Business

Textile exports record 5% rise in October after months of contraction

Published

1 year ago

Farwa

Textile shipments increase to $1.43bn in Oct: APTMA.
Exports in first 4 months of current fiscal year declined by 7%.
Downward trend in exports continued till September.

ISLAMABAD: Textile exports registered a 5% increase for the first time in 10 months, signalling a potential recovery for the industry that has been battered by rising input costs and a global recession, The News reported Friday.

According to the data from the All Pakistan Textile Mills Association (APTMA), the shipments increased to $1.43 billion in October from a year earlier. This was the first month of positive growth since January.

However, textile exports in the first four months of the current fiscal year, which started in July, declined by 7% to $5.55 billion from the same period last year. The data also shows that during the 10-month period in the calendar year 2023, textile exports fell by 16% to $13.14 billion from $15.88 billion registered in the same period of calendar year 2022.

In January 2023, textile exports tumbled by 15% to $1.32 billion from $1.55 billion in the same month of calendar year 2022. In February, exports fell by 30% to $1.18 billion from $1.67 billion in the same month of 2022. February registered the highest negative growth.

The downward trend in exports continued till September: in March, exports fell by 23%; in April, 29%; in May, 20%; in June, 14%; in July, 11%; in August, 7%; and in September, 11%.

“It is a matter of pride that due to collective efforts, we are observing positive trends related to a significant reduction in our trade deficit,” said Gohar Ejaz, minister for Commerce and Industries, on X, formerly Twitter.

It is a matter of pride that due to collective efforts we are observing positive trends related to a significant reduction in our trade deficit.

Below is an analysis of how these positive developments have taken place:

➡️𝗢𝗰𝘁𝗼𝗯𝗲𝗿'𝘀 𝗘𝘅𝗽𝗼𝗿𝘁𝘀:
Signifying a positive… pic.twitter.com/fmYmCy3bxR
— Dr Gohar Ejaz (@Gohar_Ejaz1) November 2, 2023

Ejaz said the country is now witnessing economic stabilisation, as the trade deficit squeezed to $7.42 billion in the first four months of the current fiscal year (FY24) from $11.36 billion in the same period of FY23 because imports during July-October 2023 went down to $17.03 billion from $20.91 billion in the same period of 2022. Likewise, exports during July-October 2023 stayed at $9.61 billion, which were at $9.55 billion in the same period of 2022.

Last month, APTMA asked the government to lower the electricity tariffs for the textile sector to make it competitive with regional countries.

APTMA sought an electricity tariff without cross-subsidy of 10.85 rupees per unit being extended to non-productive sectors.

The textile industry is currently paying 16 cents per kilowatt-hour (kWh) for power, which is higher than the tariffs in Bangladesh, India and Vietnam.

Business

E&P Companies Will Invest $5 Billion in Pakistan’s Petroleum Industry

Published

6 hours ago

Farwa

Over the next three years, local and foreign companies involved in Pakistan’s oil and gas exploration and production sector have shown a strong desire to invest more than $5 billion in the nation’s energy sector.

Recent changes to the Petroleum Policy and the implementation of an exclusive tight gas policy, which provide better incentives and a more investor-friendly regulatory framework, are credited with the increase in investor confidence.

These strategic changes are expected to boost domestic energy production, open up new avenues for growth, and draw large amounts of both domestic and foreign investment.

Business

With inflation slowing, the SBP is anticipated to lower the policy rate for the eighth time in a row.

Published

7 hours ago

Farwa

Businesspeople anticipate another reduction in the policy rate when the State Bank of Pakistan’s (SBP) Monetary Policy Committee (MPC) releases the updated rate.

The interest rate for the upcoming two months will be announced by the central bank. It is still unclear if the rate will stay the same or be lowered to reflect stakeholder expectations.

According to experts, the policy rate will be lowered in order to further boost the nation’s economic sector.

Interest rates may be lowered for the seventh time in a row if the inflation rate declines significantly more than anticipated.

In its last six sessions, the MPC had cut the policy rate by 10 percent. In January 2025, it decreased the rate by one percent to 12pc.

12PC POLICY RATE

In January, the State Bank of Pakistan (SBP) announced cut in key policy rate by 100 basis points (bps) to 12 percent from 13pc in line with expectations of the business community.

The policy rate, which had been at 22 percent since June 2024, was slashed by 1,000 basis points to 12 percent.

The SBP governor said the decision was taken with careful consideration. “Although inflation is expected to decline next month (February), core inflation remains a pressing concern,” he stated.

Ahmed highlighted strong remittance inflows and robust export growth as key factors supporting the current account.