Connect with us

Business

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

Published

1 year ago

on

  • 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. 

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.

Related Topics:
Continue Reading
Click to comment

Leave a Reply

Your email address will not be published. Required fields are marked *

Business

Dar chairs the CCOP meeting; Blue World’s bid offer of Rs.10 billion is rejected.

Published

2 days ago

on

By

The Foreign Minister/Deputy Prime Minister chaired the Cabinet Committee on Privatization meeting.

Other committee members who attended the conference included the Federal Secretaries of several Divisions, the Ministers of Finance and Revenue, Industry and Food, Commerce, Power, and Privatization.

The CCOP took the PC Board’s recommendation into consideration and suggested that Blue World’s bid of 10 billion rupees for the sale of 60% of PIACL’s shares be rejected. The bid was rejected by the CCOP, who chose to follow the PC Board’s advice.

The government’s determination to sell out PIACL through government-to-government or privatization was reaffirmed by the CCOP.

The CCOP was pleased with the Aviation Division’s evaluation of PIACL’s sound financial standing.

Additionally, the CCOP established a committee, chaired by the Minister of State for Finance, to assess potential transaction possibilities for the privatization of the Roosevelt Hotel and the appropriate modes of adoption in light of existing legal rules.

Prior to its subsequent meeting, the CCOP also ordered that all difficulties be resolved and an agreement for the selling of services to an international hotel be concluded.

Continue Reading

Business

The KSE-100 Index has surged by 790 points, resulting in an all-time peak for the stock exchange.

Published

2 days ago

on

By

The benchmark KSE-100 Index increased by 790 points, marking a new all-time high for the Pakistan Stock Exchange (PSX) at 94,982 points.

The record-breaking performance underscores a surge of optimism and investor confidence in the stock market.

As investors responded to favorable economic signals, the market experienced a significant increase of over 500 points in early trading. Later, the KSE-100 Index reached another record level of 94,786 points after adding 594 points to its upward trajectory.

This positive development comes as the State Bank of Pakistan’s (SBP) foreign exchange reserves saw an increase of $84 million, reaching $11.26 billion during the week ending November 8, according to data released by the central bank on Thursday.

This represents an increase of 0.75% from the previous week. In addition, the nation’s total liquid foreign reserves experienced a modest increase, increasing by $33.7 million or 0.21% week-on-week to $15.97 billion.

In contrast, commercial banks’ reserves experienced a decline of $50.3 million or 1.06%, ultimately settling at $4.71 billion.

Furthermore, the economic team of Pakistan has expressed confidence in the discussions with the International Monetary Fund (IMF). Minister of State for Finance Ali Pervaiz Malik, in an exclusive conversation with Samaa TV, claimed talks were moving in a positive direction.

Highlighting improvements in Pakistan’s economic conditions, Malik noted substantial progress over the past six months to a year. He emphasized that Pakistan’s current economic situation has seen significant enhancement, with a reduced current account deficit of only $100 million in the first quarter, a reflection of the government’s strategy to increase remittances and boost exports.

Malik shared that discussions with the IMF are primarily focused on external financing, and while there have been speculations about a potential mini-budget or an increase in the petroleum levy, he clarified that these are currently premature considerations.

Continue Reading

Business

Positive IMF negotiations propel KSE-100 Index above 94,000 points

Published

3 days ago

on

By

As a result of investors’ optimism about the reported progress in the continuing talks with the International Monetary Fund (IMF), the Pakistan Stock Exchange (PSX) experienced a robust surge.

The benchmark KSE-100 Index of the PSX, which tracks market sentiment, rose 713 points to a new record high of 94,068 points, breaking above the 94,000-point barrier, as the trading session began.

Early in the day, the stock market began its upward trajectory as the KSE-100 Index steadily rose, gaining 574 points to reach 93,932 points. A possible agreement with the International Monetary Fund (IMF) might lead to more fiscal stability and back Pakistan’s economic reforms, which is why investors are so optimistic about the country’s future.

Officials from the Federal Board of Revenue (FBR) informed the International Monetary Fund (IMF) on Wednesday that the government would not be introducing a mini-budget and would instead continue to aim to collect Rs12,970 billion in taxes each year.

In line with continuing discussions with the Fund, FBR sources revealed that petroleum goods will not be subject to the General Sales Tax (GST).

The fact that Pakistan’s tax-to-GDP ratio has increased from 8.8% to 10.3%, a 1.5% gain viewed as a favorable sign of Pakistan’s fiscal policies, has reportedly pleased the IMF, who has voiced satisfaction at Pakistan’s recent economic performance.

Continue Reading

Trending