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Truth behind Pakistan’s 3 times rise in textile exports

May 27, 2021
Truth behind Pakistan’s 3 times rise in textile exports

Islamabad, Pakistan

Pakistan saw 3.4 times increase in textile exports in April 2021. This growth was due to the low base effect in April 2020 when the first wave of COVID-19 affected industrial activity across the globe and in Pakistan.

As per the data by the Pakistan Bureau of Statistics (PBS), exports in April were the third-highest monthly figure in the last year at $1.337 billion. This scenario was despite the misleading growth percentage and the month-on-month decline. The textile exports have been on an upward trajectory due to growth in export of the value-added segment. April also saw a jump in the exports of basic textiles like cotton yarn and cotton cloth. In the value-added segment, knitwear, bed wear and home textile recorded double-digit growth.

The State Bank of Pakistan (SBP) expects the current account deficit to be below 1% of GDP for FY21. The recent, more deadly COVID-19 wave has reduced the textile exports of India and China leading to a surge of exports from Pakistan. The ECC has allowed the duty-free import of cotton yarn until June 30, 2021, addressing the cotton shortage issue temporarily. Policy consistency such as the continuation of LTFF and TERF schemes and competitive energy tariffs are other key drivers that will determine the growth in textile exports going forward.

Source – Business Recorder

Image Source: Unsplash 

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