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December 29, 2020

Pakistan’s textile sector receives 6-mth export orders

Business

December 29, 2020

KARACHI: Pakistan’s textile businesses have received export orders for the next six months with the sector expanding production capacity to meet robust demand from foreign buyers, an industry official said on Monday.

Adil Bashir, chairman of All Pakistan Textile Mills Association (Aptma) said the textile sector is currently in the mode of rapid expansion to cater with increased orders and demands. “Exports orders for next 6 months are booked and despite COVID our exports have increased significantly compared to our regional competitors whose exports have shrunk,” Bashir said in a statement.

Textile sector that accounts for more than 60 percent of total exports fetched $6 billion from abroad during the five months of the current fiscal year, up around five percent year-on-year, according to the Pakistan Bureau of Statistics.

Textile companies are making capital investments to increase production of fabrics with demand from value-added sector on a strong recovery path compared to stagnation couple of months back due to economic shutdown.

The growth was despite the global economic slowdown caused by the pandemic-related lockdown and waning consumer demand. However, the government’s decision to keep businesses open is leading to benefits of orders diverted from closed economies, while US-China rift is also diverting orders to Pakistan.

Aptma appreciates and acknowledges the much-improved gas supply and pressures of gas and re-gasified liquefied natural gas (RLNG) to the export sector units in December.

“This sustained supply of gas / RLNG will maintain the momentum of enhanced exports as currently the sector is working at full capacity,” said Bashir. “It is absolutely essential to sustain this momentum which is being facilitated by the textile policy currently under approval of ECC [Economic Coordination Committee of the cabinet], the regionally competitive energy tariffs and the sustained provision of gas / RLNG to the export sector.”

While the government decided to curtail gas quota for RLNG-based power plants to 240 million metric cubic feet per day (mmcfd) from 350 mmcfd, export-oriented and consumer sectors have been put on the priority list.

Bashir said there have been isolated cases of low pressure and supply problems in mixed feeders and Aptma has taken up these issues with the petroleum division who have assured us of all-possible assistance to remove any bottlenecks.

Aptma appreciates the role of ensuring that the export sectors are provided gas / RLNG at sustained pressures despite the huge surge in demand and diminished domestic production this winter.