Pakistan Textile exports for Feb-23 clocked in at US$1.18bn, down 11% MoM. In PKR terms, exports clocked in at Rs315bn up by 2% MoM.
Value-added textile exports decreased by 13% MoM to US$812mn mainly due to Readymade Garments and Knitwear declining by 13% and 18% MoM respectively. Towels and Bedwear also decreased by 8% and 7% MoM respectively. Basic textiles witnessed a decline of 8% MoM to US$214mn in Feb-23.
In volume terms, Knitwear, Towels and Bedwear decreased by 16%, 10% and 9% MoM respectively, whereas, Readymade Garments increased by 15% MoM. Among Basic Textile, Cotton Yarn down 22% MoM whereas Cotton Cloth up 11% MoM.
Decline is indicative of a wider deterioration in textile demand globally. Textile exports from Bangladesh are down by 11% MoM and China and Vietnam exports for Jan-Feb 23 are down by 19% and 20% YoY respectively.
As compared to Feb-22, Pakistan’s textile exports were down by 30% YoY (+7% YoY in PKR terms) due to 29% YoY decline in Value-Added and 42% YoY in Basic segment.
Value-Added segment declined on YoY basis by 26%, 34%, and 28% in Bedwear, Knitwear and Readymade Garments respectively.
During 8MFY23, Pakistan recorded textile exports of US$11.22bn down by 11% YoY (+19% YoY in PKR terms). Basic and value-added declined by 21% and 9% YoY respectively.
Demand from major export markets USA and Europe remains the key concern for textile exports of Pakistan. Furthermore passing of recent hike in electricity tariffs will be a challenge for the sector.
We expect textile exports to clock in at a range of US$16-17bn in FY23 as compared to APTMA’s targets of US$25bn and last year FY22 textile exports of US$19bn.
Courtesy – Topline Securities Limited