As per latest trade data released by Pakistan Bureau of Statistics, textile exports increased by 25% YoY to USD 1.5bn in Sep’21 compared to USD 1.2bn in Sep’20. On monthly basis too, textile exports increased by 2% MoM despite logistics and supply chain issues such as congestions on ports and higher freight cost. This growth in textile exports was mainly due to higher export orders from US, Europe and Asian region after reopening of global economies which increased demand of textile products together with increasing new customer base.
The focus of new customers are mainly on value added products. Value added segment mainly led the increase in textile exports during the said period. Exports of knitwear and ready-made garments increased by 31% and 22% YoY to USD 388mn and USD 276mn, respectively.
Moreover, on monthly basis, knitwear and bed wear emerged as outperformer as exports witnessed jump 7% and 4% MoM, respectively. In terms of volume; readymade garments, Cotton yarn and bed wear registered an increase of 22%, 13% and 7% YoY, respectively during the month of Sep’21.
Cumulatively during 1QFY22, textile exports witnessed double digit growth of 27% YoY to USD 4.4bn against USD 3.5bn in SPLY.
Government’s incentives to textile sector including reduction in gas prices for export oriented sectors, rebates for exporters, lower financing rate on LTFF (Long term financing facility) and export refinance scheme provided support in these crucial times. Both, non-value added and value added segment, showed double digit growth on YoY basis, during the period (1QFY22). Cotton Yarn remained in demand as sales of the same increased by 69% YoY to USD 289mn compared to USD 170mn in SPLY.
Courtesy – AHL Research