Textile Exports all set to achieve $20 billion mark

September 28, 2021

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According to PBS, the textile group’s exports topped $ 15 billion in FY2021, and the federal government is hopeful that exports will surpass $ 20 billion in FY2022.

Textile Industry representatives are demanding that to support Textile export growth, the incentive structure should be in line with regionally competitive energy access, a flexible exchange rate, and affordable access to long-term finance.

China accounts for $ 266 billion in world textile trade. As costs tend to increase, buyers are looking for suppliers who can increase supply at competitive prices.

If Pakistan gets a small share from China Textile Trade, its textile exports could double. Buyers from outside China may relocate to Bangladesh, Vietnam, India or Pakistan. The necessary infrastructure in these countries already exists, and the exporters have cheap labor. In addition, the closure of Bangladesh’s manufacturing base during the coronavirus has reinforced the belief that buyers need to diversify their supplier base. Pakistan will benefit from this paradigm shift in buyer’s strategy.

According to the source, buyers are willing to increase the volume of the order if the exporters can meet the delivery time. This required Supportive Infrastructure, cost efficient supply of Gas and Electricity and Subsidized Financing. Though government has been providing Subsidized Long-term financing to the Textile Sector, Industry expects more measures from the government.

Textile exports were recorded at $3 billion during first two months of FY2022, which if annualized, may lead to Textile Exports of $18 billion or 20 percent increase from last year.

Textile sector remains on strong footing, and if geographical dynamics play in favor of Pakistan, Increasing the textile exports by 100% may be achieved with tuning up of Trade strategy.