Yarn export down 11pc, garment up 9pc

Lahore – The knitwear, bedwear and readymade garments have outperformed all other products of textile sector, reporting significant exports growth significantly. This was led by volumetric growth of 21 percent YoY, 7 percent YoY and 9 percent YoY in knitwear, bedwear and readymade garments, respectively.

Pakistan Bureau of Statistics (PBS) reported textile exports for the month of Nov 2017, wherein textile exports have clocked in at $1.12 billion, (+7 percent YoY). This growth was primarily led by the value added segment (+12 percent YoY) that made up for the poor show by basic textile exports (-3 percent YoY).

Experts attribute expansion in value added segment exports to (i) appreciation of Euro currency by 9 percent YoY, and (ii) improved competitiveness post implementation of textile package.

On the other hand, cotton yarn exports recorded a steep decline of 11 percent YoY driven by 13 percent YoY volumetric downturn. This is likely a result of soaring raw material costs for the spinning segment as domestic cotton prices have shot up (+7 percent YoY in Nov’17) following lower than targeted domestic crop (10.1mn bales as of 15-Dec’17 vs initial target of 14mn bales) and increase in support prices in the region (+12 percent).

On a cumulative basis, 5MFY18 textile exports were recorded at USD5.51bn, up 8 percent YoY, primarily driven by 11 percent YoY hike in value added segment. Basic textile exports followed with a meagre 1 percent YoY increment.

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