Textile exports up 26.55pc in 4MFY22

Published November 16, 2021
The growth momentum in textile and clothing exports is steady on the back of rising demand from the global market as well as massive depreciation of the rupee. — AFP/File
The growth momentum in textile and clothing exports is steady on the back of rising demand from the global market as well as massive depreciation of the rupee. — AFP/File

ISLAMABAD: The exports of textile and clothing posted growth of 26.55 per cent in the first four months of this year to $6.02 billion compared to $4.75bn over the year, data released by the Pakistan Bureau of Statistics (PBS) showed on Monday.

The growth momentum in textile and clothing export is steady on the back of rising demand from the global market as well as massive depreciation of the rupee as exports posted growth of over 24.24pc in October from a year ago.

The Ministry of Commerce estimates that the easing of lockdown in North America and European countries — top markets for Pakistani textile goods — will help boost the exports. The demand for textiles collapsed during the first wave of the Covid-19 pandemic, but eventually recovered in the outgoing fiscal year.

In the budget 2021-22, the government had drastically reduced duty and taxes on imports of several hundred raw materials to bring down the input cost of exportable products. Liquidity issues were also resolved to a large extent by timely releasing refunds as well as payment of cash subsidies.

With a delay of more than two years, the government has recently announced the Strategic Trade Policy Framework for the non-textile sector. However, the textile and clothing sector specific policy is still awaited.

The PBS data showed ready-made garments exports jumped by 22.34pc in value and in quantity by 20.50pc during July-Oct FY22, while those of knitwear edged up 35.45pc in value, but dipped 13.11pc in quantity, bedwear posted positive growth of 21.30pc in value and 23.53pc in quantity.

Towel exports were up by 14.17pc in value and 7.75pc in quantity, whereas those of cotton cloth rose by 18.54pc in value and dipped by 76.83pc in quantity.

Among primary commodities, cotton yarn exports surged by 71.39pc, while yarn other than cotton by 114pc. The export of made-up articles — excluding towels — rose by 11.55pc, and tents, canvas and tarpaulin dipped by a massive 23.98pc during the months under review. The export of raw cotton declined by 100pc during the months under review.

The import of textile machinery increased by 110pc in July-Oct FY22 — a sign that expansion or modernisation projects were taken up by the textile industry during the months.

To bridge the shortfall in the domestic sector, the industry imported 235,691 tonnes of raw cotton in July-Oct FY22 against 183,216 tonnes last year, an increase of 28.64pc. Similarly, the import of synthetic fibre posted a slight decline of 1.05pc as industry imported 169,337 tonnes this year as against 171,140 tonnes. The import of synthetic and artificial silk yarn stood at 132,610 tonnes this year as against 128,826 tonnes last year, a rise of 2.94pc.

The import of worn clothing recorded a growth of 189pc to 340,359 tonnes this year as against 117,725 tonnes last year.

The overall country’s exports posted a growth of over 24.94pc year-on-year to $9.46bn in July-Oct FY22 compared to $7.57bn in the corresponding period last year.

Published in Dawn, November 16th, 2021

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