Page 8 - April-May 2021

08 09

Textile Exports of

Pakistan: Current

Scenario and

Future Potential

The year 2021 has been impressive so far for In March 2021, Pakistan's exports increased to $
Pakistan's Textile Industry and other exports. 2.345 Billion/month, which was the highest
Pakistan performed better than India in apparel monthly increase in the last ten years. Over the
exports to the United States in the first quarter of past 9 months, Pakistan's exports amounted to $
this year. According to a report released by 18.669 billion compared to $ 17.451 billion in the
Apparel Resources, Pakistan was in top position corresponding period last year 2019- 20. Up to
in the list of countries that export textile, another April 2021, Pakistan's exports hit records.
international platform that gives insights into Pakistan's exports have crossed the $2-billion
apparel industry exports. The first surge in bulk mark for seven successive months (Oct-April) of
textile orders for Pakistan's Textile Sector was FY21. However, Pakistan's exports have declined
observed when the first wave of the pandemic to $2.191 billion in April, 7.36 percent less than
resulted in lockdowns across countries, including the previous month.
crucial textile exporters like India and
Bangladesh. Orders were diverted and poured Although the exports for Jul-April 2021 grew by
into Pakistan's textile industry. As the lockdown 13 percent to $20.879 billion compared to
was easing, the new and deadly wave of $18.408 billion during the same period last year.
covid-19 in India, along with a decline in textile The decline in April could be due to the shortage
exports from China, is expected to give Pakistan's of cotton yarn, fear of COVID-19's current wave,
textile exports another boost. and lockdown news. On the other hand, Pakistan
enjoys zero duties on exports of hundreds of
Usually, India and Bangladesh perform better products to China under the free trade deal. On
than Pakistan, but this time Pakistan has fared the scale of trade balance, Pakistan is yet
better than its neighboring countries despite all importing more than exports. The massive
the challenges of Covid-19. Although the apparel difference between exports and imports creates
import value of the US, a prominent destination an unfavorable balance of trade that is not
for textile exports, decreased 8.7% year-on-year suitable for the country's economy. Pakistan
to $5.39 billion in February 2021, its volume should focus on increasing its exports while
increased 3.2%, and Pakistan was on top of the keeping imports minimum.
list of countries that witnessed a hike in their
apparel exports for the USA. Other countries that Pakistan should seize the opportunity to increase
recorded growth in exports included China, its exports due to the current scenario of
Bangladesh, and Egypt. Pakistan and China COVID-19 in India and Bangladesh. The
managed to increase their apparel shipments to Government should support the local industries
the US in terms of value and volumes. to grab more orders from the international
market.

April/May 2021 April/May 2021