Textile, clothing exports up amid rise in global demand
ISLAMABAD: Textile and clothing exports grew 28.26 per cent year-on-year to $17.62 billion in the first 11 months of this fiscal year (11MFY22), mainly on the back of a massive depreciation in the rupee’s value and a steady rise in global demand.
According to data released by the Pakistan Bureau of Statistics (PBS) on Friday, the year-on-year growth rate in May was 56.02pc, the highest monthly growth rate.
The PBS data showed that ready-made garment exports jumped 30.63pc in value and 49.70pc in quantity during July-May, while the exports of knitwear edged up 36.44pc in value but dipped 4.34pc in quantity. Bedwear exports grew by 21.68pc in value and 15.19pc in quantity.
Towel exports were up by 21.66pc in value and 7.17pc in quantity, whereas those of cotton cloth rose by 26.81pc in value and 7.14pc in quantity.
Among primary commodities, cotton yarn exports increased by 24.18pc, and those of yarn made from material other than cotton increased by 109.68pc. The exports of made-up articles excluding towels rose by 15.19pc, while those of tents, canvas, and tarpaulin dipped by 2.16pc during the period under review. During the review period, the export of art, silk, and synthetic textiles increased by 29.36pc.
Textile machinery imports increased 47.24pc year-on-year to $722.605 million in July-May, reflecting textile industry expansion or modernisation.
To bridge the shortfall in the domestic sector, the industry imported raw cotton in July-May value, which posted an increase of 25.28pc, while the import value of synthetic fibre posted a growth of 19.29pc, followed by the import of synthetic and artificial silk yarn, which posted a gain of 28.80pc during the months under review.
In 11MFY22, imports of used clothing increased by 46.90pc compared to the same period last year.
During the 11-month period, the country’s overall exports posted a year-on-year growth of around 27.90pc to reach $28.87bn up from $22.57bn in the same period last year. The government has projected a target of $31bn for 2021-22.
The government has already unveiled a textile and apparel policy last month with various measures to promote production as well as quality of textiles and clothing. In the budget 2021-22, the government drastically reduced duties and taxes on the imports of several hundred raw materials to bring down the input cost of exportable products.
Liquidity issues were also resolved to a considerable extent by the timely release of refunds, customs rebates and the payment of cash subsidies.
Published in Dawn,June 18th, 2022