Growth in textile exports helps reduce trade deficit

13 May '10

2 min read

As per Federal Bureau of Statistics (FBS) reports, due to increase in overseas sales and decrease in imports, during the first ten months of the current fiscal, the country's trade deficit registered a fall of 14 percent, reaching a figure of $12.238 billion as compared to $14.218 billion figure of the same period, last year.

During the first ten months (July-April) 2009-10, the country's exports witnessed 8.03 percent growth reaching a figure of $15.884 billion as against $14.703 billion during the corresponding period, last year.

But, however, Pakistan's imports displayed a negative growth, falling by 2.76 percent to $28.122 billion during the period under consideration, as compared to $28.921 billion, in the previous year.

While a strong increase in exports has been registered in April, as the overseas sales augmented by 31.45 percent year-on-year, to $1.373 billion, as against $1.321 billion last year; the Y-o-Y imports also witnessed a growth of 7.77 percent, achieving a figure of $3.015 billion during April this year as compared to $2.798 billion in 2009.

Although, revival in overseas sales was seen both in textile and non-textile sectors, the demand recovery of fabrics, clubbed with improved production of cotton, resulted in an increase in the exports of cheaper value-added goods.

For the period under consideration, overseas sales of textile group witnessed an increase of 5.66 percent amounting to $7.59 billion as against $7.19 billion last year, wherein, exports of raw cotton witnessed a hike of 141.59 percent and cotton yarn exports increased by 28.96 percent.

Fibre2Fashion News Desk - India

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