Pakistan Textile: Exports up 6% in August 2022

In August 2022, Pakistan’s textile exports reached US$1.6 billion, an increase of 6% month over month (MoM), thanks to backlogs in orders and the restart of energy supplies.

The textile exports were up mainly due to a backlog of orders, resumption of energy supplies, and a higher number of working days compared to Jul-2022.

Pakistan Textile Exports in rupee term

In PKR terms, the same has clocked in at Rs348bn, up by 7% MoM.

To note, during the month of Jul-2022, the government suspended the gas supplies to the export industry till July 09, 2022.

In the month of August, these issues were resolved besides the higher number of working days amid the Eid holiday in Jul-2022.

Under the Value-added division, the Ready-made segment remained a major outperformer with an increase of 8% MoM and 16% YoY to US$330mn.

Knitwear and Bedwear improved slightly MoM by 3% and 2% respectively while Towels remained flat on an MoM basis.

On a YoY basis, Towels and Bedwear recorded a decline of 9% YoY and 2% YoY respectively, while Knitwear improved massively by 24% YoY led by a 75% YoY increase in volumes.

Basic textiles also witnessed an incline of 14% MoM to US$293mn, however, remained largely flat on a YoY basis.

As compared to Aug-2021, Pakistan textile exports were up by 8% YoY (+45% YoY in PKR terms) in Aug-22 due to growth in the value-added segment. 

During 2MFY23, Pakistan recorded the highest ever textile exports of US$3.06bn up 4% YoY (+42% YoY in PKR terms).

Moving forward, an increase in energy tariffs and the slowdown in the global economy are a few key challenges facing the sector. Besides this, recently destroyed cotton crops due to floods will also be a challenge for the industry.

The government has been providing subsidies to captive power plants in the textile sector which was an incentive to pick up exports.

Despite all this, there has been a questioning mark on the increase in textile exports.

The previous government of PTI had also started a probe to check the exact increase in textile exports.