Pakistan’s textile exports were up 9.7 per cent for the second consecutive month in November 2016. One reason is the better performance of value added sector. However, lower exportable surplus along with weak demand from China remains a drag on basic textiles. The sector is showing some early signs of recovery and a favorable textile package will provide further impetus. Enhanced drawback of local taxes and levies on FOB prices would be a game changer.
Sequentially, textile exports declined 0.5 per cent in November 2016. Exports of basic textiles fell by 1.9 per cent year on year during the first five months of the current fiscal. In July to November, exports of readymade garments increased by five per cent year on year whereas quantity exported went down by one per cent year on year. Despite a four per cent year on year decline in prices, bed wear exports increased by four per cent. Knit wear exports remained flat year on year with an 18 per cent increase in quantity being offset by a 15 per cent decline in prices.
Pakistan’s cotton yarn exports shot up 47.8 per cent year on year in November 2016. This is due to the weakening dynamics of Vietnam as the country is currently suffering from higher material costs due to its reliance on import of cotton.