Pakistan Textiles_Sector update Jun'17, (AKD Daily, Jul 27, 2017)
​In contrast to the declining trend, country's total exports during Jun'17 surged 17.5%MoM/16.1%YoY to US$1.911bn, where upward trend was witnessed in all categories except food exports (down 19.1%MoM). Textile exports (comprising 55-60% of total exports) contributed most to the total exports growth, registering 29.7%MoM/23.5%YoY growth, with Jun'17 exports of US$1.217bn. Category wise, both value added exports and low value added exports grew by 24.6%YoY/20.1%YoY to read at US$931mn and US$287mn, respectively. On cumulative basis, total textile exports during FY17 remained flat (+0.04%YoY) at US$12.543bn, as 4.4%YoY decline in low value added exports cannibalized paltry 1.8%YoY increase in value added exports. To provide relief to the ailing industry, GoP announced the PM's export package in Jan'17 which till date has failed to materialize as pending incentive claims (estimated at PkR34.7bn) remained unpaid creating liquidity pressure and resulting in low capacity utilization for the sector. Additionally, factors like 1) higher energy cost, 2) power load shedding, 3) obsolete machinery, and 4) currency overvaluation continued to weigh on textile sector. Looking ahead, we expect moderate 6-7%YoY growth in exports for FY18, where expected currency devaluation (presently overvalued by 10-20%) and commencement of sales tax refunds shall aid in recovery.
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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