Pakistan’s textile exports continue to decline for 8th consecutive month 

A Pakistani worker dries fabric threads after dyeing them at a factory in Lahore on February 11, 2019. (AFP/File)
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Updated 17 June 2023
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Pakistan’s textile exports continue to decline for 8th consecutive month 

  • The South Asian country’s textile export earnings experienced a significant drop of 19.57 percent to $1.32 billion in May 
  • Pakistan has been witnessing a widening gap between its exports and imports that has led to a balance of payment crisis 

ISLAMABAD: Pakistan’s textile sector has been adversely impacted after its export earnings experienced a significant drop of 19.57 percent to $1.32 billion in May 2023 as compared to $1.64 billion in the same month a year ago, local media reported, citing the country’s statistics bureau. 

The country’s dwindling textile sales have witnessed the reduction for the eighth consecutive month, according to the Pakistan Bureau of Statistics (PBS) data released on Friday. 

The total textile exports from July through May of the outgoing fiscal year declined cumulatively by 14.7 percent to $15.03 billion from $17.62 billion during the same period in the previous year. 

“All major components within the textile group, including cotton cloth, knitwear, bedwear, towels, and readymade garments, witnessed a decrease in exports,” English-language daily The News reported on Saturday. 

“However, textile sector exports in May 2023 increased by 7.1 percent compared to the previous month, when the exports amounted to $1.23 billion.” 




Pakistani workers dye fabric threads at a factory in Lahore on February 11, 2019. (AFP/File)

In May 2023, exports of cotton cloth decreased by 24.5 percent to $174.7 million, compared to $231.3 million in May 2022, according to the report. 

Similarly, knitwear exports in May declined by 22.34 percent to $322.7 million, bedwear fell by 28.4 percent to $201.5 million, readymade garments decreased by 16.8 percent to $267.7 million, towels declined by 5.2 percent to $87.5 million, and cotton yarn exports decreased by 5.8 percent to $100.4 million, compared to the same month of the previous year. 

On the other hand, readymade garments exports increased by 8.2 percent, cotton yarn by 57.4 percent, knitwear by 3.4 percent, and towels by 9.9 percent as compared to April 2023. Bedwear exports, however, declined by 7.6 percent during the same period. 

Pakistan has been witnessing a widening gap between its exports and imports that has led to a balance of payment crisis in the South Asian country. The central bank reported this week that the total liquid foreign reserves held by it were about $4 billion, while commercial banks in the country possessed $5.4 billion. 

Islamabad has desperately been trying to revive a stalled $6.5 billion International Monetary Fund (IMF) bailout program, which remains in a limbo despite several rounds of talks with the lender. 

To prevent the possibility of a default, friendly nations have pledged external financing to strengthen Pakistan’s dwindling forex reserves. In March, China rolled over a $2 billion loan, while Saudi Arabia and the United Arab Emirates pledged $2 billion and $1 billion, respectively, to assist the cash-strapped South Asian country. 

On Friday, Pakistan’s central bank announced it had received $1 billion from China amid the government’s efforts to shore up the official foreign exchange reserves. 


Pakistan says it backs Gaza peace plan, hopes next phase leads to Palestinian state

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Pakistan says it backs Gaza peace plan, hopes next phase leads to Palestinian state

  • Foreign Office says it is not concerned about who joins or stays out of the Abraham Accords
  • Pakistan reaffirms rejection of Israel’s recognition of Somaliland, warns of regional instability

ISLAMABAD: Pakistan’s Foreign Office said on Thursday it supported the Gaza peace plan endorsed by the United Nations Security Council, expressing hope its next phase would stabilize the situation in the war-ravaged territory, scale up humanitarian assistance and lead to an independent Palestinian state.

The United States said on Wednesday it was moving into the next phase of a Gaza ceasefire plan. President Donald Trump’s Middle East envoy Steve Witkoff said in a post on X that the second phase will establish “a transitional technocratic Palestinian administration in Gaza” and mark the beginning of “the full demilitarization and reconstruction of Gaza, primarily the disarmament of all unauthorized personnel.”

Commenting on the development, Foreign Office Spokesperson Tahir Andrabi said Pakistan had taken note of the announcement.

“We have seen this social media post about the next phase of the ceasefire agreement in Gaza, and we express the hope that these steps will lead to further stabilization of the situation, and upscaling the humanitarian assistance and end of the sacrifices of the people,” he said while addressing his weekly news conference.

Andrabi said Pakistan had been engaged in the Gaza peace effort as part of a group of Arab and Islamic countries since the initiative was presented by the US president and supported both the plan and the UN Security Council resolution endorsing it.

“We also hope that these efforts will lead to a credible time bound, political process consistent with international legitimacy and relevant UN resolutions to establish an independent, sovereign, contiguous state of Palestine, based on pre-1967 borders with East Jerusalem as its capital,” he added.

Asked about Pakistan’s position on the Abraham Accords, a series of US-brokered agreements normalizing relations between Israel and several Arab states, Andrabi said Islamabad’s stance remained unchanged.

“Our position with respect to it is that there are certain benchmarks that have to be achieved ... And [these relate do] a viable, contiguous state of Palestine, with East Jerusalem as its capital.”

He said Pakistan did not judge other countries’ choices on the accords.

“We are not concerned about who does or who does not join the Abraham Accords,” he said.

SOMALILAND ISSUE

Earlier in his opening remarks, Andrabi reiterated Pakistan’s rejection of Israel’s recognition of Somaliland, a self-declared breakaway region of Somalia, calling the move illegal and warning it could destabilize the Horn of Africa and Red Sea region.

Somaliland declared independence from Somalia in 1991 but is not recognized by the United Nations or the African Union.

Israel’s recent steps to recognize the territory have drawn criticism from Somalia and several Muslim-majority countries.

Pakistan’s Deputy Prime Minister and Foreign Minister Ishaq Dar raised the issue during the 22nd Extraordinary Session of the Organization of Islamic Cooperation Council of Foreign Ministers held in Jeddah on Jan. 10.

“In his address, the DPM-FM strongly condemned the illegal and unlawful recognition by Israel of the Somaliland region, as well as subsequent unwarranted and highly provocative visits of Israeli officials to the territory,” the Foreign Office spokesman said.

“He termed such acts as political aggression and a direct assault on Somalia’s internationally recognized borders, setting a perilous precedent and threatening peace and security in the Horn of Africa, the Red Sea region, and beyond.”

Andrabi said Dar also addressed the Palestinian issue during the session, rejecting proposals for the displacement of Palestinians and reaffirming Pakistan’s long-standing support for a two-state solution.