Textile exports increased 25 percent year-on-year in the first seven months of 2021-22, data released by the Pakistan Bureau of Statistics (PBS) showed on Wednesday.
The country exported $10.9 billion worth of textile goods in July-January, PBS reported. In January alone, textile sales in foreign markets generated $1.55bn, up 17.3% from a year ago. The trend line, however, is headed south. January was the second consecutive month in which textile exports recorded a drop over the preceding 30-day period. Monthly foreign sales in January dropped 4.43% from December. Likewise, the month-on-month decline in December was 6.45%
According to Top line Securities analyst Muhammad Saad Ziker, the monthly decline in textile exports was driven by lower performance in value-added export segments, especially knitwear (-12% ) and ready-made garments (-4% ). Thanks to 4% depreciation in the rupee against the dollar, textile exports in July-January amounted to Rs1.86 trillion, up 30% from a year ago. So far in the ongoing fiscal year, value-added textiles have been the key driver of exports with the largest contribution coming from the knitwear segment (33% ), followed by ready-made garments (22% ) and bedwear (19% ), said Mr. Ziker. Increased volumetric growth and improved pricing have resulted in higher exports, he added. “Going forward, we expect textile exports to keep robust in 2021-22 to clock in at $18.5-$19bn. The easing in lock downs in European economies is likely to drive increased orders and help overall textile exports,” he said.
Pakistan’s trade deficit so far in 2021-22 has been $28.9bn after widening by 92.5% from a year ago. Imports of petroleum products in the seven-month period amounted to $11.7bn, up 107% from a year ago. Transport-related imports also surged 88pc to $2.6bn over the same period. Imports relating to agriculture and others expanded 91% to $9bn on an annual basis.