Karachi, May 22, 2023 (PPI-OT): Pakistan Textile: Apr’23 Textile Exports Continuing the Slump

Textile group exports clocked in at US$1.2bn in Apr’23, lower by 2.0%MoM and 29.1%YoY. This takes the textile exports for the 10MFY23 period to US$13.7bn, lower by 14.2%YoY.

Value-added textile exports saw a paltry 0.9%MoM decline, while being lower by 28.5%YoY. Within the value-added group, the knitwear segment saw a 3.3%MoM increase, while Bed wear segment saw a hefty increase of 10.8%MoM, coming in at US$218mn.

The growth in the knitwear and bed wear segments was offset by the dip in Readymade Garments, which experienced a sequential decline of 10.5% in Apr’23, coming in at US$247.4mn.

International cotton prices have been seen tapering off in the recent past, with the COTLOOK Index dropping by 8% over the past month alone. On the local front, cotton prices have shown an increase in the past 30 days, wherein prices have increased by 4% to PkR20k/maund.

The challenging situation for the textile sector seems to be persisting, with the heightened energy and raw material costs coupled with low average prices and quantity exported making for a precarious situation for the sector. Hence, we advise investors to steer clear of the sector.