Pakistan textile exports increases 5.9pc during July to August current fiscal

Pakistan textile industry realized $2.18 billion from its exports in the first two months of the current fiscal year of 2017/18 compared to $2.06 billion in the corresponding period of the last fiscal year, according to Pakistan Bureau of Statistics (PBS) data. Textile exports increased 5.9 percent as the sector geared up efforts to meet government’s exports increment target to qualify for incentives.

In January, the government unveiled a Rs180 billion worth of incentive package for both textile and non-textile sectors. The scheme comprises of concessions on and exemption from sales tax and customs duty on import of cotton and textile machinery. But the incentives are linked with an increase of exports revenue by at least three billion dollars till end of the current fiscal year.

Value-added textile industry showed resilience during the two-month period. The highest revenue spinner in the group was knitwear that earned the country $439.26 million in July-August, up 7.6 percent over the corresponding period a year ago.

Exports of readymade garments rose 15.7 percent to $418.63 million during the period under review. Likewise, bedwear export increased 8.1 percent to $384.32 million. Cotton cloth export, however, decreased 7.9 percent to $349.3 million.

In August, textile exports rose 8.6 percent year-on-year (YoY) and 16.5 percent month-on-month (MoM) to $1.18 billion. Knitwear export increased 21.1 percent YoY and 26.7 percent MoM. Exports of bedwear surged 14.9 percent YoY and 25.5 percent MoM. Readymade garments export rose 11.1 percent YoY, but it fell 3 percent MoM.

Pakistani textile sector accounts for more than 60 percent of exports revenue of $3.49 billion earned during the period under review. Total exports were up 11.8 percent over the same period a year earlier.