Textile exports surge 25.5pc in FY22 on high demand

ISLAMABAD: Pakistan’s textiles sector exports increased over a quarter during FY22 as compared to FY21, achieving highest-ever exports of $19.35 billion on the back of high international demand, data showed.

The textile sector is the top foreign exchange earner for the country as it makes 60.8 percent of the total exports of $31.79 billion.

Following incentives to the textile sector, investors increased their investment in the sector and over the last two years, its exports have substantially increased. In FY21, its exports were $15.4 billion, which have recorded an increase of 25.5 percent. In FY20, its sale abroad was $12.5 billion.

The government was targeting to achieve a $20 billion mark by end-June 2022, however, still, the sector’s export performance was encouraging and achieved a 97.65 percent target.

In June 2022, the sector exports stood at $1.706 billion as compared to $1.658 billion in the same month a year ago depicting a growth of 2.86 percent, while it grew 3.93 percent over the previous month.

In the textiles group, cotton yarn exports increased 18.67 percent during July-June 2021-22 to $1.21 billion compared to $1.02 million in FY21.

Cotton cloth exports increased 26.9 percent to $2.44 billion, knitwear 34.2 percent to $5.12 billion, bedwear 18.8 percent to $3.3 billion, towels 18.54 percent to $1.11 billion, readymade garments sales abroad up 28.7 percent to $3.9 billion.

A seven-time increase was also seen in exports of raw cotton and it was recorded at $6.57 million.

Food group exports increased by 23.4 percent to $5.4 billion against $4.4 billion recorded in last fiscal. Of this, rice exports increased 23 percent to $2.5 billion, including basmati exports which increased 22 percent to $695 million.

In FY22, petroleum group imports increased by 105 percent to $23.3 billion. Of this, the petroleum products imports increased 133 percent to $12.07 billion, crude oil 80.8 percent to $5.59 billion, LNG 90.65 percent to $4.99 billion and LPG imports up by 39.7 percent to $660.7 million.

Besides, raw cotton imports increased 23.57 percent to $1.83 billion, and fertiliser manufactured up 17.6 percent to $845.5 million.

Metal group (including gold, iron and others) total imports up by 33 percent to $6.5 billion. Of this, gold imports increased 152 percent to $22.62 million, iron and steel scrap imports increased 24 percent to $2.3 billion and iron and steel 49.8 percent to $2.94 billion.

Pakistan also imported food items of $9 billion in FY22 against $8.3 billion in FY21. Of this, palm oil imports increased 33 percent to $3.55 billion, sugar 49 percent to $191.7 million, tea 7.9 percent to $626.2 million while wheat imports reduced 19 percent to $795 million and pulses down 13.9 percent to $611.3 million.

The economy imported 7.6 percent more machinery during FY22 and it stood at $10.9 billion against $10.1 billion last year.

Textiles machinery imports increased 29 percent to $764.4 million, construction and mining machinery increased 23.8 percent to $174 million, electrical machinery 16 percent to $1.93 billion. Whereas, mobile phone imports down 4.2 percent to $1.98 billion, power generation machinery imports down 23 percent to $1.47 billion.

Road motor vehicles (build units CKD/SKD) up 49.9 percent to $3.68 billion. Aircraft, ships, and boats import also increased 48 percent to $761 million.