July 17, 2020 (MLN): It is disturbing to see that the trade volume of textile exports has declined by 6% to $12.52 billion during FY20 as compared to $13.327 billion in the corresponding period of the previous year.
The decline in textile exports is mainly on account of the ongoing global slowdown, which gets aggravated due to the COVID-19 pandemic that resulted in supply chain disruptions and demand, following the cancelation of orders.
According to the latest data issued by the Pakistan Bureau of Statistics on export receipts by commodities, the textile products remained the major exportable goods for Pakistan as it contributed 58.55% of the total exports during FY20. Moreover, this sector is a vital source of employment and production.
The textile group accounted for 5.67% of the total imports during FY20 as per the data released by the Pakistan Bureau of Statistics, showing a decline of 21.48% YoY to clock in at $2.52 billion.
On the exports front, within the textile group, the major exportable goods include Knitwear, Readymade Garments, Bed wears, and Cotton Cloth.
The exports of Cotton Cloth, Knitwear, Bed Wears, Readymade Garments went down by 12.94%, 3.64%, 4.91% and 3.81%, YoY, to $1.829 billion, $2.794 billion, $2.150 billion and $2.552 billion respectively during FY20.
On a year-on-year basis, the textile group’s exports were recorded at $959 million, showing a decline of 5.44% when compared to $1.014 billion of June 2019. This fall in export volumes is attributed to drying up of orders during the last quarter of FY20.
However, on a sequential basis, the export of the textile group showed a significant increase of 27.69%, MoM, as the exports during May 2020 were recorded at $751 million owing to ease of restrictions in lockdown and opening businesses in global economies.
Meanwhile, the data from the Pakistan Bureau of Statistics revealed that imports of synthetic fibre, synthetic and artificial silk yarn decreased by the same percentage i.e. 27% YoY, valued at $427 million and $503 million respectively during FY20 while raw cotton import bill jumped by 14.67% YoY to $880 million.
On a yearly basis, the textile group’s imports witnessed a significant decline of 34.40% to $195 million when compared to $298 million in June.
On the other hand, on a month-on-month basis, the import of the textile group increased by 5.84% as the imports during May 2020 were recorded at $185 million.
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