Pakistan's textile and apparel exports grow by nearly 13% in Aug

According to data released by the Pakistan Bureau of Statistics (PBS), textile and apparel exports increased by nearly 13% in Aug. This growth emerged amid concerns about a potential decline in the industry.

In Jul, the exports shrank by 3.1%, raising alarms among experts who worry that strict tax policies implemented this fiscal year may hinder the competitiveness of Pakistan's textile and apparel industry compared to regional rivals.

Exports in Jun fell by 0.93% year-on-year, despite a strong rebound in May, where exports achieved double-digit growth after two months of slow performance.

In terms of the value, textile and apparel exports surged to $1.64 billion in Aug, up from $1.45 billion in the same month last year. The exports grew by 29.4% compared to the previous month.

In the first two months of this fiscal year (Jul-Aug), textile and apparel exports increased by 5.4% to $2.92 billion, compared to $2.76 billion in the same period last year.

The government has implemented several measures, including raising the personal income tax rate for exporters for the fiscal year 2024-25. PBS data shows that apparel exports rose by 27.8% in Aug, with an increase of 7.9% in the volume. Knitted goods saw export values rise by 15.4% and volumes by 8.1%. Bedding exports increased by 15.2% in value and 14.4% in volume. In Aug, towel exports grew by 15.7% in value and 9.7% in volume, while cotton fabric exports increased by 14.1% in value and 4.8% in volume. However, yarn exports plummeted by 47.7% compared to the same period of last year.

On the import side, synthetic fiber imports saw a negative growth of 8.3%, while imports of synthetic and artificial yarn dropped by 13.6%. Conversely, other textile-related imports surged by 51.5%. Raw cotton imports rose by 7.6%, and second-hand clothing imports increased by 22%. Overall, Pakistan's exports in Aug grew by 16.8%, rising from $2.36 billion in the same period of last year to $2.76 billion.