Pakistan textile exports decline to $6.156 bn first half of current FY

Pakistan in the first half of the current fiscal year despite an improvement in export earnings from value-added sector, witnessed decline in textile exports to $6.156 billion from $6.259 billion in the corresponding period of the last fiscal year, according to the Pakistan Bureau of Statistics (PBS) data.

Textile value-added sector, accounting for more than half of the industry’s foreign earnings, recorded a surge in exports during the July-December period of 2016/17. Knitwear exports inched up 0.17 percent to $1.193 billion. Bedwear fetched $1.043 billion in exports revenue, up 4.66 percent year-on-year. Readymade garments rose 5.87 percent to $1.101 billion.

In July-December 2016, cotton cloth exports dropped by 5.57 percent to $1.048 billion, while exports of raw cotton and cotton yarn decreased more than 49 and seven percent, respectively.

Analysts said that the recently-announced Rs180 billion incentives package is likely to give a boost to flagging exports. The government announced the export incentives scheme for five export-oriented sectors, including textiles. The stimulus includes a score of rebates given that the exporters are able to increase exports by 10 percent in the second half of the current fiscal year.

The PBS data showed that textile exports amounted to $1.035 billion in December 2016, almost flat as compared to December 2015, but down 1.21 percent over November 2016. Exports of knitwear increased 4.21 percent year-on-year (YoY) and 1.54 percent month-on-month (MoM) in December 2016. Bedwear exports rose 9.26 percent YoY and 0.11 percent MoM. Exports of readymade garments soared 9.23 percent YoY and 11.88 percent MoM in December 2016.

Machinery imports surged 40.84 percent to $5.666 billion in July-December 2016/17, highest among all the importing heads. In December, machinery imports bill stood at $1.032 billion, up 30.42 percent over the same month last year and 13.38 percent as compared to the preceding month.