Textile exports jump 26pc in September

LAHORE: Textile exports grew 26 per cent to $1.503 billion in September, according to the All Pakistan Textile Mills Association.

The textile exports earlier registered year-on-year growth of 29pc in the first two months (July and August) of 2021-22 as compared with the corresponding period of the preceding year. In August, exports jumped by 45pc to $1.5bn against $1bn in August 2020.

The textile exports grew 24pc to $15.5bn in 2020-21 from $12.5bn in FY20. Since 70pc of textile exports from Pakistan are from the value-added sector, the industry projects the exports to be $20.5bn for the ongoing fiscal year.

The textile export sector for the last two years has been availing a competitive power tariff at the rate of 9 cents per kWh and gas at $6.5 per mmBtu. The package has now been extended for the current fiscal year. However, the association terms year-wise competitive tariff package not feasible, especially for those planning long-term investments by expanding their exports on a huge scale.

“If the government anno­unces a straight five-year package, the country’s textile exports may jump to $50bn within a couple of years,” says an Aptma office-bearer.

According to Aptma, the textile exports grew 24pc to $15.5bn in 2020-21 from $12.5bn in FY20. Since 70pc of textile exports were from value-added sector, the ind­ustry has projected the exports to $20.5bn for FY22.

“We are confident to achieve the official $20bn target for FY22,” he said.