| Welcome to Global Village Space

Thursday, February 15, 2024

Pakistan’s textile exports register record growth in Q1 of FY22

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.

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.

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.

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

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.

The PBS data depicted that ready-made garments exports surged by 22.57% in value, and 21.63% in quantity during the starting months of the first quarter of the current fiscal year. Furthermore, knitwear moved up 34.12% in value and 14.22% in quantity, while bed wear increased by 24.5% in value and approximately 23% in quantity. Towel exports rose by 20.67% in value and 14.59% in quantity and cotton cloth exports registered an increase by 24.74% in value and dipped by 76.51% in quantity.

It is also worth noting that $5 billion is being invested in the textile sector. This was informed by SAPM Abdul Razzak Dawood via his twitter account. As a result of that investment, 100 new textile units will be established in Pakistan. Out of the $5 billion investment, approximately $2 to 2.5 billion is being invested on machinery – currently under installation – while the remaining would be pumped in by June 2022.

This investment and other positive indicators has boosted the level of optimism of the players in the textile sector. The APTMA Chairperson is hopeful that textile exports will touch $21 billion by the end of FY22 – 40% more than last year’s exports. Global textile market is approximately worth $800 billion. Pakistan has the potential to become a major 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.