Pakistan’s Textile Exports Rise 5th Month in a Row

Pakistan Textile exports clocked in at US$ 1.5 billion in December 2024, up 6 percent year on year and 1 percent month on month. According to Topline Securities, this is the fifth consecutive month where a YoY rise was observed, mainly due to the low base effect. On a MoM basis, exports are up by 1 percent in December 2024. The YoY and MoM increase was mainly due to a rise in the value-added segment, majorly in the readymade garments segment. In others, art, silk, and synthetic textile saw a 22 percent YoY and 28 percent MoM rise to US$ 38 million, a 2.5-year high. In PKR terms, Pakistan Textile exports clocked in at Rs. 411 billion, up by 4 percent YoY and 1 percent MoM. Value Added Segment saw a 12 percent YoY and 1 percent MoM rise. Under the Value-added segment, Readymade Garments remained the major performer as exports witnessed 20 percent YoY and 9 percent MoM rise to US$ 357 million during December 2024. Other value-added players such as Knitwear, Bedwear, and Towel garments also posted a YoY rise of 7 percent, 13 percent, and 1 percent to US$ 391 million, US$ 256 million, and US$ 88 million, respectively. Basic textiles witnessed a decline of 16 percent YoY and 2 percent MoM to US$ 215 million in December 2024, where a major decline came from cotton yarn which was down 34 percent YoY and 22 percent MoM to US$ 63 million in December 2024. During 1HFY25, Pakistan recorded textile exports of US$ 9 billion, a 10 percent YoY growth (+6 percent YoY in PKR terms). Basic textiles fell whereas value-added rose by 17 percent YoY, with readymade garments contributing a 22 percent YoY rise. The recovery in Pakistan’s textile exports is mainly due to multiple factors i.e. higher cotton crop in last year, diversion of orders to Pakistan due to internal conflicts in Bangladesh, and tariffs on China. All Pakistan Textile Mills Association (APTMA) has urged the Federal Board of Revenue (FBR) to implement key measures to support the sector. These include restoring zero-rating or equalizing GST on inputs, ensuring timely refunds, enhancing digitization to improve liquidity, and shortening audit periods to bolster competitiveness and exports. The report added that in FY25, exports will reach US$ 18-19 billion as compared to US$ 16.7 billion in FY24.