tag:blogger.com,1999:blog-5848640164815342479.post8173839988081502258..comments2024-03-27T15:36:44.737-07:00Comments on Haq's Musings: Musharraf Era Textile Boom Returning to Pakistan?Riaz Haqhttp://www.blogger.com/profile/00522781692886598586noreply@blogger.comBlogger51125tag:blogger.com,1999:blog-5848640164815342479.post-40826869321434794392023-07-31T07:45:36.924-07:002023-07-31T07:45:36.924-07:00The rise in global cotton production is led by the...The rise in global cotton production is led by the US, Pakistan, and India, with a drop in China's output due to cooler weather conditions.<br /><br />https://www.fibre2fashion.com/news/textile-news/global-cotton-production-forecast-to-hit-4-year-high-in-fy24-usda-288228-newsdetails.htm<br /><br />Global cotton production in FY24 is forecast to reach a four-year high of 116.7 million bales, up slightly from the previous year, as per USDA.<br />The rise is led by the US, Pakistan, and India, with a drop in China's output due to cooler weather conditions.<br />Australia's FY24 cotton production is projected at 5.8 million bales, 300,000 bales above FY23.<br /><br /><br />World cotton production is projected to reach a four-year high of 116.7 million bales in 2023-24 (FY24), according to the US Department of Agriculture (USDA). The expected growth in production represents a slight increase of 400,000 bales from the previous year.<br />The increase is predominantly driven by the major cotton-producing countries, with the US and Pakistan leading the charge. Both countries are projected to see a significant rise in production, each adding 2 million bales to the global yield. India is also expected to contribute to the surge, albeit on a lesser scale, with an additional half a million bales.<br /><br />However, these gains will be partially offset by a reduction in output from China, the world's leading cotton producer. The Chinese crop is anticipated to shrink by 3.7 million bales in the 2023-24 season due to cooler than normal temperatures early in the growing season in China's Xinjiang region, which could limit yield potential. This decrease means China's contribution to global cotton production is expected to shrink from 26 per cent in 2022-23 to 23 per cent in 2023-24, as per USDA’s Cotton and Wool Outlook: June 2023 report.<br /><br />Meanwhile, India is set to buck this trend with a projected 2-per cent increase in cotton production from the 2022-23 crop. This rise comes despite an expected reduction in harvested area, with alternative crops predicted to reduce cotton acreage to 12.4 million hectares. A rebound in yield is set to offset this, with the national yield forecast at 448 kg per hectare, the highest in three years. India's share in global cotton production is set to remain steady at approximately 22 per cent.<br /><br />Outside of the US, other countries including Brazil, Pakistan, and Australia are also projected to see an increase in cotton production. Brazil's output is expected to hit 13.25 million bales, slightly above the 2022-23 figure and second only to 2019-20's record of nearly 13.8 million bales.<br /><br />Pakistan's cotton production is set to rebound from the nearly four-decade low of 3.9 million bales recorded in 2022-23 due to flood damage. The forecast production of 5.9 million bales for 2023-24 will account for 5 per cent of global production.<br /><br />Lastly, Australia's 2023-24 cotton production is projected at 5.8 million bales, 300,000 bales above 2022-23 and close to 2021-22’s record of 5.85 million bales, supported by above-average reservoir levels.<br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-58411442734506449372023-07-14T13:29:31.257-07:002023-07-14T13:29:31.257-07:00Cotton Production Expected To Cross 10 Million Bal...Cotton Production Expected To Cross 10 Million Bales<br /><br />https://propakistani.pk/2023/07/12/cotton-production-expected-to-cross-10-million-bales/<br /><br /><br />Cotton exports season is on a promising start with the ginning industry confirming early orders for 600 tons.<br /><br />Chairman of the Cotton Ginners Forum Ihsanul Haq revealed that a major cotton ginner from Sindh has been able to confirm early orders for cotton exports of up to 600 tons to Indonesia and Vietnam with shipments scheduled in early August.<br /><br />He explained that if the weather remains favorable, Pakistan’s cotton production is expected to cross 10 million bales in the upcoming year which is a sign of relief for the textile sector and reflects the potential of the cotton industry.<br /><br /><br />Though, Ihsanul Haq added that the delayed procurement by ginners is also increasing cotton prices with Rs. 17,500 per 40kg in Sindh and Rs. 17,000 per 40kg in Punjab while the dollar exchange rate fluctuation may further impact the prices in the coming days.<br /><br />It is worth noting that cotton quality and quantity have improved significantly over the last year due to an ideal environment of low rainfall and warm temperatures in coastal Sindh. Because of this, the industry has confirmed early orders and is expecting record-breaking exportsRiaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-3517268561343060382023-05-23T07:40:40.131-07:002023-05-23T07:40:40.131-07:00Textile exports plummet by 14% to $13.7 billion
At...Textile exports plummet by 14% to $13.7 billion<br />Attributable to global recession, challenging domestic environment<br /><br /><br />https://tribune.com.pk/story/2418100/textile-exports-plummet-by-14-to-137-billion<br /><br /><br />KARACHI:<br />Pakistan’s textile exports have experienced a significant decline of approximately 14% during the 10-month period of fiscal year 2023, dropping to $13.7 billion, according to data released by the Pakistan Bureau of Statistics (PBS). This marks a substantial decrease from the previous year’s figure of $15.9 billion.<br /><br /><br />Experts attribute this slowdown to the global recession, resulting in lower export orders, combined with a challenging domestic environment. Insight Research, textile analyst, Asim Hassan states, “The slowdown is mainly attributable to the global recession resulting in lower export orders coupled with challenging domestic environment.”<br /><br />In April 2023, textile exports witnessed a year-on-year decrease of 29%, amounting to $1.23 billion. Arif Habib Limited (AHL), Head of Research, Tahir Abbas notes that this marks the seventh consecutive year-on-year decline in monthly textile exports.<br /><br />Topline Securities, textile analyst, Nasheed Malik explains that compared to April 2022, Pakistan’s textile exports were down by 29% year-on-year and 9% year-on-year in Pakistan rupee terms.<br /><br />This decline is primarily attributed to a 29% and 32% drop in the value-added and basic segments, respectively. In the value-added segment, bedwear, knitwear, readymade garments, and towels witnessed declines of 22%, 34%, 29%, and 26% respectively.<br /><br />In a month-on-month comparison, Pakistan’s textile exports for April 2023 stood at $1.23 billion, experiencing only a 2% decrease. Similarly, in Pakistan rupee terms, exports remained flat month-on-month, amounting to Rs351 billion, said Malik.<br /><br />The value-added textile exports reached $867 million, maintaining stability month-on-month. Bedwear increased by 11% and knitwear by 3% compared to the previous month.<br /><br />However, readymade garments witnessed a 10% decline, balancing out the overall export performance. Basic textiles decreased by 7% month-on-month, with cotton cloth and cotton yarn experiencing almost the same decline.<br /><br />In terms of volume, bedwear and knitwear witnessed a positive trend, increasing by 9% and 3% respectively month-on-month. On the other hand, towels decreased by 3%, and readymade garments remained flat compared to the previous month.<br /><br />Malik highlights that textile manufacturers in Pakistan have observed improved orders from Europe and the United States for the value-added segment, as indicated by the resilience in volumes. However, among basic textiles, cotton yarn decreased by 8%, and cotton cloth declined by 6% month-on-month.<br /><br />Insight Researches’ analyst acknowledges that textile exports have remained sluggish due to various challenges in the domestic environment and weakening global demand. He expects textile exports to increase in volumetric terms as the inventory pileup gradually declines and demand resurges in export destinations.<br /><br />However, the decline in product prices is likely to offset the impact. Additionally, headwinds in the domestic economy, such as unavailability of locally produced cotton, delays in clearance of imported cotton and other essential inputs, elevated gas and electricity tariffs, and increased finance costs, will continue to hinder textile players.<br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-4256320987708828312023-05-16T18:18:02.074-07:002023-05-16T18:18:02.074-07:00Pakistan sees lowest output of cotton in four deca...Pakistan sees lowest output of cotton in four decades<br /><br /><br />https://www.dawn.com/news/1745814<br /><br /><br />The country has produced 34 per cent less cotton this year as compared with the crop yield last season, reveals data with Pakistan Cotton Ginners Association (PCGA).<br /><br />The final figures for the crop year 2022-23 show that Pakistan produced 4,912,069 bales, the lowest in around four decades, of cotton against 7,441,833 in the 2021-22 season, a year-on-year decline of 2,528,764 bales or 34pc loss.<br /><br />It means the textile industry will have to import around 10 million bales to satiate its annual hunger for 15m bales. However, mill consumption in the year 2022-23 has also been reported at 8.8m bales, the lowest in over 20 years, mainly because of severe import financing issues.<br /><br />Market sources say the textile mills have so far signed import agreements for 5.5m bales, whereas they have purchased 4,605,449 bales from the local market. Last year, the mills had bought 7,332,000 bales from the domestic market.<br /><br />Ginners say they are still holding 301,720 bales in their stocks against last year’s inventory of 93,833 bales.<br /><br />Flash floods and heavy rains during last year monsoon that devastated large swathes of the agricultural land in the country, particularly in Sindh and Balochistan provinces, are blamed for the massive drop in cotton arrival.<br /><br />Interestingly, despite a strong demand in international markets, only 4,900 bales of white lint could be exported this year against the previous year’s figure of 11,000 bales, a fall of over 69pc. The main destinations of Pakistan’s raw cotton are the Philippines, Italy, Bangladesh, Greece and France.<br /><br />Province-wise, Punjab registered over 32pc year-on-year decline in output as it produced 3,033,050 bales this season against 3,928,690 bales last season.<br /><br />Sindh reported over 46pc year-on-year loss in yield as the lint production in the province this year stood at 1,879,019 bales against 3,513,143 bales last year.<br /><br />Pakistan’s cotton output reached a high of 14.1m bales in the year 2004-05. But it dropped to 7m bales in 2020-21 and about 9.45m bales in 2021-22 as the country’s per acre yield contracted to half of the crop productivity in other countries of the region.<br /><br />Expressing concern over the continuous decline in cotton production and acreage over the years, a recent meeting of the Economic Coordination Committee (ECC) approved Rs8,500 per 40kg as the intervention price on a summary submitted by the Ministry of National Food Security and Research to attract growers towards the crop.<br /><br />Pricing<br /><br />The ministry informed the ECC that in order to draw up a cotton intervention price proposal, consultations were held with all stakeholders including the provincial governments, growers and cotton associations in January and February.<br /><br />Stakeholders, including the All Pakistan Textile Mills Association, called for pegging the cotton intervention price with the import parity price in line with the policy adopted over the past two years.<br /><br />The ECC constituted a cotton price review committee with the mandate to review market prices and propose intervention on a fortnightly basis.<br /><br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-54551425038195082902022-12-14T19:04:39.342-08:002022-12-14T19:04:39.342-08:00Workplace safety accord extended to Pakistan
http...Workplace safety accord extended to Pakistan<br /><br />https://www.dawn.com/news/1726412/workplace-safety-accord-extended-to-pakistan<br /><br />KARACHI: A comprehensive Workplace Safety Programme (WSP) is being launched in Pakistan by the signatories to the International Accord for Health and Safety in the Textile and Garment Industry, a move that will support the country to boost its textile sector.<br /><br />The programme will cover Pakistan’s garments and textile suppliers, helping the country improve the industry like that of Bangladesh and other signatories to the accord.<br /><br />The decision to expand the programme to Pakistan was announced during a signatory brand caucus meeting held on Wednesday in Amsterdam. Brands will receive an information package on the Pakistan Accord and will be invited to sign it on Jan 16, 2023, said a press release issued here on Wednesday.<br /><br />“I am pleased to see the International Accord signatories reach an agreement to establish a WSP covering the signatories’ garment and textile suppliers in Pakistan. We are committed to working closely with Pakistani stakeholders to ensure our collective efforts are beneficial to the industry and its workers,” said Joris Oldenziel, Executive Director of International Accord Foundation.<br /><br />The programme aims to incrementally cover more than 500 factories producing for over 100 accord signatory companies throughout Sindh and Punjab, where most of Pakistan’s $20 billion in garment and textile exports are manufactured annually.<br /><br />The International Accord has undertaken extensive engagement in Pakistan with federal ministries and provincial governments, industry associations, suppliers, trade unions and civil society organisations.<br /><br />The Pakistan Accord covers Cut-Make-Trim (CMT) facilities cover ready-made garment (RMG), home textile, fabric and knit accessories suppliers (including vertically integrated facilities). Fabric mills within the supply chains of the signatories are also covered, with implementation scheduled for a later stage in the programme.<br /><br />The successful experience in Bangladesh prompted the signatories to expand the workplace safety programme to at least one other textile and garment-producing country. Through signatory surveys, extensive research, and local stakeholder consultations, the Accord Secretariat assessed the feasibility of expanding based on key factors. Pakistan emerged as a priority country, in part because of its importance as a garment and textile sourcing country for the accord brands.<br /><br />The Pakistan Accord programmes will be implemented in phases, in close collaboration with these key stakeholders and through the establishment of a national governance body.<br /><br />The new Pakistan Accord on Health and Safety in the Textile and Garment Industry is a legally binding agreement between global unions, IndustriALL and UNI Global Union, and garment brands and retailers for an interim term of three years starting from 2023.<br /><br />Building on widespread safety improvements in Bangladesh, the Pakistan Accord includes all key International Accord features — independent safety inspections to address identified fire, electrical, structural and boiler hazards, monitoring and supporting remediation, safety committee training and worker safety awareness programme, an independent complaints mechanism, a commitment to broad transparency, and local capacity-building to enhance a culture of health and safety in the industry.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-51253166969318202682022-12-07T20:58:54.530-08:002022-12-07T20:58:54.530-08:00HOW ROADS CHANGED THARPARKAR
by Arif Hasan
http...HOW ROADS CHANGED THARPARKAR<br /><br /><br />by Arif Hasan<br /><br />https://www.dawn.com/news/1714144<br /><br />The main recommendation of the 1987 report on drought and famine conditions in Thar, prepared by the author, was that the changes taking place in Thar could only be consolidated through increased mobility and linkages of Thar with the rest of Pakistan in general and Karachi and Hyderabad in particular.<br /><br />It was felt that, if a road-building programme did not take place, the inequities in Thari society would increase, since those who could hire or possess four-wheel drives would be the main beneficiaries of Thar’s huge mineral and livestock potential.<br /><br />For mobility and linkages to happen, a road-building programme had been recommended, which envisaged linking the four Thar taluka headquarters with one another and with the national road network. However, it was not till the Musharraf era (2000-08) that a road-building programme commenced.<br /><br />The roads have made transportation cheaper and easier. The old six-wheeler kekra [World War II era American truck], which was slow and consumed enormous amounts of energy plying on the desert tracks, has been replaced by normal Bedford trucks, which are cheaper to run and can carry 250 maunds as opposed to 150 maunds carried by the kekras.<br /><br />It is claimed by the transporters that, earlier, it used to take three hours from Mithi to Naukot, but now this has been reduced to one hour. They also claim that the cost of petrol/diesel and maintenance of vehicles have been reduced by 20 per cent.<br /><br />With the building of the road network, trade and commerce has increased substantially. Thar’s agricultural produce now goes to distant markets — six to seven lorries per day carry onions from Nagarparkar to Lahore, and vegetables and fruit from other areas of Sindh and Punjab are now easily available in Thar.<br /><br />Unlike the situation that prevailed 15 years ago, there are cattle markets in the taluka headquarters, so the Tharis do not have to make the long trek on foot to Juddo to sell their animals. Shops carrying industrially produced household food have multiplied and sell items such as baby diapers, something quite unimaginable before. Every hour an air-conditioned bus, complete with TV and Wi-Fi (owned mainly by Pakhtuns and people of Mianwali based in Karachi) leaves for or arrives in Mithi.<br /><br />The number of taxis operating in Thar has increased from 150 to over 400, while the qingqis in Mithi have increased from over 150 to over 300 since 2013. These taxis carry passengers not only within Thar but to distant locations all over Pakistan, while the qingqis have almost completely replaced transport animals such as camels and bullocks.<br /><br />Bank loans for the purchase of taxis are available, but to buy the qingqis and trucks, one can only borrow from the informal market. Interest rates against loans are high and vary depending on how much advance payment can be made by the borrower, or if property or land can be mortgaged against the loan. Spare parts and mechanics for the maintenance of the taxis and qingqis are locally available, which was not so in 2000 and, very often, the vehicles had to be taken to Umerkot for maintenance purposes.<br /><br />Almost all these different types of vehicles have no insurance, since the owners find insurance rates far too expensive and prefer to put their trust in God. The qingqi and taxi owners have no association but are of the opinion that they desperately need one to negotiate with government agencies and fight against the bhatta [protection money] that the police extorts from them.<br /><br />An association is also necessary to resist pressure from national transporters’ associations, who coerce the Thari transporters to call a strike on their advice. This was not an issue in the past, because the kekras, which the new vehicles replaced, were collectively owned by seths in Umerkot and Naukot. One truck driver pointed out that there was a desperate need for a driving school in Mithi, because people who were learning to drive were dangerous and caused a large number of animal deaths.<br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-90124809637414551712022-11-17T09:30:52.555-08:002022-11-17T09:30:52.555-08:00Arif Habib Limited
@ArifHabibLtd
Textile exports d...Arif Habib Limited<br />@ArifHabibLtd<br />Textile exports decreased by 15% YoY to USD 1.4bn during Oct’22<br />Oct’22: $ 1.4bn, -15% YoY, -11% MoM<br />4MFY23: $ 5.9bn, -1% YoY<br /><br />https://twitter.com/ArifHabibLtd/status/1593262890919895040?s=20&t=M0wZNDCCGBW7U0NQnEf2FgRiaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-81690397041934163852022-11-17T07:35:23.244-08:002022-11-17T07:35:23.244-08:00Arif Habib Limited
@ArifHabibLtd
Monthly machinery...Arif Habib Limited<br />@ArifHabibLtd<br />Monthly machinery imports declined to a 9 year low of USD 457mn during Oct’22<br />Oct’22: $ 0.46bn, -48% YoY, -3% MoM<br />4MFY23: $ 2.2bn, -40% YoY<br /><br />https://twitter.com/ArifHabibLtd/status/1593263516810727424?s=20&t=xEVZ14IBivTc1zwg-KYi-ARiaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-85563949676200306292022-10-02T22:10:11.850-07:002022-10-02T22:10:11.850-07:00#Factories Making Towels & Bedsheets Are Shutt...#Factories Making Towels & Bedsheets Are Shutting in #Pakistan. As many as 100 smaller #textile mills have suspended operations due to a shortage of good quality #cotton, high #fuel costs, & poor recovery of payments from buyers in flood-hit areas https://finance.yahoo.com/news/factories-making-towels-bedsheets-shutting-000000992.html?soc_src=social-sh&soc_trk=tw&tsrc=twtr<br /><br />The mill closures underscore challenges for the sector that employs about 10 million people, accounts for 8% of the economy and adds more than half to the nation’s export earnings. Their hardships have become acute due to recent floods, which submerged a third of Pakistan, killed more than 1,600 people, and damaged about 35% of the cotton crop.<br /><br />The latest blow comes at a difficult time for the South Asian nation that is already struggling with high inflation and falling currency reserves. The closure of firms, such as AN Textile Mills Ltd., Shams Textile Mills Ltd., J.A. Textile Mills Ltd. and Asim Textile Mills Ltd., could worsen the country’s employment situation and hit its export earnings. Larger companies are also facing rough weather, with demand for their products seen falling about 10% by December from now due to a slowdown in Europe and the US, Mukhtar said.<br /><br />Due to an “unforeseen downturn in the market and unavailability of good quality cotton” following heavy rains and floods, the company’s mills have been temporarily closed, Faisalabad-based AN Textile said in an exchange filing earlier this month.<br /><br />Cotton production in Pakistan could slump to 6.5 million bales (of 170 kilograms each) in the year that started in July, compared with a target of 11 million, Mukhtar said. That could force the nation to spend about $3 billion to import cotton from countries such as Brazil, Turkey, the US, East and West Africa and Afghanistan, said Gohar Ejaz, patron-in-chief of All Pakistan Textile Mills Association. About 30% of Pakistan’s textile production capacity for exports has been hampered because of cotton and energy shortages, Ejaz said.<br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-35328810525002422892022-09-16T08:43:23.676-07:002022-09-16T08:43:23.676-07:00Arif Habib Limited
@ArifHabibLtd
Textile exports i...Arif Habib Limited<br />@ArifHabibLtd<br />Textile exports increased by 8% YoY to USD 1.6bn during Aug’22<br />Aug’22: $ 1.58bn, +8% YoY, +6% MoM<br />2MFY23: $ 3.06bn, +4% YoY<br /><br />@PBSofficialpak<br /> <br />@APTMAofficial<br /> <br />@StateBank_Pak<br /><br />#PBS #Exports #Trade #Economy<br /><br /><br />https://twitter.com/ArifHabibLtd/status/1570331949239091200?s=20&t=pIaIgNbo5g6-sWn9F0eerQRiaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-5839505567584602742022-09-15T11:53:15.975-07:002022-09-15T11:53:15.975-07:00Shahid Ali Habib
@ShahidAliHabib1
Highest ever rev...Shahid Ali Habib<br />@ShahidAliHabib1<br />Highest ever revenue and highest ever profit by<br />@InterloopLtd<br />, largest textile manufacturer of #Pakistan. 100% increase in profits and over +60% in revenues (exports).<br />Thank you so much<br />@MusadaqZ<br />and<br />@navidcch<br />, Maqsood Sb and entire Interloop team. #PSX is delighted to have you<br /><br />https://twitter.com/ShahidAliHabib1/status/1570451775047565315?s=20&t=AppHMR7MBgTVyB8Am8ZM3Q<br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-49507372421403716132022-07-19T10:59:09.579-07:002022-07-19T10:59:09.579-07:00Arif Habib Limited
@ArifHabibLtd
Highest ever oil ...Arif Habib Limited<br />@ArifHabibLtd<br />Highest ever oil import bill during FY22 amid a 71% YoY jump in Arab Light prices along with 19% YoY volumetric growth.<br /><br />https://twitter.com/ArifHabibLtd/status/1549436102188081153?s=20&t=T9F58BD1swNPae5vu_mvxA<br /><br />---------------<br /><br />Arif Habib Limited<br />@ArifHabibLtd<br />Balance of Trade FY22<br /><br />Historic high trade deficit during FY22, up by 56% YoY<br /><br />Exports: $ 31.79bn; +26% YoY<br />Imports: $ 80.18bn; +42% YoY<br />Trade Deficit: $ 48.38bn; +56% YoY<br /><br />https://twitter.com/ArifHabibLtd/status/1549433873347579904?s=20&t=b20BZelKhp8oumsNy7N5og<br /><br />-----------------<br /><br /><br />Arif Habib Limited<br />@ArifHabibLtd<br />Historic high textile exports during FY22, increased by 26% YoY to USD 19.33bn<br /><br />https://twitter.com/ArifHabibLtd/status/1549430609520508931?s=20&t=q2pwBz7Am1ZetYwiNYbfCARiaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-83641663809553951182022-07-04T07:36:27.121-07:002022-07-04T07:36:27.121-07:00Textile exports were recorded at $19.35 billion in...Textile exports were recorded at $19.35 billion in the outgoing FY22, showing an upsurge of 26% YoY when compared to $15.41bn in FY21, according to the data issued by All Pakistan Textile Mills Association (APTMA) today.<br /><br />The year-on-year increase in exports remained strong due to the resumption of economic activities, and strong demand in the West while rerouting orders out of China and regional countries.<br /><br />In the month of June 2022 alone, textile exports just inched up by 4% YoY to $1.73bn as compared to $1.66bn in June 2021.<br /><br />https://mettisglobal.news/textile-exports-crosses-19bn-mark-in-fy22/<br /><br />--------<br /><br />Ali khizar<br />@AliKhizar<br />Proof is in the pudding !<br /><br />https://twitter.com/AliKhizar/status/1543929658739023872?s=20&t=14tEYcK_3KZMtqZG5GrKGw<br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-33697518140654827812022-06-25T08:09:19.579-07:002022-06-25T08:09:19.579-07:00According to Marketplace Pulse research, Pakistan ...According to Marketplace Pulse research, Pakistan is currently the No. 3 top country among new sellers that joined Amazon’s marketplace in the U.S. in 2022.<br /><br />https://www.marketplacepulse.com/articles/pakistan-sellers-are-getting-into-amazon<br /><br /><br />Unsurprisingly, the U.S. and China top the list. The thousands of Pakistani sellers dwarf in comparison to the two largest locations, but that’s more than the rest of the countries in the world, including export hubs like India and neighboring countries like Canada.<br /><br />Rank Seller Country<br />1 United States<br />2 China<br />3 Pakistan<br />4 United Kingdom<br />5 Turkey<br />6 Canada<br />7 Vietnam<br />8 India<br />9 Brazil<br />10 Japan<br />A lot more sellers are coming. Pakistan is home to the world’s largest Amazon seller groups: “eCommerce by Enablers” with over 1.2 million members, “Extreme Commerce by Sunny Ali” has more than 1.1 million members, and “Ecommerce Success Pakistan” has nearly 200,000. The groups started years before Pakistani sellers were officially allowed to sell on Amazon.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-89165800625812671062022-05-27T13:22:08.031-07:002022-05-27T13:22:08.031-07:00Our Favorite Top Retail Fashion Brands In Pakistan...Our Favorite Top Retail Fashion Brands In Pakistan<br />By<br />Kainaat Maqbool<br />December 9, 2020<br /><br /><br />https://dnd.com.pk/our-favorite-top-retail-fashion-brands-in-pakistan/206915<br /><br />Sapphire.<br />Khaadi.<br />Gul Ahmed.<br />J. by Junaid Jamshed.<br />Sana Safinaz.<br />Outfitters.<br />Limelight.<br />Bonanza – Satrangi.<br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-89785184897730109632022-05-27T13:08:11.114-07:002022-05-27T13:08:11.114-07:00IFC will invest the equivalent of $25 million in P...IFC will invest the equivalent of $25 million in Pakistani rupees for a minority stake in Khaadi Corporation, which has 57 retail outlets spread across Pakistan and presence in UK and GCC countries.<br /><br />https://mettisglobal.news/ifc-to-invest-around-25mn-in-khaadi/<br /><br />May 27, 2022: International Finance Corporation (IFC) is all set to invest around $25 million in Pakistan’s top fashion retailer Khaadi Corporation to create jobs, promote gender equality, and support the country’s crucial textiles sector post-pandemic, said a press release issued on Friday.<br /><br />Khaadi has 57 retail outlets spread across Pakistan and a presence in the UK and GCC countries. The funding will help the company accelerate its growth by expanding its retail footprint and online global sales. It will also indirectly support the retailer’s suppliers in Pakistan, many of whom are smaller businesses.<br /><br />We are excited to begin the next chapter of our growth transformation with IFC’s first investment in the Pakistan fashion retail sector. We envisage this investment will help us set new benchmarks in organizing the retail sector in Pakistan and beyond, through strategic initiatives to drive growth, corporate governance, and diversity,” said Shamoon Sultan, founder, and CEO of Khaadi Corporation.<br /><br />IFC’s investment is designed to support the development of Pakistan’s retail and textiles sectors, which provide 40 percent of employment and account for about 9 percent of the country’s gross domestic product. About 30 percent of those who work in the textiles sector are women and supporting the industry will help promote gender equality in Pakistan.<br /><br />The textiles and retail industry is a core part of Pakistan’s economy and a major employer of women, especially in the garment sector,” said Zeeshan Sheikh, IFC Country Manager for Pakistan and Afghanistan. “By channeling financing and advisory support into the industry and partnering with innovative companies like Khaadi we can help the sector grow, formalize, become more sustainable, and create greater economic employment opportunities for women.”<br /><br />Along with the investment, IFC will advise Khaadi Corporation on enhancing its corporate governance structures, sustainability, and gender diversification programs.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-19571493089090639192022-05-18T17:38:09.440-07:002022-05-18T17:38:09.440-07:00ESSENTIAL SOURCING GUIDE: The Pakistan apparel sec...ESSENTIAL SOURCING GUIDE: The Pakistan apparel sector<br />Just Style takes an in-depth look at the Pakistan apparel sector which has witnessed many advances and retreats during the last decade.<br /><br />https://www.investmentmonitor.ai/uncategorized/essential-sourcing-guide-the-pakistan-apparel-sector<br /><br /><br />If Pakistan can stabilise its economy and politics, its clothing and textile sector can grow sustainably, said Raza. With a strategic location, closer to Europe than east Asia, deep seaports and solid air transport services, Pakistan is also close to the major emerging textile and clothing markets of China and India, said the APTMA executive director. With a 220 million population, an increasingly large and prosperous middle class, and 35.7% of the population aged 15 years or younger, Pakistan will support a growing domestic fashion industry that can serve as a basis for major export sales, he predicted.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-1894958389040396312022-05-18T17:35:59.886-07:002022-05-18T17:35:59.886-07:00ESSENTIAL SOURCING GUIDE: The Pakistan apparel sec...ESSENTIAL SOURCING GUIDE: The Pakistan apparel sector<br />Just Style takes an in-depth look at the Pakistan apparel sector which has witnessed many advances and retreats during the last decade.<br /><br />https://www.investmentmonitor.ai/uncategorized/essential-sourcing-guide-the-pakistan-apparel-sector<br /><br /><br /><br />Despite its difficulties, Pakistan does have strong and innovative manufacturers, notably those developing their own apparel brands have emerged. Some of this has been based on advances in the Pakistan production of fine weave lawn cloth. And Pakistan consumers are becoming more brand conscious, being happy to seek out and wear local labels. Apparel brands, such as Khaadi (of Karachi); Sapphire (Lahore) and Sana Safinaz (Karachi), have focused on value addition and with Pakistan consumers prepared to pay for local quality, high profits have followed, including by developing exports. <br /><br />Khaadi is a case in point. This luxury fashion house started international sales as long ago as 2010 in the United Arab Emirates (UAE), and now sells into Saudi Arabia, Australia, the US, Mexico, Malaysia, Canada and the UK. Another successful Pakistan-based company has been J. Junaid Jamshed Pakistan, which has successfully opened stores in Europe and the GCC (Gulf Co-operation Council) region. <br /><br />The Ferozpur Road Association’s Emad said the developing of local brands was strengthening the overall profile of Pakistan’s textile industry. <br /><br />These branded companies have benefited from a growth in e-commerce sales within Pakistan, which is generating major revenues for online retailers. With an annual revenue of $50m Lahore-based Limelight.pk was the biggest store in 2021, followed by Karachi-based Gul Ahmed $48m and Khaadi $29m revenue).<br /><br />The challenges facing Pakistan’s apparel sector<br />Looking ahead, aside from the political uncertainties, the Pakistan clothing and textile sector may have to deal with other external surprises. One concern highlighted by Emad was that Pakistan’s 2023 GSP+ (Generalised Scheme of Preferences) status for privileged trade access to the European Union (EU) may expire in 2023. If this happens, it could spark a 12% increase in exporters’ costs through additional duties, he said. There is also concern about a potential blacklisting of Pakistan by global anti-money laundering organisation the Financial Action Task Force (FATF) over alleged weaknesses in the country’s control of dirty money. The country is already on FATF’s grey list – a blacklisting would mean international banks will have to impose special checks on transactions to and from Pakistan and extensive de-risking by financial institutions could hinder financial flows: “If we go from grey to black list, we will be in great trouble,” said Emad. <br /><br />As well as addressing this “sword of Damocles”, said Emad, the government could help the industry prosper by withdrawing customs duties and taxes on import of certain important raw materials, including finishing chemicals, zips and specialist yarns. <br /><br />Raza Baqir, executive director of APTMA, said the government should continue to support the overall economy, which has struggled with the Covid pandemic – shrinking 0.9% in 2020, according to the World Bank. The State Bank of Pakistan financed $2.39bn (PKR435bn) under the relief fund for all manufacturers, including the textile sector, during Covid, although this programme expired in 2021. <br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-83257481079129438142022-05-18T17:33:25.403-07:002022-05-18T17:33:25.403-07:00ESSENTIAL SOURCING GUIDE: The Pakistan apparel sec...ESSENTIAL SOURCING GUIDE: The Pakistan apparel sector<br />Just Style takes an in-depth look at the Pakistan apparel sector which has witnessed many advances and retreats during the last decade.<br /><br />https://www.investmentmonitor.ai/uncategorized/essential-sourcing-guide-the-pakistan-apparel-sector<br /><br />Sadly, for an industry that has often complained about high Pakistan energy costs, that commitment does not now include a formal price ceiling. The original plan, said Dawood, promised to freeze existing tariffs until 2025 – for gas at $6.50 equivalent per million BTU – British Thermal Units – and electricity at 0.09 US cents equivalent per unit (kWh – kilowatt hour). But given rising energy prices (which have since skyrocketed because of Russia’s invasion of Ukraine), and limited Pakistan budget resources, the pledge was downgraded to offering international competitiveness. Dawood said that the finance, commerce and energy ministries would determine these competitive rates annually during government budget negotiations.<br /><br />Despite this set-back, Rahim said industry intelligence anticipated that $5bn new investment was in the pipeline, with 100 new production textile units are likely to open soon.<br /><br />Emad noted that these investments would be focused on Lahore and Karachi, although Masood Textile and Interloop (a socks and hosiery specialist), both based in Faisalabad plan to install new denim units. Some non-textile companies are eyeing investments in the sector too: Orient Electronics – a leading electronics manufacturing company – is planning to establish a garment unit in Lahore, said Emad, who is also CEO of W.E Apparel Ltd, Lahore.<br /><br />He noted major Pakistan manufacturers and exporters were also increasing investment in sustainability, reducing their environmental impact, which can boost overseas sales to consumers concerned about buying greener products. “Take the example of my own company where we have installed a water treatment plant with a cost of $0.83m [Pakistani rupees PKR150 million],” he added.<br /><br />Apparel remains dominant exporting segment for Pakistan<br />If this capacity expansion is delivered, it would indicate that Pakistan is looking to punch its weight in global clothing and textile markets. According to a report from Asian Development Bank (ADB), released in January (2022), Pakistan – a country of 220 million people – has one of the lowest trade-to-GDP ratios in the world, at just 30%, with clothing and textiles being the dominant exporting segment.<br /><br />The report stressed how “existing patterns” orient this trade towards the US, Europe and China, and the country “specialises in textiles”. One problem is that Pakistan does not have a significant trading relationship with its neighbours in south Asia, said the ADB report ‘Pakistan’s Economy and Trade in the Age of Global Value Chains’.<br /><br />According to the Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA), Pakistan’s major clothing and textile exports markets comprise the US 28%; the UK 11%; Germany 7%; the Netherlands 7%; China and Spain 5% each; Italy and Afghanistan 4% each; Bangladesh and Belgium 3% each; and France 2%.<br /><br />Also, Pakistan textile and clothing exports are less diversified than in next door India, the ADB report said. The APTMA’s Razak agreed that Pakistan’s textile sector lacked diversification in terms of product range and market targets and was exporting 75% of products to just 10 countries. By increasing both its product numbers and markets, the sector could improve its value-addition, he said. According to Razak, the 2020-5 textile and apparel policy does address these issues.<br /><br />According to Rahim, keeping energy costs down works, highlighting how when in 2019 the Pakistan government reduced the electricity and gas rates paid by the textile and clothing industry, this attracted new investment in the textile sector: “We have witnessed over 20% growth during this period,” he told Just Style.<br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-61871975119646124652022-05-18T17:32:56.109-07:002022-05-18T17:32:56.109-07:00ESSENTIAL SOURCING GUIDE: The Pakistan apparel sec...ESSENTIAL SOURCING GUIDE: The Pakistan apparel sector<br />Just Style takes an in-depth look at the Pakistan apparel sector which has witnessed many advances and retreats during the last decade.<br /><br />https://www.investmentmonitor.ai/uncategorized/essential-sourcing-guide-the-pakistan-apparel-sector<br /><br />According to Rahim Nasir, chairman of the All Pakistan Textile Mills Association (APTMA), textile and clothing exports grew 23% in 2020-21 year-on-year by earning US$15.4bn, up from $12.5bn in 2019-21. He noted that 70% of these exports were of products where significant processing had been undertaken to produce value-added products, a healthy sign.<br /><br /><br />Hamid Zaman, the APTMA’s Northern Zone chairman, stressed that Pakistan exports of higher value bedsheets, knitwear and woven garments had increased while lower value yarn exports shrank.<br /><br />Syed Emad Raza, chairman of the Manufacturers & Exporters Ferozpur Road Association, Lahore, (a manufacturing hub) stressed that international buyers had been alarmed at rising Covid cases in Bangladesh and India: “This panic buying by the international buyers benefited us and they shifted orders from India and Bangladesh to Pakistan.”<br /><br />There has also been more optimism within the sector under the recently dismissed government of former Prime Minister Imran Khan, led by his Pakistan Tehreek-e-Insaf (PTI) party, that came to power in 2018, which had increased assistance to the sector and had written a detailed Textiles & Apparel Policy, which officially covers 2020-25.<br /><br />Imran has now been replaced by an opposition alliance led by new Prime Minister Shehbaz Sharif, head of the Pakistan Muslim League (Nawaz), working with its former opponent, the Pakistan People’s Party, which assumed power after a no confidence motion toppled Imran on 10 April. The textile plan should survive, and the vice president of Lahore Chamber of Commerce Haris Ateeq says that political uncertainty is now declining, with the new government likely to remain in place until scheduled elections next July (2023).<br /><br />The new government will need to work hard to retain support from the Pakistan apparel sector. Zaman argued that the Imran government had helped the industry grow, and was still expanding sales overseas – he hoped exports of clothing and textiles would yield revenues of $21bn by end of the 2021-2 fiscal year, in June.<br /><br />Increased investments for Pakistan’s apparel sector<br />Clothing and textile executives told Just Style they were also hopeful of increases in investment as well as exports (comprising just 1.6% of the global textile and clothing trade, according to the APTMA. In February (2022) the government approved the much-awaited Textiles & Apparel Policy, which was approved officially by the Imran-led cabinet.<br /><br />Its key proposals include a goal of increasing the country’s textile and clothing exports to $25.3bn by 2025 and then $50bn by 2030. This would see Pakistan raise its global share of textile and clothing exports to 3%. As well as limiting energy prices, the plan includes proposals to increase the country’s cotton production to 20 million bales in the next five years, reducing input costs and preserving foreign currency reserves. The plan also commits the government to increasing artificial fibre production at competitive prices by rationalising customs duties and other taxes.<br /><br />The policy also commits the government to help the textile industry deal with Covid’s disruption of the supply chain. It also aims at attracting domestic and foreign investment in textile value chains and uplift to value-added sectors with special focus on SME sector.<br /><br />Assuming the clothing and textile plan survives, Abdul Razak Dawood, the ex-PM’s apparel and textile industry advisor, told a press conference before Imran’s fall that its key commitment was to “give the textile industry in writing [a commitment] to ensure that internationally and regionally competitive gas and power rates throughout the policy period”.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-62554375810973397272022-05-18T17:03:10.776-07:002022-05-18T17:03:10.776-07:00Pakistan posts highest monthly textile exports of ...Pakistan posts highest monthly textile exports of $1.74bn in April<br /><br /><br />https://mettisglobal.news/pakistan-posts-highest-monthly-textile-exports-of-1-74bn-in-april/<br /><br /><br /><br />May 16, 2022 (MLN): The country has witnessed the highest ever monthly exports of $1.739 bn during April 2022, up by 31% YoY and 7% MoM, the latest data released by the Pakistan Bureau of Statistics (PBS) showed.<br /><br />During the ten months (July-April) of the current fiscal year, textile exports posted a growth of 26% YoY to $15.98bn when compared to $12.69 recorded in 10MFY21.<br /><br />The year-on-year increase in exports is due to strong demand in the West before the summer season, while other factors include the resumption of economic activity, which has led to a shortage of various retail brands, competitive utilities and borrowing rates. <br /><br />In the value-added segment, knitwear, readymade garments, bed-wear, and towels registered an upsurge of 44%, 44%, 16%, and 28%, YoY to $488mn, $351mn, $279mn and $108mn during April 2022 compared to the same month last year. <br /><br />Meanwhile, the country exported food commodities worth $524mn during April 2022, registering a jump of 35.7% YoY or 2.2% MoM.<br /><br />Commodity-wise, rice remained the primary source of foreign exchange earnings during the review period as its exports were valued at $259.6mn, up by 37% YoY. While the export of fish & fish preparations declined by 16.4% YoY to stand at $40mn.<br /><br />The export value of meat and meat preparations clocked in at $35.6mn, up by 10.3% YoY.<br /><br />In April 2022, the export of petroleum products posted a growth of 53.6% to $45.2mn. It was mainly led by exports of petroleum crude, standing at $38.5mn, depicting a growth of 81% YoY.<br /><br />Going into details made available by PBS, the other manufactures group observed a 23.8% YoY increase during the period to $366mn. Under this group, the trade value of sports goods stood at $36mn, up by 21.5% YoY. The country earned $51.54mn through the export of leather manufactures, marking a growth of 26% YoY.<br /><br />The exports of chemical and pharmaceutical products witnessed an increase of 42.7% to value at $153mn during April 2022. The major chunk of exports under the chemical and pharma group during the said period was mainly from the other chemicals and plastic materials which clocked in at $92.7mn and $35.4mn, showing significant growth of 35.6% YoY and 83% YoY.<br /><br />“Textile exports growth is likely to remain strong in the upcoming months due to continued rerouting of orders out of China. Also, the surge in freight charges on shipments of unfinished products to competitors like Bangladesh is likely to fare well for Pakistan, as various brands have started routing orders to Pakistani exporters in order to arrest thinning margins,” Abdul Ghani Mianoor at Intermarket Securities said.<br /><br />According to channel checks, demand for value-added products is likely to remain intact, as orders have been booked for at least the next 3mths, while procurement of cotton at lower than prevailing rates is likely to result in sustained strong margins for the remainder of FY22. However, the ongoing Russia-Ukraine issue has led to a surge in global inflation, which if prolonged, may potentially lead to a moderate slowdown in export growth, he added.<br /><br />Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-48505650508831112232022-05-18T16:57:08.385-07:002022-05-18T16:57:08.385-07:00APTMA Chairman dubs PTI’s ousting as cruel - Globa...APTMA Chairman dubs PTI’s ousting as cruel - Global Village Space<br /><br />https://www.globalvillagespace.com/aptma-chairman-dubs-ptis-ousting-as-cruel/<br /><br />Separately he (Hamid Zaman) added that the policies introduced by financial institutions during the tenure of the PTI-led government provided a very enabling environment for the businesses. It is pertinent to mention that last year $5 billion of expansion was made in the textile sector.<br /><br />---------------<br /><br />Textile Machinery Imports in Pakistan in 2021 – The Textile Think Tank<br /><br />https://thetextilethinktank.org/textile-machinery-imports-in-pakistan-in-2021/<br /><br />Textile Machinery Imports in Pakistan in 2021<br />Dr. Tanveer Hussain January 21, 2022<br />Textile machinery imports in Pakistan increased from around US$435 Million in 2020 to US$792 Million in 2021. This reflects around 82% increase from the previous year. This indicates capacity expansion as well as technology upgradation in the Pakistan Textile Industry.<br /><br />-------------------<br /><br />Top 10 Denim Fabric Exporters in the World in 2019 – The Textile Think Tank<br /><br />https://thetextilethinktank.org/top-10-denim-fabric-exporters-in-the-world-in-2019/<br /><br />Top 10 denim fabric exporters in the world are: China, Pakistan, India, Turkey, Hong Kong, USA, Italy, Egypt, Japan and Mexico. Pakistan in the second largest exporter of denim fabrics in the world, followed by China. Pakistan’s denim fabric exports were worth US$587 million in 2019. Pakistan could have earned three times more Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-3671797264909599212022-05-09T07:37:35.633-07:002022-05-09T07:37:35.633-07:00All Pakistan Textile Mills Association
@APTMAoffic...All Pakistan Textile Mills Association<br />@APTMAofficial<br />·<br />1h<br />Last entire year exports remained at $15.4Bn - now have reached $16Bn in 10MFY22, highest in comparison with past records. Whereas, sector still has 2 more months to perform till completion of FY22. With present momentum, InSha'Allah we can achieve our target of $20Bn this year.<br /><br /><br />https://twitter.com/APTMAofficial/status/1523657222395289600?s=20&t=6rTiyW9ZU8LVQb2TvTAD2QRiaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-30651233170826091222022-03-24T12:09:23.857-07:002022-03-24T12:09:23.857-07:00Samiullah Tariq
@samigodil
We should remember that...Samiullah Tariq<br />@samigodil<br />We should remember that the inflation and the PKR depreciation we are witnessing today is due to stagnant to declining exports during past decade. This has changed now. But the huge imbalance which was created over the decade would take some time to fade away<br /><br />https://twitter.com/samigodil/status/1506854609783980033?s=20&t=wWRuDGR6yXBru9bI3xY7Aw<br /><br />-----------------<br /><br /><br />Riaz Haq<br />@haqsmusings<br />#Pakistan's #exports grew 26.2% in first 8 months (July 21-Feb 22) of current fiscal year! #ImranKhan #PTI #economy<br /><br />https://twitter.com/haqsmusings/status/1507009529845747723?s=20&t=wWRuDGR6yXBru9bI3xY7AwRiaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.comtag:blogger.com,1999:blog-5848640164815342479.post-21310530016068326042022-02-13T18:44:21.933-08:002022-02-13T18:44:21.933-08:00At just 30%, #Pakistan has among world's lowes...At just 30%, #Pakistan has among world's lowest #trade-to-#GDP ratios, leaving lots of room for growth. Most of its export are textiles Pak #exports are relatively more diversified compared to #Bangladesh and #Cambodia, but less diversified than #India's https://www.adb.org/sites/default/files/publication/768386/pakistan-economy-trade-global-value-chains.pdf<br /><br />https://twitter.com/haqsmusings/status/1493052397496594432?s=20&t=4tOefQ2CRak0Efy2TL9rGA<br /><br />https://www.dawn.com/news/1674830<br /><br />Pakistan exhibits one of the lowest trade-to-GDP ratios in the world showing at just 30 per cent. However, it is not all doom and gloom and the country has a lot of room for improvement, according to the Asian Development Bank (ADB).<br /><br />One viable strategy that Pakistan can adopt to boost its growth is to further open its economy to trade. At just 30pc, Pakistan exhibits one of the lowest trade-to-GDP ratios in the world, even when taking its size into account, the ADB says in its report titled ‘Pakistan’s Economy and Trade in the Age of Global Value Chains’.<br /><br />This indicates great potential for improvement. Studies have affirmed numerous benefits to economic openness, including opportunities for specialisation, access to wider markets, the inflow of know-how, and the formalisation of the economy.<br /><br />Existing patterns indicate that Pakistan’s trade is currently oriented to the United States, Europe, and China. It specialises in textiles, though some of its agricultural products are sold to the Middle East. Interestingly, it does not have a significant trading relationship with its proximate neighbours in South Asia. The only economy for which it is a major market is its northern neighbour Afghanistan, the report points out.<br /><br />While the vast majority of its export products fall under the textiles grouping, formal measures of export concentration suggest that Pakistan’s exports basket is relatively more diversified, especially compared with other major textile exporters like Bangladesh and Cambodia. However, its exports are less diversified than India.<br /><br />The report used statistics from 2019 since 2020 was an unusual year [owing to Covid-19] portraying a snapshot of economic openness across various levels of GDP for 166 countries and economies with available data, and for economic openness of Pakistan, it says it is less open than India and Bangladesh. It is only more open than Ethiopia, Brazil and Sudan.<br /><br />The ADB says Pakistan is a relatively large country, however its trade openness remains remarkably low. Citing example, it says countries that have GDPs comparable to that of Pakistan but with much higher trade-to-GDP include the Philippines, the Netherlands, and Viet Nam. India’s GDP is almost 10 times larger than Pakistan’s, yet trade plays a greater role in its economy, according to the report.<br /><br />Pakistan has historically experienced uneven growth and remains among the least open economies in the world, even after taking its relatively large size into account.<br /><br />What it does export is dominated by textile products and rice, though a formal measure of concentration suggests that its exports basket is on the whole quite diversified.<br /><br />The dominance of textile products in Pakistan’s exports raises the issue of diversification — or potentially the lack of it. Concentrating too much on only a few sectors or products poses risks to an economy since shocks to the dominant sector can more easily cause an economy-wide recession.<br /><br />Pakistan can adopt to boost its growth to further open its economy to trade. Benefits to economic openness include opportunities for specialisation, access to wider markets, and the inflow of investments, technology, and know-how. There is also evidence that trade promotes the reallocation of labour from the informal to the formal sector.Riaz Haqhttps://www.blogger.com/profile/00522781692886598586noreply@blogger.com