KARACHI: Textile exports increased 25 per cent year-on-year in the first seven months of 2021-22, data released by the Pakistan Bureau of Statistics (PBS) showed on Wednesday.

The country exported $10.9 billion worth of textile goods in July-January, PBS reported. In January alone, textile sales in foreign markets generated $1.55bn, up 17.3pc from a year ago.

The trend line, however, is headed south. January was the second consecutive month in which textile exports recorded a drop over the preceding 30-day period. Monthly foreign sales in January dropped 4.43pc from December. Likewise, the month-on-month decline in December was 6.45pc.

According to Topline Securities analyst Muhammad Saad Ziker, the monthly decline in textile exports was driven by lower performance in value-added export segments, especially knitwear (-12pc) and readymade garments (-4pc).

Thanks to 4pc depreciation in the rupee against the dollar, textile exports in July-January amounted to Rs1.86 trillion, up 30pc from a year ago.

So far in the ongoing fiscal year, value-added textiles have been the key driver of exports with the largest contribution coming from the knitwear segment (33pc), followed by readymade garments (22pc) and bedwear (19pc), said Mr Ziker. Increased volumetric growth and improved pricing have resulted in higher exports, he added.

“Going forward, we expect textile exports to keep robust in 2021-22 to clock in at $18.5-$19bn. The easing in lockdowns in European economies is likely to drive increased orders and help overall textile exports,” he said.

Pakistan’s trade deficit so far in 2021-22 has been $28.9bn after widening by 92.5pc from a year ago. Imports of petroleum products in the seven-month period amounted to $11.7bn, up 107pc from a year ago. Transport-related imports also surged 88pc to $2.6bn over the same period. Imports relating to agriculture and others expanded 91pc to $9bn on an annual basis.

Published in Dawn, February 17th, 2022