Pakistan’s textile and clothing exports reported an impressive growth with an increase of 27.41% to $4.42 billion during the first quarter of the year in comparison to $3.46bn over the year.
The Pakistan Bureau of Statistics (PBS) released data on Saturday showing the growth figures for the industry. The growth momentum remains steady in terms of export proceeds owing to the surge in demand in global markets as well as the alarming depreciation of the local currency. Exports reported a growth of more than 25pc in September compared to last year.
The relaxation of lockdown in major markets for Pakistani textile goods such as North America and European countries is expected to boost the country’s exports. The demand for textiles has recovered through the year following a collapse during the first wave of the pandemic.
The government had drastically slashed duty and taxes in its last budget, on imports of several hundred raw materials to lower the input cost of exportable products. Releasing refunds and payment of cash subsidies on time helped resolve liquidity issues significantly.
The government is also working on a proposal to provide subsidies on gas, LNG as well as electricity to the export-oriented industries.
The PBS data reflects a jump in exports of ready-made garments by 22.77pc in value and 19.76pc in terms of quantity during July-Sept FY22. At the same time, exports of knitwear rose by 32.97pc in value and 1.30pc in quantity. Exports of bed wear saw positive growth of 23.30pc in value and 23.41pc in quantity.
Towel exports jumped by 17.94pc in value and 13.98pc in quantity. Exports of cotton cloth increased by 21.88pc in value and dipped by 75.32pc in quantity.
As for the primary commodities, cotton yarn exports soared by 69.30pc, while yarn with the exception of cotton surged by 122.53pc. The export of made-up articles with the exception of towels grew by 14.38pc, while tents, canvas, and tarpaulin dropped by a massive 24.87pc during the months under review. The export of raw cotton also dropped by 100pc during the same months.
The import of textile machinery jumped by 144.53pc in July-Sept FY22. This indicated that expansion or modernization projects were undertaken by the textile industry during those months.
To meet the shortage in the domestic sector, the industry imported 166,524 tonnes of raw cotton in July-Sept FY22 compared to 131,360 tonnes last year, a rise of 26.77pc. Along similar lines, the import of synthetic fiber registered a growth of 7.30pc as the industry imported 133,902 tonnes during the ongoing year compared to 124,791 tonnes. The import of synthetic and artificial silk yarn was at 118,287 tonnes this year compared to 95,367 tonnes last year, a jump of 24.03pc.
The import of worn clothing reported a surge of 219 pc to 266,747 tonnes this year as against 83,552 tonnes during the previous year.
Pakistan’s overall exports recorded a growth of more than 27.87pc year-on-year to $6.996bn in July-Sept FY22 in comparison with $5,471bn in the corresponding period last year.