Pakistan Textile_Textile exports drop in Sep'22 (AKD Daily, Oct 19, 2022)
Textile exports drop in Sep'22
Textile exports during the month of Sep’22 clocked in at US$1,527.1mn, higher by 3%YoY,
while lower by 3% compared to the earlier month. The MoM decline can be attributed in
large to the Readymade Garments segment, wherein exports were down by 16.1%
MoM—a product of a ~14%MoM dip in quantity exported, and ~2%MoM dip in average
prices. Value-added textile exports were down by 3%MoM, while up by 3.9%YoY, whereas exports of non-value added textile goods were down by 3.3%MoM/2.2%YoY.
On a quarterly basis, Value-added textile exports were higher by 5.3%YoY to
US$3,748.6mn in 1QFY23, largely driven by a 15.4%YoY increase in knitwear exports and
5.8%YoY increase in Readymade Garments. Overall textile exports were higher by 3.7% in
the quarter, clocking in at US$4,583.3mn.
International cotton prices have eased recently, with the COTLOOK A Index being down
19% since Aug’22 end to USc106.15/lb currently. On the local front, cotton prices have
dropped by 22% since Aug’22 end to PkR18,755/40kg.
In the aftermath of the recent floods and the devastating loss of cotton crop—particularly
in Sindh—raw material mix for textile players this year may tip even further in favor of
imported cotton. However, the import data thus far suggests heightened imports are yet
to start, with 143,166 tons of raw cotton having been imported in 1QFY23, compared to
166,524 tons in the SPLY.
While textile exports have remained robust in 1QFY23 (up 3.7%YoY), a slowdown in the
same is likely as India and Bangladesh exports resume. Furthermore, the textile sector
has claimed delayed GST recovery from the GoP, which could dent the exporting capabilities of the textile sector.
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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