By Hamid Mahmood ISLAMABAD, October 29 (INP-WealthPK): Exports of textile goods increased by 31.11 percent in the first quarter (Q1) of the current fiscal year 2021-22 compared to the corresponding period of last year. According to Pakistan Bureau of Statistics (PBS), textile exports reported in first quarter of current financial year 2021-22 are at $4,420.97 million against $3371.7 million reported in July-September 2020-21. Similarly, exports of yarn cotton fabric grew by 24.74 percent, from $294.724 million to $367.624 million. Towel exports increased by 20.67 percent, from $133.104 million to $160.612 million, readymade garments exports increased by 22.57 percent, from $477.216 million to 584.913 million, art, silk and synthetic textile exports increased by 34.08 percent, from $51.613 million to $69.202 million, and made-up articles (excluding towels and bedwear) increased by 21.26 percent, from $109.846 million to $133.194 million. Other textile materials’ exports grew by 37.44 million, from $86.743 million to $96.743 million. This positive change is due to a trend reversal in readymade garment export values, which had fallen last year, but had risen by double digits this year. While the negative impact of reduced unit prices on garment exports has subsided, unit prices continue to put downward pressure on the export values of a variety of textile goods, including apparel, yarn, and fabric. The textile industry is the key manufacturing industry of Pakistan, with the largest production chain and inherent value addition opportunities at every stage of processing. This industry employs around 40 percent of all industrial workers and contributes to nearly a quarter of all industrial value added. On average, textiles account for about 60 percent of national exports, ignoring seasonal and cyclical fluctuations. Before the pandemic, there was notable foreign direct investment in the textile industry shown in a given table. However, Covid-19 had a direct impact on this industry. Therefore, the textile industry fared no better, with foreign investment falling by 81.6 percent, from $37.7 million in FY20 to $6.7 million in FY21. Quarterly Comparison FDI on Textile Sector

Year (Quarter 1)	FDI Inflow (Million $)
FY19	12.4
FY20	16.9
FY21	6.7

Source: Pakistan Bureau of Statistics The figure shows the increasing trend of exports in textile sector of Pakistan. Source: PBS China is the major investor in large-scale manufacturing sectors of Pakistan. Overall, China remained the greatest investor in July-August 2021, with a net investment of $53.9 million, up 32 percent from $40.8 million in the previous year's corresponding period. Pak-China cooperation is also very important for the expansion of Pakistan's textile industry. In September 2021, President of Pakistan Dr Arif Alvi inaugurated Challenge Fashion Industrial Park in Lahore. A Shanghai-based Chinese company is investing $150 million in an industrial park near the Kasur border, which will feature cutting-edge fabric units, dyeing facilities, and garment manufacturing units for exporting sportswear from Pakistan to all over the world. Under this project, sportswear exports from Pakistan are projected to grow to $120 million in the first year and $400 million over the next five years when the Challenge Fashion Industrial Park operates. This company has been operating as Challenge Apparel since 2017 with its garment manufacturing unit on Multan Road near Lahore, bringing in nearly $44 million in export revenue in the previous fiscal year. Mr. Abdul Razak Dawood, Adviser to Prime Minister on Commerce and Investment, said this October, “Textile investment of approximately $5 billion is in the pipeline under which at least 100 new textile units are expected to be installed.” This investment enhanced the textile export capacity up to $25 billion by 2025 and created around 500,000 job opportunities. Pakistani experts and officials believe that this investment will play a crucial role in writing a new chapter of textile development in Pakistan as the government is offering a lot of incentives for industries to be setup and a large number of investors are taking interest in them, and more is expected in future.