ANL 23.10 Decreased By ▼ -0.70 (-2.94%)
ASC 16.10 Decreased By ▼ -0.30 (-1.83%)
ASL 22.25 Decreased By ▼ -0.40 (-1.77%)
BOP 8.55 Increased By ▲ 0.17 (2.03%)
BYCO 8.96 Increased By ▲ 0.15 (1.7%)
FCCL 18.07 Decreased By ▼ -0.40 (-2.17%)
FFBL 24.45 Decreased By ▼ -0.15 (-0.61%)
FFL 17.90 Decreased By ▼ -0.15 (-0.83%)
FNEL 8.40 Decreased By ▼ -0.14 (-1.64%)
GGGL 22.09 Decreased By ▼ -0.21 (-0.94%)
GGL 43.18 Decreased By ▼ -0.77 (-1.75%)
HUMNL 7.02 Decreased By ▼ -0.15 (-2.09%)
JSCL 20.85 Decreased By ▼ -0.73 (-3.38%)
KAPCO 37.90 Decreased By ▼ -0.20 (-0.52%)
KEL 3.61 Increased By ▲ 0.01 (0.28%)
MDTL 3.00 Decreased By ▼ -0.07 (-2.28%)
MLCF 36.30 Decreased By ▼ -0.18 (-0.49%)
NETSOL 153.30 Decreased By ▼ -4.45 (-2.82%)
PACE 5.98 Decreased By ▼ -0.03 (-0.5%)
PAEL 31.20 Decreased By ▼ -0.45 (-1.42%)
PIBTL 9.36 Decreased By ▼ -0.11 (-1.16%)
POWER 7.90 Decreased By ▼ -0.14 (-1.74%)
PRL 20.85 Decreased By ▼ -0.13 (-0.62%)
PTC 10.40 Increased By ▲ 0.02 (0.19%)
SILK 1.67 Decreased By ▼ -0.02 (-1.18%)
SNGP 43.19 Decreased By ▼ -0.56 (-1.28%)
TELE 22.06 Decreased By ▼ -0.64 (-2.82%)
TRG 173.50 Decreased By ▼ -2.41 (-1.37%)
UNITY 36.20 Decreased By ▼ -0.77 (-2.08%)
WTL 3.25 Decreased By ▼ -0.08 (-2.4%)
BR100 4,979 Decreased By ▼ -47.44 (-0.94%)
BR30 24,460 Decreased By ▼ -312.8 (-1.26%)
KSE100 46,636 Decreased By ▼ -284.38 (-0.61%)
KSE30 18,480 Decreased By ▼ -177.85 (-0.95%)

Coronavirus
VERY HIGH Source: covid.gov.pk
Pakistan Deaths
27,072
6824hr
Pakistan Cases
1,218,749
2,92824hr
5.08% positivity
Sindh
448,658
Punjab
419,423
Balochistan
32,707
Islamabad
103,720
KPK
170,391

Zero. That’s the growth witnessed by Pakistan textile exports for both the month of October 18 as well as the Jul-Oct FY19 period on a yearly basis. Those relying on the sector to alleviate Pakistan’s current account woes will have to wait more to see if things take a turn for the better.

While cotton yarn registered a decrease of 35 percent in Oct-18 and cotton cloth witnessed negligible growth, even value added segments with the exception of knitwear failed to make any meaningful contribution in raising exports. This is despite a depreciation of more than 18 percent and 15 percent against the dollar and the euro respectively.

However, the quantity has indeed increased with knitwear exports recording the highest growth of almost 38 percent across all segments whereas other value added segments including towels and readymade garments registered an increase in quantity-wise.

Readymade garments saw negligible growth for the 4MFY while for Oct-18, the numbers were slightly optimistic with 8 percent growth on a yearly basis. Textile players attributed the lethargic performance to a variety of factors and believe that many of the actions that they have called for have only been taken recently by the government.

For instance the provision of cheaper gas at the cost of $6.5/mmbtu was only taken last month by the ECC whereas previously the Punjab based gas industry was getting expensive RLNG and only 28 percent system based gas. The promised relief in electricity tariffs to the sector is also pending but textile associations are positive it will happen soon. Duty drawback and sales tax refunds have also not been cleared which exporters complain are hampering liquidity for further order processing.

These issues aside, this column has also highlighted the need for the textile firms to invest in upgrading their plant and machinery to be able to compete with the BMR intensive textile industries of Bangladesh and Vietnam. Textile machinery imports have plunged sharply over the last few years and were only USD325 million in FY18 and are the lowest in the past decade. (Read: Textile machinery imports: steep decline)

There is also a strong need to tap in to non-traditional markets including Japan and South Korea. The government has already provided additional rebate incentives on exports to non-traditional markets so the textile industry should make the most of it.

Copyright Business Recorder, 2018

Comments

Comments are closed.