Textile exports up 8% in November

Pakistan’s textile exports witnessed an increase of 8 per cent month-on-month to reach a record high of $1.74 billion in November, a report by Topline Securities showed.

During the month of November, the value added textile exports recorded a growth of 7 per cent month-on-month as the exports of ready-made garments recorded an increase of 11 per cent, bed-wear 9 per cent and towel exports recorded an increase 28 per cent month-on-month.

In the rupee terms, the exports during the month recorded a growth of 9 per cent month-on-month to clock in at Rs300 billion, the reason being the depreciation of the local currency.

The exports in the basic textile items during the month under preview, up by 9 per cent due to the strong growth of 12 per cent in the cotton cloth exports, compared to a growth of 2 per cent in the previous month.

On a year-on-year basis, the textile exports of the country during November of the current year are up 35 per cent, and the same is 48 per cent in the local currency terms.

The major contributor in the significant recovery of textile exports is the value-added segment that include knitwear which recorded an increase of 40 per cent year-on-year, bed-wear 32 per cent and ready-made items with an increase of 27 per cent.

This growth is mainly driven by low base effect due to Covid-19 led restrictions and volumetric growth in value-added segments excluding knitwear segment.

In the first five months of FY22, the textile exports recorded the highest ever number of $7.8 billion, up by 28 per cent year-on-year, led by strong growth in value-added textiles and basic textiles which were up by 28 per cent and 35 per cent year-on-year, respectively

The report expected the textile exports to remain strong in FY22 and to clock in at $18 18.5 billion. However, slowdown in European economies and potential lockdowns due to Omicron can impact Pakistan textile export orders going forward.

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