Pakistan's textile exports have encountered significant challenges in 2024, primarily due to ongoing political instability and market dynamics. The country’s textile sector, which is vital for its economy, is projected to finish the year with exports falling short of the USD 17 billion target.

In the first 11 months of 2024, Pakistan's textile exports totalled approximately USD 15.43 billion. Analysts estimate that December's exports may reach around USD 1.5 billion, bringing the total for the year to about USD 16.93 billion. This figure represents a decline from the previous year's performance, reflecting a stagnation in growth despite some initial positive trends earlier in the year.

Continuous political uncertainty has severely impacted buyer confidence, leading to a loss of about 40% of export orders as international clients shift their business to countries like Vietnam and Bangladesh, where they perceive more stability and reliability.

Pakistan has struggled with product diversification compared to competitors like Vietnam, which offers a broader range of textile products at competitive prices. This lack of diversification has hindered Pakistan's ability to capitalize on opportunities created by turmoil in neighbouring Bangladesh's textile industry.

The sector has faced additional pressures from economic policies and restrictions imposed by the government, which have further complicated operational capabilities within the industry.

Despite some growth earlier in the fiscal year, where exports increased by 10.51% in the first five months compared to the previous year, the overall sentiment within the industry remains pessimistic. Stakeholders believe that without a coherent textile policy and active involvement from industry players in decision-making processes, achieving future targets will remain elusive.

There were moments of growth in Pakistan's textile exports during 2024, ongoing political issues and competition from other countries have led to a disappointing end-of-year performance, with exports expected to conclude below the USD 17 billion mark.

ANI