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Pakistan’s textile exports up 2pc during first eight months of current FY: PBS

Pakistan’s textile exports up 2pc during first eight months of current FY: PBS

ISLAMABAD: Pakistan’s textile and clothing exports rose by two per cent year-on-year to $8.9 billion in the first eight months of current fiscal year, the Pakistan Bureau of Statistics (PBS) reported on Friday.

One of the reasons for the partial revival in exports is a result of cash subsidy offered under the Prime Minister’s Exports Enhancement Package. Moreover, the government has also released the pending refunds to taxpayers.

The government believes that better energy supplies coupled with more than 33pc depreciation of rupee has played its role in promoting exports. In rupee terms, the growth in exports of textile and clothing was reported at nearly 25pc in the period under review.

The government has also announced to clear outstanding refunds and rebate through issuance of bonds. In the first phase, government will issue bonds worth Rs80bn against outstanding refunds.

The primary growth driver was the value-added textile sector as ready-made garments’ exports went up 2.72pc during the eight months in value and 27pc in quantity. Similarly, exports of knitwear edged up 11.4pc in value and 18.3pc in quantity during the period under review.

Among primary commodities, cotton yarn exports declined by 13.53pc, yarn other than cotton by 0.79pc whereas made-up articles — excluding towels — increased by 2.12pc, tents, canvas and tarpaulin up by 5.2pc with proceeds from raw cotton dipping by 72.49pc during the period under review.

Contrary to this, exports of non-textile products went up by 3.15pc to $6.21bn in the first eight months of this fiscal year as against $6.02bn over the corresponding months last year.

Last year, the government extended cash support package to non-textile products: leather manufacturers, footwear, sports goods, surgical, engineering goods, furniture, meat and meat products, fish products and cutlery.

Data shows an increase of 23.64pc YoY in exports of petroleum products. Petroleum crude and naphtha led the increase in sector’s exports.

Exports of carpets and rugs witnessed a negative growth of 12.03pc during July-February from a year ago whereas sports’ goods exports dipped by 7.85pc YoY and foreign sales of footballs dipped by 5pc.

Tanned leather exports witnessed a negative growth of 21.73pc in July-Feb from a year ago. The value-added exports of leather products’ posed a negative growth of 7.3pc during the period under review. This decline was mainly led by sales of leather garments.

Footwear exports jumped 14.55pc mainly driven by footwear sales. Exports of surgical goods and medical instruments went up by 1.71pc and engineering goods declined by 10.65pc.

YoY exports of gur (jaggery) were up by 6.58pc, cement 37.5pc and gems 10pc during the period under review. However, exports of molasses fell by 39.9pc, handicrafts 100pc, jewellery 22.48pc and furniture 2.1pc during the eight months.

In the food basket, basmati rice exports witnessed a robust growth of 14.8pc, however, non-basmati rice exports dipped by 5.44pc.

Meat and wheat emerged as the other two major exports commodities which recorded growth during the period. Other products which also posted growth include oil, fish, seeds, pulses, spices, fruits, vegetables and tobacco.