Pakistan textile exports fall 15% YoY to US$16.5bn in FY23

According to data compiled/made by Topline Securities Limited, Pakistan textile exports for Jun-23 clocked in at US$1.47bn, up 11% MoM. In PKR terms, exports clocked in at Rs422bn, an increase of 12% MoM.

Value-added textile exports were recorded at US$1.04bn, up by 17% MoM. Bedwear, readymade garments, and knitwear increased by 19%, 19%, and 18% MoM, respectively. On the other hand, basic textiles decreased by 2% MoM, with cotton cloth decreasing by 7% MoM.

In volume terms, bedwear, readymade garments, knitwear, and towels increased by 20% MoM, 16% MoM, 14% MoM, and 8% MoM.

Textile manufacturers of Pakistan have seen improved orders on a MoM basis from the USA and Europe due to summer holiday season demand.

Compared to June, Pakistan’s textile exports were down by 14% YoY (+21% YoY in PKR terms) due to a 15% and 9% decline in the value-added and basic segments, respectively.

Value-Added segment declined on a YoY basis due to bedwear, knitwear, readymade garments, and towels decreasing by 15%, 17%, 13% and 4% YoY.

During FY23, Pakistan recorded textile exports of US$16.50bn, down by 15% YoY (+18% YoY PKR terms). Basic and value-added declined by 21% and 13% YoY, respectively.

In FY23, volumetric exports of readymade garments and knitwear have increased by 39% YoY and 10% YoY respectively. The devaluation of PKR had a positive impact on these labour-intensive segments.

In FY24, textile exports will depend on demand from the USA and European export markets. High energy costs and an increase in minimum wage for FY24 will be key challenges for the sector.


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