Pakistan Textile exports for May-23 clocked in at US$1.32bn, up by 7% MoM. In PKR terms, exports clocked in at Rs377bn, an increase of 7% MoM.
Value-added textile exports were recorded at US$889mn, up 3% MoM. Towels, Readymade Garments, and Knitwear increased by 10%, 8% and 3% MoM respectively. Bedwear decreased by 8% MoM, on the other hand. Basic textiles increased by 31% MoM, with Cotton Cloth increasing by 19%.
In volume terms, Readymade Garments and Towels increased by 8% and 5% MoM. Cotton Yarn and Cotton Cloth also increased by 64% and 22% MoM respectively.
Textile manufacturers of Pakistan have seen improved orders on a MoM in Basic Textile (Yarn and Cloth) from countries such as China and Bangladesh.
Compared to May-22, Pakistan’s textile exports were down by 20% YoY (+17% YoY in PKR terms) due to 21% and 19% decline in Value-Added and Basic segment respectively.
Value-Added segment declined on YoY basis due to Bedwear, Knitwear, Readymade Garments and Towels decreasing by 28%, 22%, 17% and 5% YoY.
During 11MFY23, Pakistan recorded textile exports of US$15.03bn down by 15% YoY (+18% YoY PKR terms). Basic and value-added declined by 22% and 13% YoY respectively.
In 11MFY23, volumetric exports of Readymade Garments and Knitwear have increased by 46% and 9% YoY respectively. We believe devaluation of PKR had a positive impact on these labor intensive segments.
Textile Exports for FY23 are expected to close out in the US$16-16.5bn range. This would be a decline of ~16% compared to FY22. Reasons for decline are depressed global demand and ~25% lower international cotton prices in FY23.
Courtesy- Topline Securities Limited