ISLAMABAD: Exports of value-added textile products posted a growth of over 12 per cent year-on-year to $3.46 billion in the first five months of 2017-18, the Pakistan Bureau of Statistics said.

This propelled overall growth in exports during the period under review mainly because of a cash subsidy offered to exporters under the prime minister’s incentives package and the payment of sales tax refunds.

Total exports of the textile sector reached $5.51 billion in July-November against $5.11 billion a year ago, reflecting an increase of 7.66 per cent.

The share of textile and clothing sector in overall export proceeds stood at 61 per cent during the period under review.

The main driver of growth was the value-added textile products. Exports of readymade garments edged up 14.69 per cent in the first five months in value and 11.45 per cent in quantity. Similarly, exports of knitwear increased 12.07 per cent in value and 12.82 per cent in quantity during the period under review.

In the category of primary commodities, exports of cotton yarn witnessed a year-on-year increase of 0.64 per cent in value. Exports of yarn other than cotton increased 15.8 per cent in dollar terms. Exports of made-up articles, excluding towels, increased 7.8 per cent while those of art, silk and synthetic textiles rose 53.3 per cent during the period under review. However, exports of tents, canvas and tarpaulin dipped over 33 per cent. Raw cotton exports recorded a year-on-year increase of 49.7 per cent.

Machinery imports

The import bill of machinery, oil and eatables increased 15.7 per cent to $12.79 billion in July-November.

The import bill of food products rose 16.08 per cent to $2.71bn mainly because of the arrival of foreign tea, spices, sugar, palm oil and soybean oil. Imports under the petroleum group went up 35.96 per cent to $5.55bn in July-November. The surge in imports of raw and petroleum products was witnessed during the period under review. At the same time, growth was also noticed in the imports of liquefied natural gas.

The import bill of overall machinery fell 2.2 per cent to $4.53 billion. The decline was mainly led by a drop in the imports of power-generating machinery, office machinery, construction and mining machinery. In contrast, a surge in the imports of mobile phones and apparatus was recorded during the period under review. Imports of textile and agriculture machinery also witnessed a growth in the first five months of the current fiscal year.

Meanwhile the sustained growth in Pakistan’s cotton production has reached 10.685 million bales during the first fortnight of December, according to latest official data.

A 5.30 per cent increase has been witnessed over the corresponding period last year when production stood at 10.147 million bales.

The latest cotton production figures issued by Pakistan Cotton Ginners Association show higher growth in Sindh’s cotton production at 4.136 million bales, an increase of 11.70 per cent over the same period last year when production stood at 3.703 million bales. The province produced around 433,275 more cotton bales so far over last year.

Against this, cotton production in Punjab during the period under review recorded a modest increase at 6.549 million bales or 1.63 per cent higher over the corresponding period last year when production was at 6.444 million bales.

Internews