28 Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y growth occurred despite factors such as the aftermath of the Ukraine war, contractions in market demand, and the withdrawal of incentives and support measures due to IMF conditionalities. In the home textiles segment, bedwear and towels showed notable growth, with quantities increasing by 15.2 percent and 13.8 percent, and values rising by 4.1 percent and 5.6 percent, respectively. Knitwear exports also saw a substantial jump in quantity, up by 40.8 percent, despite a slight decrease in value of 0.7 percent. Readymade garment exports also showed upward trend in value by 2.1 percent and in quantity by 1.4 percent. On the other hand, cotton cloth exports declined by 7.7 percent in value despite of 16.1 percent incline in quantity, signalling areas for potential improvement. Textiles Made-up (excluding towel & bedwear) experienced a growth of 3.3 percent with respect to FY 2023. Raw cotton export noticed a remarkable growth of 316.4 percent in value and 166.7 percent in its volume. Cotton yarn showed upward trend with increase of 13.1 percent in value and 24.9 percent in quantity. While silk & synthesis textile, tent & canvas product, other yarn and cotton carded experienced negative growth of 10.9 percent, 14.8 percent, 27.9 percent and 24.9 percent in value respectively. During FY2024, Pakistan’s textile exports faced considerable challenges, mainly due to falling unit values despite increased export value across nearly all categories. This decline in textile prices reflected decreasing unit values in traditional markets, a trend observed in all major textile-exporting countries. Table 4: Textile Export During FY2024 COMMODITIES UNIT Volume (Million US$) Quantity FY 2024 FY 2023 % Change FY 2024 FY 2023 % Change TEXTILE EXPORT
16,656 1 6,502 0.9
KNITWEAR TH.DOZ 4,408 4,437 -0.7 245,481 74,401 40.8 READYMADE GARMENTS TH.DOZ 3,564 3,492 2.1 75,754 74,728 1.4 BED WEAR M.T 2,803 2,692 4.1 469,493 407,528 15.2 COTTON CLOTH M.T 1,866 2,022 -7.7 361,175 311,094 16.1 TOWELS M.T 1,055 1,000 5.6 222,720 195,814 13.7 COTTON YARN M.T 956 844 13.2 353,454 283,031 24.9 MADEUP TEXTILE
715 693 3.3
SILK & SYNTHETIC TEXTILE M.T 367 412 -10.9 82,876 66,548 24.5 TENTS & CANVAS PRODUCT M.T 118 138 -14.8 35,904 37,736 -4.9 RAW COTTON M.T 56 13 316.4 31,027 11,635 166.7 YARN OTHER THAN COTTON YARN M.T 32 45 -27.9 11,725 14,066 -16.6 COTTON CARDED OR COMBED M.T 0.8 1.1 -24.9 472 1,532 -69.2 OTHER TEXTILE MATERIALS
716 713 0.4
The pressure largely stemmed from heightened global competition, particularly from China, which, as a dominant supplier, offered textiles at highly competitive prices due to its lower production costs. As a result, countries like Pakistan were forced to renegotiate export prices downward, leading to reduced apparel export earnings. The decline in unit values was more significant in high value-added (HVA) textiles, with a noticeable drop in the value of apparel and home textiles reflecting this downward trend. Pakistan faces significant competition in the global textile industry from several countries. Key competitors include: 1. Bangladesh: Bangladesh is a major competitor, particularly in garment production, benefitting from lower labour costs and preferential trade agreements with Western countries. Its focus on ready-made garments and efficient supply chains has boosted its textile exports. 2. India: India’s textile sector is highly diversified, with a strong presence in cotton, man-made fibres, and synthetic textiles. India competes closely with Pakistan in cotton and textile exports, leveraging its scale and advanced manufacturing infrastructure. 3. Vietnam: Vietnam has emerged as a strong player in the textile and garment industry, benefitting from free trade agreements and foreign direct investment. Its focus on efficiency, quality, and integration with global supply chains challenges Pakistan’s textile exports. 4. Turkey: Turkey is known for its high-quality textiles and
Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y 29 SECTION-1 2024 proximity to European markets. It competes with Pakistan, particularly in the higher-end textile segment, leveraging its advanced manufacturing techniques and shorter lead times to European buyers. Figure 7: Textile Export of Pakistan and its Competitor Each of these countries poses unique challenges to Pakistan’s textile sector, both in terms of cost and product differentiation. The figure7 shows Pakistan’s textile export performance compared to its competitors from 2019 to 2023. Pakistan’s exports increased from US$13.69 billion in 2019 to a peak of US$18.86 billion in 2022 but dropped to US$16.24 billion in 2023. Despite growth, Pakistan lags significantly behind competitors like Bangladesh and Vietnam, which achieved higher export figures consistently, with Bangladesh reaching US$61.22 billion in 2022. Vietnam also maintained steady growth, peaking at US$46.61 billion in 2023. This highlights the need for Pakistan to enhance competitiveness and address challenges in the textile sector. 1.1.1.1. Knitwear Exports The knitwear sector is a vital component of Pakistan’s textile industry, significantly contributing to the country’s export earnings and employment. During the fiscal year 2024 (FY 2024), the sector witnessed a mix of growth and challenges influenced by both domestic factors and global market dynamics. In FY 2024, Pakistan’s knitwear exports experienced notable growth in terms of quantity, with an increase of approximately 40.8 percent. This surge in export volumes reflects the rising global demand for knitwear products, including sweaters, t-shirts, and other garments. However, this positive trend was tempered by a slight decline of 0.7 percent in export value, primarily due to falling global prices. The combination of increased quantity and reduced prices highlights the competitive pressures faced by Pakistani exporters in the global marketplace. Key Markets and Demand Trends The United States remained the largest market for Pakistan’s knitwear, followed by the United Kingdom, Spain, Germany, the Netherlands and Belgium. These countries are significant consumers of knitwear and the demand for Pakistani products has been bolstered by the country’s reputation for quality and affordability. Table 5: Top 20 Knitwear Export Destination During FY2024 COUN TRY EXPORT VALUE (MIL LION US$) EXPORT QUANTITY (THOUSAND DOZ) FY 2024 FY 2023 % Change FY 2024 FY 2023 % Change KNITWEAR 4,408 4,437 -0.7 245,481 174,401 40.8 U.S. Amer ica 1,470 1,598 -8.0 73,918 59,233 24.8 United Kingdom 619 569 8.9 29,667 20,461 45.0 Spain 447 401 11.5 27,904 17,668 57.9 Germany 372 351 6.2 18,000 11,482 56.8 Nether lands 355 408 -13.1 40,274 22,004 83.0 Belgium 189 196 -3.8 13,655 9,757 40.0 Italy 112 111 0.4 4,126 3,643 13.2 U.A.E 98 74 32.5 5,275 3,854 36.9 Poland 88 44 98.4 5,136 1,798 185.6 Canada 77 88 -12.5 2,796 3,568 -21.6 France 71 72 -1.0 2,254 2,430 -7.2 China 58 66 -11.9 2,128 2,020 5.4 Denmark 34 35 -1.3 1,285 1,146 12.2 Australia 32 40 -19.5 916 1,234 -25.8 Mexico 32 21 50.5 1,201 589 103.8 Japan 24 28 -14.8 753 669 12.7 Ireland 23 21 9.9 2,342 1,095 114.0 South Korea 20 22 -5.8 450 464 -3.0 Saudi Arabia 20 25 -21.4 645 757 -14.8 Sweden 18 15 15.5 2,076 955 117.4 Despite the overall positive outlook, certain markets faced challenges. For instance, exports to Saudi Arabia, Australia, and Japan saw significant declines of 21.4 percent, 19.5 percent and 14.8 percent, respectively. This downturn can be attributed to economic fluctuations and changing consumer preferences in these regions. Conversely, markets such as Poland, Mexico and the UAE exhibited strong growth, with increases of 98.4 percent, 50.5 percent, and 32.5 percent, respectively. This indicates a shifting landscape in which Pakistani exporters may need to adapt their strategies to capitalize on emerging opportunities.
30 Annual Analytical Report on External Trade Statistics of Pakistan 2 0 2 4 F Y 1.1.1.2. Readymade Garments Exports The readymade garment sector remains a crucial component of Pakistan’s textile industry, contributing significantly to the country’s exports. In FY 2024, Pakistan’s readymade garment exports faced a mixed performance. The sector saw growth of 2.1 percent in export value but value growth remained subdued due to declining global prices. This imbalance between quantity and value reflects a broader trend in the textile industry, where increasing competition and global price fluctuations have led to reduced profit margins. While export quantities increased, reflecting strong demand for Pakistan’s garments, the corresponding value growth failed to keep pace due to lower prices in key markets. Key Markets and Regional Trends The U.S. continued to be the largest market, followed closely by European countries. Despite the overall positive outlook, some markets encountered challenges. Garment exports to Germany and the United Kingdom experienced notable declines of 6.6 percent and 5.6 percent, respectively, largely due to economic fluctuations and evolving consumer preferences in these regions. Table 6: Top 20 Readymade Garments Exports Destination During FY2024 COUNTRY EXPORT VALUE (MIL LION US$) EXPORT QUANTITY (THOUSAND DOZ) FY 2024 FY 2023 % Change FY 2024 FY 2023 % Change READYMADE GARMENTS EXPORT 3,564 3,492 2.1 75,754 74,728 1.4 Denmark 74 32 128.3 1,454 596 144 United Arab Emirates 131 101 30.8 3,862 3,659 5.5 Mexico 26 20 29.3 303 223 35.8 Poland 84 75 11.7 1,225 1,249 -2 Saudi Arabia 54 50 9.4 1,872 2,235 -16.2 Canada 64 60 7.2 974 919 6.1 Italy 169 160 5.6 6,734 5,836 15.4 U.S. America 1,059 1,024 3.5 19,526 20,270 -3.7 Netherlands 345 335 2.8 5,019 4,673 7.4 Portugal 25 24 1.9 412 473 -13 Spain 433 427 1.4 7,704 7,851 -1.9 Ireland 14 14 0.7 322 253 27.2 Belgium 94 95 -0.8 3,273 3,670 -10.8 Malaysia 14 14 -5.5 394 371 6.3 United King dom 300 318 -5.5 6,314 6,676 -5.4 Germany 336 360 -6.6 5,431 6,525 -16.8 France 71 83 -14 2,200 2,418 -9 Australia 28 32 -14.9 542 627 -13.7 Sweden 43 52 -17 753 854 -11.8 Czech Re public 14 19 -26.5 192 184 4.2 In contrast, markets like Denmark, the UAE, Mexico, and Poland showed strong growth, with increases of 128.3 percent, 30.8 percent, 29.3 percent and 11.7 percent, respectively. This shift underscores the need for Pakistani exporters to adjust their strategies to capitalize on emerging opportunities in these growing markets. 1.1.1.3. Bedwear Exports Known for its high-quality cotton and well-established textile manufacturing infrastructure, Pakistan has long been a major exporter of bedwear products, including bed sheets, pillow covers and comforters. During FY 2024, the bedwear export sector exhibited resilience, managing to grow in a challenging global economic environment. In FY 2024, Pakistan’s bedwear exports witnessed modest growth in both quantity and value. The sector recorded a 15.2 percent increase in export quantity, while the value of bedwear exports grew by 4.1 percent, reaching a substantial portion of the country’s total textile exports. This growth highlights the consistent demand for Pakistani bedwear products, particularly in key markets like the United States, Europe and the Middle East. Despite the global economic slowdown and heightened competition, the sector’s performance remained relatively stable due to the strength of Pakistan’s cotton production and its ability to meet international quality standards. However, the rise in export volumes did not correspond to a proportional increase in value, as global prices for bedwear remained under pressure due to competition from countries like China and India which offer lower-priced alternatives. Key Markets and Regional Trends The primary destinations for Pakistan’s bedwear exports during FY 2024 continued to be the United States, Germany, the United Kingdom and other European Union countries. These markets accounted for a significant share of bedwear exports, driven by strong demand for high-quality cotton-based products. Other regions, such as the Middle East and Africa also emerged as promising markets for bedwear exports. Increased urbanization, rising living standards and the growing hospitality industry in these regions contributed to the demand for bed linens, presenting opportunities for Pakistani exporters to diversify their market base.