According to Interim Commerce Minister Dr. Gohar Ijaz, almost 1,600 textile factories in the country have closed their doors in the last sixteen months.
This concerning trend has put a pall over the whole textile industry, affecting every stage of the value chain, from ginning and weaving to spinning, processing, and garment production.
Furthermore, many of the remaining industries are dealing with reduced production levels, aggravating the sector’s problems.
Impact on Textile Industry
According to Dr. Gohar Ijaz, nearly 20% of the entire installed capacity in the textile and garment sector has been impacted during this 16-month period.
The consequences of this decrease in production capacity have been felt throughout the industry, hurting employment, exports, and overall economic stability.
In response to these concerns, the trade minister stated that the government is nearing completion of a comprehensive strategic framework.
This framework attempts to solve the issues encountered by the clothing industry by providing solutions such as regionally competitive energy prices, working capital support, expedited refund payments, increased market access, and product diversification.
The implementation of these regulations is projected to reinvigorate the textile industry and unlock the country’s full output potential.
PBS Most Recent Statistics of Textile Exports
According to the most recent Pakistan Bureau of Statistics (PBS) data, the country’s exports amounted at $2.36 billion in August 2023, a 4.8 percent reduction from the $2.48 billion reported in August 2022.
However, there was a 14.3 percent increase over the previous month’s exports of $2.07 billion.
Dr. Gohar Ijaz credited the month-on-month growth to the good effects of the caretaker government’s policies, which took effect on August 17.
In addition, the trade minister stated that the Federal Board of Revenue (FBR) would soon send Rs. 31 billion to exporters’ accounts.
This payment would be followed by additional refund payments aimed at easing exporters’ working capital issues, offering some respite to the suffering industry.
These achievements are crucial in reviving Pakistan’s textile industry and maintaining its long-term viability.
To read our blog on “Textile exports of Pakistan fell by 14.22% in FY23,” click here.