Pakistan’s textile exports show an optimistic 5pc increase in five months
From July to November, value-added textile sector increased in exports.
A recovery of around $5.75 billion has been posted by Textile exports in the first five month of on-going fiscal year of 2019-20.
Stakeholders are now relying on Chinese tariff concessions and ease of doing business to unlock the potential foreign exchange revenue from key sector.
According to the data released by Pakistan Bureau of Statistics (PBS), textile exports stood at $5.5 billion during the same period last year. In November, the textile exports clocked in at $1.17 billion, an increase of 7.03% year-on-year, but a decrease of 3.1% month-on-month.
The Karachi-based brokerage JS Global Capital said that this growth in textile exports remained stationary in the previous few months, and “it remains to be seen whether the phase-II of China-Pakistan free trade agreement (CPFTA II) can provide some fresh impetus to the sector”.
As per Brokerage Pearl Securities, CPFTA II can speed up the exports due to its concessionary tariff lines and greater market access.
Exporters are of the view that the cost of doing business should be cut down.
“Electricity should be supplied at a flat rate round the clock to the industrial sector in winter season to meet to government’s aims to increase production, uplift exports and create more jobs,” Jawed Bilwani, chief coordinator of Pakistan Hosiery Manufacturers and Exporters Association said.
From July to November, value-added textile sector increased in exports. Readymade garments export increased by 13.2%. The knitwear exports increased by 8.7% and exports of bed wear by 4.7%.
Raw cotton exports stood at $2.06 million, up 24.91% on a yearly basis, while the cotton yarn exports surged 23.9% in November.
Exporters are expecting the working capital for the sector and liquidity to improve, since the government is now getting rid of all the imperfect mechanism of bonds to clear refund payments and are instead opting to make cash payments.
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