Exports of textiles, clothing grow over 10pc in July-Oct
17 November 2024
Published in: DAWN
Exports of textiles and clothing recorded an increase of 10.44 per cent during the first four months of the current fiscal year amid concerns that the industry was going through a slump, according to data released by the Pakistan Bureau of Statistics on Saturday.
Exports from the two sectors had a negative growth of 3.09pc in July, the first month of the new fiscal year, but rebounded by recording a growth of over 13pc in August, 17.92pc in September, and 13.11pc last month.
Experts believed that the sectors may struggle to compete with regional rivals due to implementation of harsh taxation measures in the current fiscal year. However, the disruption in supply from Bangladesh has pushed up demands for Pakistani garments.
Textiles and clothing exports have stayed at the same level over the last two years despite having a $25 billion installed capacity. According to textile exporters, exports from the two sectors have been static due to structural issues.
Khurram Mukhtar, patron-in-chief of the Pakistan Textile Exporters Association, said the discontinuation of gas supply to highly efficient captive power plants by the private sector is a good example of “policymaking without thoughtful analysis”. He expressed fears the decision would not only backfire but also have dire consequences for sustainability of the export supply chain.
Billions of rupees invested by the private sector will be put in jeopardy, sending a negative message to the international community. “We still have time to reconsider this ill-planned move and take corrective action.”
In absolute terms, textile and clothing exports surged to $6.15bn during the first four months (July-October) of FY25 from $5.56bn year-on-year.
The government has introduced various measures, including increasing the tax rate on exporters’ personal income, in 2024-25.
The PBS data showed exports of readymade garments rose 25.40pc by value in the first four months and 19.94pc by quantity, while knitwear rose 18.69pc by value and 10.03pc by quantity.
Bed items posted a growth of 13.17pc by value and 13.60pc by quantity.
Towel exports surged 5.47pc by value and 4.96pc by quantity from July to October, while cotton cloth went up 5.25pc by value and dropped 0.74pc by quantity.
Yarn exports dipped by 45.59pc in first four months this year over the same month last year. Exports of made-up articles, excluding towels, rose by 12.46pc, and tents, canvas and tarpaulin went up by 7.02pc during the July-October period.
Imports
The import of synthetic fibre posted a negative growth of 23.07pc while that of synthetic and artificial silk yarn grew by 0.03pc. Import of other textile items increased by 74.01pc during the period.
The import of raw cotton increased by 68.94pc in the first four months of the current fiscal year. However, the import of second-hand clothes posted a growth of 24.89pc.
In July-October FY25, total exports grew by 13.56pc to $10.88bn, up from $9.58bn in the same period last year.
