Pakistan’s textile exports rose for the fifth consecutive month in December, reaching $1.5 billion, mainly because of an appreciation in exports of ready-made garments.
Overall exports rose by 6% compared to the same month last year, according to data shared by the Pakistan Bureau of Statistics (PBS).
Myesha Sohail, research analyst at Topline Securities, said that the increase was mainly due to a rise in the value-added segment, especially ready-made garments. The segment increased by 1% compared with November and 12% compared with the same month last year.
In others, art, silk, and synthetic textiles saw a 22% increase compared with December 2023 and 28% compared with November. Collectively, they rose to $38 million — a 2.5 year high. In rupee terms, textile exports clocked in at PKR 411 billion, up by 4% on yearly and 1% month basis.
In the value-added segment, ready-made garments remained the major performer as exports witnessed 20% yearly and 9% monthly rise to $357 million during December. Other value-added players such as knitwear, bedwear and towels also posted an yearly rise of 7%, 13%, and 1% to $391 million, $256 million, and $88 million, respectively.
Basic textiles witnessed decline of 16% yearly and 2% monthly to $215 million in December, where major decrease came from cotton yarn which was down 34% yearly and 22% monthly to $63 million in December.
During the first half of fiscal year 2024-25 (FY25), Pakistan recorded textile exports of $9 billion — a 10% increase compared with same period last year.
The recovery in Pakistan’s textile exports is due to other factors as well, i.e. higher cotton crop in last year, diversion of orders to Pakistan due to internal conflicts in Bangladesh and tariffs on China.
Last year, Pakistan’s textile exports had amounted to $16 billion. This year, they are likely to jump by $2-3 billion.
All Pakistan Textile Mills Association (APTMA) has urged the Federal Board of Revenue (FBR) to implement key measures to support the sector. These include restoring zero-rating or equalizing GST on inputs, ensuring timely refunds, enhancing digitization to improve liquidity, and shortening audit periods to bolster competitiveness and exports.
