RMG exports up 20pc from Pakistan, a policy outcome

According to the Pakistan Bureau of Statistics, exports of readymade garments increased 19.5 per cent in March 2017 while overall export of textile and clothing rose 6.2 per cent year on year, touching US$1.064 billion during the month. Knitwear exports were up 5.4 per cent while exports of bed-wear and towels increased 5.4 per cent and 16 per cent respectively.

Yarn exports also saw a year-on-year of rise of 5 per cent in cotton while exports of cotton cloth and non cotton yarn was recorded declines of 5.5 per cent and 27 per cent. Export of silk, art and synthetic textile rose 2.7 per cent. However, raw cotton export declined 3 per cent year on year, given the scant availability of the white fibre this season.

Last year, the government had introduced a policy that provide a 4 per cent rebate on exports of readymade garments subject to a 10 per cent rise year on year, 1 per cent on fabric and 2 per cent on home textile. The exporters were handed out PakRs2.5 billion in the previous financial year as part of the policy. With the rise in March, there is an apparent steady increase in value of Pakistan’s exports in last four months.

The government is also supporting the entire textile value chain to adopt and upgrade to new technology. A textile park will be established to provide guidance and awareness to exporters to adopt new technologies that will improve the quality of their products. Textile experts hailing from different sectors will visit this park and advise manufacturers and exporters on resolving their problems.

For Pakistan, textile is the biggest industry, earning foreign exchange worth US$12 billion per annum. However, textile exports have been on a decline for years due to international recession, energy crisis, inconsistent policies and incompetent pricing.