Textile exports down 18 percent year-on-year in November

KARACHI: The textile exports of Pakistan were down 18 percent on a year-on-year basis in November as the sector faces immense challenges due to the global economic slowdown.

The decline in the exports came owing to a 37 per cent decline in the basic textile exports and a 14 percent year-on-year drop in the value-added segment.

According to data by Topline Securities, in the value-added segment bedwear declined 29 percent year-on-year, knitwear 13 per cent and towels exports dropped by 12 per cent in November.

In volumetric terms, bedwear declined 37 per cent, knitwear 20 per cent and towels declined 15 percent on a year-on-year basis during the month under review.

During the first five months of the fiscal year 2023, the country’s textile exports showed a decline of 5 percent to clock in at $7.36 billion. The exports of basic textiles declined 14 per cent while value-added dropped 2 per cent on a year-on-year basis.

Nasheed Malik at Topline Securities said that the major reason for the monthly recovery in the exports is likely due to better order generation led by events such as the Black Friday sale.

“Continuation of subsidised power and gas in light of the economic situation remains a question mark and may cause a challenge for the industry,” he added.

Additionally, reduced export orders from the US and Europe due to economic slowdown remains a key concern in terms of Pakistan’s textile exports outlook for the fiscal year 2023, he remarked.

The value-added textile exports increased 8 percent to reach $1.04 billion on a month-on-month basis in November due to readymade garments and towels increasing by 19 percent and 16 per cent, respectively.

Knitwear and bedwear increased slightly by 2 per ent each. However, basic textiles witnessed a decline of 10 percent to $203 million on a monthly basis in November.

In volume terms, a recovery was witnessed in the value-added exports with towels showing an increase of 22 percent, readymade garments 21 per cent, bedwear 6 per cent and knitwear up by 4 per cent on a monthly basis.
On the flip side, cotton cloth and yarn exports declined 8 percent and 6 percent, respectively.