|Textile Exports to United States. Source: Bloomberg|
American buyers are diversifying their supplier base away from China, the No. 1 exporter of these goods to the U.S. Already, Bangladesh is close to snatching the trousers-to-towel crown, according to Bloomberg News. Pakistan, at No. 6 last year, has grown its own shipments to the U.S. by almost 12% this year. It may overtake India, which has seen virtually no improvement.
|Pakistan's Real Effective Exchange Rate (REER). Source: Bloomberg|
Pakistani apparel exports are becoming more competitive in international markets because Pakistani rupee has declined by almost 25% recently. This has wiped out the currency’s overvaluation adjusted for inflation differences with trading partners, as estimated by the IMF.
Textiles industry is just one the export industries seeing exodus of manufactures and buyers from China. Electronics industry is seeing similar moves. Engadget is reporting that Google is moving production of its US-bound Nest thermostats and motherboards to Taiwan. The Wall Street Journal has reported that Nintendo is shifting at least some production of its Switch console to Southeast Asia.
Last November, Nomura Securities strategists had said they expected Malaysia, Japan and Pakistan to be the top 3 beneficiaries of import substitution triggered by US-China trade war escalation. Nomura's analysis is based on detailed study of 7,705 items which will be subject to tariffs and counter tariffs by US and China if the stand-off continues. Nomura developed two indices as part of its research on the subject: NISI (Nomura Import Substitution Index) and NPRI (Nomura Production Relocation Index).
South Asia Investor Review
Can Pakistan Avoid Recurring Balance of Payment Crisis?
Pakistan Economy Hobbled By Underinvestment
Pakistan's IT Exports Surging
Can Indian Economy Survive Without Western Capital Inflows?
Pakistan-China-Russia Vs India-Japan-US
Chinese Yuan to Replace US $ as Reserve Currency?
Remittances From Overseas Pakistanis
Can Imran Khan Lead Pakistan to the Next Level?
China to Expand Manufacturing in Special Economic Zones
Don't tell trump if and when Pakistan runs a trade surplus with the US. He'll come after you!
Tan: "Don't tell trump if and when Pakistan runs a trade surplus with the US. He'll come after you!"
Pakistan already runs a trade surplus with US.
The U.S. goods trade deficit with Pakistan was $783 million in 2018, a 2.2% increase ($17 million) over 2017.
US #Trade with #Pakistan reached record high of $6.6 billion in 2018 , Asst Sec of State Wells tells Congress. Pakistan runs trade surplus of $782 million with the #UnitedStates - Newspaper - http://DAWN.COM
The Trump administration has informed Congress that trade between the United States and Pakistan reached an all-time high in 2018, as Washington endorsed Islamabad’s budget re-emphasis on a relationship built on trade, not aid.
Alice G. Wells, Senior State Department Official for South and Central Asian Affairs underlined this change in a written statement to the House Foreign Affairs Subcommittee for Asia, the Pacific and Nonproliferation. On Thursday, the panel began a hearing on the State Department’s 2020 budget requests for the South and Central Asian regions.
Ms Wells informed the lawmakers that in 2018, US-Pakistan bilateral trade reached an all-time high, exceeding $6.6 billion.
US exports to Pakistan rose 4pc to $2.9bn, also an all-time high, and the trade deficit sunk to 2pct, or $782 million. “Trade in agriculture was a particularly bright spot,” she said. US soybean exports went from $0 in 2014 to $689 million in 2018.
She noted that Pakistan was a market of more than 200 million people, including a growing middle class, and that’s why it “provides ample opportunities for US trade and investment to grow further.”
According to the US Trade Representative’s office in Washington, Pakistan is currently America’s 56th largest trading partner during 2018. US exports totalled $2.9bn while imports from Pakistan totalled $3.7bn. The US goods trade deficit with Pakistan was $783 million in 2018.
The top US export categories in 2018 were: miscellaneous grain, seeds, fruits ($694m), cotton ($615m), iron and steel ($225m), machinery ($211m), and optical and medical instruments ($117m).
US exports of agricultural products to Pakistan totalled $1.5bn in 2018, making the country the 19th largest agricultural export market. Leading domestic export categories include: soybeans ($689m), cotton ($615m), tree nuts ($49m), dairy products ($38m), and planting seeds ($37m).
Pakistan was America’s 58th largest supplier of goods imports in 2018.
US total imports of agricultural products from Pakistan totalled $126m in 2018. Leading categories include: rice ($31m), sugars, sweeteners, beverage bases ($30m), spices ($19m), processed fruit & vegetables ($9m), and snack foods ($7m).
The top import categories in 2018 were: miscellaneous textile articles ($1.3bn), knit apparel ($809m), woven apparel ($586m), leather products ($121m), and cotton ($112m). US foreign direct investment (FDI) in Pakistan (stock) was $518m in 2017, a 25.7pc increase from 2016.
A Study Commissioned by the Pakistan Business Council
The Pakistan Business Council (PBC) has commissioned CDPR to do this Study as part of its Make-in-Pakistan initiative. The Make-in-Pakistan initiative of the PBC aims to reverse the premature deindustrialisation of Pakistan, this initiative aims to promote jobs, exports of value-added products, import substitution and increase revenues for the government.
The textile is the most important sector of Pakistan’s economy. In 2017, it contributed almost 8.5% to the country’s GDP, accounted for one-fourth of industrial value-added and employed 40.0% of the industrial labour force. Amongst textile products, garments have the highest-value addition and is also the main export revenue earner. In 2017, Pakistan exported almost $5.0 billion worth of garments to the world: $2.52 billion (knitwear) and $2.47 billion (woven).
Although garment sector exports have increased over the years and it has been the best performing segment of the textile value chain, the sector is grossly underperforming relative to its potential. Pakistan lags behind its competitors in the global share in export of garments. In 2017, Pakistan’s share in the exports of garments was a meagre 1.10% compared to China’s 32.06%, Bangladesh’s 7.66%, Vietnam’s 5.94%, and India’s 3.81%.
The primary reason for this poor performance is the narrow export base, even this narrow base is biased towards low value-added unsophisticated items. The top 6 products exported by Pakistan account for 52.0% of Pakistan’s exports, but only 20.0% of total world garment exports. World demand has been shifting to man-made fibre, which Pakistan has been unable to exploit. In addition, Pakistan’s garment exports are not well diversified in terms of destinations. Almost 88.0% of garment exports are destined for the EU and the US.
Pakistan’s underperformance in exports can be attributed to a number of factors, divided into supply side, demand side and investment climate constraints.
Pakistan faces higher production costs and lower productivity compared to its peers. High production costs are in the form of import duty on cotton & MMF, high energy tariffs and minimum wage (Supply-Constraint). This has led to fierce competition with other low-wage competitors leading to small export orders for Pakistan (Demand-Constraint). Pakistan faces unfavourable tariffs in garment exports in the international market such as ASEAN, which restricts market access, and its currency in the recent past was overvalued with respect to the dollar, making exports less competitive against China, India, Bangladesh and Vietnam (Investment Climate Constraint). Other impediments include poor access to credit, delay in the payment of government-announced tax refunds, low technological adoption, and time-consuming export procedures.
Pakistan’s textile exports stagnant; RMG marks 3.2% growth
by Apparel Resources News-Desk
Mainstay of Pakistan’s economy, the textile industry of the country is in a sticky situation lately.
As per reports, in the first 10 months of the current fiscal year of 2018/19, textile exports from Pakistan remained flat at US $ 11.1 billion, as compared to the corresponding period of the previous year. And this despite Government’s various measures to boost exports.
However, on the positive side, export of readymade garments, bedwear and knitwear registered growth in the period under review.
As per data from Pakistan Bureau of Statistics (PBS), export of RMG improved 3.2 per cent to US $ 2.1 billion, while export of knitwear exports increased by 7 per cent year-on-year to US $ 2.3 billion and, export of bedwear marked an increase of 2.4 per cent to US $ 1.9 billion.
Further, in this period, export of raw cotton declined drastically by 67.2 per cent to US $ 18.5 million while export of cotton yarn fell 15.7 per cent to US $ 941.3 million.
Exports of cotton cloth also reportedly fell 2.7 per cent to US $ 1.7 billion (in the July-April period of the current fiscal year).
It may be mentioned here that due to continuous devaluation of rupee (fell by around 20 per cent in last year alone), exporters are able to improve on their margins on exports but on the flipside cost of doing business has gone up significantly.
Hi Mr Haq, I was just wondering what you think about the recent commentary on something truly breathtaking: how India's growth rate has been overstated by as much as 2.5% per annum between 2012-17 (so, not the much trumpeted 7% annual growth, but more like 4.5%).
The consequences of flawed methodology of GDP calculation in India are the stuff of a working paper at Harvard University's Center for International Development (Harvard Kennedy School of Government). This can explain several oddities about India's economy, e.g., India's surprisingly poor job creation, or why corporate India's did not get the returns it had expected in light of investments made by taking at face value high GDP growth rates, resulting in stressed balance sheets becoming a norm of sorts.
The paper in question: https://growthlab.cid.harvard.edu/files/growthlab/files/2019-06-cid-wp-354.pdf
A couple of news pieces on it, amongst several:
Looking forward to your thoughts, as I have for years.
Syed: "I was just wondering what you think about the recent commentary on something truly breathtaking: how India's growth rate has been overstated by as much as 2.5% per annum between 2012-17 (so, not the much trumpeted 7% annual growth, but more like 4.5%). "
I first wrote about it back in 2015.The title of post is "India's New GDP Figures: Modi Takes BS Seriously!"
I started it with the following quote from Wall Street Journal:
"The estimated “evacuation (defecation) rates” are 0.3 kilograms per day for goats and 0.8 kilograms per day for sheep. The study, titled “Positive Environmental Externalities of Livestock in Mixed Farming Systems of India,” was conducted jointly by the Central Institute for Research on Goats, in Makhdoom, Uttar Pradesh, and the National Center for Agricultural Economics and Policy Research in New Delhi. With all those “droplets” added in, the value of India’s livestock sector in the new GDP series is 9.1 billion rupees, or $150 million, higher than it was in the old series." Wall Street Journal on India's GDP Revisions
https://www.riazhaq.com/2015/04/indias-new-gdp-figures-modi-takes-bs.htmlTime is confirming that Modi's entire political career is based on lies.
His claims about "surgical strikes", hundreds dead in Balakot, shooting down of Pakistani F-16 have all been found baseless.
India has highest unemployment rate in 45 years and its economy ids not growing as fast as claimed and certainly not creating jobs for the burgeoning young population.
Risk looms in Southeast Asian economies amid industrial transfer from trade war
Due to China's dwindling demographic dividend, rising production costs, and environmental protection pressure, many Chinese and foreign-invested companies in recent years have relocated their Chinese factories to Southeast Asia, where labor costs are lower. The intensified US-China trade frictions and deteriorating global trade environment have driven even more companies to move to Southeast Asian countries. However, the business environment in Southeast Asia is not as good as imagined, and industrial transfer doesn't mean that China has lost its competitiveness in the world manufacturing sector.
For instance, media reports indicate that the Cambodian garment manufacturing industry has seen a wave of shutdowns recently, for a number of reasons. First among them is an increase in labor costs. The minimum wage of Cambodian workers has jumped from $40 per month in 1997 to $182 per month this year. If various benefits and subsidies are included, the cost is up to $210 per month. By comparison, Bangladesh, Sri Lanka, India, Myanmar, Pakistan, and Laos all offer even lower labor costs for the garment industry. Another reason is Cambodia's incomplete supply chain. At present, the country's infrastructure and support facilities for industrial manufacturing are relatively weak, leading to relatively high overall costs. A third reason is low efficiency. According to some industry analysts, the productivity of Vietnam and Indonesian factories is about 80 percent of Chinese factories, while the productivity of Cambodian garment factories is only about 60 percent of China's. Additionally, workers' strikes and protests have increased difficulties for business operations, and there is uncertainty as to whether Cambodia's export price advantage will persist in the future. It is possible some garment companies will move out of Cambodia amid concerns over the possible suspension of EU trade preferences for the country.
Compared with Cambodia, countries like Vietnam and Malaysia may benefit more from the US-China trade war due to manufacturing transfer. According to a recent Nomura research report, the import substitution effect has been seen in 52 percent of tariffed goods during the US-China tariff war. Vietnam is regarded as the biggest beneficiary and could see a 7.9 percent increase in its GDP. This has prompted many to start planning investment in Southeast Asia so as to avoid risk from the trade war. Yet, these small Southeast Asian economies, represented by Vietnam, are currently facing both opportunities and challenges, which may lead to greater risks if not handled properly.
In addition, while a large number of companies left China due to costs, it doesn't mean China has completely lost its industrial advantages. China is undergoing economic restructuring, and its comprehensive industrial competitiveness and market space are incomparable to those Southeast Asian countries once it gets through the difficult stage. It should also be pointed out that in a world of excess production, the manufacturing capacity formed as a result of industrial transfer from China to Southeast Asian countries will make global overcapacity even more serious, which may trigger a new global economic crisis. These small economies will be hit harder once such a crisis breaks out.
Japanese shirt made from suvin gold cotton.
Indian scientific community successfully develop and market "Suvin Gold" the world's best cotton..sells for a premium over Giza 45 and Sea Island cotton...
Moving up the value chain at all levels including raw cotton !!!
Yes but Suvin Cotton is like Caviar.Constitutes 0.0004% of Indian cotton production.
Beautiful luxury product and a scientific feat by Indian Agro Scientists but statistically insignificant.
Most Indian cotton is short staple cotton.Indian textile industry is a very big net importer of high quality ELS cotton from Egypt and the US which it processes into finished fabrics.
However Suvin Cotton like Giza 45 and Sea Island Cotton is mostly processed into yarn and fabric outside India in Italy and Switzerland in mills such as Alumo and SIC Tess.
#Pakistan-#Qatar sign 3 MOUs during #Emir's visit to #Islamabad. 1. #trade/#investment, 2. Sharing #financial #intelligence to stop #MoneyLaundering, 3. #tourism and #business. #ImranKhanPrimeMinister https://www.dawn.com/news/1489767
Soon after his arrival, a one-on-one discussion between the two leaders was held at the Prime Minister House in Islamabad, followed by a delegation-level meeting between representatives from both countries in which "both the leaders covered the entire gamut of bilateral relations to enhance cooperation in diverse fields", according to a statement by the Prime Minister's Office.
Later, a ceremony was held to mark the signing of memoranda of understanding (MoU) between the two countries. The details of the agreements signed are listed below:
MoU on the establishment of Pakistan and Qatar Joint Working Group (JWG) on trade and investment signed by Qatar Finance Minister Ali Shareef Al Emadi and Advisor on Commerce Abdul Razak Dawood.
MoU for cooperation in the field of tourism and business events between Qatar and Pakistan signed by Secretary General of Qatar National Tourism Council Akbar Al Baker and Inter-Provincial Coordination Minister Dr Fehmida Mirza.
MoU on the establishment of cooperation in the field of exchange of financial intelligence related to money laundering associated predicate offences and terrorism financing between Qatar's Financial Information Unit and Pakistan's Financial Monitoring Unit. This was signed by Head of Qatar Financial Information Unit Sheikh Ahmed bin Eid Al Thani and Acting DG Financial Monitoring Unit Muneer Ahmad.
Engagements during visit
Qatar's Emir Sheikh Tamim bin Hamad Al Thani receiving a bouquet of flowers at Nur Khan airbase. — PID
The Qatari emir was accorded a red carpet welcome upon his arrival on Saturday evening at Rawalpindi's Nur Khan airbase. He was received by the premier who personally drove the leader from the airport to the Prime Minister House.
Prime Minister Imran Khan drove the Qatari leader to the PM House. — PID
At the Prime Minister House, an official welcome ceremony took place, during which personnel of all three services presented the Qatari leader a guard of honour.
Qatari emir inspecting the guard of honour. — PID
A fly-past of JF-17 Thunder jets also took place, followed by a brief gathering where introductions between delegations of both sides were held. The Qatari emir is accompanied by a high-level delegation comprising key ministers and senior officials.
Sheikh Al Thani also planted a sapling at the lawn of Prime Minister House as is customary when a foreign dignitary visits.
Tree sapling planted by the Qatari emir. — PID
He is visiting Pakistan after a break of over four years. He last toured Islamabad in March of 2015.
The Qatari leader will also meet President Arif Alvi tomorrow where an investiture ceremony is expected to be held.
A post on the prime minister's official Instagram account showed the premier signing a cricket bat for the visiting dignitary.
The Qatari leader also presented a sports jersey to the prime minister.
In an earlier Instagram post, Prime Minister Khan claimed the Qatari emir would announce a multi-billion dollar investment. This would be greater than the investment promised by Saudi Crown Prince Muhammad bin Salman earlier this year.
Govt to set up 1,000 garment stitching units
In an effort to boost value addition in the garment sector, the Pakistan Tehreek-e-Insaf (PTI) government has revived the project of establishing 1,000 industrial stitching units, which will provide employment and business opportunities to youth of the country.
Though the project was approved by the previous Pakistan Muslim League-Nawaz (PML-N) government, it came to a halt as the previous administration could not earmark funds for the project from the Public Sector Development Programme (PSDP) for the ongoing financial year 2018-19.
However, the present government has endorsed the transfer of funds from the “Research/Holding of Workshops and Technical and Feasibility Studies” programme for the “Establishment of 1,000 Industrial Stitching Units” project to give it a fresh lease of life.
According to officials, the government will set up 1,000 industrial stitching units across the country in a bid to encourage young entrepreneurs and boost value addition in the garment sector. The Economic Coordination Committee (ECC) of the cabinet was informed in a meeting that the Textile Division had envisaged a project titled “Establishment of 1,000 Industrial Stitching Units” in order to promote public-private partnership and boost value addition in the field of textile garments. The stitching units would be set up through strengthening small and medium enterprises (SMEs), the ECC was told.
Some 60% of the funding for purchase of machinery for the stitching units will be provided from the PSDP whereas 40% of the cost will be borne by the owners of stitching units. The purpose of the project is to provide job and business opportunities to the youth at their doorsteps.
The Central Development Working Party (CDWP) approved first phase of the project for setting up 150 industrial stitching units on January 15, 2018 during the tenure of previous PML-N government at a cost of Rs350.54 million without any foreign exchange component with 40% equity share. However, no allocation was made from the PSDP during the current financial year.
Consequently, the Textile Division approached the Planning Commission for the allocation of funds out of the savings of PSDP 2018-19.
The Planning Commission approved Rs46 million for the project out of the blocked allocation for the “Research/Holding of Workshops and Technical and Feasibility Studies” project, which was available in the development grant of the Ministry of Planning and Development. The Finance Division has endorsed the proposal.
The Textile Division proposed that allocation of Rs46.2 million may be approved for the project through the transfer for funds from the development grant during the current financial year.
The ECC considered the Textile Division’s summary and approved allocation of Rs46.2 million in favour of the project by transferring funds through the technical supplementary grant.
Chinese Companies To Relocate Factories To Pakistan Under CPEC Project
Several Chinese organisations have shown enthusiasm to relocate their industrial units to Pakistan in the second phase of industrialisation under the China-Pakistan Economic Corridor (CPEC) according to media reports.
Chinese manufacturing units of textile and leather would be relocated to Faisalabad. Chinese company Long March International would also set up a tyre manufacturing plant in Pakistan, revealed advisor to PM Imran Khan – AR Dawood while addressing a press conference, along with Chinese Ambassador to Pakistan Yao Jing, on Friday.
“We have not given attention and the Chinese industry has been relocated to the Far East, Ethiopia and Egypt. We should grab the opportunity this time around,” the PM adviser emphasised.
He said the government would prefer the Chinese companies forming joint ventures with Pakistani companies. Earlier, they were focused on imports. “Shifting and trading ‘Make in Pakistan’ products is our priority to increase exports,” he said.
“If Chinese companies do not enter into joint ventures with Pakistani companies, we will allow them 100% ownership,” he said, adding the relocation of Chinese industrial units would create job opportunities and enhance skills of local people.
Pakistan is eagerly awaiting the benefits of relocating the Chinese industry to Pakistan in the second phase of industrialisation under CPEC, which will help increase exports.
China has also expressed its willingness to relocate its industrial units to Pakistan. It wants Pakistan to make policies more attractive for investors in order to address the challenges of the next phase of industrialisation.
Speaking on the occasion, Chinese Ambassador Yao Jing said if policies were good and attractive, challenges would be less. Pakistan had streamlined its visa policy but the process of obtaining the visa was too long.
Chinese giant Li Fung, having a value of $60 billion and operating in 50 countries, produces goods on behalf of suppliers. It is currently placing an order with Pakistan worth $100 million and plans to enhance it to $1 billion later this year.
Asia labor costs and China manufacturing relocation impact considerations
Below, the annual cost (average) per manufacturer worker in China, Thailand, Malaysia, Indonesia, Pakistan, Philippines, India, Vietnam per Japan external trade organization (JETRO).
Average annual cost of a manufacturing worker (US$, 2017)
#Asia #Pacific trade pact can go on without #India 'for the time being' as China grows impatient with the slow progress on the #RCEP talks. #Malaysian PM Mahathir proposes going ahead with just 13 countries — without #India, #Australia and #NewZealand. https://cnb.cx/2L91HdL
Malaysian Prime Minister Mahathir Mohamad said on Saturday that he’s willing to conclude a mega Asia-Pacific trade agreement without India “for the time being.”
Mahathir was referring to the Regional Comprehensive Economic Partnership, or RCEP, which involves 16 countries in Asia Pacific. Negotiations have been going on since 2013, with one of the major sticking points being India’s reluctance to open up its markets.
A recent report by Nikkei Asian Review said China, growing impatient with the slow progress on RCEP talks, proposed going ahead with just 13 countries — removing India, Australia and New Zealand from the deal.
The 16 countries involved in RCEP are the 10 Southeast Asian nations and six of their large trading partners: China, Japan, South Korea, India, Australia and New Zealand. If the agreement is finalized, the 16 countries will form a major trading bloc that covers around one-third of the world’s gross domestic product.
GP 190621 Containers at Lianyungang Port
Aerial view of shipping containers sitting stacked at Lianyungang Port on June 3, 2019 in Lianyungang, Jiangsu Province of China.
Wang Jianmin | Visual China Group | Getty Images
In an interview with CNBC’s Tanvir Gill, Mahathir acknowledged the hurdles in reaching a deal among the 16 countries.
“I think we will work towards it. It’s quite difficult because we are competing economies ... we’re competing with each other and from there, to go on to work together requires some radical change in our mindset. That will take time,” he said in Bangkok, Thailand, where he’s attending a summit for the Association of Southeast Asian Nations.
In the end, we have to stop this trade war and certainly not to escalate (it).
MALAYSIAN PRIME MINISTER
The Malaysian leader added that RCEP participants will have to consider which framework works best: China’s proposed 13-nation deal or the original one involving all 16 countries.
“But I think I would prefer 13 ... for the time being,” he said, suggesting he’s open to having India, Australia and New Zealand joining the pact in the future.
Trade war escalation
Several participating countries of RCEP have expressed hopes of coming to an agreement by the end of this year, as they say the U.S.-China tariff fight has brought fresh urgency to wrap up talks in Asia Pacific.
U.S. President Donald Trump and Chinese President Xi Jinping are expected to meet later this month at the G-20 summit in Japan. But Mahathir — like many who follow the developments closely — said he doesn’t expect much to come out of that meeting.
Taking sides in the trade war will be a ‘disaster for the world:’ Mahathir
Malaysia has often been cited as one of the beneficiaries of the trade war as companies move production out of China to circumvent elevated U.S. tariffs. Muhammed Abdul Khalid, an economic advisor to Mahathir, told CNBC in May that the Southeast Asian nation’s growth is set to gain an additional 0.1 percentage points due to the trade diversions to his country.
While that’s good for Malaysia, Mahathir on Saturday cautioned that such benefits may only be temporary. He explained that if there’s a change in government in the U.S., the new administration may have a new set of policies that could once again prompt companies to rethink where they want to locate their production and supply chains.
“In the short term, I think it is good news. But in the end, we have to stop this trade war and certainly not to escalate (it),” he said.
#Vegetable #exports from #Pakistan increase 12.19% year over year. Vegetable products exports from the country during July-April (2018-19) were recorded at $2.75 billion against the export of $2.45 billion during July-April (2017-18). #economy https://www.freshplaza.com/article/9119774/vegetable-exports-from-pakistan-increase-12-19-percent/#.XRIf4igRvz4.twitter
Vegetable products export from Pakistan grew by 12.19 percent during the first 10 months of the current fiscal year compared to the corresponding period of last year, according to a statement by the State Bank of Pakistan (SBP).
The vegetable products exports from the country during July-April (2018-19) were recorded at $2748.773 million against the export of $2450.073 million during July-April (2017-18), showing increase of 12.19 percent, according to the State Bank of Pakistan.
The commodities that contributed positively included edible vegetables, export of which grew from $123.590 million last year to $189.994 million during the current fiscal year, showing growth of 53.72 percent.
Exports of oil seeds and oleaginous fruits increased by 42.10 percent, from $67.709 million to $96.216milion. The exports of edible fruits and nuts increased by 12.11 percent, from $330.228 million last year to $370.230 million, the data revealed.
Meanwhile, The country’s merchandize trade deficit plunged by 13.62 per cent during the first eleven months of the current fiscal year compared to the corresponding period of last year, Pakistan Bureau of Statistics (PBS) reported.
According to nation.com.pk¸ the trade deficit contracted by 13.62 per cent to $29.207 billion during July-May (2018-19) against the deficit of $33.812 billion recorded during July-May (2017-18).
#Chinese businesses pledges US$ 5 billion #investment in #Pakistan in next 5 years in sectors including #construction, #machinery, glass, #automobile, electrical, $power, #transportation, information #technology and #telecom among others. #CPEC #China https://www.business-standard.com/article/pti-stories/chinese-businesses-pledges-usd-5-bn-investment-in-pakistan-in-next-five-years-119071201256_1.html#.XSkTS6IVh9Y.twitter
Over 55 executives and CEOs of leading Chinese companies on Friday called on Pakistan Prime Minister Imran Khan and pledged to invest USD 5 billion in the cash-strapped nation over the next five years, according to an official statement.
The visiting Chinese business delegation represented various sectors including construction, machinery, glass, automobile, electrical, power, transportation, information technology and technological research among others.
"Chinese business executives expressed confidence in the business friendly policies of the government and committed to invest USD 5 billion over a period of five years in various small and medium size industrial sectors," the statement said.
Pakistan has so far received billions in financial aid packages from friendly countries like Saudi Arabia, China and the UAE during the current fiscal year.
During the meeting, Khan welcomed the Chinese delegation and stated that China has always been a trusted partner of Pakistan.
The sagacity, wisdom and vision of the Chinese leadership for peace & development, good governance and poverty alleviation is highly impressive and worth emulating, said Khan.
He added that the interest of Chinese companies towards investment and relocating business and industrial units to Pakistan reflected the trust of the Chinese side in the growing economy of Pakistan.
He said the Chinese side have a strong desire to translate Pak-China equation into a win-win economic partnership.
Our Government is facilitating investors and reducing impediments in ease of doing business'. Partnership with Chinese companies and their investment will reap multiple benefits for both the countries including employment generation, transfer of technology and economic growth," he said.
Talking about China-Pakistan Economic Corridor (CPEC), Khan reiterated that ambitious project will prove to be a game-changer with respect to enhancing trade activities and further cementing Pak-China relations.
The CPEC, which connects Gwadar Port in Balochistan with China's Xinjiang province, is the flagship project of Chinese President Xi Jinping's ambitious Belt and Road Initiative (BRI).
"Fast-track implementation of the CPEC projects is our priority for which a special unit is overseeing implementation of various projects in Planning Division," he said.
China's Ambassador Yao Jing said that Chinese investors have observed fundamental improvement of policies and facilitation of foreign investors in Pakistan.
"Chinese government will extend all possible support towards realising the vision of a strong, stable and prosperous Naya Pakistan, Yao said.
#Pakistan #exports to #Europe up 54% Since Grant of GSP+ Trade Preference For Pakistani Products https://www.gulftoday.ae/business/2019/07/14/pakistan-exports-to-europe-up-54-per-cent
European Union Ambassador to Pakistan Jean-François Cautain has stated that Pakistan’s export to Europe has increased fifty four per cent after grant of GSP Plus status to the country.
Talking to representatives of Council of Pakistan Newspaper Editors at National Press Club in Islamabad, he said GSP plus is a great opportunity for Pakistan to enhance its export especially in the areas of textile, surgical equipment, leather and sports goods.
He said the EU is focusing on improvement of education, vocational training, women development and governance in Pakistan. The Ambassador said EU’s new engagement plan for Pakistan is moving ahead to the strategic and security level. He said this plan will further improve military to military relations between EU and Pakistan.
He said the EU will review implementation of twenty seven conventions of International Covenant on Civil and Political Rights which is a requirement for GSP plus status. Later, he also planted a sapling in the lawn of National Press Club.
Meanwhile, Chairman Board of Investment, (BOI) Zubair Gilani said that Pakistan is deeply fascinated by China’s example of industrialisation and economic wisdom.
The China Pakistan Economic Corridor (CPEC) initiative and industrial cooperation between the two nations is the first step in transforming the lives of people of the two countries, he expressed these remarks while briefing a 50-member Chinese Investment Delegation here at BoI on Thursday.
President Donald #Trump has indicated that #UnitedStates wants to increase its #trade with #Pakistan by at least four-fold following a meeting with #ImranKhan. Trump’s Pakistan Trade Aims May Need Levi, JC Penney Sourcing Strategy Help. #Garments #Textiles https://www.spglobal.com/marketintelligence/en/news-insights/research/trumps-pakistan-trade-aims-may-need-levi-jc-penney-sourcing-strategy-help
President Donald Trump has indicated that the U.S. wants to increase its trade with Pakistan by at least four-fold following a meeting with Prime Minister Imran Khan, Inside Trade reports. No firm policies or trade deal process has been put in place yet, though the ongoing need to secure Pakistan as a regional trade partner may give some incentive to do so ahead of the 2020 elections.
While the Trump administration will doubtless focus on increasing U.S. exports, Pakistan needs a significant boost to its export economy before it is in a position to increase its purchases significantly. Panjiva analysis of S&P Global Market Intelligence data shows that its exports contracted by 0.2% year over year in the 12 months to May 31, following a 0.9% annual decline in the prior three years to reach $23.1 billion.
The U.S. accounted for 16.6% of the total, and managed to increase by 5.8% year over year in the past 12 months, Panjiva data shows. The need for a trade deal, and closer relations, with the U.S. has also become more important since India’s decision to increase tariffs on Pakistani exports as outlined in Panjiva’s research of February 18.
The major challenge in boosting imports from Pakistan will lie in either diversifying its exports to the U.S., or significantly eating into the market share of other countries supplying the U.S. In aggregate the apparel and textile industries accounted for 37.8% and 35.1% respectively of all U.S. imports from Pakistan in the 12 months to May 31.
Given Pakistan accounted for just 1.7% of U.S. apparel imports and 8.4% of textiles there may well be room for increased market share.
From a developmental perspective it’s worth noting that shipments aside from textiles and apparel have actually fallen as a proportion of the total to 27.1% in the past 12 months compared to 38.9% in 1998. Other major import lines include cotton at 3.3%, optical equipment at 2.8% and plastics which accounted for 2.6%.
The largest importer of apparel and textiles from Pakistan in the past 12 months, aside from trade finance houses, has been Levi Strauss with 1,682 TEUs shipped. That followed a 101.5% year over year surge in shipments in 2Q. Other importers have also already been expanding their shipments. That was followed by JC Penney with 991 TEUs shipped after a 13.3% rise in 2Q while Adidas shipped 641 TEUs and grew by 9.9%.
WASHINGTON: The United States and Pakistan can further enhance bilateral trade if strategic ties between the two countries continue to improve, said a White House factsheet released on Tuesday.
The factsheet “Working toward Peace and Stability: Building Economic Prosperity” notes that the United States and Pakistan enjoy a strong economic partnership that benefits both countries.
The official document points out that Pakistan and the US traded $6.6 billion worth of goods last year, setting a new record of bilateral trade.
While the document recognises Pakistan’s role in the Afghan peace process, US officials recently also urged Islamabad to encourage transit trade between India and Afghanistan, noting that it would benefit all by enhancing trade between South and Central Asian regions.
ARTICLE CONTINUES AFTER AD
President Donald Trump also expressed his desire to increase trade with Pakistan when asked at his July 22 news briefing what his administration was willing to do to help boost the Pakistani economy.
“Yes, I see great trade with Pakistan. And I’m not talking about a little bit more. I’m talking about — we could go 10 and even 20 times what we’re doing right now,” he said.
“You know, Pakistan is a big country. It’s actually a very big country, and they have tremendous product. They make great product,” he added.
“I’ve bought from Pakistan over the years when I was in the private sector. They make incredible product. They’re brilliant people. They’re hard-working people.”
He said that he believed the US and Pakistan could “have a fantastic trade relationship. I don’t mean we’ll increase it by 20 per cent. I mean, I think we can quadruple it. I think it could go — I mean, literally, it sounds crazy — you could go 10 times more. You could go 20 times more.”
He said he believed in multiplying trade with Pakistan because he felt “what we do right now is not much, and we should do a lot.”
Trump’s statement and the White House factsheet endorse Islamabad’s claim that Prime Minister Imran Khan’s US visit was a success, although it also highlights the key issues that need to be resolved to further enhance this relationship.
The document notes that Pakistan also purchased extensive amounts of American liquefied natural gas during the same period, about 22.8 billion cubic feet.
ExxonMobil re-established its presence in Pakistan in 2018 after 27 years and is working to increase LNG imports.
It lays greater emphasis on economic relations than did recent statements by US officials, who focused more on Pakistan’s cooperation in restoring peace to Afghanistan.
American energy producers are seeing more and more business opportunities with Pakistan and American companies are incorporating cutting-edge technologies into energy projects throughout Pakistan, the document adds.
U.S.-Pakistan Trade Facts
In 2018, Pakistan GDP was an estimated $312.6 billion (current market exchange rates); real GDP was up by an estimated 5.2%; and the population was 201 million. (Source: IMF)
Pakistan is currently our 56th largest goods trading partner with $6.6 billion in total (two way) goods trade during 2018. Goods exports totaled $2.9 billion; goods imports totaled $3.7 billion. The U.S. goods trade deficit with Pakistan was $783 million in 2018.
According to the Department of Commerce, U.S. exports of goods to Pakistan supported an estimated 10 thousand jobs in 2015 (latest data available).
Pakistan was the United States' 55th largest goods export market in 2018.
U.S. goods exports to Pakistan in 2018 were $2.9 billion, up 4.3% ($121 million) from 2017 and up 54.3% from 2008.
The top export categories (2-digit HS) in 2018 were: miscellaneous grain, seeds, fruit (oybeans) ($694 million), cotton ($615 million), iron and steel ($225 million), machinery ($211 million), and optical and medical instruments ($117 million).
U.S. total exports of agricultural products to Pakistan totaled $1.5 billion in 2018, our 19th largest agricultural export market. Leading domestic export categories include: soybeans ($689 million), cotton ($615 million), tree nuts ($49 million), dairy products ($38 million), and planting seeds ($37 million).
Pakistan was the United States' 58th largest supplier of goods imports in 2018.
U.S. goods imports from Pakistan totaled $3.7 billion in 2018, up 3.9% ($138 million) from 2017, and up 3.4% from 2008.
The top import categories (2-digit HS) in 2018 were: miscellaneous textile articles ($1.3 billion), knit apparel ($809 million), woven apparel ($586 million), leather products ($121 million), and cotton ($112 million).
U.S. total imports of agricultural products from Pakistan totaled $126 million in 2018. Leading categories include: rice ($31 million), sugars, sweeteners, bev bases ($30 million), spices ($19 million), processed fruit & vegetables ($9 million), and snack foods ($7 million).
The U.S. goods trade deficit with Pakistan was $783 million in 2018, a 2.2% increase ($17 million) over 2017.
U.S. foreign direct investment (FDI) in Pakistan (stock) was $518 million in 2017, a 25.7% increase from 2016. There is no information on the distribution of U.S. FDI in Pakistan.
Pakistan's FDI in the United States (stock) was $224 million in 2017. There is no information on the distribution of Pakistan FDI in the U.S.
NOTE: No services trade data with Pakistan are available.NOTE: No services trade data with Pakistan are available.
#Pakistan #garment makers chase rivals in #India and #Bangladesh. Pakistan has been hailed as an "attractive sourcing base" by industry executives including Spencer Fung, CEO of Hong Kong-based supply chain giant Li & Fung https://asia.nikkei.com/Business/Business-trends/Pakistan-garment-makers-chase-rivals-in-India-and-Bangladesh
The global shift to online retailing is further intensifying cost competition, a trend that could benefit Pakistan.
Leading the shift is Amazon, which offers cheaper apparel that can be customized to individual shoppers' tastes and delivered quickly.
Pakistan garment companies are fighting hard to break into the supply chains of some of the world's biggest fashion brands as the country races to catch up with Bangladesh and other Asian apparel heavyweights.
The battle is fierce, however, as customers like Zara and H&M demand high quality and low costs from their suppliers, all on increasingly tight time tables.
Kay & Emms, a garment maker based in Faisalabad, says it is benefiting from clients' desire to diversify.
"We are getting more benefit because the customers are thinking that they are not 100% safe while putting all of their eggs in one basket that is either China or Bangladesh," Faisal Waheed, sales and marketing general manager at Kay & Emms.
Compared to the traditional leaders in garment production -- China, Vietnam and Bangladesh -- Pakistan is still a minor player, and the pressure on companies to reduce costs is intense.
"There is always a war-footing situation," Waheed said. "Every customer is cost-conscious, because they know they have the buying power around the globe. They have a lot of suppliers in their basket -- Cambodia, India, Bangladesh, China and Pakistan. If you don't act on war footing, you will be losing business."
Pakistan has been hailed as an "attractive sourcing base" by industry executives including Spencer Fung, CEO of Hong Kong-based supply chain giant Li & Fung, as garment production for Western brands continue to shift to lower cost countries.
Kay & Emms is still small by global standards, with an annual turnover of just $50 million and 2,300 employees, but it is growing at an annual rate of 60%. About a fifth of its sales comes from Zara, a brand belonging to Spain's Inditex. Kay & Emms has been supplying jogging pants, hoodies, crew neck shirts, pullovers and zipper jackets for Zara since 2014, but it was a hard-earned success, according to Waheed.
"After an effort of more than four, five months, we got the first order," Waheed said. "It was quite hard to get into their business."
Zara is a demanding customer, Waheed. "It is cost-conscious, quality-conscious and time-conscious." But his company was after the prestige of doing business with the world's biggest apparel company. Zara releases new items every three to four weeks, rather than on a four-season cycle. "It compels us to develop new fabrics and garments," Waheed said. "That's harder, but more exciting."
Pakistan's cost-competitive garment makers are drawing attention from multinational brands, even though the country's growth lags behind more dynamic markets such as India or Bangladesh. Pakistan is still recovering from the U.S. war on terror, which has stirred Islamic insurgency and has left tens of thousands dead near the border with Afghanistan.
Pakistan fast gaining access to markets of developed nations
By Salman SiddiquiPublished: August 24, 2019
Pakistan is fast strengthening trade ties and getting access to markets of several developed countries around the globe in an attempt to increase exports, which is a must to do away with the pressure on the rupee, build foreign currency reserves and steer the country out of the financial crisis.
“We have got increased market access to China, Europa, Indonesia…and a small market access in Qatar,” said Adviser to Prime Minister for Commerce, Investment, Industries, Production and Textile Abdul Razak Dawood during a visit to a Dawlance factory on Friday.
“Now I am going to the United States to get more market access there,” he said, adding that there were four other countries with whom Islamabad was negotiating to get more market access, which included Canada, Japan, South Korea and Australia.
“All of us in Pakistan must understand that without (revival of) exports this country is not going anywhere,” he remarked while emphasising that exports were increasing at a fast pace.
“Are the country’s exports increasing fast,” he asked and said in the same breath “the answer is yes.”
He said exports increased 14% in July 2019 compared to July 2018. “That is good, but still not good enough. We have to do a lot more. Data for August is keenly awaited to see whether the trend is sustained,” he said.
Pakistan’s exports remained almost static at $24.22 billion in FY19 compared to $24.76 billion in FY18, according to the central bank.
Dawood said exports, which started improving at the outset of second year of his government, would help ease pressure on the rupee and build foreign currency reserves of the country.
The current account deficit dropped significantly to $13.5 billion in FY19 compared to a record high of around $20 billion in FY18. “The deficit will be further restricted in the range of $5-7 billion in the current fiscal year,” he said.
He, however, regretted too much reliance on textile exports and urged other sectors of the economy to play their role in diversifying exports. “We have to now move towards export of engineering goods, chemicals, IT products, processed food and others,” he said.
The PM aide was happy to note that engineering firms like Millat Tractors and Dawlance had started exporting their products to African and European countries respectively.
He asked the large-scale manufacturing (LSM) sector to help small and medium-sized enterprises (SME) to enter the manufacturing sector.
“We actually had a de-industrialisation situation. That is over. We are now back on the track of industrialisation,” he said, adding that the new industrialisation phase would help build the brand of ‘Make in Pakistan’ for exports and import substitution.
“Prime Minister Imran Khan holds weekly meetings to stay updated on the issues and problems faced by the industrial sector and how to resolve them,” he said.
Dawood said the government was trying to correct the duty structure. “I am not satisfied (with the current duty structure). There is a lot to be done. We have to correct the duty structure to facilitate the ease of doing business.”
He invited budget proposals from the industries to resolve their outstanding issues and added that such challenges may be overcome much earlier than the next budget presentation.
“What do you want in the next budget or before the budget (for industries),” he asked.
The adviser said the Chinese were relocating their industries to Pakistan, which would help build the export sector and promote import substitution. A large Chinese delegation of 65 parties is due in October. They are believed to make a huge participation in the new industrialisation phase in Pakistan.
He said fundamentals of textile exports had also changed to positive. Exports of value-added textile goods like garments and knitwear increased notably in July while exports of raw material – yarn – dropped 18%.
Jeans Imports From China Tumble as Sourcing Gets Increasingly Diverse
China’s jeans market share came down to 22.48 percent, just a tick above Mexico’s 22.27 percent, according to OTEXA. For the first seven months of the year, jeans imports from Mexico grew 12.53 percent in value to $483.58 million, topping China’s shipments so far this year. This was notably in contrast to Mexico’s overall apparel shipments in the period, which were down 2.94 percent to $1.89 billion.
Among the suppliers gaining ground this year from Asia were Vietnam, with imports to the U.S. up 30.24 percent to $192.74 million, and Pakistan, with shipments rising 8.72 percent to $148.3 million. Losing ground in the region were Bangladesh; with imports down 1.51 percent to $306.82 million, Cambodia, which saw shipments decline 9.48 percent to $60.76 million, and Indonesia, which dropped 13.89 percent to $40.21 million. Sourcing executives have pointed to labor and quality issues in these countries as the reasons for brands shying away from manufacturing there.
Production picked up in the Western Hemisphere, where Nicaragua saw its shipments to the U.S. increase 28.57 percent to $67.71 million, and Guatemala, with shipments up 13.25 percent to $20.37 million. Overall Western Hemisphere jeans imports to the U.S. were up 10.66 percent in the period to $605.13 million. For the year through July, the region saw its market share reach 28 percent.
Africa continues to get more attention from denim apparel producers, too. Countries showing substantial gains this year include Egypt, Jordan, Madagascar, Kenya, Mauritius, Tanzania and Ethiopia.
#Pakistan exported $1,156 million worth of readymade #garments (#RMG) in five months, showing an increase of 36% in quantity and 13.19% in value. #exports
Pakistan exports increase by 4.8pc in five months: Finance advisor
By Ali Ahmed on December 21, 2019
Sheikh said that from July-Nov 2019, exports increased by 4.8pc as compared to same period last year.
Value added exports like readymade garments, knitwear and other major exports are showing strong pick up in both quantity & value, he said.
Adviser to the Prime Minister of Pakistan on Finance and Revenue Abdul Hafeez Sheikh said that strong export growth is essential for the industrial expansion and job creation in an economy, as Pakistan posted 4.8pc export growth.
In a tweet, the advisor said that in five months (July-Nov 2019) exports increased by 4.8 percent as compared to same period last year. “Value added exports like readymade garments, knitwear & other major exports are showing strong pick up in both quantity & value," he said.
As per the data of Major Exports of Pakistan in 2019-20 (July-November) shared by Hafeez, knitwear items worth $1,320 million were exported in the five months, showing a quantity increase of 6 percent and value increase of 8.69pc.
Whereas, Pakistan exported $1,156mn worth of readymade garments in five months, showing an increase of 36pc in quantity and 13.19pc in value. Meanwhile bedwear was third on the list with $1.013bn worth of exports, an increase of 14.37pc in quantity and 4.69pc in value.
#Pakistan #textile sector at full production capacity. “If all goes well, the developments in textile industry support…the government to achieve the set export target of $24-25 billion this fiscal year” #exports #trade The Express Tribune
The textile manufacturing sector – the single largest export-oriented sector of Pakistan – has spiked to full-capacity production after the government withdrew duties and taxes on import of the raw cotton in January.
Besides, Islamabad is getting higher export orders for textiles since China, the single largest textile exporter at world across, is lying closed to fight against the deadly coronavirus for the past couple of months.
“Pakistan (textile sector) is working on full capacity,” All Pakistan Textile Mills Association (Aptma) former chairman Asif Inam told The Express Tribune on Saturday.
“If all goes well, the developments in textile industry support…the government to achieve the set export target of $24-25 billion this fiscal year (July-2019 to June 2020),” he said.
“We don’t have the capacity to take additional export orders these days. We have entered into the capacity constraint zone,” he said.
He said there is a 26% volumetric growth in textiles export. “This (26%) was the capacity in surplus till recent months. The government has fully utilised that,” Inam same.
State Bank of Pakistan Governor Reza Baqir said the other day there was up to 40% volumetric growth in textile exports. Besides, the export of finished goods is on the rise, while export of raw material, including cotton and yarn are on a downward trend, which are positive developments for Pakistan’s economy.
Pakistan has continued to receive good export orders, including in the downstream industry. “The world textile buyers have diverted their purchasing orders to Pakistan since China (70-80% production) is closed to fight against spread of the coronavirus,” Inam said.
The virus has disrupted the world. A significant number of countries have been affected by the virus, as over 2,300 people have died and over 75,000 people got infected.
The official claimed that the textile exports could be doubled over the next five year if the government overcomes the high energy pricing, gas connection and tax refund issues. The Aptma has demanded a long-term five-year textile policy from the government. “Once the government announces the policy, the textile exports will start growing at 10-15% per annum over the next five years,” he added.
He said Pakistan is estimated to import around 7.5-8 million bales (of 170 kilogram each) this fiscal year after local production came almost half of the required 15 million bales in FY20.
They will be record high import in Pakistan. Pakistan has produced around 7.5-8 million bales so far, which comes to around half of the domestic requirement.
“We have so far imported around one-third of the total required quantity of imported cotton at 7.5-8 million bales. We will import around 70% of that over the next two-three months and remaining in the rest of the period of FY20,” he said.
High energy, water costs may push Pakistan’s apparel industry towards crisis
The import of cotton paced up following the government withdrew 3% regulatory duty, 2% additional customs duty and 5% sales tax on import of cotton from January 15, 2020.
The imposition of the duty and taxes on cotton import by the previous government in the centre had put the textile industry in danger.
“The withdrawal of duty and taxes has fully mitigated the risk of decline in cotton consumption in Pakistan.
USAID has recently anticipated increase in consumption of cotton at textile industries in Pakistan. We will use at least 15 million bales this year (FY20),” Aptma former chairman said.
#China #Pakistan FTA-2: #Pakistan textile #exports to rise to $25 billion in new regional hub. As #coronavirus outbreak puts the globalisation into reverse and challenges existing global value chains, new supply chains continue to form behind the scenes.
With the second phase of the CPFTA, there is a possibility of relocating the production of international brands, many of which have facilities in China that import cotton fabric from Pakistan as raw material—to Pakistan itself. The inflow of Chinese investment in machinery and technology in order to set up production bases in Pakistan will drive innovation and economies of scale, thereby making Pakistan regionally competitive in cotton-based garments. In addition, Pakistan will garner a favourable position for exporting to other markets that have so far been trading primarily with China as well as potentially to other Regional Comprehensive Economic Partnership (RCEP) members.
In January 2020, Pakistan and China entered into the second phase of China-Pakistan Free Trade Agreement (CPFTA2), under which China has eliminated tariffs on 313 priority tariff lines of Pakistan’s export interest. In return, Pakistan has offered China market access to raw materials, intermediate goods, and machinery.
Of the 313 high-priority products that Pakistan can now export without duty payments to China, 130 are from textiles and clothing sector. Reduced tariffs, an expected surge in Chinese investment into Pakistan and the potential shift of production base from China to Pakistan, may change the regional dynamics of textiles trade. The numbers explain how.
Under the CPFTA2, many Pakistani textile products will now enjoy duty-free access to China, which has extended similar tariff reductions to other trading partners - Bangladesh, Thailand and Vietnam among others - under the ASEAN-China FTA. Tariffs on readymade cotton garments (HS codes 61, 62 and 63), have been massively reduced. For example, men’s ensembles of cotton (HS code – 62032200), Pakistan’s top world export, was traded with China at 17.5 per cent (MFN rate) which reduced to 12 per cent under Phase-I of FTA and has dropped to 0 per cent in the Phase-II of FTA. This places Pakistan at a more than equal footing with Bangladesh, and ahead of India which faces a tariff rate of 8 per cent on the export of this product to China.
Pakistan is likely to be preferred over Bangladesh given the former country’s comparative advantage in producing cotton fabric (nearly 25 per cent of Pakistan’s total cotton exports in 2018 were to China); ease of doing business (Pakistan ranks at 108 compared to Bangladesh at 168 and India at 63 under the World Bank’s Doing Business 2020 study); ease of trading across borders (Pakistan ranks at 111 compared to Bangladesh at 176 and India at 68) and ease of starting a new business (Pakistan ranks at 72 compared to Bangladesh at 131 and India at 136).
Pakistan’s government targets raising the country’s textile and clothing exports from USD 13.5 billion in 2018 to USD 25 billion by 2025. As China has the world’s largest textile industry—in terms of both production and export—it is an inevitable trading partner for Pakistan to meet this 2025 target.
For Pakistan, to fully reap the benefits of the CPFTA2, access to cheaper imported inputs will be crucial to its export competitiveness for cotton-based readymade garments.
While Pakistan grows cotton domestically, 37 percent of its cotton imports came from India. After the trade ban between India and Pakistan in 2019, Pakistan began sourcing cotton/yarn from the US and Vietnam, thereby witnessing a rise in cotton prices, amid low production and higher import tariffs (11% from the US and Vietnam, compared to 5 per cent from India for cotton yarn (HS Code 520524), one of Pakistan’s major imports from India).
Pakistan Lubricants Market Size Forecast to Reach $1.91 Billion by 2025. #Pakistan, world’s 4th-largest producer & 3rd-largest user of #cotton, has been a focus area for industrialization and growing lubricant use in #textile #industry. #exports #economy https://reportedtimes.com/pakistan-lubricants-market-size-forecast-to-reach-1-91-billion-by-2025/
Pakistan Lubricants Market size is forecast to reach $1.91 billion by 2025, after growing at a CAGR of 5% during 2020-2025. Lubricants create a thin film between the moving parts for enhancing the transfer of heat and reducing tension during the contact of parts. Due to which they are used for applications such as wear reduction, corrosion protection, and smooth operation of engine internals. Owing to the increasing use of lubricants in textile and automotive, the growth of the Pakistan Lubricants Market is expected to accelerate in the forecast era.
Engine Oil is extensively used in Pakistan Lubricants Market. Engine oil is crucial in the smooth running of engines, reducing fuel emissions, and increasing engine efficiency. Engine oils provide better lubrication, cleaner engine, effective cooling, protects from corrosion, and acts as a seal owing to which it is vastly preferred for various transportation modes. Engine oil helps to cut expensive maintenance for vehicle owners and also gives longer engine lifespan. Since, engine oils clean, cooling, and prevent corrosion of the engine, they save the engine from being clogged and damaged. Because of this, mechanical components last longer and corrode less, and engines, in turn, have a longer and safer lifespan. Also, by using good engine oil, there is a reduction in emissions and fuel consumption which anticipates enhancing the market in the forecast era.
Key sectors of lubricant growth: Engine oil, textile mills & wind turbines. Electric vehicles pose a challenge to lubricant growth.
Automotive Industry held the largest share in the Pakistan Lubricants Market in 2019and is projected to grow at a CAGR of 7% during the forecast period 2020-2025.
The textile industry uses lubricants such as greases, heat transfer fluids, gear oils, engine oils, transmission, and hydraulic fluids, and anti-static oils.
Wind-turbine lubricants play a critical role in equipment operation, maintenance, and reliability of a wind farm. New installations of a wind farm will drive up lubricant consumption for the initial fill of the wind farm.
Post a Comment