Sep 06, 2023
In terms of specific export categories, Pakistan's textile exports still focus mainly on primary processing and mid-to-low-end textile consumer goods. From January to June 2023, the top five export products were: knitwear ($1.972 billion), ready-made garments ($1.66 billion), bed wear ($1.264 billion), cotton cloth ($956 million), and cotton yarn ($463 million). The total proportion of clothing exports accounted for approximately 46.6%, which is still significantly lower than the international standard of 60%. Additionally, Pakistan's outdated cotton planting technology and production processes make it difficult for the country to meet the production requirements of the high-end market. There is a long way to go for the textile industry to achieve product iteration and upgrading in the future.
Comparatively, the export of textile intermediates, such as cotton yarn, has been relatively robust. In Jun, Pakistan's cotton yarn exports reached 38,000 tons, and exports to China accounts for around 50-60%. Considering the current market situation, Pakistani siro-spun yarn inventory in Chinese domestic markets is large, which puts pressure on selling, particularly during the off-season, there is a common trend of price reduction in order to stimulate sales. Therefore, the sustainability of future demand for Pakistani cotton yarn remains uncertain.