build units, CKD/SKD) $87.9 million were spent during the month. Last year in the same month, the spending on these vehicles was $366.6 million, showing a reduction of 76 percent.

Under the completely built units (CBU) during March 2023 imports of buses, trucks and other heavy vehicles imports were $5.5 million. Of that, interestingly motor cars’ imports stood at $3.0 million.

Under the CKD/SKD, imports of buses, trucks, and other heavy vehicles imports were $19.6 million, while motor car imports were recorded at $43.7 million. Motorcycle imports also stood at $1.34 million. Besides, the parts and accessories imports stood at $13.44 million.