EDITOR’S PAGE

2020-21 was a remarkable year for Pakistan’s textile industry

In 2019-20, exports were recorded at $21.387 billion as compared to $22.958 billion of 2018-19, showing a decline of 6.84 per cent in the previous year. At the end of fiscal year, 2020-21 (July 2020-June 2021) the exports have exceeded all expectations making a record of US$15.4 Billions.

The industrial sector has witnessed a remarkable turnaround largely because of good policies by the government in the form of industrial support packages; relief to exportoriented industries, electricity and gas subsidy for the export-oriented industries.

There has been a remarkable growth in the value added textiles between 2019-20 and 2020-21 period in which Knitwear has witnessed the highest growth of 69% in the quantity exported and an increase in value by 36.57% for a total of US$ 2.8 billion. It must be noted that the unit price of Knitwear decreased by 19% reflecting on the high demand for low value knitwear, particularly Tshirts in the international markets particularly the US and Europe.

Interestingly, ready made garments while being the second export category with US$ 2.5 billion exports witnessed a 22 percent decline in quantity and increase in exported value of 18.83%. This translates into an increase in the unit value of an incredible 54% over 2019-20. This can be attributed to the shortage in the international markets during the pandemic which Pakistan has captured.

In addition, home textile exports grew both in terms of quantity and value by 13% and 28.87% consecutively showing an increase of 13% increase in the unit value. This increase in bed wear exports comes at a time where work from home practices have been adopted, suggesting an increase in demand along with supply being relatively less.

Furthermore, cotton cloth has witnessed a 48 percent decrease in quantity being exported while its export value increased by 4.98%. What is remarkable here is an increase of per unit price by 150%. Lastly, Artificial silk and synthetic textile is a focal point of the exports in textiles as it has garnered a 67% fall in total quantity exported while increasing by 17.68% in terms of value maintaining an 268% grow in per unit (Sqm) value, this has in fact increased the collective value of its exports this year from the previous and could be due to the influence of a surge in demand for PPE kits all across the world.

Textile exports have risen from US$ 12.5 Billion to US$15.4 billion and it can be attributed to the policies adopted by the government to secure workforce in the textile industries, giving a competitive advantage over other countries that have been forced to lay off workers in this industry. The challenge for all stake holders is to retain this momentum and to have a continued and sustainable growth with a focus on meeting the changing demand of global consumers.

12.53 15.4

Textile Exports 2016-21 US$ Billions 2016-17 12.45 2017-18 13.53 2018-19 13.33 2019-20 2020-21

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July 2021 Italian Review

July 2021.