Textile exports up 3pc to $1.006 billion in July

KARACHI: Textile exports rose around three percent year-on-year to $1.006 billion in July as the government’s incentive package for the export sector seemed to revive the wilting foreign exchange revenue spinner. 

Pakistan Bureau of Statistics (PBS) recorded textile exports of $979.414 million in the same month a year ago. 

Exports of textiles, however, fell 17.34 percent from $1.217 billion in June 2017.  Readymade garment exports posted a major growth of 20.47 percent year-on-year to $212.521 million in July. Its exports, however, dropped 12.53 percent from $242.951 million in the preceding month. 

Exports of bed wear remained flat at $170.443 million in July over the last year. Bed wear exports declined 18.55 percent from $209.258 million in June 2017.  In July, knitwear exports decreased 5.8 percent year-on-year and 24 percent month-on-month to $193.749 million.

In January, government unveiled Rs180 billion incentive package for exporters to boost the country’s exports by around three billion dollars by end June 2018. Under the package, sales tax and customs duty on import of textile machinery and cotton have been abolished. The country’s total exports between 2013 and 2015 declined more than 12 percent. 

PBS data further showed that exports from food sector increased 34.74 percent to $250.860 million over the same month a year ago. Food exports, however, decreased 12.3 percent from $286.035 million in the previous month. 

In food sector, the major thrust stemmed from a 28.49 percent year-on-year growth in rice exports, amounting to $107.896 million in July. Rice exports, however, fell 24.82 percent in July from $143.523 million in the preceding month. Sugar exports fetched $27.584 million in revenue in July. There was zero sugar export in the same month a year earlier. Exports of sugar soared almost 10-fold from $2.520 million recorded in June 2017. 

Moreover, exports of fish and fish preparations rose 12.19 percent year-on-year to $12.473 million in July. They, however, fell 57.45 percent from $29.312 million in June 2017. 

In July, non-textile exports also showed uptrend. Exports of engineering goods, including electric fans, transport equipment and auto parts, increased 33.35 percent year-on-year to $19.152 million in July. Engineering goods exports also rose 19.45 percent in July from $16.034 million in the preceding month. 

In July, exports of leather goods improved 2.7 percent year-on-year to $42.077 million. Leather exports, however, slid 11.78 percent from $47.695 million in June 2017. 

Total exports increased 10.58 percent year-on-year to $1.631 billion in July. The exports, however, decreased 14.7 percent from $1.911 billion in the previous month. 

Imports jumped 36.74 percent year-on-year and increased 6.64 percent month-on-month to $4.834 billion in July.  Key imports in the month under review included machinery, oil and agriculture and other chemicals.

In July, imports of machinery climbed 40.86 percent year-on-year and 14.91 percent month-on-month to $1.016 billion. Power generation machinery imports held a major chunk in the total machinery imports. The country imported $286.374 million worth of power machinery in July, depicting a 59.85 percent rise in its import bill as compared to the same month a year ago. Power generation machinery import swelled 39.95 percent in July from $204.619 million in June 2017.    

Infrastructure development has caught pace under the $56 billion China-Pakistan Economic Corridor, while energy projects increased the need of power generation equipment. Imports of petroleum products, crude and liquefied gas increased 21.72 percent year-on-year to $946.958 million in July. Oil imports, however, decreased 5.91 percent in the month under review from $1.006 billion in June 2017. Agriculture machinery and chemical imports soared 25.95 percent year-on-year and 11.13 percent month-on-month to $728.243 million in July.