In 2023, the textile and garment sector experienced a challenging investment climate marked by a global decline in demand for clothing items and a domestic energy crisis, leading to escalated production costs.
Contributing factors included heightened raw material prices, increased transport costs, volatile exchange rates of the local currency against the US dollar, and Government-imposed restrictions on imports to conserve foreign currency.
This is as per reports, which added the year posed significant challenges for the global textile and garment industries, with major consumer markets such as Europe and the USA substantially reducing clothing item imports due to unprecedented inflationary pressures.
Notably, the USA reported a 22.71 percent decline in overall garment imports, amounting to US $ 67.26 billion in January-October 2023. The diminished demand from key consumer markets also impacted domestic market investments, reports added.
