Textile exports 10MFY17

The latest PBS trade data is here and the numbers are not very convincing; for the month of April 2017, total textile exports are flat year-on-year and down 3.7 percent month-on-month. For the ten months cumulative, textile exports are less than $10.3 billion – down one percent year-on-year. It seems the PM’s export package that was announced with such fanfare has done little to improve the situation.

Most of the decline has come from the non-value-added segment. For 10MFY17, raw cotton exports are half of what they were a year ago, remaining under pressure owing to low domestic production; cotton yarn has fetched fewer dollars in spite of a 5.9 percent increase in volumes year-on-year; and cotton cloth exports declined by 15 percent in volume and 5.7 percent in value.

On the value-added front, an increase in volumes was seen in knitwear (3.1%), bed wear (6.9%), and readymade garments (4.8%).

The good news is that the value-added end of Pakistan’s textile industry seems to be improving, and is making up for the decline in the basic textile exports. The share of Pakistani garments has been increasing in European markets. However, it can’t be said how much of this improvement can be attributed to the export package, which has not seen much implementation.

Now, all textile associations are presenting their demands for the upcoming budget. Amid some countervailing interests, the entire textile industry is united in asking for the release of pending refunds, implementation of the export package, continuation of zero-rating regime, appointment of a Textile Minister, and lowering of energy tariffs – the major issues that have sank the industry.