Free-fall continues: a review of Pakistan’s textile exports for 1st Quarter 2009-10

Provisional first quarter figures for the fiscal year 2009-10 of Pakistan’s textile exports shows no letup as free-fall continues. The declining trend is really alarming because exports continued to decline in the same period (Jul-Sep) last year and in comparison current years’ figures are really dismal.

Overall, textile and clothing sector shows a decline of US$ 316.5 million (-11%) in the first three months of the current fiscal year as compared to the same period last year.

Raw cotton exports continue to increase, which registered an increase of US$ 11.4 million (39%) in this period. High prices of cotton in the local market and subdued purchases from the textile mills seem to be the reason for this increase. Processed cotton (carded or combed) shows a decline of US$ 5.8 million (-88%), showing that the importing countries are processing cotton themselves.

Cotton yarn shows a slight increase of US$ 11 million (3%), while man-made yarn exports increased substantially by US$ 2.8 million (39%). This trend shows increased activity in this commodity especially in synthetic yarn which is not a traditional export.

Fabric exports also show declines as cotton fabric exports declined by US$ 212 million (-35%) and knitted/crocheted fabric declined by US$ 2.2 million (-13%).

The only positive aspect is the slight increase in exports of readymade garments which grew by US$ 11.7 million (4%). Knitwear exports, on the other hand, declined by an alarming US$ 69.6 million (-13%).

Bedlinen, another traditional and major export declined by US$ 72.5 million (-15%). While export of towels declined by US$ 25 million (-14%).

Artificial silk and synthetic textiles, another non traditional export, increased substantially by US$ 29 million (33%) while exports of tents and canvas products fell by US$ 5.4 million (-33%).

It is now expected that export figures for the next quarter will register better results because of shipments for approaching Christmas season and because of the steps taken to stem decline in the recently announced Textile Policy 2009-14.