Pakistan Textile_Nov’22 Textile Exports grow 4.7%MoM on low base, (AKD Daily, Dec 21, 2022)
Nov’22 Textile Exports grow 4.7%MoM on low base
PBS data has shown Textile exports clocking in at US$1.4bn in Nov’22, higher by 4.7%
MoM due to the low-base from the earlier month. When compared to the 4MFY23 period, the exports in Nov’22 fell short by ~4.3%. On a cumulative basis, 5MFY23 exports
have clocked in at US$7.4bn, lower by 5.1%YoY.
Value-added textiles spearheaded the sequential growth, increasing by 7.6%MoM, which
offset the 10%MoM dip witnessed by the non-value added segment.
The data indicates that exporters have had to offer lower prices in a bid to increase volumes. For instance, average prices of Knitwear products was down by 2%MoM and 4%
lower than the 4MFY23 average realized price.
Inflationary pressures in the developed world and the resulting dip in disposable income
has led to muted demand from the textile sector. We expect the challenges to continue
over the course of the fiscal year and lead to a 10-15% export contraction in the sector.
To note, inventories have been built up by large retailers in UK, US & Europe, which are
expected to deplete over the course of the ongoing holiday season. As a result, the exports may see a temporary blip as retailers look to replenish inventories. However, we
view this to be a short-lived phenomenon.
Sequential growth in textile exports: According to data from PBS, Textile exports for the
month of Nov’22 clocked in at US$1.4bn, higher by 4.7%MoM while lower by 18.2%YoY. The
sequential increase can be attributed to the low base established in the earlier month. When
compared to the average textile exports in the 4MFY23 period, the number in Nov’22 falls short
by ~4.3%. This takes the cumulative textile exports to US$7.4bn in 5MFY23, lower by 5.1%YoY.
Value-added textiles spearheaded the sequential growth, increasing by 7.6%MoM, which offset
the 10%MoM dip witnessed by the non-value added segment. Within the value-added exports,
the brunt of the growth was driven by Readymade Garments, wherein exports increased by
18.6%MoM, with a substantial increase of 21%
AKD Securities Ltd. is one of the leading securities firm in Pakistan, providing a comprehensive range of investor focused services, including equity brokerage, economic and securities research, investment banking and financial advisory services. AKD Securities accounts for more than 6% of the average daily value of the Karachi Stock Exchange. AKD Securities was the first brokerage house to launch an online trading platform in Pakistan in November 2002 and now has the largest market share with over 6000 customers. This has helped diversify and expand the retail investor base in the country and ushered in a whole new universe of investors to the stock market.
AKD Securities Ltd. caters to a diversified group of domestic and international institutional investors, high net worth individuals and upscale retail clients, including expatriate Pakistanis. With high quality research, unparalleled execution and distribution capability for both regular and large block trades, AKD Securities Ltd. has earned an outstanding reputation in the Pakistani securities industry.Outside of commercial banks, AKD Securities Ltd. is one of the biggest capital market firms in the country. AKD Securities is the leader in raising and providing risk capital in underwriting, market making and mergers and acquisitions in Pakistan. Good corporate governance and professionalism are emphasized throughout the firm and AKD Securities Ltd. is amongst the very few companies to have introduced a firm-wide comprehensive CODE of ETHICS, overseen by an independent compliance manager.Ultimately, our success is based on the quality of service we provide to our customers and the trust and confidence reposed in us by them. Our focus, therefore, remains on customer satisfaction at all levels in the company.
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