Textile and clothing exports grew by nearly 13% in August, according to data released by the Pakistan Bureau of Statistics (PBS). The growth comes amid fears that the sector is facing a recession.
In July, the sector's exports shrank by 3.1%, leading many experts to worry that the country's textile and clothing industry may struggle to remain competitive with regional rivals due to the stringent tax policies introduced this fiscal year.
Exports in June fell by 0.93% year-on-year, although they rebounded strongly in May, registering double-digit growth after two consecutive months of slowing performance.
In absolute terms, textile and clothing exports surged to $1.64 billion in August, up from $1.45 billion in the same period last year. On a month-on-month basis, exports grew by 29.4%.
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In the first two months of the current fiscal year (July and August), textile and clothing exports grew by 5.4% to $2.92 billion, compared with $2.76 billion in the same period last year.
The government has implemented several measures, including increasing the personal income tax rate for exporters for the fiscal year 2024-25.
PBS data showed that garment exports rose by 27.8% in value and 7.9% in volume in August. Knitwear exports rose by 15.4% in value and 8.1% in volume. Bedding exports rose by 15.2% in value and 14.4% in volume. Towel exports rose by 15.7% in value and 9.7% in volume in August, while cotton fabric exports rose by 14.1% in value and 4.8% in volume. However, yarn exports plunged by 47.7% in August compared to the same period last year.
On the import side, synthetic fiber imports fell by 8.3% while synthetic and rayon yarn imports fell by 13.6%. However, other textile-related imports rose by 51.5% in the month. Raw cotton imports rose by 7.6% while second-hand clothing imports rose by 22%.
Overall, the country's exports rose by 16.8% in August to $2.76 billion from $2.36 billion in the same period last year.
Post time: Oct-13-2024