Pakistan Textile – Exports rise 6% YoY, a fifth consecutive monthly YoY rise
ISLAMABAD: Pakistan Textile exports clocked in at US$1.5bn in Dec 2024, up 6% YoY and 1% MoM. This is the fifth consecutive month where a YoY rise was observed, mainly due to low base effect. On a MoM basis exports are up by 1% in Dec 2024.
The YoY and MoM increase was mainly due to a rise in the value-added segment, majorly in the readymade garments segment. In otNon-textile exports witness increase of 17.6%hers, art, silk and synthetic textile saw a 22% YoY and 28% MoM rise to US$38mn, a 2.5 year high.
In PKR terms, Pakistan Textile exports clocked in at Rs411bn, up by 4% YoY and 1% MoM.
Value Added Segment saw a 12% YoY and 1% MoM rise. Under Value-added segment, Readymade Garments remained the major performer as exports witnessed 20% YoY and 9% MoM rise to US$357mn during Dec 2024.
Other value-added players such as Knitwear, Bedwear and Towels garments also posted a YoY rise of 7%, 13%, and 1% to US$391mn, US$256mn and US$88mn, respectively.
Basic textiles witnessed decline of 16% YoY and 2% MoM to US$215mn in Dec 2024, where major decline came from cotton yarn which was down 34% YoY and 22% MoM to US$63mn in Dec 2024.
During 1HFY25, Pakistan recorded textile exports of US$9bn a 10% YoY growth (+6% YoY in PKR terms). Basic textiles fell whereas value-added rose by 17% YoY, with readymade garments contributing a 22% YoY rise.
The recovery in Pakistan’s textile exports is mainly due to multiple factors i.e. higher cotton crop in last year, diversion of orders to Pakistan due to internal conflicts in Bangladesh and tariffs on China.
All Pakistan Textile Mills Association (APTMA) has urged the Federal Board of Revenue (FBR) to implement key measures to support the sector. These include restoring zero-rating or equalizing GST on inputs, ensuring timely refunds, enhancing digitization to improve liquidity, and shortening audit periods to bolster competitiveness and exports.
We believe in FY25 exports will reach US$18-19bn as compared to US$16.7bn in FY24.
