Pakistan Textile: Exports at a record high of US$12.6bn in 8MFY22 ob the back of the value-Added segment

As per the data reported by the Pakistan Bureau of Statistics (PBS), Pakistan textile exports surged to a record high of US$12.6bn in 8MFY22, up 26% YoY. In PKR terms, the same has clocked in at Rs2,156bn, up by 33% YoY.

During 8MFY22, the key export driver was an increase in value-added exports where the knitwear segment contributed the most as it increased by 34% YoY to US$3.3bn followed by Ready-made garments (+25% YoY to US$2.5bn) and Bedwear (+20% YoY to US$2.2bn) respectively. Encouragingly, all these segments witnessed up tic in volumetric sales in a range of 5-21% YoY.

On MoM basis, Pakistan textile exports have shown recovery in Feb-22 (up by 8% MoM) after witnessing two months of the constant month on month decline since Dec-21 due to a downfall in value-added exports, especially in the knitwear segment.

Despite the decrease in volumes, the increase in exports on MoM is attributable to higher Cotton Yarn exports (+65% MoM to US$127mn) in Feb-22 due to the rise in cotton prices.

In addition, value-added segments such as Knitwear and Ready-made garments posted decent growth in exports of 7% each to US$414mn and US$354mn, respectively.

Compared to last year, Pakistan textile exports are up by 36% YoY (50% YoY up in PKR terms) in Feb-22 led by significant growth witnessed in value-added segments, largely in knitwear (up 42% YoY) and Ready-made (up 49% YoY) amidst volumetric growth.

With respect to basic textile, exports increased by 35% YoY to US$369mn where major contribution comes from cotton cloth, up by 56% YoY to US$233mn.

Going forward, we expect textile exports to keep robust in ongoing FY22 fiscal year and expect it to clock in at ~US$19bn.

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