Textiles exports increase 6.37pc in Aug 2022

ISLAMABAD: Pakistan’s textiles exports have increased 6.37 percent to $1.57 billion in August 2022 compared to last month’s $1.48 billion exports, with all major components – cotton cloth, knitwear, bedwear, towels, and readymade garments – showing growth.

Textile exports were up 7.7 percent over August 2021 exports of $1.46 billion, the Pakistan Bureau of Statistics (PBS) said on Thursday.

From July to August, the textile sector’s total exports increased by 4.2 percent to $3.056 billion from $2.93 billion the same period last year.

In August 2022, cotton cloth exports increased 7.37 percent to $195.4 million compared to $182 million in July 2022, while compared with August 2021, exports rose 3.8 percent from $188.2 million.

Over the previous month, knitwear exports increased 3.4 percent to $450 million; bedwear 1.7 percent to $258 million; towels were almost stagnant at $75 million; exports of readymade garments went up 8.35 percent to $330 million, whereas cotton yarn sales abroad increased 24.8 percent to $89.1 million.

Likewise, over the corresponding month of last year, cotton cloth exports were up 3.8 percent, knitwear 23.6 percent, and readymade garments 16.3 percent. However, over August 2021, exports of bedwear slashed 2.44 percent, towels 9.4 percent, and cotton yarn exports declined 14 percent.

Brokerage Topline Securities said the increase in exports could be attributed to a backlog of orders, resumption of energy supplies, and a higher number of working days in August than in July. 

It said, “During the month of July 2022, government suspended the gas supplies to export industry till July 9, 2022.” 

In the month of August, these issues were resolved besides the higher number of working days compared to the Eid holidays that fell in July 2022. 

It, however, said that increase in energy tariffs and a slowdown in the global economy were a few key challenges facing the sector. Besides this, recently destroyed cotton crops due to floods would also be a challenge for the industry.

In FY22, total textile exports were at a historic high of $19.35 billion, with an increase of over a quarter over FY21’s exports of $15.4 billion. Textiles is the top foreign exchange earner for Pakistan and occupies over 60 percent of the country’s total exports.

In August 2022, the economy imported 6.5 percent more machinery and it stood at $668.4 million against $627.6 million in July. In August 2021, its imports were 984.8 million.

Textile machinery imports increased 49 percent to $55.86 million, power generation machinery went up 21.9 percent to $54.6 million, and telecom sector machinery increased by 49.5 percent to $101.5 million. However, electrical machinery imports were down 19.6 percent to $195.2 million and construction machinery imports declined 14 percent to $6.5 million.

It is to be noted that in August 2022, the country’s total exports were $2.482 billion as compared to $2.254 billion in July 2022, showing an increase of 10.12 percent and 10.46 percent as compared to $2.247 billion in August 2021.

In July-August 2022, exports totalled $4.737 billion against $4.587 billion during the corresponding period of last year showing an increase of 3.27 percent.

Total imports in August 2022 were recorded at $6.07 billion as compared to $4.993 billion in July 2022 showing an increase of 21.59 percent but a decrease of 7.69 percent as compared to $6.577 billion in August 2021.

During July-August 2022, total imports were $11.064 billion as against $12.152 billion during the corresponding period of last year showing a decrease of 8.95 percent.