Textile exports fall to $6.156bln despite recovery in value-added sector

KARACHI: Textile exports fell 1.65 percent to $6.156 billion in the first half of the current fiscal year despite an improvement in export earnings from value-added sector, official data showed on Friday.

The Pakistan Bureau of Statistics (PBS) data showed that textile exports amounted to $6.259 billion in the corresponding period of the last fiscal year.

Textile value-added sector, accounting for more than half of the industry’s foreign earnings, recorded a surge in exports during the July-December period of 2016/17. Knitwear exports inched up 0.17 percent to $1.193 billion. Bedwear fetched $1.043 billion in exports revenue, up 4.66 percent year-on-year. Readymade garments rose 5.87 percent to $1.101 billion. 

In July-December 2016, cotton cloth exports fell 5.57 percent to $1.048 billion, while exports of raw cotton and cotton yarn decreased more than 49 and seven percent, respectively. 

Analysts said the recently-announced Rs180 billion incentives package is likely to give a boost to flagging exports. The government announced the export incentives scheme for five export-oriented sectors, including textiles. The stimulus includes a score of rebates given that the exporters are able to increase exports by 10 percent in the second half of the current fiscal year.

The PBS data showed that textile exports amounted to $1.035 billion in December 2016, almost flat as compared to December 2015, but down 1.21 percent over November 2016. Exports of knitwear increased 4.21 percent year-on-year (YoY) and 1.54 percent month-on-month (MoM) in December 2016. Bedwear exports rose 9.26 percent YoY and 0.11 percent MoM. Exports of readymade garments soared 9.23 percent YoY and 11.88 percent MoM in December 2016.

Machinery imports surged 40.84 percent to $5.666 billion in July-December 2016/17, highest among all the importing heads. Infrastructure development has caught pace under the China-Pakistan Economic Corridor, while energy projects increased the need of power generation equipment. Alone power generation import bill stood at $1.651 billion in the first half, a considerable 109 percent jump over the same period a year ago.

Imports of petroleum products showed upward trend, as the international oil prices started recovering. Oil imports increased 11.22 percent to $4.992 billion in the first six months of the current fiscal year of 2016/17. Food imports rose 9.04 percent to $2.864 billion. Imports under transport group increased 6.44 percent $1.407 billion.

In December, machinery imports bill stood at $1.032 billion, up 30.42 percent over the same month last year and 13.38 percent as compared to the preceding month.

Oil imports soared 45.84 percent to $0.916 billion in December 2016 over the same month a year ago and increased 2.11 percent over November 2016. Food imports increased 28.73 percent YoY and 2.39 percent MoM in December 2016.