Karachi, November 16, 2021 (PPI-OT): Textile exports reach US$6bn in 4MFY22

Textile exports increased by 24%/8% YoY/MoM in Oct-2021 clocking in at US$1.6bn, which is higher than its monthly average of US$1.45bn witnessed during 1QFY22.

The aggregate for 4MFY22 reached US$6.02bn, up 27% YoY. Knitwear, Readymade and Bed wear continued to contribute higher than other segments, with a cumulative contribution of more than 60% by the three segments.

In the top contributing segments, a mix of price increase and volumetric growth were key factors of higher exports during Oct-2021. While Knitwear’s prices increased by 2x YoY, Readymade Garments and Bed wear witnessed higher volumes as compared to Oct-2020. A similar trend was reflected in the cumulative 4MFY22 numbers as well.

The average monthly textile exports now reaching to US$1.5bn are on the trajectory to report FY22 textile exports at US$18bn, however impact of the TERF facility is yet to translate in total exports of the sector.

Nonetheless, negative news flows in the sector – (1) increase in gas prices, (2) curtailment of gas in winters – are expected to make it difficult for textile companies to meet with the upcoming orders booked, hindering the ongoing growth momentum.