Pakistan’s Textile Exports up 11% in June Over Previous Month

Pakistan Textile exports for June 2023 clocked in at $1.47 billion, up 11 percent on a month-on-month (MoM) basis. In PKR terms, exports clocked in at Rs. 422 billion, an increase of 12 percent MoM. Value-added textile exports were recorded at $1.04 billion, which is up by 17 percent MoM. Bedwear, Readymade Garments, and Knitwear increased by 19 percent, 19 percent and 18 percent MoM respectively. On the other hand, Basic textiles decreased by 2 percent MoM with Cotton Cloth decreasing by 7 percent MoM. In volume terms, Bedwear, Readymade Garments, Knitwear, and Towels increased by 20 percent MoM, 16 percent MoM, 14 percent MoM, and 8 percent MoM. Textile manufacturers of Pakistan have seen improved orders on a MoM basis from US and Europe due to summer holiday season demand. Compared to June 2022, Pakistan’s textile exports were down by 14 percent year-on-year (YoY) (21 percent higher YoY in PKR terms) due to 15 percent and 9 percent decline in Value-Added and Basic segment respectively. Value-Added segment declined on YoY basis due to Bedwear, Knitwear, Readymade Garments and Towels decreasing by 15 percent, 17 percent, 13 percent and 4 percent YoY. During fiscal year 2022-23 (FY23), Pakistan recorded textile exports of $16.50 billion down by 15 percent YoY (18 percent higher YoY PKR terms). Basic and value-added declined by 21 percent and 13 percent YoY respectively. In FY23, volumetric exports of Readymade Garments and Knitwear have increased by 39 percent YoY and 10 percent YoY respectively. In a note, Topline Research said that going forward in FY24 textile exports will depend on demand from export markets of US and Europe. High energy costs and increase in minimum wage for FY24 will be key challenges for the sector, it added.