To enhance Pakistan's export competitiveness and institutional strengthening under the Strategic Trade Policy Framework (STPF) 2015-18, the federal government would spend Rs 20 billion in the next three years. In response to emerging international changes, several other initiatives are being implemented to enhance the export basket and market share. The total volume of Pakistan's exports that was $24.5 billion in 2013 fell to $20.8 billion in 2016.

Among the steps taken by the government to enhance exports are: sales tax zero-rating regime for five export oriented sectors comprising textile, leather, carpets, surgical and sports goods has been introduced from July this year. The other steps were establishment of Export Promotion Council for Pharmaceuticals & Cosmetics, and Rice Export Promotion Council, support for import of plant & machinery to strengthen supply chain and encourage value addition and performance based incentive (PBI) to offset burden of higher utility costs and local levies and taxes on export sectors.

Under short-term export enhancement measures, four product categories comprising basmati rice, horticulture, meat and meat products and jewellery were aimed at with parallel focus on markets including Iran, Afghanistan, China and European Union. An additional Rs 6 billion was available this fiscal year to exporters through Textile Policy. 2014.

The second quarter (July-September) earnings estimates of the apparels sector by ICICI Securities is out. The brokerage house expects Vardhman Textiles to report a net profit of Rs 346.2 crores up 94.2 per cent quarter-on-quarter Q-o-Q). The revenue of the textile firm is expected to decrease by 0.4 per cent Q-o-Q (down 8.8 per cent Y-o-Y) to Rs 1,502.7 crores. Earnings before interest, tax, depreciation and amortisation (EBITDA) are likely to fall by 9.7 per cent Q-o-Q (down 8 per cent Y-o-Y) to Rs 282 crores.

Consolidated revenues are likely to decline 8.8 per cent YoY to Rs 1,502.7 crores on account of sale of stake in Vardhman Yarns and Threads. On the segmental business front it is expected that the yarn volumes would increase by 2 per cent YoY while the fabric volume is expected to increase by 7 per cent YoY. Consolidated operating margins are likely to increase marginally by 16 bps to 18.8 per cent on account of higher margins in the acrylic business. On the operational front, Vardhman's performance is expected to be moderate.

However, owing to stake sale (40 per cent) in Vardhman Yarns and Threads, an exceptional income to the tune of Rs 210 crores is expected this would boost consolidated net profit to Rs 346.2 crores v/s net profit of Rs 125 crores in Q2FY16. Excluding the exceptional profit, net profit is expected to increase by 9 per cent YoY to Rs 136.2 crores.

Perhaps for the first time Maharashtra may overtake Gujarat in terms of cotton production. Usually, Maharashtra produces around 60 to 70 lakh bales and around 20 lakh bales are sold to Gujarat. But this time, there could be a bumper production because of good rains.

Maharashtra’s cotton crop is expected to improve from 78 lakh bales in 2015-16 to 87 lakh bales in the current crop year. Gujarat may produce some 80 to 85 lakh bales. Incessant rains brought relief to the water-stressed Marathwada region, which had been suffering from drought for the past four years.

Total cotton supply for the crop season 2016-17 is estimated at 398 lakh bales, while domestic consumption is estimated at 309 lakh bales, thus leaving an available surplus of 89 lakh bales. Meanwhile cotton samples are being displayed to potential buyers in Bangladesh, Pakistan and Vietnam. A team visited Chinese buyers, traders, ginners, warehouses and provided samples of their cotton, which was tested by Chinese experts. This was followed by a visit by Chinese traders and ginners to farms.

China has been the biggest importer of cotton from India until now. The cotton season begins from October 1. However, because of the rains, there could be a delay of 15 to 20 days for the new arrivals to take place.

China’s Xinao Textiles, is one of the world’s leading worsted spinners of wool, producing machine knitting yarns for the sweater, sports, outdoor, underwear and sock industries. The company has now opened an innovative knitwear development center in China.

The center comprises a research and development unit, which houses laboratories and small scale processing machinery in order to conduct experimental trials, a training and education department containing a 100-seat lecture theatre devoted to training future textile technologists, designers and engineers, and a fully equipped textile testing laboratory. Students will get hands-on training.

The operation and activities of the knitwear center will be overseen and guided by an advisory board. The advisory board comprises both international and Chinese experts, who have wide experience in a range of fields such as design, knitwear manufacturing, spinning, finishing, processing machinery and textile chemistry and dyeing.

The center is a result of close cooperation with The Woolmark Company along with other strategic partners from the design, textile machinery, textile chemicals industries, textile universities and leading knitwear companies. Xinao is engaged in the research, development, manufacture and sale of worsted yarn. The company’s main products include worsted yarn and intermediate products of wool tops, mainly used for downstream textile and clothing sectors.