KARACHI: Pakistan’s textile exports recorded all time high to $9.4 billion during first half (July – December) of 2021/2022.
As per the data reported by Pakistan Bureau of Statistics (PBS) on Tuesday, Pakistan textile exports witnessed a record first half (July-December) exports of $9.4 billion in 2021/2022, up by 26 per cent YoY.
READ MORE: Textile exporters urge allowing cotton import from India
In Pak Rupee (PKR terms), the same has clocked in at Rs1,587 billion, up 30 per cent YoY (more than $ terms due to 4 per cent currency devaluation as compared to 1HFY21), analysts at Topline Securities said.
During the first half of the current fiscal year, major export driver was significant increase in value-added exports where knitwear segment contributed the most as it increased by 35 per cent YoY to $2.5 billion followed by Ready-made garments (+23 per cent YoY to $1.8 billion) and Bedwear (+19 per cent YoY to $1.7 billion) exports, respectively.
READ MORE: Value added textile exporters demand 50 percent reduction in withholding tax
On MoM basis, Pakistan textile exports clocked in at $1.6 billion (down by 6 per cent) in Dec 2021, mainly driven by low volumetric sales in all segments excluding raw cotton on account of recent hike in Omicron cases world wide specially in Europe & USA.
READ MORE: Gul Ahmed Textile declares 4-time increase in net profit during nine months
Compared to last year, Pakistan textile exports are up by 16 per cent YoY (28 per cent YoY up in PKR terms) in Dec-21 led by significant recovery witnessed in value-added segments, largely in knitwear (+29 per cent YoY) and Ready-made (+22 per cent YoY). Low base, increased volumetric growth in Knitwear and improved pricing led to higher exports.
The analysts expect textile exports to remain robust in ongoing fiscal year (FY22) and expect it to clock in at $18-18.5 billion. Though, slowdown in European economies and lockdowns due to Omicron remain key risk for the sector.
READ MORE: Value-added textile demands allowing cotton yarn import from India