ISLAMABAD: The textile and clothing exports rebounded in December from the previous month’s downward trajectory, according to data issued by the Pakistan Bureau of Statistics (PBS) on Friday.

       The sector expanded by 3.33 per cent, with exports reaching $1.39 billion, up from $1.35bn in the same month the previous year. Textile and garment exports fell by more than 7pc year-on-year in November.

       In the first half of the year, textile and clothing exports saw growth in just two months — October and December. However, it remains uncertain whether this upward trend in growth will persist in the upcoming months.

       The export of textile and clothing fell by 4.97pc to $8.28 billion in the first half of the year from $8.71bn over the corresponding period of last year. The sector has experienced a decline in exports mainly attributed to escalating production costs due to higher energy costs and a liquidity crunch.

       A few months ago, the commerce ministry announced that the government would soon offer regionally competitive energy prices to textile exporters and resolve their cash flow issues by releasing pending sales tax refunds. However, the decision has yet to be implemented.

       Oil imports dip 14pc to $8bn in first half of current fiscal year

       The exports of textile and clothing contracted by 14.63pc to $16.50bn in FY23. However, the total merchandise exports dipped 12.71pc to $27.54bn from $31.78bn in the preceding year.

       PBS data showed the exports of readymade garments shrank by 6.45pc in value in December and surged by 20.77pc in quantity, while knitwear grew 4.14pc in value and 55.68pc in quantity. Bedwear posted positive growth of 8.59pc in value and 21.88pc in quantity.

       Towel exports increased by 6.57pc in value and 12.17pc in quantity, whereas those of cotton cloth declined by 11.73pc in value but grew 30.06pc in quantity.

       However, the exports of raw cotton and yarn increased by over 100pc and 78.55pc during December of FY24 from a year ago.

       The exports of made-up articles, excluding towels, dipped by 15.85pc, and tents, canvas and tarpaulin went up by 19.85pc in December from a year ago.

       The import of textile machinery declined by 53.52pc in December, a sign that expansion or modernisation projects were not a priority. At the same time, the import of synthetic fibre declined by 28.61pc, synthetic and artificial silk yarn by 16.10pc and other textile items by 8.73pc. However, the import of worn clothes posted a growth of 33.81pc during the month under review.

       In the first half of FY24, the total exports slightly increased 5.25pc to $14.99bn this year from $14.24bn over the last year.

       Imports of oil

       Oil imports dipped by 13.78pc in the first half of FY24 to $8.005bn from $9.285bn a year ago, PBS data showed.

       A noticeable decline was observed in both the quantity and value of major imports during the period under review amid economic slowdown and a steep fall in the purchasing power of consumers.

       According to the PBS data, imports of petroleum products declined by 24pc in value during July-December and 16.64pc in quantity.

       Imports of crude oil increased by 7.54pc in quantity while the value decreased by 5.94pc.

       Similarly, liquefied natural gas imports dipped by 4.96pc during 6MFY24 on a year-on-year basis. On the other hand, liquefied petroleum gas imports declined 2.69pc in the months under review.

       The reduction in import quantities of crude oil and petroleum products is a clear indication of reduced transportation amid slowing economic activities. This also suggests lower capacity utilisation of local oil refineries compared to the last year, affecting their profitability.

       Machinery arrivals

       Machinery imports increased by 11.45pc to $3.6bn in July-December from $3.23bn in 6MFY23, mainly due to an increase in imports of telecom equipment, including mobile phones, electrical machinery, and office machinery. All other categories of machinery recorded a negative growth.

       Mobile phone imports surged by more than 118.45pc to $792.61 million, up from $362.84m. This represents the single largest share of overall machinery import value in the first half of FY24.

       The transport sector’s imports tumbled by 27.72pc to $840.60m in the July-December period against $1.163bn in the same months last year.

       Published in Dawn, January 20th, 2024