Value added textile exports must retain the growth momentum

The value-added exports of knitwear and bedwear fell 13% and 1.2% year-on-year, respectively. The downtrend was mainly due to the downbeat value-added sector that is a key to drive exports growth. In February, basic textiles exports – cotton yarn, cotton cloth, non-cotton yarn, and raw cotton increased 13% month-on-month. However, the value-added sector and other textiles witnessed a decline of 11% and 10%, respectively.

The exports declined 6.7% in dollar terms and 7.3% in rupees term while cotton yarn increased 40% month-on-month to $120 million. This increase in raw material exports is indicative of the post covid recovery of competing economies. The value-added sector is demanding a moratorium on yarn exports as without an abundant supply of local raw material, enhanced export targets cannot be met. Within the value-added segment, knitwear, bedwear, towel and ready-made declined 10%, 7%, 11% and 15% respectively in February 2021 as compared with January 2021. The value-added sector for the first eight months of 2020-2021 witnessed an increase of 12% to $6.9 billion.

While there is a decline in exports of value-added textiles, a major part of exports remain in this higher quality and better-priced segment led by the knitwear sector and followed by readymade garments bedwear and towels.

 The momentum gained by the textile exporters in making inroads in established and new markets must continue. The current issue as in the past is devoted to Switzerland.  The highlight of the issue is a special report on Archroma Pakistan, the global chemical leader from Switzerland that continues making waves through innovative developments such as Aniline free denim that are contributing significantly to the global sustainability initiative. Mr Mujtaba Rahim, the Managing Director and CEO of Archroma Pakistan shares his views on how Pakistan can help retain the edge in value-added textiles achieved through hard work and perseverance. 

 

 
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