Export of textiles soars to $15.4bn in FY21

Published July 20, 2021
The total exports of textile and clothing were $15.4 billion in 2020-21 against $12.526bn of the previous year. — AP/File
The total exports of textile and clothing were $15.4 billion in 2020-21 against $12.526bn of the previous year. — AP/File

ISLAMABAD: Pakistan’s exports of textile and clothing posted a 22.94 per cent growth in the outgoing financial year compared to the same period a year ago, data released by the Pakistan Bureau of Statistics showed on Monday.

In absolute terms, the total exports of textile and clothing were $15.4 billion in 2020-21 against $12.526bn of the previous year.

The growth in exports of value-added sectors contributed to an increase in overall exports from the sectors. One of the reasons for growth in these sectors is because of low-base of last year when export-oriented industries remained closed due to the Covid-19 lockdown and cancellation of orders from international buyers.

The breakdown shows exports of readymade garments went up by 18.83pc to $3.032bn in FY21 against $2.552bn over the corresponding months of previous year. The exports of knitwear increased by 36.57pc to $3.816bn against $2.794bn over the corresponding months of last year. Exports of bedwear went up by 28.87pc to $2.771bn this year against $2.150bn of the last year.

Growth attributed to last year’s low base caused by the pandemic

A growth of 31.81pc was seen in export of towels to $937.536m in FY21 against $711.265m of the last year.

The export of leather garments was up by 14.02pc and leather gloves by 22.26pc. The exports of raw leather declined by over 12.04pc.

The cotton cloth export posted a growth of 4.98pc in FY21 to $1.921bn, while the export of cotton yarn went up by 3.26pc to $1.016bn on a year on year basis. The export of raw cotton declined by 95.27pc this year over the last year.

It indicates that these raw materials were consumed maximum in the value-added sector as the government has also allowed duty-free import of these products.

The exports of cotton carded were up by 3.17pc and yarn other than cotton yarn by 29.62pc.

The exports of tents, canvas and tarpaulin went up by 12.10pc, art, silk and synthetic textile by 17.68pc and made up articles, excluding towels and bed wear, by 28.08pc.

In the budget 2021-22, several measures, including reduction in duty on raw materials to promote exports of pharmaceutical, plastic, chemicals, engineering, and value-added textile products, had been proposed.

Between July 1 last year and June 30 this year, the overall exports reached $25.304bn as against $21.393bn over the corresponding months of last year, indicating a growth of 18.28pc.

The import of textile machinery posted a growth of 35.35pc to $592.076m on a year on year basis. This indicates that the industry has started importing textile machinery as part of modernisation or expansion in the sector.

The industry imported 857,373 tonnes of raw cotton in outgoing year against 536,707 tonnes last year, showing an increase of 59.75pc, to bridge the shortfall in the domestic sector.

Similarly, the import of synthetic fibre grew by 52.69pc as industry imported 447,351 tonnes this year as against 292,972 tonnes of previous year.

The import of synthetic and artificial silk yarn stood at 392,092 tonnes this year as against 248,834 tonnes last year, showing an increase of 57.57pc. The import of worn clothing recorded a growth of 89.64pc to 732,623 tonnes this year as against 386,320 tonnes of previous year.

Published in Dawn, July 20th, 2021

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