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Monday, February 19, 2024

Pakistan to see over 20% growth in exports: APTMA

Textile is the only sector that continues to grow and bring foreign exchange to the country.

Patron in Chief All Pakistan Textile Mills Association (APTMA) Dr. Gohar Ejaz in his statement has indicated that the Pakistan Textile Industry is expecting a notable increase in exports during FY23 with a growth rate above 20 percent given that the Government continues with the Policy of ‘Regionally Competetive Energy Tariffs’ for exports.

Textile Industry has posted record exports of $4 billion in FY22 with its expansion and investment plans of about $5 billion under LTFF and TERF schemes – YOY growth of 25 percent up till June 30, 2022.

Earlier, APTMA stated that the growth was only possible due to the supply of energy at regionally competitive tariffs. Currently, textile is the only sector that continues to grow and bring foreign exchange to the country, gearing up to close at $20 billion in June 2022 compared to $15.4 billion in June 2021.

Read more: Pakistan’s balance of payments crisis to worsen: APTMA warns

Pakistan’s cotton woes

In addition, Pakistan Textile Industry plans to import 6 million bales of cotton this year from the USA and Brazil. Pakistan’s cotton imports are on the rise again. After importing just 3.1 million bales of 170 kg during the first nine months, over 1.1 million bales made their way through ports of entry during April and May 2022.

In April, APTMA reported that the overall cotton area in this decade has declined by 33 percent from 2.9 million hectares to 1.9 million hectares. Almost 1.5 million farmers grow cotton out of which 75 percent is grown in Punjab while the rest is grown in Sindh, while the cotton area in Punjab has decreased by 50 percent from 2.53 million hectares (2012) to 1.28 million hectares (2022).

Read more: APTMA demands immediate action to save textile industry

In Pakistan, Cotton yields have fallen by 26 percent from 880 kgs/hectare to 652 kgs/ hectare over the last 10 years, while in Punjab the decline has been more pronounced and productivity has fallen by 36 percent from 814 kgs per hectare (2012) to 520 kgs per hectares (2022).

Therefore, APTMA had advised the government to announce at least Rs 7,000 per mound MSP of phutti, which will not only enhance yields but also the acreage sown. A delay in the announcement of the minimum support price (MSP) of cotton for 2022-23 will result in a significant loss in cotton production which will again lead to importing cotton of billions of dollars.