Pakistan’s export of textile and clothing products witnessed a double digit growth in the first month of the current fiscal year compared to a year ago. Exports witnessed a double digit growth because of an increase in exports to European markets owing to preferential market access on selected products. The European Union preferential package on import of 75 items has been in operation since December 2012.
Export of textile and clothing surged to $1.136 billion in July 2013 from $1.090 billion in the corresponding month last year. Textile and clothing products, which witnessed a negative growth, are cotton carded and yarn other than cotton yarn in July 2013 over the same month last year.
However, growth in exports in July was mainly driven by knitwear, bed wear, towels and readymade garments, which are valued-added products. Growth in yarn and fabric exports was mainly because of improved energy supply. The full capacity utilisation of production caused growth in the export of home textiles — towels and bed wear as well.
Raw cotton exports from Pakistan have slumped in quantity terms and value terms. But this fall in raw cotton exports is seen as a boon. Reduced exports would also help in stabilizing cotton prices at home which are higher than international prices. The Pakistani textile industry each year falls short of around three million bales of cotton against its total demand for around 16 million bales.