Textile group exports were down 13%MoM to US$1,481 million in July 2022, while remaining flat compared to the same period last year. The month’s reading was also lower by 8% when compared to FY22 monthly average. Value-added textile exports registered a dip of 13%MoM, while being higher by a meager 2%YoY compared to the same period last year.
Exports of knitwear products (29% of total) were down by 8%MoM, while higher by 11%YoY, whereas readymade garments (21% of total) were down by 17%MoM and higher by a meager 1% compared to the same period last year. Non-value added exports were down by 14%MoM/5%YoY to US$257.8 million during July 2o22, largely driven by a 24%MoM and 21%YoY dip in the exports of cotton yarn exports, along with a 9.5% MoM dip in cotton cloth.
International cotton prices have dropped 5.7% in July 2022, while dipping by another 6.6%MTD to USc122.75/lb currently. Woes being faced by the textile industry in India have led to opportunities for Pakistan’s textile exports. However, these seemed to be short-lived, with India’s cotton yarn exports rebounding to US$944.92 million in July 2022, higher by 110%MoM, offsetting the 8%MoM dip in readymade garments during the period. Currency depreciation would likely support the textile sector, which would offset a dip in textile exports.