Pakistan's exports of value-added textiles grew by 10 per cent in the July to September quarter of this fiscal year. Value-added segment refers to bed wear, knitwear and readymade garments.

However, non-value added spinning-based exports declined by 15 per cent. Exporters expect better figures in the next quarter on the back of a possible hike in international demand, particularly during Christmas. On a month-on-month basis, bed wear and knitwear exports surged by 34 per cent and 27 per cent in September over August. Improved demand from China is thought to be a major factor behind the increase in export volumes of basic textiles.

Textile exports in September 2014 grew by 25.5 per cent over the previous month and 1.2 per cent year-on-year. The silver lining for the textile sector is a plunge in cotton prices. Local cotton prices also reflected the downfall despite flash floods and this is expected to mark higher profit margins for textile players from the October-December quarter onwards. However, the textile sector can benefit from exchange gains in the short term. And, since the provision of the GSP Plus status, the value-added segment has outweighed the fall in the spinning sector to some extent.