Pakistan's Denim Exports to US Soared 62% in First Six Months of 2021

Pakistan exported $38 million worth of denim clothing to the United States in July, 2021. This figure represents 140% growth over July, 2020. Mexico's denim exports grew 58% while those of Bangladesh grew 24% in this period, according to the US Office of Textiles and Apparel. 

US Denim Apparel Imports. Source: US Office of Textiles and Apparel

Among the top Asian suppliers, Pakistan's exports to US jumped 62.16% year to date to $188.94 million. Bangladesh’s exports increased 42.82% to $362.38 million in this period while shipments from China were up 13.28% to $192.49 million. 

Pakistan’s textiles and clothing exports are expected to rise in the coming months as the US moves orders out of China and other neighboring Asian countries. The focus on more value addition and new textile policy of the country will support the organic growth in exports. The depreciation of PKR has also boosted textile exports.

The monthly average of apparel exports from Pakistan was $565.60 million in H1 2021, which is expected to rise by 13.44% in H2 2021 to reach $641.60 million, according to a report in Fiber2Fashion. The US, the UK, Germany, Spain and France were the top importers of Pakistani apparel in H1 and accounted for approximately 68.27% of total apparel exports of the country, according to Fibre2Fashion’s market analysis tool TexPro.

Pakistan's textile and garment exports jumped 22.94% to reach $15.4 billion in Fiscal Year 2020-21 (July 2020-June 2021), according to data from Pakistan Bureau of Statistics.  At the same time, the country's technology exports surged 47% to set a new record of $2.12 billion for the last fiscal year that ended in June 2021. Pharmaceutical exports also saw 25.3% growth to $241 million in the first 11months of FY 2021, indicating Pakistan's export diversification with higher value added goods and services. 
Pakistan Textile/Apparel Exports. Source: Arif Habib Ltd
Pakistan Textile Exports FY 2006-2021. Source: APTMA

Overall, Pakistan's exports of goods for fiscal 2020-21 rose 13.7% to $25.63 billion. The nation's service exports increased 9.2% to $5.93 billion in fiscal 2021. Combined exports of goods and services added up to $31.56 billion in July 2020 to June 2021 period. 

Pakistan Tech Exports. Source: Arif Habib Ltd. 

Imports grew 23.2%, much faster than exports as the economy recovered from the COVID-induced slump, widening the trade gap in the process. Energy demand drove imports of oil and gas to new highs. 

Pakistan Current Account Balance. Source: Arif Habib Ltd. 

During the last two fiscal years,  Karachi has accounted for 51% of Pakistan’s exports, Lahore came in 2nd with 18%, Faisalabad 3rd with 12% and Sialkot 4th with 8.5%. 

Pakistan's Exports by Cities. Source: FBR

Record inflow of nearly $30 billion in remittances from overseas Pakistanis helped reduce the current account deficit to $1.85 billion in FY 2020-21. It's down 58.4% from $4.45 billion in FY 2019-20. 

Overseas Pakistanis' remittances represent 10% of the country's gross domestic product (GDP). This money helps the nation cope with its perennial current account deficits. It also provides a lifeline for millions of Pakistani families who use the money to pay for food, education, healthcare and housing. This results in an increase in stimulus spending that has a multiplier effect in terms of employment in service industries ranging from retail sales to restaurants and entertainment. 

Over 10 million Pakistanis are currently working/living overseas, according to the Bureau of Emigration. Before the COVID19 pandemic hit in 2020,  more than 600,000 Pakistanis left the country to work overseas in 2019. The average yearly outflow of Pakistani workers to OECD countries (mainly UK and US) and the Middle East has been over half a million in the last decade. 

Pakistan ranks 6th among the top worker remittance recipient countries in the world.  India and China rank first and second, followed by Mexico 3rd, the Philippines 4th, Egypt 5th and Pakistan 6th.  
Related Links:

Haq's Musings

South Asia Investor Review

Pakistan's Debt Crisis

Declining Investment Hurting Pakistan's Economic Growth

Brief History of Pakistan Economy 

Can Pakistan Avoid Recurring IMF Bailouts?

Pakistan is the 3rd Fastest Growing Trillion Dollar Economy

CPEC Financing: Is China Ripping Off Pakistan?

Information Tech Jobs Moving From India to Pakistan

Pakistan is 5th Largest Motorcycle Market

"Failed State" Pakistan Saw 22% Growth in Per Capita Income in Last...

CPEC Transforming Pakistan

Pakistan's $20 Billion Tourism Industry Boom

Home Appliance Ownership in Pakistani Households

Riaz Haq's YouTube Channel

PakAlumni Social Network

Views: 439

Comment by Riaz Haq on October 8, 2021 at 7:46am

#Pakistan projects $5 billion of new investments in #textile sector. Industry is working at or near capacity with orders currently booked for a year. Textile #exports expected to jump from $15.4 billion last year to $25 billion by 2025. #economy

Adviser to Prime Minister on Commerce and Investment Abdul Razak Dawood has welcomed the planned investment of $5 billion in the textile sector of Pakistan aimed at establishing 100 new units.

“Our Make in Pakistan policy is beginning to bear fruit,” he said in a statement on Thursday. “We have been informed that investment of approximately $5 billion is in the pipeline under which 100 new textile units are expected to be established.”

He added that apart from enhancing the export capacity, the new units would jointly create around 500,000 jobs, he said.

The government has reversed the de-industrialisation process in Pakistan and placed the country’s industrial sector on the path of sustainable growth, said Dawood.

Topline Securities analyst Saad Ziker stated that the textile sector was all set to boost exports after foreign shipments rose 29% year-on-year to $2.9 billion in the first two months of current fiscal year 2021-22.

The textile industry “is often termed the backbone of Pakistan’s economy, therefore, there is a need to enhance support for the sector in terms of investment and subsidies,” he said.

Elaborating the “Make in Pakistan” policy, he emphasised that new investment under the initiative would steer a turnaround in Pakistan’s textile industry.

“It will increase the number of textile units and reduce unemployment by creating around half a million employment opportunities,” said Ziker.

Read Textile mills aim to meet $21b export target

The analyst pointed out that according to the Pakistan Cotton Ginners Association cotton arrivals into factories were calculated at 3.8 million bales by October 1, 2021 in the current season compared to 1.9 million bales in the same period of last year.

He pointed out that the twofold increase had dispelled the fear of shortage of cotton and provided relief for the exporters as they would be able to fulfill their export orders swiftly.

Arif Habib Limited analyst Arsalan Hanif said that textile companies were currently enjoying excessive export orders and they were booked for almost the entire current fiscal year.

To recall, textile exports stood at $15.4 billion in fiscal year 2020-21 against $12.5 billion in 2019-20, portraying a growth of 23%.

“Conducive policies of the government coupled with high export orders have encouraged textile companies to expand their production capacities, which is expected to increase Pakistan’s exports in the foreseeable future,” said Hanif.

He projected that the investment of $5 billion in the textile sector would increase textile exports to $25 billion by 2025 besides creating new job opportunities.

Comment by Riaz Haq on October 8, 2021 at 4:24pm

#Pakistan's July-Sep #oil sales jump 24% on industry revival, fuel switching to 5.863 million tons. It's driven by rebound in #industrial & #transportation activity as well as rising demand for fuel oil following a rise in #LNG prices. #COVID19 #economy

Comment by Ben Qadeer on October 9, 2021 at 5:58am

That is wonderful. Being from Sialkot, I'm really glad that Sialkot is on number 4 in overall exports from Pakistan. And most companies registered, that's wonderful. Thanks a lot for sharing this information.

Comment by Riaz Haq on October 9, 2021 at 6:13pm

Pakistan is on track to achieve a record $32 billion in remittance inflows in the current fiscal 2021-22 as its over nine million overseas workers remitted a record $8.04 billion during the first quarter ended on September 30.

Foreign exchange inflows may hit $70 billion in 2021-22 on rising exports and surging RDA

Textile Exports figures for September 2021 show a business of $1.503 billion, 26% increased growth over the corresponding year with 28% Textile export growth in Q1 FY22 (from $3.5 billion to $4.5 billion)

Comment by Riaz Haq on October 11, 2021 at 10:29am

With regard to World Bank’s growth estimates of 3.5 percent in FY2021 against National Accounts Committee (NAC) estimates of 3.94 percent, released by the Pakistan Bureau of Statistics (PBS), it is mentioned that the WB estimates are based on unrealistic assessment.

The provisional estimate of GDP growth for FY2021 was 3.94 percent based on 2.8 percent growth in Agriculture, 3.6 percent growth in industry and 4.4 percent growth in services.

However, large-scale manufacturing (LSM) growth was provisionally taken as 9.3 percent in NAC for estimating GDP growth of 3.94 percent. LSM data is available with a two-month lag and the recent data released by PBS on LSM recorded growth of 15.2 percent for FY2021.

Further, recent data on crops mentioned by Federal Committee on Agriculture (FCA) suggest the production of important crops is higher than taken in NAC, 2021. Wheat production is recorded at 27.5 million tons as compared to 27.3 million tons, while production of maize is 8.9 million against 8.5 million tons released by PBS for estimating GDP growth 3.94 percent. After incorporating the latest available information, the GDP growth in FY2021 will improve further above 3.94 percent as compared to 3.5 percent estimates by the WB.

For FY2022, WB projection of 3.4 percent for GDP growth is again underestimated. It is pertinent to mention that economy of Pakistan has shown V-shaped recovery in FY2021 without creating any external and internal imbalances.

The government said it was committed to ensure that the growth momentum remains intact with macroeconomic stability.

Thus, it is expected that GDP growth for FY2022 will remain close to 5 percent.

In this context it is worth mentioning that global GDP growth rate in 2020 was recorded at -3.2 percent and is projected to grow by 6.0 percent and 4.9 percent in 2021 and 2022 respectively.

On the basis of fast recovery expected globally, especially Pakistan’s main trading partners, it is expected to be translated to the domestic economy as well.

Domestically, the production of important crops is encouraging like sugarcane 87.7 million tons (81.0 million tons last year), rice 8.8 million tons (8.4 million tons last year), maize 9.0 million tons (8.9 million tons last year), and cotton 8.5 million tons (7.1 million tons last year). While the target for wheat is set at 28.9 million tons (27.5 million tons last year).

Further, the government said it was taking measures to enhance agriculture performance such as Agriculture Emergency Program, Agriculture Transformation Plan, Prime Minister Kharif Package, incentives to the Livestock sector and increase in wheat support price.

Better crop production together with government’s measures, it is expected that the agriculture sector will perform better. Within industry, LSM recorded a growth of 2.3 percent in July FY2022. Due to the closure of industrial activities during holidays in Eid-ul-Azha and monsoon rains which spread over 15 days.

Further, domestic cement dispatches increased by 3.92 percent to 11.279 tons during July-September FY2022 (10.853 tons last year).

Car production and sales increased by 111.7 percent and 92.8 percent respectively during July-August FY2022, while tractor production and sales increased by 38.7 percent and 18.5 percent respectively. Similarly, total oil sales increased by 21 .0 percent to 5.8 million tons during July-September FY2022 (4.8 million tons last year).

Comment by Riaz Haq on November 2, 2021 at 11:41am

Strengthening Exports is Critical for Pakistan’s Sustained Economic Growth

Pakistan’s economy recovered in Fiscal Year 2021, in part due to the government’s effective use of targeted lockdowns to manage the spread of COVID-19, while also permitting economic activity to largely continue, according to a new World Bank report released today.

The October 2021 Pakistan Development Update: Reviving Exports shows that the country’s real GDP growth rebounded to 3.5 percent in FY2021, after contracting by 0.5 percent in FY2020 with the onset of the global pandemic. In addition, inflation eased, the fiscal deficit improved to 7.3 percent of GDP, and the current account deficit shrunk to 0.6 percent of GDP – the lowest in a decade.

“With effective micro-lockdowns, record-high remittance inflows and a supportive monetary policy, Pakistan’s economic growth rebounded in FY2021,” said Najy Benhassine, World Bank Country Director for Pakistan. “These measures, together with the expansion of the Ehsaas program and support to businesses, were key to strengthening the economy and recovering from the economic fallout associated with COVID-19.”

However, due to strengthened domestic demand, imports have grown much higher than exports in recent months, leading to a large trade deficit. To sustain strong economic growth, Pakistan needs to increase private investment and export more. In examining the country’s persistent trade imbalance, the report identifies key factors that are hindering exports: high effective import tariff rates, limited availability of long-term financing for firms to expand export capacity, inadequate provision of market intelligence services for exporters, and low productivity of Pakistani firms.

“The long-term decline in exports as a share of GDP has implications for the country’s foreign exchange, jobs, and productivity growth. Therefore, confronting core challenges that are necessary for Pakistan to compete in global markets is an imperative for sustainable growth,” said Derek Chen, Senior Economist, World Bank. “Since long-standing issues with the persistent trade gap have resurfaced, this edition of the Pakistan Development Update on “Reviving Exports” provides a timely, in-depth assessment and policy recommendations that can help spur exports.”

The report provides policy recommendations that can help improve Pakistan’s export competitiveness:

Gradually reduce effective rates of protection through a long-term tariff rationalization strategy to encourage exports,
Reallocate export financing away from working capital and into capacity expansion through the Long-Term Financing Facility,
Consolidate market intelligence services by supporting new exporters and evaluating the impact of current interventions to increase their effectiveness,
Design and implement a long-term strategy to upgrade productivity of firms that fosters competition, innovation and maximizes export potential.
The Pakistan Development Update is a companion piece to the South Asia Economic Focus, a twice-a-year World Bank report that examines economic developments and prospects in the region and analyzes policy challenges faced by countries. The Fall 2021 edition titled Shifting Gears: Digitization and Services-Led Development, showed that South Asia’s recovery continues as global demand rebounded and targeted containment measures helped minimize the economic impacts of the recent waves of COVID-19. But the recovery remains fragile and uneven, and most countries remain far from pre-pandemic trend levels.

Comment by Riaz Haq on November 16, 2021 at 9:15am

#Pakistan’s #textile #exports surge 26.55% to to $6.02 billion in first 4 months (July-October) FY 2022 compared to $4.75 billion in the same period last year, according to Pakistan Bureau of Statistics (PBS). #economy #trade - Profit by Pakistan Today

The exports of textile commodities witnessed an increase of 26.55 per cent during the first four months of the current fiscal year to $6.02 billion compared to $4.75bn during 4MFY21, according to data released by the Pakistan Bureau of Statistics (PBS).

On a year-on-year basis (YoY), the exports of textile and clothing posted growth of 24pc during the month of October 2021 as compared to the same month of last year.

As per details, textile exports were recorded at $6021.815 million in July-October FY22 against the exports of $4758.473 million in July-October FY21, showing growth of 26.55pc.

The Pakistan Bureau of Statistics (PBS) data showed that textile commodities that contributed in trade growth included cotton yarn, exports of which increased from $230.329 million in FY21 to $394.765 million during the current fiscal, showing growth of 71.39pc.

Likewise, the exports of cotton cloth increased by 18.54pc from $624,878 million to $740,710 million, carded and combed cotton by 100pc to $1,543 million from zero exports last year, yarn other than cotton yarn increased by 114.6pc from $8.035 million to $17.239 million whereas exports of knitwear increased by 34.5pc from $1,182,604 million to $1,601 million.

Similarly, ready-made garments exports jumped by 22.34pc in value and in quantity by 20.50pc during July-Oct FY22, while those of knitwear edged up 35.45pc in value, but dipped 13.11pc in quantity, bedwear posted positive growth of 21.30pc in value and 23.53pc in quantity.

On month-on-month (MoM) basis, exports from the country witnessed an increase of 7.65pc during October 2021 when compared to the exports of $1487,144 million in September 2021.

It is pertinent to mention here that the import of textile machinery increased by 110pc in July-Oct FY22.

Comment by Riaz Haq on November 17, 2021 at 10:25am

Asian textile industry must embrace digital transformation: Majyd Aziz

KARACHI: Former President, Employers’ Federation of Pakistan, Majyd Aziz has said that to be digital or not is no longer the option and so Asian textile industry must embrace digital transformation that is imperative and must make the most of it.

However, the truth is that these industries have a low score on the overall spectrum of digital adoption in comparison to other sectors. This is because of a number of reasons such as the nebulous nature of the industry, lack of awareness of digital tools, and absence of a proper business environment to enable this transformation, to mention only a few.

He was addressing on behalf of Asia and the Pacific Employers at the inaugural session of “ILO Tripartite Regional Meeting: towards a more resilient, inclusive and sustainable garment and textiles sector in Asia and the Pacific”, hosted virtually by the ILO Regional Office in Bangkok.

“Even before Covid struck, the textile industry in Asia and the Pacific was already experiencing the effects of other mega-trends, in particular of the digitalization transformation, including the automation of production and logistics processes, and this transformation is bringing in substantial improvements in production speed, precision, quality and supply chain visibility for the benefit of the entire industry”, he said.

EFP former president was of the opinion that modern technologies not only benefit the creation of new business models by responding to changing customer’s needs but also enhance working conditions and existing production processes with better management of hazardous stock, safer working environment, better workforce coordination, and improved equipment monitoring etc.

Majyd Aziz proposed that notwithstanding the intensive intra-regional competition and protection of share in the global marketplace, the garment manufacturers of Asia and the Pacific region must share better practices, such as the experience of ILO Better Work Program, and must display unanimity.

Aziz added that considering the critical mass that is so evident in Asean and Saarc countries, there is a need to establish a shared platform to promote, protect, and project common interests. This working together can pave the way to ensure that the industry becomes more sustainable, resilient and productive.

Comment by Riaz Haq on November 17, 2021 at 10:25am


Textile is a very diverse industry that ranges from fashion, to bedding, to interior design, healthcare and even automobiles among others. With adigital transformation dvancements in digital technology, textile companies have the opportunity to achieve Industry 4.0 leadership and deliver automated control over the entire textile fabrication process. Outsourced solutions are now available for digitization, IoT integration, Artificial Intelligence and ERP that can help the textile sector to achieve Industry 4.0 leadership and make the entire fabrication process from design and coloring to fiber construction, fabric manufacturing, finishing and delivery easy.

Today, the needs and expectations of customers have changed drastically. They prefer high quality products, value-added services and quick delivery. This has increased the need for digital transformation ranging from 3D printing of dresses to smart factories. However, the process of digital transformation is not an easy one. It requires a proper digitization strategy.

What are the important things to consider?

Have a proper planning and clear mission: The first and foremost thing is to have a clear mission with specific goals. Consider the scope and volume of digital transition such as changes to structural and decorative design processes, legacy system updates, supply chain partnership and all other important factors. A good example is that of Pacific Textiles, a $900 million manufacturer of customized knitted fabrics in Asia that wanted to streamline operations, expand internationally and become an industry frontrunner in Industry 4.0. A well-focused and end-to-end operational audit helped them in a smooth digital transition. They could implement a platform that could support real-time data analytics and achieve transparent ERP management. Digitization allows greater manufacturing integration and intelligence which in turn enables quick automation and greater transparency.
Data are assets: The textile industry generates huge volumes of data and forward-thinking companies must view data as a priceless commodity. If data is not utilized properly, it could lead to ineffective sourcing processes, limited supply chain visibility, disconnected financial systems, and poor sustainability management among other issues. So, data cannot be ignored. It is important for competitive advantage. Optimal use of these data helps companies to gain market control and to establish themselves as digital leaders.
Executives must promote change: In the next few years there will be more and more investments in data monitoring tools and it will help businesses to judge customer demand and deliver value-added features in the products, boost customer relationship, and also build brand loyalty. However, these changes cannot occur if top level executives do not provide the necessary support. Many organizations face the problem of “do not change what’s working” attitude. The most important element for successful digital transformation is the support of senior executives and they should be role models for the organization to adopt an innovative system.
Product standardization may not be the answer: Textiles come in a number of variations. Product standardization has been the go to strategy for companies to maintain profits. But this approach does not always provide the desired results. Organizations should now focus on value from the data generated by the millions of individual transactions. The information gained from these transactions can be used to facilitate order completion through customized solutions. Market players should adopt a customer centric approach and digital technology is crucial to support complex data processing.

Comment by Riaz Haq on November 17, 2021 at 10:34am

He (Asif Inam, Chairman APTMA South Zone)disclosed that textile machinery worth $4 billion had been imported for expansion in the sector and another $4 billion would be invested in the form of purchase of land, construction and other equipments in the sector.

“In terms of Pakistani rupee, this investment comes to Rs1,200 billion in textile sector,” Inam said.

He said strong check on smuggling of textile products had also helped the sector as currently it was producing more goods for the local consumption and it was on the higher side.

APMTA South Zone Chief said he was anticipating more growth in the months ahead on the back of increasing demand of textile goods in the markets of Pakistani products, which would benefit the local textile industry and country in terms of exports.


You need to be a member of PakAlumni Worldwide: The Global Social Network to add comments!

Join PakAlumni Worldwide: The Global Social Network

Pre-Paid Legal

Twitter Feed

    follow me on Twitter

    Sponsored Links

    South Asia Investor Review
    Investor Information Blog

    Haq's Musings
    Riaz Haq's Current Affairs Blog

    Please Bookmark This Page!

    Blog Posts

    Are Some Pakistanis Feeding into Indian Delusions of Grandeur?

    Many Pakistanis are singing effusive praises of India on social media platforms and racking up millions of views, according to a report in the Indian  mainstream media. These Pakistanis are boosting their earnings by feeding into the Indians' delusions. The "India Today" report claims that, in the last 6…


    Posted by Riaz Haq on June 20, 2024 at 9:00am

    Agriculture: A Rare Bright Spot in Pakistan's Economy

    Pakistan's agriculture sector grew 6.3% in 2023-24, far outpacing the overall economy that grew just 2.38%, according to the Economic Survey of Pakistan 2023-24.  This is good news for about 40% of the country's population working in the agriculture sector. By contrast, India's agriculture growth slowed to …


    Posted by Riaz Haq on June 13, 2024 at 9:30am — 4 Comments

    © 2024   Created by Riaz Haq.   Powered by

    Badges  |  Report an Issue  |  Terms of Service