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Thursday, February 15, 2024

APTMA’s Gohar Ejaz believes textile exports will hit $21 billion in FY22

Pakistan’s textile sector is booming in FY22. With $5 billion investment set to be injected in the textile industry, textile exports will hit $21 billion in the current fiscal year.

The APTMA Patron-in-Chief Gohar Ejaz is highly optimistic that textile exports will hit $21 billion by the end of FY22. The $21 billion target is 40% more than last year’s textile exports of 15.5 billion dollars. The government has set a target $20 billion textile exports.

5 billion dollars are being invested in the value-added sector of the textile industry. This was informed by SAPM Abdul Razzak Dawood through his twitter account. 100 new textile units are being established in Pakistan because of this $5 billion investment. Out of the $5 billion investment, an estimated $2 to $2.5 billion is being used on the installation of machinery, while the remaining will be pumped in by June 2022.

According to SAPM Dawood, this investment will create 500,000 jobs in Pakistan. In August 2020, Prime Minister (PM) Imran Khan announced that the government was pursuing a Make-in-Pakistan policy in a bid to promote export-oriented industrialization in Pakistan.

According to APTMA’s Secretary-General and Executive Director Shahid Sattar, another investment of $500 million into the textile sector is in the pipeline. The capacity utilization as a result of these investments, and the upward trend of prices in international markets will  further aid the increase in textile exports. This investment and other positive indicators have boosted the confidence of the stakeholders in the textile sector.

Read More: Pakistan’s Textile Exports: Growth and Trends

Global textile market is approximately worth $800 billion. Keeping the current dynamics in mind, Pakistan is on its way to become a key player in the global textile market. According to the APTMA chairperson, if government policies are consistent and long-term, then the textile sector will hopefully grow by 20 to 25% each year and within three years, Pakistan would hit the $50-billion export level.

Pakistan’s textile sector is rebounding strongly from the pandemic-induced economic downturn. The textile export figures for the first quarter of the FY22 speak for themselves. Pakistan’s textile exports grew by a staggering 26% to $1.503 billion in the last month of the Q1. In August, exports shot up by 45% to $1.5billion in comparison to $1billion in August 2020. The textile exports went up by 24% to $15.5billion in FY21 from $12.5bn level in FY20.

Pakistan’s textile exports have risen by approximately 28% in the first quarter of the current fiscal year. The exports by the textile industry recorded an increase by 26% in September and by 28.67% in the July-August period.

The textile sector is effectively utilizing  a competitive power tariff at the rate of 9 cents per kWh and gas at $6.5 per mmBtu for the last two years and this package has now been extended to cover the length of FY22.

Prime markets for Pakistani textile goods are the North American and European countries. The easing of COVID-19 induced lockdowns in these countries is aiding the rise in textile exports from Pakistan