Pakistan’s textile sector has export orders for next 6 months: report

• Exports orders for the next 6 months are booked, says Aptma chief
• Aptma appreciates and acknowledges the much-improved gas supply
• According to a report, textile companies are making capital investments to increase the production of fabrics

KARACHI: With the economy picking up, the country’s textile industry have received export orders for the next six months, it emerged on Tuesday.

An industry official told The News on Monday that the textile sector is expanding its production capacity to meet robust demand from foreign buyers.

Adil Bashir, chairman of All Pakistan Textile Mills Association (Aptma) said the textile sector is currently in the mode of rapid expansion to cater with increased orders and demands.

“Exports orders for the next 6 months are booked and despite COVID our exports have increased significantly compared to our regional competitors whose exports have shrunk,” Bashir said in a statement.

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The textile sector that accounts for more than 60% of total exports fetched $6 billion from abroad during the five months of the current fiscal year, up around 5% year-on-year, according to the Pakistan Bureau of Statistics (PBS)

According to the report, textile companies are making capital investments to increase the production of fabrics with demand from the value-added sector on a strong recovery path compared to stagnation couple of months back due to the economic shutdown.

The growth was despite the global economic slowdown caused by the pandemic-related lockdown and waning consumer demand. However, the government’s decision to keep businesses open is leading to benefits of orders diverted from closed economies, while US-China rift is also diverting orders to Pakistan.

Read more: Remarkable turnaround in Pakistan economy despite COVID-19, says PM 

Aptma acknowledges improved gas supply

Aptma appreciates and acknowledges the much-improved gas supply and pressures of gas and re-gasified liquefied natural gas (RLNG) to the export sector units in December.

“This sustained supply of gas / RLNG will maintain the momentum of enhanced exports as currently, the sector is working at full capacity,” said Bashir.

“It is absolutely essential to sustain this momentum which is being facilitated by the textile policy currently under the approval of ECC [Economic Coordination Committee of the cabinet].”

While the government decided to curtail gas quota for the RLNG-based power plants to 240 million metric cubic feet per day (mmcfd) from 350 mmcfd, export-oriented and consumer sectors have been put on the priority list.

Bashir said there have been isolated cases of low pressure and supply problems in mixed feeders and Aptma has taken up these issues with the petroleum division who have assured us of all-possible assistance to remove any bottlenecks.