Indicative of a 7 percent quarter-on-quarter hike, Pakistani textile firms booked Pk Rs. 8.9 billion in profits during January-March this year, indicating a growth of 180 percent year-on-year. According to The Nation report, the joint profits of the textile firms for the first three quarters of the ongoing fiscal year grew to Rs. 23 billion, against profit of Rs. 4.5 billion earned during the corresponding period of the previous fiscal. Industry circles say the expanded profit margins are attributable to low-cost financing and a constant fall in the value of Pakistani rupee, while the cotton prices remain firm in the midst of strong regional demand. If the positivity persists, the textile sector would continue to gain even in the coming months, the report says.
Further, textile exports would get a boost if the expected GSP Plus status is granted to the country by the EU. During the first ten months of the current fiscal beginning July 1, 2013, Pakistan's textile exports grew by 6.1 percent in dollar terms to US$ 10.7 billion, and shot up by 15.5 percent in rupee terms to Rs. 1 trillion. The rise in exports was due to good demand from regional markets like China and firm international cotton and textile prices. The rise in exports is a rebound for the textile sector, which witnessed a 9 percent dip in exports to US$ 12.4 billion, during last fiscal. Product-wise, textile yarn exports surged by 26 percent to US$ 1.85 billion during 2012-13, while readymade garment and grey cloth exports grew by 12 percent and 11 percent to US$ 1.5 billion and US$ 2.2 billion, respectively.
