Pakistan Achieves Highest-Ever Textile Exports in December

Pakistan has reported its highest-ever textile exports for the month of December, with sector-oriented remittances for textiles during December FY2021-22 surging to $1.64 billion at a year-over-year (YoY) growth rate of 17.1 percent as compared to $1.40 billion during December FY2020-21. The exports however declined 5.5 percent on a month-over-month basis. Conversely, textile exports in November 2021 were recorded at $1.74 billion as December registered $100 million less in textile remittances, according to research published by Arif Habib Limited (AHL). During the period July-December FY2021-22, textile exports surged 26 percent YoY, fielding $9.39 billion in total export remittances, as compared to $7.44 billion in the same period last year. On a YoY basis, the exports of value-added textile items increased in both quantity and value in December 2021. The exports of men’s garments increased by 16 percent in volume and 26 percent in value terms. The exports of jerseys and cardigans increased by 38 percent in volume and 55 percent in value. The exports of T-shirts increased by 32 percent in quantity and 46 percent in value. In terms of volume, the exports of intermediate products, such as home textiles, cotton fabric, and cotton yarn declined by 12 percent, 10 percent, and 28 percent respectively. This detail of the research indicates that intermediate items are being consumed locally and are used in value-added items for exports. The YoY growth in the exports value of the textile sector complements the views of the Advisor to the Prime Minister on Commerce and Investment, Abdul Razak Dawood, who wants the government to “bet big” on exports by extending tens of millions of dollars in policy support to the exports sector. He believes that the textile industry is at the heart of the country’s export-led growth strategy as the government aims for a 4.8 percent growth rate in the ongoing financial year. To keep this going, Dawood is urging the government to progress with a textile export policy as a hedge against Pakistan’s long-standing economic woes and, with effect, achieve sustained growth.