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Pakistan’s Textile sector export saw rise of 18% YoY & down 2% MoM to US$1.6bn in Oct 2024

Pakistan’s textile exports clocked in at US$1.6 billion in September 2024, down 2.40% month over month but up 17.92% yearly. This brings the total textile exports in 1QFY25 to US4.5bn, up 9.51% yearly compared to US$4.52bn in 1QFY24. The growth was driven by market stability, orders being shifted from Bangladesh, the effects of a previous strong cotton crop, and a stabilized dollar in recent months.

In PKR terms, Pakistan’s Textile exports were Rs447 bn in September 2024, down 2.51% Month over month but up 10% year over year. During 1QFY25, textile exports were Rs1.3trn, increasing 5% year over year.

The value-added segment contributed 73% to the total textile exports, while basic textiles contributed 16%. During FY24 and the last five years (FY20-24), the value-added contribution was 71% and 69%, respectively.

Within value added during September 2024, garments outperformed on a YoY basis by posting growth of 35%, followed by knitwear at 30% and Bedwear at 25%. Similarly, during 1QFY25, the garments sector continued to outperform, rising 23% YoY.

Quantity-wise, basic textiles experienced a 3% MoM increase but a 28% YoY decline; within this, cotton cloth saw a rise of 9% MoM and 10% YoY. This brings the quantity in 1QFY25 down 26% YoY compared to 1QFY24.

In the value-added segment, knitwear rose 13% YoY, and Bedwear rose 26%, majorly contributing to the YoY growth for the reasons mentioned above. In 1QFY25, knitwear rose 3%, Bedwear rose 16%, and towels rose 6% compared to 1QFY24, but readymade garments fell 16% YoY.

Outlook: 

We believe textile exports may continue to show growth on the back of orders shifting from Bangladesh to Pakistan and PKR/USD stability. However, a poor expected cotton crop may slow the growth rate in 2HFY25.

Courtesy – Topline Pakistan Research

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