ISLAMABAD: Textile and clothing exports saw a significant rebound in August, recording a nearly 13 per cent increase, according to data released by the Pakistan Bureau of Statistics (PBS) on Monday. The increase comes amid concerns that the industry was facing a downturn.
In July, exports from the sector had contracted by 3.1pc, leading many experts to worry that the country’s textile and clothing industry could struggle to remain competitive against regional rivals due to stringent taxation policies introduced for the current fiscal year.
June also saw a year-on-year decline of 0.93pc, though exports had rebounded strongly in May, growing by double digits after two months of slower performance.
In absolute terms, textile and clothing exports surged to $1.64bn in August, up from $1.45bn in the same month last year. On a month-on-month basis, exports surged by 29.4pc.
13pc rise in proceeds comes after two months of contraction
For the first two months (July and August) of the ongoing fiscal year, textile and clothing exports increased by 5.4pc, reaching $2.92bn, compared to $2.76bn in the same period a year ago.
The government has implemented several measures, including raising the personal income tax rate on exporters for the 2024-25 fiscal year.
The PBS data revealed a 27.8pc rise in the value of readymade garments exports in August, alongside a 7.9pc increase in quantity. Knitwear exports grew by 15.4pc in value and 8.1pc in quantity. Bedwear exports saw a 15.2pc rise in value and a 14.4pc increase in quantity. Towel exports surged by 15.7pc in value and 9.7pc in quantity in August, whereas cotton cloth exports rose by 14.1pc in value and 4.8pc in quantity. However, yarn exports plummeted by 47.7pc in August compared to the same month last year.
On the import side, synthetic fibre imports saw a negative growth of 8.3pc, while synthetic and artificial silk yarn imports declined by 13.6pc. However, other textile-related imports grew by 51.5pc during the month. Raw cotton imports increased by 7.6pc and second-hand clothes imports posted a growth of 22pc.
In total, the country’s exports grew by 16.8pc in August, rising to $2.76bn, up from $2.36bn in the same month last year.
Published in Dawn, September 17th, 2024
