Page 9 - July-August-2020

08 09 09
Textile industry call to withdraw

merger of textile, commerce divisions

Where does Pakistan stand
The textile industry showed its discontent with the statistics, organization and control of chamber of
government’s decision to merge the federal and associations of commerce and industry, tariff
globally in line of textile exports?
Commerce and Textile divisions and rename the (protection) policy and its implementation, law of
Ministry of Commerce and Textile as Ministry of insurance, regulation and control of insurance
Commerce. companies, actual work, insurance of war, riot
and civil commotion risks and life insurance but
In a joint statement issued by Council of All
excluding health and unemployment insurance,
Coronavirus has proven deadly, causing more than Pakistan reported a significant dip in its exports
Pakistan Textile Mills Associations (APTMA) and
export promotion, special selection board for
300,000 deaths within a short span of five months between 2013 and 2016. Exports had dropped from
selection of commercial officers for posting in
other industry stakeholders, Chairman Muhammad
since the first fatality was reported in Wuhan, China, $25.1 billion in 2013 to $20.5bn in 2016. Since then,
Zubair Motiwala urged Prime Minister Imran Khan to
Pakistan Missions abroad, anti-dumping duties,
in early January. It has wreaked havoc on major world exports had been on an upward trajectory, rising
countervailing and safeguard laws, management
withdraw the decision and said that the move would
economies. Apart from China, affected western 5.1pc a year to reach $23.8bn in 2019. The most
of EDF/EMDF, domestic commerce reforms and
damage the textile sector.
countries reporting the highest death rates include prominent increase however was in apparel and
development in collaboration with other Ministries,
the United States, United Kingdom, Italy, Spain, cereals exports, at 8.2pc and 11.3pc, respectively.
Calling the merger counterproductive, Motiwala
provincial and local government, Intellectual
France and Germany. Figures published by the Pakistan Bureau of Statis-
Property Organization of Pakistan (IPO), textile
said that a dedicated and independent textile tics (PBS) reveal a sharp contraction in exports since
ministry would help contribute to the revival of the
industrial policy, coordination and liaison with
During these times, the United States of America March 2020. The exports in April 2020 decreased to
federal agencies/institutions, provincial
economy and play its part in tipping the trade
(USA) remained the top export destinations of the $960 million, a 54pc reduction compared to April
governments and local government entities for
balance in Pakistan’s favour. The statement
Pakistani products during the eleven months of 2019. Exports of knitwear, bedwear and ready-made
facilitation and promotion of the textile sector,
called the merger of the textile and commerce
current financial year (2019-20), followed by China garments were also adversely impacted in March
divisions an irony that the government made the
liaison, dialogues, negotiations, except trade
and United Kingdom (UK). The total exports to the 2020. But exports of surgical goods and instruments
move without taking stakeholders on board.
negotiations, and cooperation with international
USA during July-May (2019-20) were recorded at US and certain leather products (such as gloves) made
donor agencies and multilateral regulatory and
$ 3588.819 million against the exports of US $ for the sports item reported positive growth rates in
development organizations with regard to textile
Earlier in the month. the government of Pakistan
3727.390 million during July-May (2018-19), showing March 2020, both month-on-month as well as
sector, setting of standard and monitoring and
merged the federal Commerce and Textile
negative growth of 3.71 percent during the period year-on-year.
divisions on the recommendations of Dr Ishrat
under review, according to State Bank of Pakistan maintaining, vigilance for strict compliance of the
standards throughout production and value
Hussain. The federal cabinet also gave the
(SBP). The initial lockdown in Pakistan and elsewhere may
chain, textile related statistics, surveys,
go-ahead for the merger. As a result, 19 have abruptly thwarted regular transactions, the
commercial intelligence, analysis and
sub-bodies of seven ministries would be merged
This was followed by China, wherein Pakistan shipment of final goods and the transfer of payments
dissemination of information and reports on
and nine subordinate departments of five
exported goods worth $ 1535.454 million against the from foreign buyers. It is obvious that the exports
international demand patterns, market access
ministries would be transferred to other
exports of $1701.506 million last year, showing from Pakistan will be significantly impacted over a
ministries, whereas five departments of three
etc, linkage with cotton and textile producing
decrease of 9.75 percent. longer period of time. The impact of the lockdown in
ministries would be abolished. Pakistan may have contributed significantly to the dip
countries, training, skill development, research for
quality improvement and productivity enhancement
UK was the at third top export destination, where as well.
As per the rules of business, the Commerce
Pakistan exported products worth US $ 1491.000 throughout the production/ value chain.
Division will include all imports and exports as
million during this year against the exports of US $ The trend in export figures over the next few months,
Commerce Division will be given the
well as: (i) treaties, agreements, protocols and
1622.887 million during last year, showing decrease however, would reveal a better picture of the impact
conventions with other countries and international
administrative control of (i) Federal Textile Board;
of 8.12 percent, SBP data revealed. of the trade plunge itself as lockdown in Pakistan is
agencies; (ii) promotion of foreign trade including lifted. Also, export bans imposed on selected items
(ii) Textile City (projects), Karachi/Faisalabad; (iii)
trader offices abroad, trade delegations to and
National Textile University, Faisalabad; (iv) Textile
With textile and leather industries making up a are likely to reduce exports.
from abroad, overseas trade exhibitions and
majority of exports from Pakistan, policies towards Commissioners Organization;(v) Directorate
conferences and committee connected with
General of Textile & Quota Supervisory Council;
economic revival in the affected western countries Pakistani exporters must develop strategies to
foreign trade; (iii) standards of quality of goods to
(vi) all textiles related EPB/ EDF funded institutes
would influence the pace at which demand for mitigate the adverse impact from the crisis by
concerned with skill development in various
be imported and exported; (iv) transit trade and
Pakistani products reaches pre-coronavirus levels. targeting a range of products that may reveal
sub-sectors of textile industry; (vii) textile testing
border trade and; (v) state trading.
Their economic revival will be crucial to Pakistan's potential but are within the range of their own
laboratory, Faisalabad; (viii) Garment City
exports. core competencies.
Commerce Ministry will also be responsible for Projects at Lahore, Faisalabad and Karachi and;
inter-provincial trade, commercial intelligence and (ix) Pakistan Cotton Standards Institute, Karachi.
July/August 2020
July/August 2020 November/December 2019