Textile sector exports decline by 10.38 percent in FY12

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Economic Updates - Pak Major Financial News

The Pakistan Bureau of Statistics (PBS) released its exports and imports data for July-June 2011-12 (FY12) on Friday, which reflected that exports in major sectors has decreased while imports in major sectors has increased.

The textile sectors cumulative exports during FY12 in dollar terms have declined by 10.38 percent to $12.35 billion against $13.78 billion in the same period last year. Meanwhile, its share in Pakistan’s total exports also declined sizably. Experts attribute this decline to the severe energy crisis and fall in internal demand.

Due to this phenomenon, the quantum exports of high value added items such as knitwear, bed wear, towels and readymade garments have shown negative growth during the period under review.

In its sub-groups, raw cotton exports increased by 26.6 percent to $462 million and tents, canvas & tarpaulin increased by 110 percent to $98.8 million while other products exports in textiles which involve value addition and need energy, all have reduced in range of six to 64 percent.

Cotton yarn exports were down by 18.5 percent to $1.79 billion, cotton cloth was down by 6.2 percent to $2.45 billion, knitwear were down by 14.4 percent to $1.97 billion, bed wear were down by 16 percent to $1.75 billion, readymade garments were down by 7.8 percent to $1.63 billion, art, silk & synthetic textiles were down by 10.8 percent to $542 billion and made up articles (excluding towels and bedwear) exports were down by 6.4 percent to $584.7 million over last year.

Further, food items exports during FY12 reduced by six percent to $4.24 billion. Rice exports were down by 4.5 percent to $2.06 billion in which basmati rice exports declined by 14.87 percent to $819.6 million. Meanwhile, wheat exports were down by 78.5 percent to $125.7 million and vegetable exports were down by 33 percent to $180.6 million over the same period of last year.

However, fish and fish preparations exports went up by 6.53 percent to $315.5 million, fruits increased by 23 percent to $358 million, meat and meat preparations went up by 14.3 percent to $175 million and tobacco exports went up by 8.68 percent to $29.2 million.

 

Further, carpets, rugs and mats declined by 8.8 percent to $120.7 million, leather tanned declined by 4.2 percent to $445.3 million and leather manufacturers went down by 4.2 percent to $518 million over the corresponding period of last year.

Besides, sports goods exports went up by 0.47 percent to$331.5 million, surgical good and medical instruments were up by 14 percent to $297 million, chemical and pharmaceutical products went up by 16.4 percent to $1.07 billion and engineering goods exports up increased by 10.78 percent to $283.6 million compared by FY11. Jewellery exports increased by 128 percent to $921.8 million during the period under review, proving that there is immense potential in the sector; gems exports also went up by 4.6 percent to $3.97 million.

Furniture exports went down by 2.4 percent to $12.42 million, cement exports up by nine percent to $498 million and pharmaceutical exports up by 3.8 percent to $154.7 million over same period last year.

Imports in most sectors increase in FY12: The PBS data further said that total import in textiles was of $2.18 billion against $2.68 billion depicting 18.6 percent reduction over corresponding period of last year. The decline in textile machinery import may be attributed to the fall in external demand; decline in export prices; and, energy problems faced by textile sector.

Under this head, raw cotton imports down by 55.5 percent to $412.4 million, synthetic and artificial silk yarn by 8.1percent to $474 million, while synthetic and artificial silk yarn has up by 10.2 percent to $556.3 million and worn clothing import up by 16 percent to 135.5 million over last year. In this slab, textile machinery import declined by 2.67 percent to $444.5 million against $456.7 million in the last fiscal year.

Agricultural and other chemical group imports stood at $7.08 billion, a surge of 14.72 percent over the same period last year when its purchase in international market stood at $6.17 billion. Under this group, the 120.5 percent more were spent on manufactured fertilisers import, as in FY12, the economy imported fertilisers of $1.18 billion against $537.6 million in the last fiscal year.

During FY12, food group imports were recorded at $5.04 billion against $5.07 billion in the same period last year depicting a decline of 0.6 percent. In this group, the economy spent $2.37 billion on palm oil import, which is 17.5 percent more than last year. Tea imports up by five percent to $350.7 million, pulses by 7.5 percent to 433.4 million and spices imports down by three percent to $100.9 million over same period of last year. Plastic materials imports increased by 1.16 percent to $1.53 billion, while imports of insecticides went down by 10.8 percent to $137.45 million and medicinal products imports went up by 1.2 percent to $696.96 million over FY11.

A sizable share of machinery imports was also witnessed in the country’s total imports and during the year under review, it was recorded at $5.63 billion against $5.27 billion in the last fiscal year, depicting a surge of 6.8 percent.

Telecom sector import up by 23.9 percent to $1.27 billion ($688.2 million spent on mobile phones imports); Power generation machinery import almost remained the same at $1.04 billion; Electrical machinery and apparatus import increased by 2.3 percent to $811.6 million; agriculture machinery by 26.8 percent to $125 million; office machinery by 17.9 percent to $282 million; construction and mining machinery by 27.8 percent to $147.7 million over FY11. Transport group imports reduced by 7.55 percent to $2.07 billion from $2.24 billion last year. Under the completely built units (CBU) during July-June 2011-12 imports of buses, trucks and other heavy vehicles imports up by 99 percent to $150.6 million and motor cars 145 percent to $371 million.

Meanwhile, under the completely knocked down/semi knocked down (CKD/SKD), imports of buses, trucks and other heavy vehicles imports up 44.2 percent to $156.9 million, motorcycles 21 percent to $91million and motor cars imports up by 3.8 percent to $486 million over last year.

On the imports of gold, iron and steel scrap, iron and steel, and aluminum, Pakistan spent 9.5 percent more dollars by purchasing them worth $2.82 billion from what was recorded in FY11 ($2.57 billion).


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