Pakistan’s textile exports rose 3% year over year to USD 1.6 billion in August, supported by higher shipments of cotton yarn, knitwear, ready-made garments and made-up articles, while domestic cotton arrivals increased 19% during the current season.
Cotton yarn exports surged 49% year over year in August, while knitwear exports increased 6%, ready-made garments rose 12% and made-up articles gained 3%.
Taurus Securities attributed the annual increase mainly to stronger demand ahead of the upcoming season.
On a monthly basis, however, textile exports fell about 14%, mainly due to weaker shipments of value-added products, particularly home textiles, amid escalating tensions in the Middle East, according to Taurus.
Which textile exports increased in August?
Basic textile exports rose about 3% year over year to USD 231 million in August, mainly due to higher cotton yarn shipments.
Value-added textile exports increased 4%, while other textile exports declined about 8%.
Taurus expects demand for value-added products, including apparel and home textiles, to remain relatively resilient during FY27, supporting moderate overall export growth.
Why are Pakistan’s cotton imports rising?
Raw cotton imports increased about 50% year over year to USD 169 million in August as demand increased while domestic cotton production remained lower.
Imports nevertheless declined 9% from July. Taurus attributed the monthly decline to improved domestic cotton production compared with the previous year.
The brokerage expects Pakistan’s cotton production to decline 7% year over year to around 4.9 million bales in FY27 because of lower cultivation, particularly in Punjab.
Taurus expects cotton imports to rise to about 5.2 million bales during FY27, meeting roughly half of the country’s cotton requirement.
How much cotton has reached Pakistan’s ginning factories?
Cotton arrivals at ginning factories rose 19.17% year over year to 2.39 million bales through September 15, according to data released by the Pakistan Cotton Ginners’ Association.
The data, compiled jointly by the PCGA and Karachi Cotton Association, showed that ginners received 2,388,682 bales during the current season, up from 2,004,384 bales in the same period last year.
Of the total arrivals, 2,207,183 bales had been pressed by September 15, while 181,499 bales remained unpressed.
Sindh accounted for the largest share, with arrivals of 1.53 million bales, up 16.25% from 1.31 million a year earlier.
Sanghar recorded the highest arrivals in Sindh at 888,607 bales, followed by Sukkur with 110,600 bales and Hyderabad with 89,828 bales.
Punjab arrivals increased 24.73% to 860,942 bales from 690,254 a year earlier.
Bahawalnagar led arrivals in Punjab with 166,400 bales, followed by Dera Ghazi Khan at 146,415 and Bahawalpur at 125,253.
Total cotton stocks held by ginners stood at 260,789 bales, down from 325,780 bales during the same period last year.
Of the cotton pressed during the season, 2,127,893 bales had been sold. Textile mills purchased 2,035,093 bales, while exporters and traders bought 92,800 bales, leaving 79,290 pressed bales unsold.
The latest fortnightly arrival flow stood at 692,231 bales, compared with 668,752 bales during the corresponding period last year.
What is the outlook for Pakistan’s textile exports in FY27?
Taurus expects Pakistan’s textile exports to record moderate growth in FY27, supported by resilient demand for value-added products such as apparel and home textiles.
However, the brokerage said subdued global growth, higher inflation and the continuing Middle East conflict could weaken consumer demand and raise energy costs, adding pressure on textile producers.
Citing the global economic outlook, Taurus said GDP growth is projected at 3.4% in 2027, below the average growth rate of 3.5%.
A resolution of the Middle East conflict could help revive demand and ease operating costs, supporting Pakistan’s textile sector, Taurus said.
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