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Tag: Pakistan Bureau of Statistics

  • Pakistan trade deficit narrows by 17% in 2MFY23

    Pakistan trade deficit narrows by 17% in 2MFY23

    ISLAMABAD: Trade deficit fell by 17.13 per cent during first two months (July – August) 2022/2023 2MFY23, owing to fall in import bill, according to data released by Pakistan Bureau of Statistics (PBS) on Friday.

    The statistics revealed that the trade deficit for the period July – August 2022/2023 was at $6.27 billion as compared with the deficit of $7.56 billion in the same period of the last fiscal year.

    READ MORE: Pakistan’s trade deficit narrows by 18% in July 2022

    Pakistan’s exports increased by 3.75 per cent to $4.76 billion during July – August 2022/2023 as compared with $4.58 billion in the corresponding period of the last fiscal year.

    On the other hand, import bill of the country fell to $11.03 billion during the first two months of the current fiscal year as compared with $12.15 billion in the same period of the last fiscal year, showing a decline of nine per cent.

    READ MORE: Pakistan’s import bill records over $80 bn in 2021/2022

    However, trade deficit surged by 29 per cent to $3.53 billion in August 2022 when compared with the deficit of $2.74 billion in the month of July 2022.

    The exports recorded 11 per cent increased to $2.50 billion in August 2022 when compared with $2.25 billion in July 2022.

    READ MORE: Pakistan’s trade deficit balloons $43.33 bn in 11 months

    Meanwhile, the import bill also climbed up by 21 per cent to $6.03 billion in August 2022 when compared with $4.99 billion in the month of July 2022.

    READ MORE: Pakistan’s imports hit record high at $65.47 bn in 10 months

  • Pakistan’s headline inflation hits 47-year high in August 2022

    Pakistan’s headline inflation hits 47-year high in August 2022

    ISLAMABAD: The headline inflation in Pakistan has recorded 47-year at 27.3 per cent in August 2022. This is a 47-Year high after 1975 and has crossed peak levels of global financial crisis 2008 of 25.3 per cent, according to Fahad Rauf, analyst at Ismail Iqbal Securities.

    Pakistan Bureau of Statistics (PBS) on Thursday issued the data of Consumer Price Index (CPI) stating that it increased by 27.3 per cent on year-on-year basis in August 2022 as compared to an increase of 24.9 per cent in the previous month and 8.4 per cent in Aug 2021.

    READ MORE: Pakistan’s sensitive price inflation surges by 45%

    On month-on-month basis, it increased by 2.4 per cent in August 2022 as compared to an increase of 4.3 per cent in the previous month and an increase of 0.6 per cent in August 2021.

    CPI inflation Urban, increased by 26.2 per cent on year-on-year basis in August 2022 as compared to an increase of 23.6 per cent in the previous month and 8.3 per cent in August 2021.

    On month-on-month basis, it increased by 2.6 per cent in August 2022 as compared to an increase of 4.5 per cent in the previous month and an increase of 0.5 per cent in August 2021.

    READ MORE: Pakistan’s sensitive price inflation surges by 37.67%

    CPI inflation Rural, increased by 28.8 per cent on year-on-year basis in August 2022 as compared to an increase of 26.9 per cent in the previous month and 8.4 per cent in August 2021.

    On month-on-month basis, it increased by 2.2 per cent in August 2022 as compared to an increase of 4.2 per cent in the previous month and an increase of 0.7 per cent in August 2021.

    Sensitive Price Indicator (SPI) based inflation on YoY increased by 34.0 per cent in August 2022 as compared to an increase of 28.2 per cent a month earlier and an increase of 15.9 per cent in August 2021.

    READ MORE: Pakistan’s headline inflation may up 24% in July 2022

    On MoM basis, it increased by 5.2 per cent in August 2022 as compared to increase of 7.3 per cent a month earlier and an increase of 0.7 per cent in August 2021.

    Wholesale Price Index (WPI) based inflation on YoY basis increased by 41.2 per cent in August 2022 as compared to an increase of 38.5 per cent a month earlier and an increase of 17.1 per cent in August 2021.

    WPI inflation on MoM basis increased by 3.1 per cent in August 2022 as compared to an increase of 2.0 per cent a month earlier and an increase of 1.2 per cent in corresponding month i.e. August 2021.

    READ MORE: Pakistan inflation crosses 33% on high petroleum prices

  • Pakistan’s sensitive price inflation surges by 45%

    Pakistan’s sensitive price inflation surges by 45%

    ISLAMABAD: The inflation based on Sensitive Price Indicator (SPI) has surged by around 45 per cent by the week ended August 25, 2022, according to data released by Pakistan Bureau of Statistics (PBS) on Friday.

    READ MORE: Pakistan’s sensitive price inflation surges by 37.67%

    The PBS said that prices of essential items have recorded an increase of 44.58 per cent year on year for the week ended August 25, 2022.

    The essential items which recorded increase in prices during the period are included: Tomatoes (178.10 per cent), Onions (155.14 per cent), Diesel (108.77 per cent), Petrol (94.53 per cent), Pulse Masoor (90.74 per cent), Cooking Oil 5 litre (70.61 per cent), Mustard Oil (67.58 per cent), Vegetable Ghee 2.5 Kg (64.71 per cent), Vegetable Ghee 1 Kg (63.93 per cent), Washing Soap (63.27 per cent), Electricity for Q1 (63.03 per cent), Chicken (55.76 per cent) and Pulse Gram (55.07 per cent), while a decrease observed in the prices of Chilies Powder (43.42 per cent), Sugar (16.90 per cent) and Gur (1.21 per cent).

    READ MORE: Pakistan’s headline inflation may up 24% in July 2022

    The PBS said that the SPI for the current week ended on August 25, 2022 recorded an increase of 1.83 per cent.

    Increase is observed in the prices of food items, Tomatoes (43.09 per cent), Onions (41.13 per cent), Potatoes (6.32 per cent), Eggs (3.43 per cent), Garlic (2.23 per cent), Powdered Milk (1.53 per cent) and Pulse Mash (1.12 per cent), non-food items, Cigarettes (2.26 per cent) and LPG (1.95 per cent).

    On the other hand, a decrease observed in the prices of Pulse Masoor (1.18 per cent), Vegetable Ghee 1Kg (1.00 per cent), Vegetable Ghee 2.5Kg (0.82 per cent), Bananas (0.61 per cent), Cooking Oil 5 litre (0.51 per cent), Sugar (0.28 per cent) and Mustard Oil (0.07 per cent).

    READ MORE: Pakistan inflation crosses 33% on high petroleum prices

    During the week, out of 51 items, prices of 23 (45.10 per cent) items increased, 07 (13.72 per cent) items decreased and 21 (41.18 per cent) items remained stable.

    The bureau computes the SPI on a weekly basis to assess the price movements of essential commodities at a shorter interval of time so as to review the price situation in the country. SPI comprises 51 essential items collected from 50 markets in 17 cities of the country.

    READ MORE: Petroleum prices in Pakistan push inflation 13-year high

  • Essential items witness inflation above 42%: Pakistan Bureau

    Essential items witness inflation above 42%: Pakistan Bureau

    ISLAMABAD: Pakistan Bureau of Statistics (PBS) on Friday disclosed that prices of essential items have recorded inflation above 42 per cent on year on year (YoY) basis by week ended August 18, 2022.

    The bureau stated that Sensitive Price Indicator (SPI) of essential items depicts an increase of 42.31 per cent.

    READ MORE: High inflation may force further monetary tightening

    The essential items that recorded increase in prices during this period are included: Pulse Masoor (111.02 per cent), Diesel (108.77 per cent), Petrol (94.53 per cent), Onions (94.43 per cent), Cooking Oil 5 litre (72.96 per cent), Mustard Oil (71.08 per cent), Chicken (69.04 per cent), Vegetable Ghee 1 Kg (68.56 per cent), Vegetable Ghee 2.5 Kg (67.05 per cent), Electricity for Q1 (63.03 per cent), Washing Soap (61.92 per cent), Pulse Gram (58.93 per cent), Gents Sponge Chappal (52.21 per cent), Pulse Mash (51.51 per cent) and Garlic (36.59 per cent).

    While a decrease observed in the prices of Chilies Powder (43.42 per cent), Sugar (16.55 per cent) and Gur (1.96 per cent).

    READ MORE: Pakistan inflation hits 14-year high at 25% in July

    The SPI for the week ended on August 18, 2022 recorded an increase of 3.35 per cent.

    Increase is observed in the prices of food items, Tomatoes (20.28 per cent), Chicken (7.57 per cent), Onions (2.30 per cent), Powdered Milk (2.03 per cent), Eggs (1.63 per cent), Pulse Moong (1.42 per cent) and Potatoes (1.07 per cent), non-food items, Electricity for Q1 (6.83 per cent), Petrol (2.96 per cent) and Cigarette (1.69 per cent).

    On the other hand, a decrease observed in the prices of LPG (3.46 per cent), Vegetable Ghee 1Kg (1.16 per cent), Garlic (0.94 per cent), Mustard Oil (0.71 per cent), Pulse Masoor (0.42 per cent), Pulse Gram (0.36 per cent), Vegetable Ghee 2.5Kg (0.33 per cent), Cooking Oil 5 litre (0.31 per cent), Diesel (0.18 per cent), Firewood Whole (0.16 per cent) and Sugar (0.03 per cent).

    READ MORE: Pakistan hikes key policy rate by 125 basis points to 15%

    During the week, out of 51 items, prices of 25 (49.01 per cent) items increased, 11 (21.57 per cent) items decreased and 15 (29.42 per cent) items remained stable.

    The SPI is computed on weekly basis to assess the price movements of essential commodities at shorter interval of time so as to review the price situation in the country. SPI comprises of 51 essential items collected from 50 markets in 17 cities of the country.

    READ MORE: Pakistan’s sensitive price inflation surges by 37.67%

  • Pakistan’s trade deficit narrows by 18% in July 2022

    Pakistan’s trade deficit narrows by 18% in July 2022

    ISLAMABAD: Pakistan’s trade deficit narrowed by 18 per cent in the month of July 2022, according to data released by Pakistan Bureau of Statistics (PBS) on Tuesday.

    The contraction in trade deficit may be attributed to decline in import bill. The import bill of the country fell by 13 per cent to $4.86 billion in July 2022 as compared with $5.57 billion in the same month of the last year.

    READ MORE: Pakistan’s import bill records over $80 bn in 2021/2022

    However, the exports of the country also fell by 5.17 per cent to $2.22 billion in the month of July this year as compared with $2.34 billion in the same month of the last year.

    The trade deficit sharply narrowed by 46.76 per cent to $2.64 billion in July 2022 when compared with $4.96 billion in June 2022.

    The import billion declined by 38 per cent to $4.86 billion in July 2022 as compared with $7.88 billion in June 2022.

    Meanwhile, the exports also fell by 24 per cent to $2.22 billion in July 2022 when compared with $2.92 billion in June 2022.

    READ MORE: Pakistan’s trade deficit balloons $43.33 bn in 11 months

    Analysts at KASB KTrade Securities attributed to the strict import control measures which were put in place last month.

    They said this is the lowest trade deficit level in the last 15 months.

    “We think this should support the current account situation and will provide some confidence to the investors regarding the ability of the government in dealing with macroeconomic challenges,” according to the analysts.

    READ MORE: Pakistan’s imports hit record high at $65.47 bn in 10 months

    The analysis shows that assuming no change in demand, a 40 per cent reduction in oil prices would turn the deficit into a surplus. This means that if Pakistan had the ability to get cheaper energy from Iran or from Russia, it could have been sufficient to bridge the trade deficit.

    “Indeed, that could have had much punitive geo-economics implications and might not be a viable strategy. This also illustrates that if the oil price supply shock due to Ukraine war ends, Pakistan’s economy could return to a more stable condition.”

    Building foreign exchange reserves is the only defense strategy against external economic shocks.

    READ MORE: Pakistan’s March trade deficit widens by only 5.5%

  • Pakistan inflation hits 14-year high at 25% in July

    Pakistan inflation hits 14-year high at 25% in July

    KARACHI: The headline inflation based on Consumer Price Index (CPI) in Pakistan has recorded 14-year high and surged by around 25 per cent in July 2022 on year on year (YoY) basis.

    According to data released by Pakistan Bureau of Statistics (PBS) on Monday, the CPI inflation General, increased by 24.9 per cent on year-on-year basis in July 2022 as compared to an increase of 21.3 per cent in the previous month and 8.4 per cent in July 2021.

    READ MORE: Pakistan’s sensitive price inflation surges by 37.67%

    On month-on-month basis, it increased by 4.3 per cent in July 2022 as compared to an increase of 6.3 per cent in the previous month and an increase of 1.3 per cent in July 2021.

    CPI inflation Urban, increased by 23.6 per cent on year-on-year basis in July 2022 as compared to an increase of 19.8 per cent in the previous month and 8.7 per cent in July 2021.

    On month-on-month basis, it increased by 4.5 per cent in July 2022 as compared to an increase of 6.2 per cent in the previous month and an increase of 1.3 per cent in July 2021.

    READ MORE: Pakistan’s headline inflation may up 24% in July 2022

    CPI inflation Rural, increased by 26.9 per cent on year-on-year basis in July 2022 as compared to an increase of 23.6 per cent in the previous month and 8.0 per cent in July 2021.

    On month-on-month basis, it increased by 4.2 per cent in July 2022 as compared to an increase of 6.6 per cent in the previous month and an increase of 1.4 per cent in July 2021.

    Sensitive Price Indicator (SPS) based inflation on YoY increased by 28.2 per cent in July 2022 as compared to an increase of 21.7 per cent a month earlier and an increase of 16.2 per cent in July 2021.

    READ MORE: Pakistan inflation crosses 33% on high petroleum prices

    On MoM basis, it increased by 7.3 per cent in July 2022 as compared to increase of 6.2 per cent a month earlier and an increase of 1.8 per cent in July 2021.

    The Wholesale Price Index (WPI) inflation on YoY basis increased by 38.5 per cent in July 2022 as compared to an increase of 38.9 per cent a month earlier and an increase of 17.3 per cent in July 2021.

    WPI inflation on MoM basis increased by 2.0 per cent in July 2022 as compared to an increase of 8.2 per cent a month earlier and increase of 2.3 per cent in corresponding month i.e. July 2021.

    READ MORE: Petroleum prices in Pakistan push inflation 13-year high

  • Pakistan’s sensitive price inflation surges by 37.67%

    Pakistan’s sensitive price inflation surges by 37.67%

    ISLAMABAD: The price of essential items in Pakistan surged by 37.67 per cent year on year (YoY) week ended July 28, 2022.

    The SPI for the current week ended on 28th July, 2022 recorded an increase of 3.68 per cent. Increase observed in the prices of food items,Tomatoes (17.53 per cent), Pulse Masoor (4.18 per cent), Pulse Mash (2.87 per cent), Pulse Gram (2.46 per cent), Pulse Moong (2.02 per cent), Vegetable Ghee 2.5 Kg (1.80 per cent), Garlic (1.69 per cent) and Rice Basmati Broken (1.21 per cent), non-food items Electricity for Q1 (26.11 per cent), LPG (7.02 per cent), Washing Soap (2.34 per cent) and Energy Saver (1.03 per cent), with joint impact of (4.17 per cent) into the overall SPI for combined group of (3.68 per cent).

    READ MORE: Pakistan’s headline inflation may up 24% in July 2022

    On the other hand, a decrease observed in the prices of Onions (10.84 per cent), Chicken (9.47 per cent), Bananas (4.24 per cent), Wheat Flour (2.55 per cent), Mustard Oil (1.50 per cent), Vegetable Ghee 1 Kg (0.46 per cent) and Eggs (0.36 per cent).

    During the week, out of 51 items, prices of 30 (58.82 per cent) items increased, 07 (13.73 per cent) items decreased and (27.45 per cent) items remained stable.

    READ MORE: Pakistan inflation crosses 33% on high petroleum prices

    The year on year trend depicts an increase of 37.67 per cent, Diesel (101.53 per cent), Pulse Masoor (99.14 per cent), Petrol (94.15 per cent), Chicken (75.65 per cent), Cooking Oil 5 litre (74.81 per cent), Vegetable Ghee 1 Kg (72.90 per cent), Mustard Oil (72.45 per cent), Vegetable Ghee 2.5 Kg (70.51 per cent), Onions (64.18 per cent), Washing Soap (62.46 per cent), Pulse Gram (55.28 per cent), Electricity for Q1 (52.61 per cent), Gents Sponge Chappal (52.21 per cent), Garlic (45.18 per cent) and Pulse Mash (38.35 per cent), while a decrease observed in the prices of Chillies Powder (43.42 per cent), Sugar (16.48 per cent), and Gur (3.28 per cent).

    READ MORE: Petroleum prices in Pakistan push inflation 13-year high

  • Prices of essential items increase by 32.82%

    Prices of essential items increase by 32.82%

    ISLAMABAD: The prices of essential items in Pakistan have registered a growth of 32.82 per cent Year on Year (YoY) basis by week ended July 21, 2022.

    According to weekly inflation based on Sensitive Price Indicator (SPI) data released by Pakistan Bureau of Statistics (PBS), the prices of essential items increased by 32.82 per cent by week ended July 21, 2022 when compared with July 22, 2022.

    READ MORE: Pakistan inflation crosses 33% on high petroleum prices

    The SPI is computed on weekly basis to assess the price movements of essential commodities at shorter interval of time so as to review the price situation in the country.

    The SPI comprises of 51 essential items collected from 50 markets in 17 cities of the country.

    The year on year trend depicts an increase of 32.82 per cent, Diesel (106.16 per cent), Petrol (103.34 per cent), Pulse Masoor (91.29 per cent), Onions (88.46 per cent), Vegetable Ghee 1 Kg (76.85 per cent), Mustard Oil (75.78 per cent), Cooking Oil 5 litre (75.35 per cent), Vegetable Ghee 2.5 Kg (71.71 per cent), Washing Soap (60.25 per cent), Chicken (58.41 per cent), Gents Sponge Chappal (52.21 per cent), Pulse Gram (51.46 per cent), Garlic (43.70 per cent) and LPG (40.47 per cent).

    READ MORE: Petroleum prices in Pakistan push inflation 13-year high

    While major decrease observed in the prices of Chillies Powdered (43.42 per cent), Sugar (15.51 per cent), Tomatoes (6.18 per cent), Gur (2.72 per cent) and Pulse Moong (0.72 per cent).

    The SPI for the current week ended on July 21, 2022 recorded a decrease of 0.22 per cent. Decrease observed in the prices of food items, Tomatoes (7.04 per cent), Bananas (3.34 per cent), Vegetable Ghee 1 Kg (1.14 per cent), Onions (0.46 per cent), Sugar (0.44 per cent), Vegetable Ghee 2.5 Kg (0.42 per cent), Gur (0.32 per cent) and Rice Basmati Broken (0.19 per cent), non-food items Diesel (14.62 per cent) and Petrol (7.41 per cent), with joint impact of (-1.03 per cent) into the overall SPI for combined group of (-0.22 per cent).

    READ MORE: Average inflation estimated up to 12% in FY22

    On the other hand, an increase observed in the prices of Chicken (3.80 per cent), Georgette (3.44 per cent), Shirting

    (2.53 per cent), Garlic (2.25 per cent), Pulse Mash (2.07 per cent), Potatoes (1.56 per cent), Pulse Masoor (1.43 per cent), Pulse Moong (1.39 per cent), Cooking Oil 5 litre (1.35 per cent) and Tea Lipton (1.29 per cent).

    During the week, out of 51 items, prices of 31 (60.78 per cent) items increased, 11 (21.57 per cent) items decreased and 09 (17.65 per cent) items remained stable.

    READ MORE: Average inflation estimated up to 12% in FY22

  • Pakistan’s import of CBU motor cars surges by 21% in FY22

    Pakistan’s import of CBU motor cars surges by 21% in FY22

    ISLAMABAD: The import of Completely Built Unit (CBU) motor cars into Pakistan has surged by 21 per cent in fiscal year 2021/2022.

    According to data released by Pakistan Bureau of Statistics (PBS) on Tuesday, the import of CBU motor cars increased to $310.41 million during fiscal year 2021/2022 as compared with $256.2 million in the preceding last fiscal year.

    READ MORE: Prices of KIA Motors raised up to 19.3% amid rupee devaluation

    In terms of rupee, the import of CBU motor cars posted a growth of 34.51 per cent to Rs54.67 billion during fiscal year 2021/2022 as compared with Rs40.65 billion in the preceding fiscal year.

    The overall import of CBU vehicles registered an increase of 59.3 per cent to $616.39 million in the fiscal year under review as compared with $386.95 million in the preceding fiscal year.

    The country imported CBU buses, trucks and other heavy vehicles worth $302 million and CBU motor cycles worth $4.12 million during the fiscal year 2021/2022.

    READ MORE: Rolls-Royce, Hyundai signs pact to lead advanced air mobility market

    On the other hand the import of Completely Knocked Down (CKD) motor cars recorded a massive growth of 52 per cent to $1.7 billion during fiscal year 2021/2022 as compared with $1.12 billion in the preceding fiscal year.

    The overall import of CKD motor vehicles recorded an increase of 54 per cent to $2.44 billion in fiscal year 2021/2022 as compared with $1.58 billion in the preceding fiscal year.

    Analysts believed that the import of CBU and CKD motor vehicles would fall in the current fiscal year due to high interest rates, regulatory measures and significant rise in prices of raw material in the international market.

    READ MORE: Global car manufacturers agree to introduce electric mini-commercial vans

    Analysts believed that amid continuous decline of the local currency against greenback, further price hike in car prices is imminent. “This would be the first time where we have seen the highest frequency (4x) of price increases by the auto industry in a fiscal year,” analysts at Insight Research said.

    The main reasons are higher freight charges, abrupt movement in PKR/USD followed by launch of new model cars with lower localization which further add fuel to the price hike.

    The localization policy started in 1987 and continued till 2004, which required compulsory localization for the automotive industry. However, automobile assemblers are still behind the required level of localization.

    READ MORE: Pakistan car sales surge 54 per cent in FY22

    The major players including Indus Motors, Honda Car and Pak Suzuki have been assembling vehicles since 1992, but localization level of these assemblers are still very low despite their long presence in the market.

    In such situation, it will difficult for new players to achieve high localization as older players are still far behind the required level of localization. Moreover, local auto parts manufactures are sensitive to PKR/USD parity as they are reliant on imported raw materials for production. Thus, making the end product expose to PKR devaluation.

    The analysts said that higher interest rate environment, currency devaluation and auto financing hindrances may pose threat to demand going forward especially in low segment cars under 1000cc.

  • Pakistan’s textile exports hit record high at $19.33 bn in FY22

    Pakistan’s textile exports hit record high at $19.33 bn in FY22

    ISLAMABAD: Pakistan has exported textile products worth $19.33 billion during the fiscal year 2021/2022 making a record high on annual basis.

    The country exported textile products worth $19.33 billion during fiscal year 2021/2022, showing an increase of 25.53 per cent when compared with $15.4 billion in the preceding fiscal year, according to data released by Pakistan Bureau of Statistics (PBS) on Tuesday.

    READ MORE: Textile exports surge to record high $11 billion in 7MFY22

    The textile exports contributed around 61 per cent to the total exports of $31.8 billion during the fiscal year 2021/2022.

    Textile sector plays a significant role in supporting the economy of Pakistan and continue to be in the spotlight owing to country’s dependence on foreign exchange.

    According to analysts at Insight Research, the Pakistani Rupee (PKR) devaluation against the US dollar gave textile exporters a competitive advantage over its competitors in terms of pricing.

    READ MORE: PHMA cries foul on gas suspension to textile industry

    In terms of value, the export of knitwear recorded an increase of 34.23 per cent to $5.12 billion during the fiscal year 2021/2022 as compared with $3.81 billion in the preceding fiscal year.

    The export of readymade garments exhibited an increase of 28.75 per cent to $3.9 billion during fiscal year 2021/2022 when compared with $3.03 billion in the preceding fiscal year.

    Similarly, the export of bed wear recorded an increase of 18.8 per cent to $3.29 billion in the fiscal year 2021/2022 as compared with $2.77 billion in the preceding fiscal year.

    READ MORE: Textile exporters urge allowing cotton import from India

    Meanwhile, foreign buyers purchased Pakistani cotton cloths worth $2.44 billion during the fiscal year under review as compared with $1.92 billion in the preceding fiscal year, showing an increase of 27 per cent.

    The analysts said that some factors are posing threat to the textile industry for the current fiscal year such as i.e., increase in export refinance rate.

    Moreover, cotton shortage remains the key concern for the country as the demand for textile industry grows but cotton production has declined substantially over the last decade, mainly due to fall in cultivation area followed by lower yield resulting from water shortage and inconsistent rainfall.

    In the fiscal year 2021/2022, cotton production stood at 8.3 million bales, which is 2.2 million bales lower than the targeted production.

    However, production has increased by 1.3 million bales compared to last year.

    “Thus, due to the supply and demand gap, textile industry has to rely on imported cotton to meet the country’s demand, putting pressure on country’s import bill,” the analysts added.

    READ MORE: Value added textile exporters demand 50 percent reduction in withholding tax

    The government was eyeing to fetch textile exports of $25 billion for the fiscal year 2022-2023. However, domestic and global challenges are dampening the outlook.

    Possible increase in gas and electricity tariff amid the ongoing energy crises could hamper the local demand. In addition, global economic slowdown due to surging inflation will result in lower apparel demand.

    Moreover, in case of surge in covid-19 cases and imposition of lockdown, textile industry’s operating rate would get effected negatively. Having these challenges in mind, the analysts believe that it would be tough to achieve such growth in textile exports.