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Today's Paper | November 23, 2024

Updated 17 Jul, 2020 11:04am

Textile exports decline 6pc to $12.5bn

ISLAMABAD: Pakistan’s textile and clothing exports posted a negative growth of over six per cent year-on-year to $12.526 billion in the fiscal year 2019-20 compared to $13.327bn in the corresponding period last year, data released by the Pakistan Bureau of Statistics showed on Thursday.

The pace of fall in textile exports slowed down in the last two months owing to a recovery in the international orders. Compared to 36.5pc decline in May, exports in June declined by 5.43pc over the last year.

The easing of lockdown in the North American and European countries — top export destinations for Pakistani textile goods are expected to help revive the sinking exports. The Covid-19 has collapsed the demand for the country’s exports during the last five months.

Piled up containers at ports since March 22 were mostly cleared in the month of June. Moreover, the government also reopened exports through the land route to Iran and Afghanistan in June.

A report produced by the customs authorities — who compile export data from good declaration forms — showed that cargo handling at Karachi ports posted a growth of 7.23pc in June as 49,953 export containers were shipped this year as against 46,583 of last year. It clearly shows that exports picked up in the month of June from a year ago.

It was only in February when the textile and clothing exports jumped nearly 17pc on a year-on-year basis — growth witnessed after a long time as the past few years had been marred by single-digit increases.

Details showed ready-made garments exports dipped 3.81pc in value and drifted much lower in quantity by 10.07pc during July-June FY20, while those of knitwear dropped 3.64pc in value and 10.11pc in quantity, bed wear posted negative growth of 4.91pc in value and 2.31pc in quantity.

Towel exports fell 6.52pc in value and 6.39pc in quantity, whereas those of cotton cloth dipped by 12.94pc in value and 17.66pc in quantity.

However, exports are expected to revive in July as exporters have resumed production to honor their international orders.

Among primary commodities, cotton yarn exports dipped by 12.49pc while yarn other than cotton by 23.81pc, made-up articles — excluding towels — by 13.16pc, and raw cotton 16.64pc. Exports of tents, canvas and tarpaulin increased by a massive 5.95pc during the months under review.

On a monthly basis, exports of textile and clothing posted a negative growth of 5.43pc to $959.130 million in June as against $1.014bn over the corresponding month of last year.

Exporters are already receiving inquiries about personal protective equipment from foreign buyers as the government allowed exports of disposable gowns, disposable gloves, face shields, biohazard bags, goggles, shoe covers and hand sanitisers with immediate effect. Previously, the government allowed exports of textile masks as well.

Published in Dawn, July 17th, 2020

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