Arsalan Ali

Textile exports rose by 4% to reach $4.584 billion in the first quarter (July-September) of the current fiscal year compared to $4.421 billion in the corresponding period of the previous fiscal year, according to Trade Development Authority of Pakistan (TDAP).

The latest quarterly report published by TDAP shows that exports of cotton yarn, carded cotton, yarn other than cotton yarn, bedwear, towels, made-up articles, and other textile materials witnessed a decline of 18%, 85%, 5%, 3%, 2%, 9%, and 2% in Q1 FY 2022-23 compared to the same period of 2021-22. Knitwear, readymade garments, bedwear, cotton cloth, and towels were among the major exports of the textile sector in Q1 FY23.

During the period under review, textile exports declined by 10% compared to Q4 FY22, when exports stood at $5.087 billion. The report also noted that a decline in textile exports was a consequence of a global recession that occurred after the tense situation between Russia and Ukrainian, resulting in a severe energy crisis, higher inflation, and low growth in most economies worldwide.

Exports of knitwear grew by 15% to $1.321 billion in Q1 FY23 compared to $1.145 billion in the same period of last year. As compared to Q4 of the previous fiscal year, exports of knitwear decreased by 5% and were recorded at $1.391 billion. Ready-made garments exports surged by 6% and reached $912 million in Q1 FY23 compared to $861 million in the same period last year.

The exports of readymade garments declined by 12% compared to Q4 FY22 when its exports stood at $1.041 billion. Exports of bedwear were recorded at $780 million in Q1 FY23 as opposed to $803 million in the same period of the previous fiscal year, showing a decline of 3%. Bedwear exports were $64 million less in Q1 FY23 compared to Q4 FY22.

Exports of cotton cloth surged by 4% and reached $581 million during the period under review against $557 million in Q1 FY22, while compared to Q4 of FY22, cotton cloth exports declined by 10% when it stood at $642 million. Exports of towels declined by 2% to $237 million in Q1 FY23 from $241 million in the same period of the previous fiscal year. In Q4 FY22, towel exports totalled $291 million. Cotton yarn exports were recorded at $236 million in Q1 FY23 against $289 million in Q1 FY22, and $298 million in Q4 FY22, showing a decline of 18% and 21%, respectively.

Exports of made-up articles amounted to $180 million in Q1 FY23 as against $197 million in the same period of the previous fiscal year, representing a 9% decline. Made-up articles Q1 FY23 exports were down 19% from Q4 of FY22 when they stood at $222 million. Art, silk, and synthetic textile exports stood at $108 million and remained stagnant.

In addition, a decline of 7% in its exports was observed compared to Q4 FY22 when its exports were recorded at $116 million. Exports of other textile materials, yarn other than cotton yarn, and tents, canvas, and tarpaulin were recorded at $182 million, $12 million, and $30 million, respectively, in the first quarter of this fiscal year. According to TDAP report, the devaluation of PKR against the US dollar gave textile exporters a short-term competitive advantage in terms of pricing.

The report pointed out that in the long run, devaluation of the PKR would bring difficulties for exporters, particularly the textile sector. This is because the increase in input costs will raise the price of final products, making exports less competitive. It was also noted that imports would become more expensive when the currency is devaluated.

Credit : Independent News Pakistan-WealthPk