Value-added Textile Products Boost Sector Exports by 3%

Exports of textile products in Pakistan witnessed a year-on-year growth by 3% in July-September, 2020. Textile exports were valued at US$ 3.4 billion in the 3rd quarter of 2020, according to Pakistan’s trade data shared by the Pakistan Business Council.

Pakistan is the 4th largest cotton producer in the world, accounting for about 7% of the world’s cotton production. The textile industry, being one of the largest industrial sectors in Pakistan, accounts for one-fourth of the industrial value-added.

Textile products accounted for more than 63% of Pakistan’s total exports during the July-September quarter in 2020.

Although the textile value chain consists of several segments, the garments segment has the highest value addition and is the main revenue earner amongst textile products. The garments segment consists of knitwear and woven products. During July-September 2020, knitwear exports were the highest amounting to US$860 million, followed by readymade garments valued at US$701 million. Knitwear and readymade garments witnessed a year-on-year increase of 10.5% and 5.2% respectively.

On the other hand, exports revenue for cotton yarn decreased by about 42% as compared to their exports in the same quarter last year.

It is also interesting to note that the knitwear category accounted for around 23% of the total textile exports, while readymade garment made up about 20% of the textile exports in July-September, 2020.

In addition to this, Bed linen, table linen, toilet linen and kitchen linen (HS Code 6302) is also a large exporting commodity in Pakistan. These segments cater to both international and domestic demand. Exports for bed wear items witnessed a year-on-year increase of 8.4%, amounting to about US$651 million in July-September 2020. Moreover, towel exports also rose by 13.3% as compared to its exports in the same quarter last year. Pakistan exported towels worth US$204 million in July-September 2020.

While the textile sector accounts for more than half of Pakistan’s export, there is a growing need to invest more in value-added textile products to boost the sector’s export potential.