By Muskan Naveed ISLAMABAD, March 04 (INP-WealthPK): The provisional data revealed by Pakistan Bureau of Statistics (PBS) shows that exports have increased by 30% for July to January period of fiscal year 2022 over the same period of the fiscal year 2021 – in rupee terms. In January, Pakistan’s exports also recorded an increase. Exports surged by 34% in January 2022, when compared to January 2021 – hinting towards an increasing trend month-on-month basis, reported WealthPK. The total exports amounted to Rs461,651 million in the first month of the calendar year 2022, while the figure stood at Rs343,533 million in the same month of last year. The cumulative exports for the first seven months of FY22 stood at Rs3,023.435 billion vs Rs2,322.286 billion over the corresponding period of FY21. Some of the commodities that contributed to the increase in exports included knitwear, readymade garments, bedware, cotton cloth, cotton yarn, towels and food items including rice and fruits. On the other hand, import bill has also risen significantly when compared to exports of the same period. The cumulative imports recorded for July to January were valued at Rs7,942.419 billion in FY22 compared to Rs4,765.362 billion in FY21 – showing an increase of 66.67%. Increase in import of petroleum products was responsible for the rise in the import bill for the period. Textile industry: Boosting Pakistan’s exports Being an agrarian economy, textile industry is one of the strongest ones in the country. Textile exports also account for nearly 60% of Pakistan’s total exports; hence, the sector needs to be paid emphasis as it may be the way out for Pakistan from its widening trade deficit – which was recorded at Rs4,918.984 billion for July to January FY22. Abdul Razak Dawood, Commerce Advisor to the Prime Minister, predicted that textile exports alone are expected to balloon to $26 billion next year – which is higher than the cumulative exports of the country. The current year’s target for textile exports is $21 billion against $15 billion during the previous fiscal year. Commerce Advisor Dawood also acknowledged the relatively minor userbase of Pakistani exports as nearly 75% of exports go to only ten countries. For this, the government is working on incentivizing exporters to tap new markets in Africa, South America and Central Asia. [caption id="attachment_64460" align="aligncenter" width="696"] Figure 1: Data sourced from Bloomberg[/caption] Pakistan achieved a comparative advantage over its South Asian competitors – mainly Bangladesh and India – in textile exports after the pandemic hit the world as Pakistan was quick to open up its exports afterwards. This is evident from the rise in textile and related exports during July to January FY22 compared to the corresponding period of FY21.   The incumbent government has approved an Apparel and Textile Policy 2020-2025 which is focused on value-addition and diversification in the sector. The new policy would provide competitive prices for gas and electricity to the textile sector to ensure the sector is able to compete internationally. Moreover, as support, the government will also announce subsidies for gas and electricity with every subsequent budget.