Lack of incentives for yarn weighs down textile exports by nearly 2%, YoY

December 18, 2018 (MLN): Total exports of Textile group have decreased by 1.84% YoY at US$ 1.10 bln, while in comparison with the previous month it registered a decline of 2.73% MoM, divulged a recent official statistics issued by Pakistan Bureau of Statistics (PBS).

The primary reason for declining textile exports in the month was a 28.7% YoY drop in Cotton Yarn exports (7% of textile exports in Nov-2018), which stood at US$79.45mn, in contrast with US$111.43mn  in the same month last year.

Speaking with Mettis Link News. Mr. Ahmed Lakhani research analyst at JS Global Capital limited briefed that “Since the new textile package (which commenced on July 1, 2018) earmarks incentives for value added goods rather than yarn, this probably would have led to spinners selling their product in the local market, leading to lower yarn exports and hence, overall exports”

In terms of volumes, raw cotton, cotton yarn, cloth & towels registered a decline while knitwear, bed wear & garments exports rose during the month of Nov’18 on YoY basis.

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