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Tag: Textile export

  • Pakistan’s textile exports hit record high at $19.33 bn in FY22

    Pakistan’s textile exports hit record high at $19.33 bn in FY22

    ISLAMABAD: Pakistan has exported textile products worth $19.33 billion during the fiscal year 2021/2022 making a record high on annual basis.

    The country exported textile products worth $19.33 billion during fiscal year 2021/2022, showing an increase of 25.53 per cent when compared with $15.4 billion in the preceding fiscal year, according to data released by Pakistan Bureau of Statistics (PBS) on Tuesday.

    READ MORE: Textile exports surge to record high $11 billion in 7MFY22

    The textile exports contributed around 61 per cent to the total exports of $31.8 billion during the fiscal year 2021/2022.

    Textile sector plays a significant role in supporting the economy of Pakistan and continue to be in the spotlight owing to country’s dependence on foreign exchange.

    According to analysts at Insight Research, the Pakistani Rupee (PKR) devaluation against the US dollar gave textile exporters a competitive advantage over its competitors in terms of pricing.

    READ MORE: PHMA cries foul on gas suspension to textile industry

    In terms of value, the export of knitwear recorded an increase of 34.23 per cent to $5.12 billion during the fiscal year 2021/2022 as compared with $3.81 billion in the preceding fiscal year.

    The export of readymade garments exhibited an increase of 28.75 per cent to $3.9 billion during fiscal year 2021/2022 when compared with $3.03 billion in the preceding fiscal year.

    Similarly, the export of bed wear recorded an increase of 18.8 per cent to $3.29 billion in the fiscal year 2021/2022 as compared with $2.77 billion in the preceding fiscal year.

    READ MORE: Textile exporters urge allowing cotton import from India

    Meanwhile, foreign buyers purchased Pakistani cotton cloths worth $2.44 billion during the fiscal year under review as compared with $1.92 billion in the preceding fiscal year, showing an increase of 27 per cent.

    The analysts said that some factors are posing threat to the textile industry for the current fiscal year such as i.e., increase in export refinance rate.

    Moreover, cotton shortage remains the key concern for the country as the demand for textile industry grows but cotton production has declined substantially over the last decade, mainly due to fall in cultivation area followed by lower yield resulting from water shortage and inconsistent rainfall.

    In the fiscal year 2021/2022, cotton production stood at 8.3 million bales, which is 2.2 million bales lower than the targeted production.

    However, production has increased by 1.3 million bales compared to last year.

    “Thus, due to the supply and demand gap, textile industry has to rely on imported cotton to meet the country’s demand, putting pressure on country’s import bill,” the analysts added.

    READ MORE: Value added textile exporters demand 50 percent reduction in withholding tax

    The government was eyeing to fetch textile exports of $25 billion for the fiscal year 2022-2023. However, domestic and global challenges are dampening the outlook.

    Possible increase in gas and electricity tariff amid the ongoing energy crises could hamper the local demand. In addition, global economic slowdown due to surging inflation will result in lower apparel demand.

    Moreover, in case of surge in covid-19 cases and imposition of lockdown, textile industry’s operating rate would get effected negatively. Having these challenges in mind, the analysts believe that it would be tough to achieve such growth in textile exports.

  • Textile exports surge to record high $11 billion in 7MFY22

    Textile exports surge to record high $11 billion in 7MFY22

    KARACHI: The exports of textile products have witnessed sharp increase of 25 per cent to $11 billion during first seven months (July – January) 2021/2022 7MFY22, according to data of the Pakistan Bureau of Statistics (PBS) released on Wednesday.

    The exports of textile products were $8.76 billion in the same months of the last fiscal year.

    READ MORE: SBP expands export finance scheme to improve inflows

    In Pak Rupee (PKR) terms, the same has clocked in at Rs1,861 billion, up 30 per cent YoY due to 4 per cent currency devaluation, analysts at Topline Securities said.

     During 7MFY22, key export driver was increase in value-added exports where knitwear segment contributed the most as it increased by 33 per cent YoY to $2.9 billion followed by Ready-made garments (+22 per cent YoY to $2.2 billion) and Bedwear (+19 per cent YoY to $1.9 billion) exports, respectively.

    On MoM basis, Pakistan textile exports is down 4 per cent to $1.5 billion in Jan-2022, led by lower value-added exports segments mainly in Knitwear (down 12 per cent MoM) and Ready-made garments (down 4 per cent MoM) respectively.

    READ MORE: PHMA cries foul on gas suspension to textile industry

    Compared to last year, Pakistan textile exports are up by 17 per cent YoY (29 per cent YoY up in PKR terms) in Jan-22 led by significant recovery witnessed in value-added segments, largely in knitwear (up 19 per cent YoY), Ready-made (up 17 per cent YoY) and Bedwear (up 21 per cent YoY).

    Increased volumetric growth and improved pricing were the key drivers resulting in higher exports.   

    Going forward, the analysts expect textile exports to keep robust in ongoing FY22 fiscal year to clock in at $18.5-19 billion.

    Ease of lockdown in European economies is likely to drive increased orders and help overall textile exports, the analysts added.

    The Federal Cabinet on February 15, 2022 has finally approved the Textile and Apparel Policy 2020-25, after Ministry of Commerce (MoC) submitted the revised draft of textile policy to Economic Coordination Committee (ECC) incorporating few amendments.

    READ MORE: Textile exporters urge allowing cotton import from India

    The key reason behind the late approval was the dispute between MoC and Energy Ministry on the issue of Energy Tariffs (RLNG and Electricity).

    As per reports, the updated draft stated that Energy Tariffs (RLNG and Electricity) will be provided to textiles and apparel industry at regionally competitive rates during the policy years. For this, tariff will be reviewed and announced in federal budget by Finance Division.

    As per Pakistan Institute of Development Economics (PIDE), the average regional electricity tariff rate stood at 7.4 cents/kWh in Mar-21, which we believe has likely increased since than. Pakistan’s current electricity tariff is around 9 cents/Kwh. 

    READ MORE: Gas shortage created purposely for using RLNG: KCCI

    In case of RLNG, the average regional RLNG rate stood at $4/MMBTU as per PIDE as compared with Pakistan’s tariff rate at $6.5/MMBTU. The analysts believe the above stated textile policy will have a neutral impact on the sector. Given, Pakistan is already offering subsidized energy & RLNG tariffs to textile players and Pakistan being part of an IMF program, a further reduction from the current levels is highly unlikely. 

    RLNG tariff is expected to remain intact at $6.5/MMBTU level although regional average is comparatively low. To note, RLNG is currently being provided at $9/MMBTU to textile sector till March-22 due to supply issues.

  • Pakistan’s textile exports jump to record high at $9.4bn

    Pakistan’s textile exports jump to record high at $9.4bn

    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

  • Pakistan exports textile products worth $11.35bn in nine months

    Pakistan exports textile products worth $11.35bn in nine months

    KARACHI: Pakistan has exported textile products worth $11.35 billion during first nine months (July – March) 2020/2021, showing 9 percent growth, according to data released by Pakistan Bureau of Statistics (PBS) on Saturday.

    The exports of textile products during the first nine months of the last fiscal year were at $10.41 billion, the PBS reported.

    In terms of volume the export of knitwear was on the top in textile exports. The country exported knitwear products worth $2.78 billion during first nine months of the current fiscal year as compared with $2.29 billion in the corresponding months of the last fiscal year, showing a growth of 21 percent.

    The export of readymade garments was recorded at $2.27 billion during July – March 2020/2021 as compared with $2.17 billion in the corresponding period of the last fiscal year.

    The export of bedwear recorded 16.5 percent growth to $2.05 billion during first nine months of the current fiscal year as compared with $1.76 billion in the corresponding period of the last fiscal year.

    The export of textile products in the month of March 2021 recorded 30 percent growth to $1.35 billion when compared with $1.04 billion in the same month of the last year.

  • Pakistan’s knitwear export jumps up by 14.34 percent in five months

    Pakistan’s knitwear export jumps up by 14.34 percent in five months

    KARACHI: Pakistan’s knitwear export has jumped up by 14.34 percent to $1.51 billion during the first five months (July – November) of the current fiscal year, according to data released by Pakistan Bureau of Statistics (PBS) on Friday.

    The export of knitwear was at $1.32 billion during the same period of the last fiscal year.

    The total export of textile products posted five percent growth to $6.04 billion during the first five months of the current fiscal year as compared with $5.76 billion in the corresponding months of the last fiscal year.

    The export of knitwear remained the largest component contributing around 25 percent of the total textile export.

    In terms of value, export of readymade garments was the second largest component of textile export. The export of readymade garments posted 4.36 percent growth to $1.2 billion during July – November 2020/2021 as compared with $1.15 billion in the corresponding period of the last fiscal year.

    The export of bedwear registered 12.28 percent increase to $1.138 billion during the first five months of the current fiscal year as compared with $1.01 billion in the same period of the last fiscal year.

    The export of cotton cloth fell by 8.73 percent to $773.17 million during July – November 2020/2021 as compared with $847 million in the corresponding period of the last fiscal year.

    Similarly, the export of cotton yarn fell by 37.34 percent to $304.55 million during the period under review as compared with $486 million in the same period of the last fiscal year.

  • Textile exports increase to $4.76bn in four months

    Textile exports increase to $4.76bn in four months

    ISLAMABAD: The exports of textile products have increased by 3.78 percent to $4.76 billion during first four months (July – October) of 2020/2021, according to data released by Pakistan Bureau of Statistics (PBS) on Wednesday.

    The exports of textile products were $4.58 billion in the corresponding period of the last fiscal year.

    The textile exports were able to post positive growth due to better performance in knitwear, bedwear, towels and readymade garments.

    The export of knitwear registered 12.3 percent growth to $1.18 billion during the first four months of current fiscal year as compared with $1.05 billion in the corresponding period of the last fiscal year.

    The export of bedwear posted a 10 percent increase to $899 million during July – October of the current fiscal year as compared with $818 million in the same period of the last fiscal year.

    The export of towels increased by 12.35 percent to $283 million during the period under review as compared with $252 million in the corresponding period of the last fiscal year.

    The export of readymade garments registered an increase of 4.66 percent to $947 million during the first four months of the current fiscal year as compared with $905 million in the same period of the last fiscal year.

    The export of raw cotton and cotton this year posted negative growth of 95.72 percent and 40.56 percent, respectively during the two periods under review.

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  • Textile exports fall to $2.28bn in July-August

    Textile exports fall to $2.28bn in July-August

    KARACHI: Textile exports have fallen by one percent to $2.28 billion during first two months of current fiscal year as compared with $2.3 billion in the corresponding period of the last fiscal year, according to data released by Pakistan Bureau of Statistics (PBS).

    Major component of textile exports have witnessed growth during the period.

    The export of knitwear grew by 4.43 percent to $564.29 million during July – August 2020 of the current fiscal year as compared with $540 million in the corresponding period of the last fiscal year.

    The export of bed wear increased by 6 percent to $424.18 million during first two months of the current fiscal year as compared with $400.44 million in the same month of the last year.

    The export of readymade garments grew by 2 percent to $477 million during July – August 2020 as compared with $467 million in the same period of the last fiscal year.

  • Textile exports post sharp 64 percent decline in April

    Textile exports post sharp 64 percent decline in April

    ISLAMABAD: The textile exports have witnessed massive 64 percent decline in April 2020 due to lower demand in foreign markets and cancellation of orders due to coronavirus outbreak.

    According to data released by Pakistan Bureau of Statistics (PBS) on Wednesday, the textile exports recorded $403 million dollars in April 2020 as compared with $1.14 billion in the same month of the last year.

    The exports in April 2020 were also registered decline of 61 percent when compared with $1.04 billion in March 2020.

    The textile exports however registered 2.79 percent decline to $10.81 billion in first ten months (July – April) 2019/2020 as compared with $11.12 billion in the corresponding months of the last fiscal year.

    State Bank of Pakistan (SBP) in its second quarterly report on Pakistan Economy, stated that the outbreak of the virus in Europe and North America and the ensuing lockdowns may have an adverse impact on Pakistan’s exports.

    Further, domestic exporters have already warned of cancellation of orders as retail sales in destination markets weaken and port and shipping activities are restricted, the SBP noted.

  • Textile export falls by 18.4pc as COVID-19 affects global economies

    Textile export falls by 18.4pc as COVID-19 affects global economies

    KARACHI: The coronavirus pandemic (COVID-19) is taking its toll on Pakistani textile export as it fell by 18.40 percent in March 2020 as compared with previous month, according to data released by Pakistan Bureau of Statistics (PBS) on Friday.

    (more…)
  • Textile exports increase by 3.68% in seven months

    Textile exports increase by 3.68% in seven months

    KARACHI: The exports of textile products have recorded increase of 3.68 percent during first seven months (July – January) 2019/2020 on the back of improvement in readymade garments and knitwear.

    The exports of textile group were at $8.1 billion during first seven months of current fiscal year as compared with 7.81 billion in the corresponding period of the last fiscal year, according to data released by Pakistan Bureau of Statistics (PBS) on Monday.

    The textile sector was facing several issues pertaining to fuel prices and payment of tax refunds.

    On the other hand the government allowed many incentives to export sector for encouraging the exporters. The government allowed zero rated of sales tax which is only available to the exporters.

    The exports of readymade garments recorded 11 percent increase during the period under review. The exports readymade garments increased to $1.68 billion during first seven months of the current fiscal year as compared with $1.516 billion in the same period of the last fiscal year.

    The exports of knitwear recorded 6.27 percent increase to $1.83 billion during July – January 2019/2020 as compared with $1.72 billion in the corresponding period of the last fiscal year.

    The exports of bed wear recorded 2.77 percent growth to $1.39 billion during first seven months of the current fiscal year as compared with $1.35 billion in the same period of the last fiscal year.

    However, the exports of cotton cloths fell by 3.62 percent to $1.19 billion during the period under review as compared with $1.23 billion in the corresponding period of the last fiscal year.

    The exports of towels registered nominal decline to $444 million during first seven months of the current fiscal year as compared with $446.45 million in the corresponding period of the last fiscal year.

    The export of cotton yarn was also registered flat growth to $640 million during first seven months of the current fiscal year as compared with $635 million in the same period of the last fiscal year.