Pakistan textiles and clothing export up 24%YoY in October 2021

As per the data released by PBS, textile exports for the month of October 2021 registered a growth of 24.2%YoY to US$1.6 billion. Segment–wise value and non-value added exports posted a growth of 23/28%YoY in October 2021 and 25/34%YoY in 4MFY22.  In the value added segment, readymade garments and bed wear registered a growth of 21.1%/16.0%YoY, while knitwear outperformed the segment with 42.1%YoY growth in October 2021.

In 4MFY22 readymade garments/bedwear/knitwear posted a growth of 22.3%/21.3%/35.4%YoY respectively.  International cotton prices remained strong throughout the month, hovering around Usc127.3/Ib with an increase of 13.5% since October 2021 and cumulative CYTD increase of 50.4%. On the local front, cotton prices currently hover around PKR17,233/maund – at about highest level since 2010, up 19.7% since October 2021.

With global textile dynamics continuing to remain favorable amid brewing trade war between US and China and as yarn margins remain downward sticky (local yarn margins currently at 75% as compared to 60% CYTD average. Analysts maintain bullish stance on the sector where any dip in prices will provide an opportunity to take exposure in textiles.

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