Suchi News
Raising concern over the continued decline in Pakistan’s exports, the Pakistan Industrial and Traders Associations Front (PIAF) said that the domestic textile exports for the fifth consecutive month as shipments fell nearly 30% year-over-year to $1.20 billion a year. February 2023.
The decline in exports indicates that the government has failed to gain the confidence of the business community due to continued devaluation and uncertainty.
The chairman of PIAF Faheem ur Rehman Saigol, citing the latest data, said that the total exports in July-February 2022-23 was $ 18.678 billion against $ 20.57 billion in the same period last year, showing a decrease of 9.21 percent but the export in February 2023. was $2.19bn compared to $2.24bn of Jan 2023, showing a decrease of 2.36 percent and 22.69 percent.
The chairman of PIAF indicated that the administrative measures to restrict imports, which cause a lack of materials for the industry and cause a decrease in production, is the main reason for the decline. the slowdown in global demand amid the financial crisis is another reason, he said.
According to Faheem Saigol, Pakistan remains a market for foreign investors, there are still plans to make new investments in the country, but they continue to wait for their return. the economy. He identified uncertainty in the rupee-dollar parity as one of the major concerns of foreign investors.
According to him, the economic slowdown has seriously affected businesses. The authorities concerned must first establish an enabling environment for local investors who wish to make new investments.
The data shows that exports came in at $1.2bn in February, down 11 percent month-on-month (MoM) but, in rupee terms, exports it came to Rs315bn, up 2pc MoM.
Gross margin decreased 13 percent MoM to $812 million due to lower shipments of apparel and knitwear, which declined 13 percent and 18 percent respectively. MoM, he said. Towels and bedclothes were reduced by 8 percent and 7 percent MoM, according to Malik. Apparel exports recorded a decline of 8pc MoM to $214 million in February 2023.
In terms of volume, textiles, towels and bedclothes decreased by 16 percent, 10 percent and 9 percent of the MoM, while the export of ready-made garments increased by 15 percent of the MOM. According to the data, among general textiles, cotton yarn exports fell by 22pc MoM while cotton exports rose by 11pc MoM. Pakistan’s value added sector decreased year-on-year by 26 percent, 34 percent and 28 percent respectively in the bedding, textile and ready-made garments sectors.
Exports of textiles decreased due to import restrictions, resulting in shortages of raw materials, along with a global recession. it stopped the need for cloth, he said. Apart from domestic problems, there are also global reasons for the decline in exports which have affected other countries. e.
In the first eight months of the current fiscal year (8MFY23), Pakistan recorded exports of $11.22 billion, down 11 percent year-on-year, a of the rupee, rose by 19 percent year-on-year, while exports of basic and value-added textiles declined by 21 percent. .and 9pc YoY respectively.
Demands from major markets, such as the US and Europe, are the main concern of exporters, he said. In addition, the recent increase in the price of electricity will be a challenge to the sector.
On a year-on-year basis, cotton yarn exports recorded a negative growth of 56.65 percent, while on a MoM basis, a growth of 18.09 percent was recorded.
Rice exports fell by 12.09 percent in the first eight months of 2022-23 and remained $ 1.354 billion compared to $ 1.540 billion in the same period of the previous fiscal year.
The Chairman of PIAF suggested the need to increase the national taxes in order to improve the ratio of taxes to GDP from the current poverty level. now. He urged the trade officials to explore opportunities to expand the export of goods and services in their own areas, and asked them to meet the challenges facing Pakistan in the European market.
He also advised the department to make plans for the promotion of Pakistan’s products, and called on trade officials to take advantage of the opportunities offered by the China-Pakistan Economic Corridor (CPEC).
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