Pakistan’s textile exports are expected to grow 40 per cent to $21 billion in the 12 months period ending June 2022, says Abdul Razak Dawood, Commerce Advisor to the Prime Minister. He expects exports to further expand to $26 billion in the next fiscal year.
Textiles amount for about 60 per cent of Pakistan's exports. The textile industry is one of Pakistan’s few economic bright spots. Hence, the country allowed its textile factories to open ahead of India and Bangladesh when the pandemic began back in 2020. This led to them drawing orders from global brands including Target Corp and Hanesbrands Inc.
Moreover, the government also plans to announce a proposal next month to provide incentives for exports to new markets such as Africa, South America and Central Asia, Dawood adds. Ahfaz Mustafa, CEO, Ismail Iqbal Securities, adds, Pakistan's exports have become competitive over the past few years due to the fixed energy tariff regime and quick refund of money to exporters.
Pakistan is looking to increase exports to get out of regular boom-bust economic cycles. It is intensifying trade with Central Asian nations by signing agreements and allowing free movement of trucks. In the last six months, Pakistan’s trade has grown to $120 million from $14 million of the entire previous year, adds Dawood.
