Pakistan Textile: Exports fall 11% YoY and MoM to US$1.3bn in July 2023

Pakistan Textile exports clocked in at US$1.3bn in July 2023, down by 11% MoM and 11% YoY. This was mainly due to decline witnessed in both Basic Textiles and value-added segments.

In PKR terms, Pakistan Textile exports clocked in at Rs369bn, down by 13% MoM while up 13% YoY.

Lack of energy supplies with increased electricity rate, higher interest rates and global economic slowdown, were the prime reasons for the decline in Pakistan Textile exports.

Basic textiles witnessed decline of 12% MoM and 6% YoY to US$242mn in July 2023, where major decline came from cotton cloth where export recorded at US$141mn down 13% MoM & 23% YoY.

Under Value-added segment, Towel remained major underperformer as exports witnessed 17% MoM decline to US$73mn during July 2023 due to sharp decline in volumetric sales down by 18% MoM. Other value-added players such as Readymade Garments, Bedwear, and Knitwear also posted decline of 14% MoM, 10% MoM, and 7% MoM to US$275mn, US$217mn and US$365mn, respectively.

Value-added segment was also down 13% YoY where Knitwear down 16% YoY followed by Bed Wear down 15% YoY, Readymade Garments down 10% YoY and Towels 15% YoY.

Going forward, Cotton export is expected to rise as the favorable weather conditions have resulted in a better Cotton crop in Pakistan. Early orders for cotton have been received and good numbers are expected.

However we believe elevated energy costs and shortage of gas will continue to remain challenge to the textile industry.

Courtesy – Topline Securities Limited

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