Pakistan expecting increase in textile exports of $500m by June

Pakistan government is eyeing more than $500 million increase in textile exports in next three months after achieving a 6.2 percent increase on year-on-year in March worth $1.064 billion.

The recent increase in the textile sector after a long dip is due to the decrease in duties, said officials at the Ministry of Textiles. They have zeroed customs duty from 4 percent. Likewise, sales tax has been zeroed from 5 percent. They have introduced made-ups.

An official said that it would take some time to get the maximum benefit of the government aid. By end of June, they are expecting an increase of $500 to $1,000 million in exports.

Textile and clothing exports rose, mainly due to value-added products such as garments, the Pakistan Bureau of Statistics said on Monday. The increase in export proceeds was also evident in rupee terms.

According to the Pakistan Bureau of Statistics, textile and clothing exports rose to 6.2pc year-on-year basis, worth $1.064 billion in March. The export of value-added products grew during the month, both in terms of value and quantity. Export of readymade garments rose by 19.5pc and that of knitwear grew by 5.4pc in March.

Exports of bedwear edged up by 5.4pc and those of towels 15.8pc during the month. Exports of cotton yarn witnessed a year-on-year increase of 5pc while those of cotton cloth and yarn, other than cotton, dropped by 5.5pc and 26.9 percent, respectively.