KARACHI: As per the data released by Pakistan Bureau of Statistics (PBS), total textile exports for May’19 remained almost flat (-1%YoY).
However on a MoM basis, textile exports exhibited increase of 4%. Non-value added sector, registered hefty decline of 15%YoY/4%MoM whereas value added exports rose 5%YoY/7%MoM during the month.
In terms of volumetric growth, raw cotton & cotton cloth registered steep falls of 60%YoY & 20%YoY respectively during the month whereas cotton yarn declined 12%YoY in May’19.
With regards to cumulative performance during the current fiscal year, Pakistan textile exports remained flat at US$12.32bn during 11MFY19 (July-May 2018-19) as compared to US$12.33bn in the same period last year.
Exports of value added products grew 3%YoY whereas non-value added exports contracted 9%YoY during 11MFY19.
Value added segment exhibited increase of 5%YoY to US$869mn in May’19 whereas during 11MFY19, the segment depicted modest growth of 3%YoY at US$9.28bn.
Moreover in terms of volumetric performance during May’19, ready-made garments continued their upward trend with 42%YoY growth (11MFY19: 33%YoY), knitwear volumes rose 38%YoY (11MFY19: 18%YoY).
However, bed wear volumes remained flat during the month (11MFY19: 9%YoY) whereas Towels depicted 2%YoY growth in May’19 (11MFY19: -6%YoY). Average selling price of towels increased 3%YoY to US$4.27/kg during May’19 while prices of knitwear, bedwear & ready-made garments fell 21%YoY/6%YoY/20%YoY, respectively.
Non-value added exports declined 15%YoY to US$279mn in May’19 whereas on aggregate basis, total non-value added exports arrived at US$3.04bn during 11MFY19, exhibiting a fall of 9%YoY.
The dismal performance by the segment in May’19 is primarily driven by 67%YoY/18%YoY/13%YoY decline in exports of raw cotton, cotton yarn & cotton cloth.
In terms of volumetric performance during May’19, cotton yarn declined 12%YoY (11MFY19: -15%YoY), cotton cloth registered fall of 20%YoY (11MFY19: +19%YoY) while raw cotton volumes declined 60%YoY (11MFY19: -67%YoY).
The average export price of raw cotton & cotton yarn decreased 16%YoY & 6%YoY whereas export price of cotton cloth rose 10%YoY.
With government withdrawing zero-rated status of the five export oriented sectors along with hefty amount of refunds yet to be distributed by FBR, growth in exports is anticipated to remain modest despite hefty PKR devaluation.
“However, we highlight recently negotiated CPFTA-II with China as an important development which has the potential to enhance country’s exports over the course of next year,” a report issued by Pearl Securities noted.