Pakistan Agriculture News

Textile exports grow 4pc

ISLAMABAD  –  Pakistan’s textile exports have shown 3.72 percent growth during first couple of months (July and August) of the current fiscal year.

The country exported textile and clothing products worth $2.26 billion during July to August of the year 2018-19 as against $2.18 billion of the preceding year, according to the latest data Pakistan Bureau of Statistics (PBS).  Pakistan’s overall exports have surged to $3.66 billion in July-August period of 2018-19 due to growth in textile sector.

The PTI led government has recently decided to give incentives to the exports oriented sectors including textile, leather, sports goods, surgical goods and carpets to boost the overall exports.

The government has recently maintained the gas price at 600 MMBTU for the exports oriented sectors. Similarly, the government would provide imported LNG to private sector at subsidized rates. The government is optimistic that decision would help 5, 00,000 labours in getting back their jobs which were lost due to unavailability of gas to the industries.

The government has given relief worth of Rs44 billion for exports oriented sectors by not increasing the gas prices and providing LNG at subsidized rates.

Meanwhile, the government is also contemplating to give electricity at subsidise rates for the exports oriented sectors and releasing pending refunds of the exporters. These measures would help in enhancing exports of the country. The government wants to control the soaring current account deficit by increasing exports. The current account deficit is expected to reach in the range of $18 to $21 billion during current fiscal year.

According to the PBS, the main driver of growth was the value-added textile sector. Exports of ready-made garments went up by 4.12 percent in first couple of months of the current financial year.

Similarly, exports of knitwear increased by 11.29 percent during the period under review. Exports of bedwear went up by 2.72 percent in value. Similarly, exports of made-up articles, excluding towels, increased by 1.7 percent. Exports of cotton yarn witnessed an increase of 6.52 percent. Art, silk and synthetic textile exports have gone down by 4.62 percent during the period under review. Exports of cotton cloth recorded a decline of 69 percent.

Exports of raw cotton tumbled by 62.14 percent. Exports of tents, canvas and tarpaulin have also recorded minor decline.

Meanwhile, the exports of food commodities recorded massive increase of 10.61 percent during first couple of months of the current fiscal year. In food commodities, exports of fruits recorded growth of 33.78 percent, sugar 58.11 percent and vegetables exports went up by 3.61 percent.

On the other side, the country’s imports have grown by only one percent to $9.8 billion during July-August period of the year 2018-19. The country spent $2.64 billion on the imports of petroleum group, 30.08 percent higher than a year ago. In the petroleum sector, the government imported petroleum products worth $1.07 billion and spent $880 million on petroleum crude. Similarly, the country imported liquefied natural gas (LNG) worth $658 million and liquefied petroleum gas (LPG) worth $30 million.

The PBS data showed that country had spent $1.59 billion on importing machinery during July and August period of the ongoing fiscal year. The third biggest component was food commodities whose imports rose to $949 million.