Page 10 - April-May 2021

10 11

Pakistan economy has

the potential to grow at

a faster pace

The State Bank of Pakistan projects three percent GDP growth in the financial year 2020-21 and four percent in
2021-22. Pakistan's economy is on a solid growth path and can grow at much higher rate in the next five years
despite a challenging environment across the globe. The analysts and corporate leaders reposed trust in a
growing economy. The higher GDP growth in 5-6 percent per annum would be a 'new normal in next five years
amid considering solid economic indicators of the country.

The IMF had projected four percent GDP growth for Pakistan during 2021-22, starting in July. Islamabad is
expected to post a 1.5 percent expansion during the current fiscal year ending (June 30) after an irregular
contraction (-0.4 percent) last year. While referring to rising foreign exchange reserves, orderly rupee-dollar
parity, improving current account balance, and other economic indicators such as large-scale manufacturing,
cement, automobiles, and fast-moving consumer goods, the governor of state band said that the economy
was moving in the right direction and will perform better in coming years.

Pakistan’s cotton imports expected to

Pakistan’s export to the exceed domestic production

EU is on the rise The United States Department of Agriculture (USDA) Despite no official direct access to India’s
competitively priced supplies, imports are
forecasts that Pakistan’s cotton imports are forecast
at a record 5.3 million bales and are expected to
recovering textile and garment sector. COVID-19
exceed domestic production for the first time. nonetheless projected at a record to support a
Pakistan’s exports to European Union (EU) Brexit, Pakistan’s major export destination was the Significantly lower domestic supplies have driven significantly lowered global demand for cotton yarn,
countries increased by $ 1.1 billion during the last United Kingdom. In the post-Brexit period, imports to a second consecutive record needed to fabric, and products in 2019/20. In the first eight
ten months of the current Fiscal Year 2020-21. The Pakistan’s exports continued to grow by 31 pc to support higher consumption. Successive year months of Pakistan’s fiscal year (July 2020 –
exports have increased by 17.4 percent to $ 7.474 $1.709 bn from July 2020 to April 2021 from $1.309 shortfalls in domestic production have depleted February 2021), the country recorded larger export
billion compared to $6.367 billion from July to April bn in the same period of the previous financial year. supplies seriously. The 2019/20 Pakistan harvest was values of knitwear, bedwear, towels, and readymade
2020. EU is an important market for Pakistan’s the lowest in over three decades, and the 2020/21 garment (RMG) compared with the previous year.
textile industries, and the Government greatly In terms of market penetration, the UK is now crop is down 27 percent.
appreciates the tireless efforts of exporters in replaced by Germany. The second biggest market Pakistan’s more robust exports of textiles and
making this possible under challenging conditions. for Pakistan’s exports is the Netherland. The third Back-to-back declines have propelled imports, garments are expected to support record 2020/21
biggest market for Pakistani export goods is Spain. supplied mainly by Brazil and the United States. cotton imports. The country’s cotton supply chain is
In July-April, some of the significant markets Exports to Italy increased by 4pc to $640.11m Historically, India was a significant supplier to essential to its economic recovery from COVID-19;
showing an increase in Pakistani exports are Poland against $615.22m. Exports to Belgium increased by Pakistan. However, after a 2019 border closure textiles and garments are the largest export revenue
with 23 percent, Sweden (21pc), Netherlands 12pc to $523.11m against $465.39m, followed by between the two countries, Pakistan’s mills have source and comprise 46pc of Pakistan’s
(21pc), Germany (19 pc), France (14 pc), Belgium 14pc growth to France as export value reached to been barred from importing the world’s manufacturing sector and 40pc of the total
(12 pc), Italy (4 pc), and Spain (2 pc). Before the $337.02m against $296.20m over the last year. lowest-priced cotton. labor force.

April/May 2021 April/May 2021