Textile export growth rate rebounds after three-month slump

Exports in the textile sector surged by a whopping 15.85 per cent in January 2025 compared to the same period a year ago. As per newly released data from the Pakistan Bureau of Statistics (PBS), textile export growth in the past month is merely a continuation of the rapid growth rates that the sector has seen in the first half of the Fiscal Year (FY) 2024-25.

The data shows that growth rates sat at 13 percent in August, 17.92 percent in September, 13.11 percent in October, 10.81 percent in November and reached a low of 5.55 percent in December. Previously, some analysts were concerned about a steady decline in growth rates from September 2024.

However, export growth has recovered significantly, posting impressive double-digit growth rates – as per reports, exporters had predicted this growth rate in previous periods.

The recovery of Pakistani textile exports is being attributed to the disruption in supply Bangladeshi producers have experienced. According to reports, the aforementioned disruptions have allowed Pakistani textiles to experience a surge in demand in the international market.

For reference, textile and clothing exports sat at a conservative $1.45 billion in January 2024, whereas the corresponding export value for January 2025 improved to an impressive $1.68 billion.

The first seven months of FY 2024-25 managed to bring in $10.77 billion in export revenue – A stark improvement from $9.74 billion over the corresponding months of the previous FY.

Export revenues are crucial for cash-strapped Pakistan to keep the economy afloat. Without the textile sector’s contributions, the trade deficit would undoubtedly widen, leaving Pakistan’s economy in a vulnerable state.

This is because the textile sector is responsible for bringing approximately 60 percent of all export revenues into the country. Moreover, the sector makes significant contributions towards the nation's gross domestic product (GDP) while employing a sizable number of individuals.

While data from PBS paints an optimistic picture, there are multiple issues plaguing the sector. The textile sector is under threat as approximately 187 mills recently shut down in Punjab alone.

According to reports, a lack of sensible economic planning and flawed policies have trapped the textile sector in a quagmire. For example, a policy mandates that industrialists pay extortionate rates to purchase power since policymakers have adjusted capacity charges and line losses into industry electricity bills.

Analysts have commented on how it makes little intuitive sense for industrialists to cover line loss charges when power theft in industrial areas remains minimal.