As global economies return to normal, Pakistan is experiencing a major surge in export orders. As per a BOL report, with $15.4 billion Pakistan’s textile exports reached its highest levels in FY21. Exports in the second half of FY 2021 exceeded that in the first half by 7 per cent. Compared to FY 2019, the second half exports increased by 19.10 per cent against 11.8 per cent in the first half, indicating a robust outlook for the sector in the near-term with order book stretching to 6 million to 9 million.

Hamza Kamal, Investment Analyst, AKD Securities says, strict measures to clamp down the virus spread in competitive economies, yielded some share to the local manufacturers improving Pakistan’s share in the US apparel imports to 2.7 per cent in 5MCY21 from 2.1/1.7 per cent in the same period last year/CY19. Shift in demand fundamentals have turned the table in favor of the spinning players while low cotton output pulled up domestic cotton prices by 54.40 per cent Y-o-Y in FY21 and consequently yarn prices.

The spinning sector posted earnings of Rs2.8 billion in the third quarter of FY 2021, compared with the loss of Rs 60.30 million in the corresponding period of FY 2020, and the profit-after-tax of Rs 269.10 million in the third quarter of FY 2019 with impetus coming from revenue growth of 23.7/21.5 per cent over FY20/19 and expanding the gross margins (in the third quarter of FY 2021, GMs stood at 16.7 per cent, compared to 11.3/8.3 per cent in the corresponding period of FY20/19.

By Fashionating World
https://www.fashionatingworld.com/new1-2/pakistan-textile-exports-reach-highest-levels-in-fy21