KARACHI, July 20, 2020: Pakistan textile export fell by 6 percent during the last fiscal year (FY20) mainly due to COVID-20, which impacted economies worldwide.
Pakistan’s textile export declined to $12.5 billion end of the FY20, compared to $13.3 billion in the previous year, a plunge of some $800 million in exports in a year.
This is almost entirely due to the slowdown due to Covid-19 as initial nine months of last fiscal year (FY2) exports were up by 4.2 percent YoY).
Pakistan’s textile exports during Jun-2020 declined by 5 percent YoY to $959 million, where most major sub-categories underwent a contraction during the month.
A decline was more or less on the cards, particularly considering the pandemic scenario in global markets and the massive 65 percent and 37 percent YoY drops in the last two months.
In that context, the severity of the decline in Jun-2020 was markedly less, which is also visible from the 28 percent MoM recovery in this month.
Going forward, analysts expecting that as lockdowns continue to ease around the world, demand for textiles is also expected to recover and growth in textile exports in FY21 might also be a possibility against earlier expectations of a decline in the next year.
Moreover, large and vertically integrated players such as Nishat Mills (NML), Interloop (ILP) and Kohinoor Textiles (KTML) could recover quicker than smaller competitors owing to their size and better established links in export markets compared to smaller exporters.