As per the Pakistan Bureau of Statistics (PBS), Pakistan textile exports surged to a record high of US$1.74bn (+7% MoM) in Apr-22, where around 81% of the increase in exports as compared to Mar-22 belongs to value-added exports.

Under the value-added segment, Knitwear exports played a key role here, which is up by 15% MoM to US$488mn mainly due to a significant rise in volumetric sales (+28% MoM) followed by Bedwear (+7% MoM) and Ready-made garments (+2% MoM).

In addition, textile sector exports reached an all-time high during 10MFY22 to clock in at US$16bn, up 26% YoY. 10MFY22 exports number has already crossed the levels seen in FY21 of US$15.4bn. In PKR terms, the same has clocked in at Rs2.8trn, +36% YoY.

The key reason behind the record upsurge in exports is a 27% YoY increase in value-added exports, where around 1/3rd of the overall increase is due to Knitwear exports (+35% YoY to US$4.2bn) followed by Ready-made garments (+28% YoY to US$3.2bn) and Bedwear (+19% YoY to US$2.7bn).

Compared to last year, Pakistan textile exports are up by 30% YoY (+57% YoY in PKR terms to Rs321bn) in Apr-22, led by substantial growth witnessed in value-added segments, mainly in Knitwear (+41% YoY), followed by Ready-made Garments (+44% YoY) and Bedwear (+16% YoY).

Concerning basic textile, exports witnessed an increase of 17% YoY to US$314mn in Apr-22, where the major contribution came from cotton cloth, +29% YoY to US$210mn. However, cotton yarn showed a decline of 5% YoY to US$98mn.

In the future, we expect this trend to continue and expect textile exports to reach ~US$19bn in FY22.

Courtesy – Topline Securities