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HomeEconomyJuly’21 Textile Exports surge by 15.6% YoY to $1.5bn

July’21 Textile Exports surge by 15.6% YoY to $1.5bn

August 27, 2021 (MLN): Pakistan’s total export of textile products surged to the second-highest level of $1.47 billion, 15.6% higher than the textile exports of $1.27bn recorded in the same period the previous year.

However, when compared with the figures of the previous month, the exports of textile goods depicted a decline of 11.3% MoM, as per data released by the Pakistan Bureau of Statistics (PBS). This decrease may be attributable to reduced working days on an account of Eid Holidays.

It is expected that exports would continue their growth momentum in the coming months, ahead of the Winter season holidays (orders expected to roll out from August), and easing of restrictions in the West amid high vaccination rates, a report by Intermarket Securities (IMS) highlighted.

The YoY rise in textile exports during in the month of July’21 was mainly the outcome of rising exports of value-added segments where Knitwear, Bed-wear, and Readymade garments surged respectively by 24.4%, 8.3% and 9.8% to $392mn, $263mn and $301mn compared to July’20.

On the import front, the textile group saw a yearly two-fold increase during the month of July’21 to stand at $400mn, the highest level in the last five years. while on a sequential basis, the country witnessed a surge of 13.4% MoM in textile imports. In absolute terms, the import of raw cotton was $98mn in July’21 against $52mn recorded in July’20.

Going forward, it is believed that the demand for Pakistan’s textiles globally is likely to remain strong due to the continued rerouting of orders out of China and other regional Asian countries. The capacity enhancements by various textile exporters are an indication of strong order flows while exports’ competitiveness is also supported by recent 5% PKR depreciation, the continued rationalization of imports tariffs on raw materials and power subsidies from the government, Abdul Ghani Mianoor, an Analyst at IMS said.

A renewed focus on value addition may also allow for organic growth in exports in the coming months, apparent from the record imports of synthetic fibers. The arrival of the new Textile Policy will further ensure sustained competitiveness of the sector, in IMS view, and will be another impetus for Textile stocks.

Copyright Mettis Link News

Posted on: 2021-08-27T13:36:00+05:00

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