Foreign exchange earnings from Textile and Manufactured Products remain lackluster

March 24, 2020 (MLN): Pakistan’s exports performance remained depressing during Jul-Feb FY20, as it only increased by a mere 3% YoY to $16.4 billion as compared to $16 billion recorded during Jul-Feb FY19.

According to the data issued by State Bank of Pakistan (SBP) on export receipts by commodities, the textile products remained the major exportable goods for Pakistan as it accounted 55% of the total exports during the period.  The overall exports of textile group remained lackluster as it witnessed a 1% YoY decline to $9 billion. Within the textile group, the major exportable goods include Knitwear, Readymade Garments, Bedwears and Cotton Cloth.

The exports of Knitwear remained stagnant at $1.9 billion while the exports of Readymade Garments surged by 10% YoY to $1.8 billion. Moreover, the exports of Bedwear and Cotton Cloth dipped by 1% and 6% YoY to $1.59 billion and $1.39 million respectively during the period under review.

Food products emerged as the second leading exportable commodities accounted for 19% of the total exports. Rice and Fruits were the major sources of Foreign exchange earnings as their exports during the period recorded at $1.37billion, up by 20% YoY and $302 million, depicting a marginal decline of 1% YoY respectively.

The share of other Manufactured goods in the country’s total exports was 15% during the period under review. The key exportable manufactured items include Chemical and Pharmaceutical products, Sports goods, Leather goods and Surgical goods and medical instruments respectively. Exports of Surgical Goods & Medical Instruments and the goods that made up of leather such as leather garments, leather gloves and other leather manufactures surged slightly by 2% and 1% YoY to lock in at $293 million and $351.6 million respectively. Whereas, the exports of Chemical and Pharmaceutical Products and Sports Goods declined by 15% and 1% YoY to $678.2 million and $337 million respectively. This caused the overall foreign earnings from Manufactured items to decline 1%YoY to $2.48 billion.

Moreover, the share of Petroleum group in the country’s total export basket was hardly 2% during Jul-Feb FY20. During that period, the country earned $122.4 million from exports of Petroleum Crude, $72.5 million from Petroleum Products and $114 million earned from the exports of Solid Fuel including Naphta. In addition to this, the total foreign exchange earnings from the exports of these products declined significantly to $309 million from $460.2 million in Jul-Feb FY19.

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