Textile and Clothing Exports in Pakistan Show Signs of $1.35 billion in December
In a positive development, Pakistan’s textile and clothing exports rebounded in December, showcasing a 3.33% expansion, with exports reaching $1.39 billion, up from $1.35 billion in the same month the previous year. This growth comes after a more than 7% year-on-year decline in November, providing a welcome recovery for the sector.
While the textile and clothing exports experienced a challenging first half of the year, with a 4.97% decline to $8.28 billion compared to $8.71 billion in the corresponding period of the previous year, the recent uptick in December raises hopes for a more favorable trajectory. However, uncertainties persist, and it remains to be seen whether this positive trend will endure in the coming months.
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The decline in exports over the past months has been attributed to rising production costs, driven by increased energy costs and a liquidity crunch.
The government had previously announced plans to address these challenges by offering regionally competitive energy prices to textile exporters and resolving cash flow issues through the release of pending sales tax refunds. However, the implementation of these measures is still pending.
As the industry navigates through these challenges, the recent rebound in December provides a glimmer of optimism for Pakistan’s textile and clothing sector, highlighting the resilience of the industry in the face of various headwinds.
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