Growth in textile exports is mainly due to increasing new customer base and higher orders from the US, Europe after reopening of global economies, report
KARACHI: The textile exports in September 2021 rose by 25 percent on a year-on-year (YoY) basis to over $1.5 billion.
According to the latest trade data released by the Pakistan Bureau of Statistics (PBS), textile exports increased by 25 percent YoY to $1.5 billion in September 2021 as compared to $1.2 billion in September 2020.
On a monthly basis too, textile exports increased by 2 percent despite logistics and supply chain issues such as congestion on ports and higher freight costs.
This growth in textile exports was mainly due to higher export orders from the US, Europe, and Asian region after the reopening of global economies, which increased demand for textile products together with the increasing new customer base, according to a report of Arif Habib Limited.
The focus of new customers is mainly on value-added products. The value-added segment mainly led to the increase in textile exports during the said period, it added.
The exports of knitwear and ready-made garments increased by 31 percent and 22 percent YoY to $388 million and $276 million, respectively.
Moreover, on a monthly basis, knitwear and bedwear emerged as outperformers as exports witnessed an increase of 7 percent and 4 percent MoM, respectively.
In terms of volume, readymade garments, cotton yarn, and bed wear registered an increase of 22 percent, 13 percent, and 7 percent YoY, respectively, during the month of September 2021.
According to the report, cumulatively during the first quarter (July-September) of 2021-22, textile exports witnessed double-digit growth of 27 percent YoY to $4.4 billion against $3.5 billion in the same period of the last year.
The government’s incentives to the textile sector including a reduction in gas prices for export-oriented sectors, rebates for exporters, lower financing rates on LTFF (long-term financing facility), and export refinance scheme provided support in these crucial times.
Both non-value added and value-added segments showed double-digit growth on a YoY basis, during the period (1QFY22). Cotton yarn remained in demand as sales of the same increased by 69 percent YoY to $289 million compared to $170 million in the same period of the last year.