Textile exports surge 17pc

[Baby Leone]

ISLAMABAD: Pakistan’s textile and clothing exports jumped nearly 17 per cent year-on-year in February, reported the Pakistan Bureau of Statistics on Tuesday.

Trade analysts and commerce ministry believe the growth is due to diversion of orders from China owing to the spread of coronavirus in the country.

The proceeds from textile and clothing exports reached $1.27bn during February, from $1.09bn in the same month last year.

The robust growth in the sector is seen after a long time as the past few years had been marred by single-digit increases.

ARTICLE CONTINUES AFTER AD
The textile sector has received excessive orders in February but it is uncertain if this will continue in the coming months or not.

In the 2019-20 budget, the government had reduced the cost of raw materials and semi-finished products used in exportable products by exempting them from all customs duties. It also promised to provide sales tax refund to export-oriented sectors.

Product-wise details show that exports of ready-made garments surged by 24.4pc in value but drifted lower in quantity by 0.68pc during February while those of knitwear rose 20.29pc in value and 46.85pc in quantity and bedwear 17.34pc and 8.59pc, respectively.

Exports of towel jumped 13.2pc in value and 11.82pc in quantity, whereas those of cotton cloth were higher by 7.57pc in value but declined 18pc in quantity.

Among primary commodities, cotton yarn exports dipped by 10.22pc while yarn other than cotton soared by 100pc, made-up articles — excluding towels — increased by 7.39pc, tents, canvas and tarpaulin 88.94pc and raw cotton 9.46pc during the month under review.

Between July-February FY20, exports of textile and clothing grew by 5.3pc to $9.37bn, from $8.9bn over the corresponding months of last year. In rupee terms, the proceeds of the sector were higher by 24.87pc.

Last week, Prime Minister Imran Khan approved the Textile Policy 2020-25 in principle which will now be processed under the rules of business.Commerce Adviser Abdul Razak Dawood in a tweet said the textile policy-making process stood completed. “Now we’ll move towards the implementation phase, which will pave the way for rapid industrialisation,” it read.

Published in Dawn, March 18th, 2020

 

[Baz]

need to get bangladesh out of business

 

[American Pakistani]

Good but we should be more focused on IT or electronic exports.

 

[Shah_Deu]

https://tribune.com.pk/story/217829...reign-buyers-start-cancelling-textile-orders/

Amid COVID-19 fears, foreign buyers start cancelling textile orders

By Imran Rana
Published: March 18, 2020

PHOTO: REUTERS

FAISALABAD: Textile exporters are highly perturbed about the adverse impact of COVID-19 outbreak as foreign buyers have started cancelling and putting off export orders.

They say the situation is leading towards massive de-industrialisation, a significant fall in exports and unmanageable unemployment. They ask the government to take supportive measures on a war footing to keep the wheel of industry moving and protect jobs of millions of people.

Pakistan Textile Exporters Association (PTEA) Chairman Sohail Pasha, in a statement, expressed concern over the adverse impact of coronavirus pandemic on the national economy and industrial sector.

“The virus has taken its toll on global markets and it has also left a serious impact on the scale of demand for Pakistan’s export goods,” he said. The most-affected value chain in Pakistan is textile and apparel, which has started facing large-scale cancellation or postponement of export orders. Resultantly, he said, industrial production had slowed down.

To save the economy from the impact of slowdown in the world economy due to COVID-19 and other global economic challenges, he asked the government to take economic measures to protect the trade and industry in the country.

He called for disbursement of all outstanding tax refunds of textile exporters along with policy incentives including the Duty Drawback of Taxes, Technology Up-gradation Fund and mark-up support subsidy.

PTEA Patron-in-Chief Khurram Mukhtar pointed out that an extreme cash flow crunch had already squeezed the financial stream and the negative impact of COVID-19 would further hit the export industry.

“Disruptions to export shipments will likely continue for some time and the government should come up with supportive measures to help cope with this abnormal situation,” he said. He called for restoring the zero-rating tax facility for the five major export sectors till June 30, 2020 and waiving interest payments and installments of long-term loans for three months.

Mukhtar pointed out that several central banks around the world had slashed interest rates to support their economies amid the coronavirus outbreak. “Lower interest rates make borrowing cheaper and encourage businesses to take loans, which will stimulate the economy.”

He called for a 500-basis-point cut in the interest rate and increase in State Bank’s Export Finance Scheme (EFS) limit by 30% for all exporters for a period of 180 days.

Published in The Express Tribune, March 18th, 2020.

ISLAMABAD: Pakistan’s textile and clothing exports jumped nearly 17 per cent year-on-year in February, reported the Pakistan Bureau of Statistics on Tuesday.

Trade analysts and commerce ministry believe the growth is due to diversion of orders from China owing to the spread of coronavirus in the country.

The proceeds from textile and clothing exports reached $1.27bn during February, from $1.09bn in the same month last year.

The robust growth in the sector is seen after a long time as the past few years had been marred by single-digit increases.

ARTICLE CONTINUES AFTER AD
The textile sector has received excessive orders in February but it is uncertain if this will continue in the coming months or not.

In the 2019-20 budget, the government had reduced the cost of raw materials and semi-finished products used in exportable products by exempting them from all customs duties. It also promised to provide sales tax refund to export-oriented sectors.

Product-wise details show that exports of ready-made garments surged by 24.4pc in value but drifted lower in quantity by 0.68pc during February while those of knitwear rose 20.29pc in value and 46.85pc in quantity and bedwear 17.34pc and 8.59pc, respectively.

Exports of towel jumped 13.2pc in value and 11.82pc in quantity, whereas those of cotton cloth were higher by 7.57pc in value but declined 18pc in quantity.

Among primary commodities, cotton yarn exports dipped by 10.22pc while yarn other than cotton soared by 100pc, made-up articles — excluding towels — increased by 7.39pc, tents, canvas and tarpaulin 88.94pc and raw cotton 9.46pc during the month under review.

Between July-February FY20, exports of textile and clothing grew by 5.3pc to $9.37bn, from $8.9bn over the corresponding months of last year. In rupee terms, the proceeds of the sector were higher by 24.87pc.

Last week, Prime Minister Imran Khan approved the Textile Policy 2020-25 in principle which will now be processed under the rules of business.Commerce Adviser Abdul Razak Dawood in a tweet said the textile policy-making process stood completed. “Now we’ll move towards the implementation phase, which will pave the way for rapid industrialisation,” it read.

Published in Dawn, March 18th, 2020

These results that you posted and we are seeing now reflects old orders that we processed. The negative effects of corona virus now will be seen in the coming months and this phenomenon wont be limited to Pakistan only. This was also one reason why the industry was asking the State Bank for a higher cut in interest rate, which unfortunately hasnt happened!

 

[Samlee]

Now That Trade Is Diverted Only Hope Is That Europe and US Reopen Soon