Pakistan textile exports decline in first half of current fiscal year
Pakistan in the first half of the current fiscal year despite an improvement in export earnings from value-added sector, witnessed decline in textile exports to USD 6.156 billion from USD 6.259 billion in the corresponding period of the last fiscal year, according to the Pakistan Bureau of Statistics (PBS) data
Textile value-added sector, accounting for more than half of the industry’s foreign earnings, recorded a surge in exports during the July-December period of 2016/17. Knitwear exports inched up 0.17 % to USD 1.193 billion. Bedwear fetched USD 1.043 billion in exports revenue, up 4.66 % year-on-year. Readymade garments rose 5.87 % to USD 1.101 billion.
In July-December 2016, cotton cloth exports dropped by 5.57 % to USD 1.048 billion, while exports of raw cotton and cotton yarn decreased more than 49 % and seven percent, respectively.
Analysts said that the recently-announced PKR 180 billion incentives package is likely to give a boost to flagging exports. The government announced the export incentives scheme for five export-oriented sectors, including textiles. The stimulus includes a score of rebates given that the exporters are able to increase exports by 10 % in the second half of the current fiscal year.
The PBS data showed that textile exports amounted to USD 1.035 billion in December 2016, almost flat as compared to December 2015, but down 1.21 % over November 2016. Exports of knitwear increased 4.21 % year-on-year (YoY) and 1.54 % month-on-month (MoM) in December 2016. Bedwear exports rose 9.26 % YoY and 0.11 percent MoM. Exports of readymade garments soared 9.23 % YoY and 11.88 % MoM in December 2016.
Machinery imports surged 40.84 % to USD 5.666 billion in July-December 2016/17, highest among all the importing heads. In December, machinery imports bill stood at USD 1.032 billion, up 30.42 % over the same month last year and 13.38 % as compared to the preceding month.