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Pakistan’s textile exports increase by 18.9% in FY21

Jun 24, 2021
Pakistan’s textile exports increase by 18.9% in FY21

Pakistan

Pakistan’s textile export in FY21 has registered a growth of 18.9% and is currently standing at $13.7 billion. The same for May 21 registered a growth of 41.1% and is standing at $1.06 billion. According to Mohsin Ali, Investment Analyst, AKD Securities Ltd, the prices of international cotton have remained the same as in May 21. He also said that it is expected that the prices of cotton will surge due to stronger demand and will outpace supply growth. He also said that the textile sector has turned out of favour, underperforming the KSE-100 index by 7.5ppt. The earnings shall remain robust in the near term because the old inventories of cotton have benefitted the local manufacturers, he added.

Mohsin Ali has also informed that the global production of cotton is expected at just over 118.9 Million bales while the consumption is expected to hit a high at 122.5 million bales. The production levels of big players like Australia, Brazil, and the US might help the global cotton production level to reach the Pre-Covid levels.

He also said that Pakistan’s textile exports might reach $15 billion in FY21, which is the highest in the history of the country.  Factors like reduction in import duties on chemical and yarns, and an increase in sales tax on cotton to 17% from 10% will lead to low refund accumulation. 

Source – Daily Times

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