“However, in textile products, only raw cotton export witnessed major shift destination, which is a positive sign for the country, which relied mainly on the traditional markets over the years, analysts and exporters noted. The textile exports recorded a substantial increase to existing market but also sent to markets like Turkey, Portugal and Singapore, which broadened the customer base .
“The diversification of customer base is a positive indicator for our exports as it shows reduced dependency upon existing clients its a phenomena more favorable when seen further down the value chain”, Moniba Saeed, analyst at InvestCap suggested in her comments. However, she pointed out that no such trend was seen in readymade garments segment – a high value product in textile chain – where our major customer base consists of the same countries with almost no additions witnessed during the period. Although textile exports have recovered from depressed levels witnessed in last fiscal. Analysts emphasised the need for further diversification both in terms of exploring new markets and adding further value added products to our portfolio in order to fully capitalize on our strength in the agriculture and textile sector. “This diversification – as an essential ingredient if we intend to continue our dependence upon the sector for foreign exchange and a trade surplus in the future”, they added .
“Pakistan’s textile exports registered an increase of seven percent in eleven months of current financial year. The textile group, contributing a massive 53% to our total exports, the 7% increase translated into an addition of $91.5mn lifting the textile exports to a level of $9.324 billion .
“The growth was mainly driven by three segments namely cotton yarn, silk and synthetic textile -and raw cotton). Raw cotton exports registered the highest increase both in quantity terms – up by 113% YoY to a level of 159 million MT and dollar terms – up by 135% YoY reaching $194.4 million. The increase was however driven by amplified demand both due to increase in global demand and broadened customer base as well as an increase in prices apparent from the 10% YoY rise witnessed under the Average Unit Price (AUP) of the segment. Export of cotton yarn showed relatively less-promising picture where the segment’s exports registered a 28% YoY increase in dollar terms to reach $1.293 billion. The increase was, however, driven lesser by increased average unit prices up by 2% YoY depicting relative inability of exporters to pass on raw cotton price increase .
“In volumetric terms, exports of cotton yarn increased by 25% YoY reaching 588 million MT in July- May 2009-10 .
“Cotton cloth having the highest weightage i.e. 18% in total textile exports registered a decline both in dollar terms down by 9% YoY and volume wise – 10% decline, where the segment ended up exporting 1.6 million square meters of cloth for an amount for $1.661 billion. The knitwear and bedwear segment with the second and third highest contribution – both 17% to total textile exports remained at almost the same levels as last year increasing by 0.9% and declining by 0.7% respectively .