Pakistan's textile export rebounds

Pakistan's export of textile and clothing rebounded for the second consecutive month after posting a decline for at least one year.

The increase was mainly driven by a surge in demand from recession-hit key markets of Europe and US, suggested data of Pakistan Bureau of Statistics released here on Wednesday.

In absolute terms, export of textile and clothing witnessed a growth of 10.50 per cent in October 2012, from a year ago. The growth in export proceeds in September 2012 was 12.91 per cent.

The unprecedented growth was mainly driven by substantial increase in export proceeds of readymade garments, towels, and other low value products, like cotton yarn and cotton cloth, etc.

Also export of raw cotton witnessed an increase in October this year over last year.

Experts linked growth in export of value-added products with spillover effect from China and Taiwan’s labour issue as about two or three per cent spillover from China alone was more than enough for Pakistan’s exporters to meet it; the announcement of waiver on 75 products from EU from November 15 encouraged European buyers to re-develop contacts in Pakistan.

Major European buyers are eying to yield benefits in case EU granted Pakistan GSP plus status in 2014.

American buyers also re-establishing contacts with Pakistan’s textile and clothing exporters after disruption in supply from Egypt.

Export of textile and clothing reached US$4.392 billion in July-October period this year, up by 4.78 per cent from $4.192 billion over the corresponding period of last year.

As a result of performance of textile and clothing sector, overall exports also witnessed 4.98 per cent growth in the first four months this year as it stood at $8.202 billion this year as against $7.814 billion over the corresponding period last year.

A sector-wise analysis showed that export of readymade garments went up by 29.29 per cent, knitwear 4.37 per cent and towels 12.27 per cent in October this year over last year.

Export of low value-added products, like cotton yarn was up by 28.88 per cent, cotton cloth 16.37 per cent, yarn other than cotton yarn 228.25 per cent, tents 17.61 per cent and other textile material 31.89 per cent in October this year over same month last year.

Industry sources said persistent supply of gas for five consecutive days in July-October period to textile sector produced the desired results.

The growth in yarn and fabric exports was mainly because of improved energy supply.

The full capacity utilisation of production caused growth in export of home textile — towels and bedwear as well.

This shows that in case of uninterrupted supply of energy, export of textile products would increase manifold.

Similarly, export of raw cotton also increased by 23.06 per cent in October this year. Cotton production is expected to increase this year following arrival of new crop in the market. Cotton crop arrival has started since October.

Contrary to this, over 22 per cent increase was also witnessed in terms of rupee owing to its depreciation against the dollar in the past few months, indicating that the fall in the health of rupee supported Pakistani textile and clothing products to penetrate in the international markets.

In October, exports witnessed a growth of over 21 per cent which clearly indicates that depreciation helped export proceeds to compete with other countries products.

At the same time, there was a 13.14 per cent increase in import of machinery in the value-added sector to increase quality and capacity of production. This indicates that local manufacturers were also expanding their production capacity.