Page 11 - TEXtalks International May/June 2022

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Pakistan and Germany to further strengthen

and diversify the bilateral relations

Federal Minister for Commerce, Syed Naveed Qamar hailed Germany for its continued support to Pakistan for
the ongoing Generalised Scheme of Preferences (GSP Plus). Federal Minister for Commerce and Investment
Syed Naveed Qamar is on an official visit to Berlin as a part of his EU Outreach mission. He visited the German
Federal Foreign Office, where he was received by Minister of State for Foreign Affairs Dr. Tobias Lindner. The
Minister of State extended a warm welcome to the Commerce Minister and his delegation. He hoped that the
visit would further strengthen and diversify the bilateral relations, especially in the trade and investment area
between Pakistan and Germany.

The two sides had an exchange of views on various aspects of bilateral relations, with a special focus on Pakistan’s textile
enhancing trade and economic cooperation to sustain economic growth in a post-Covid pandemic world.

The two sides had an exchange of views on various aspects of bilateral relations, with a special focus on
enhancing trade and economic cooperation to sustain economic growth in a post-Covid pandemic world. The exports hit a record high
establishment of EU-Pakistan preferential trade relations (GSP+) has boosted Pakistani exports to the
of $15.981 billion
European market. Germany and Pakistan maintain close and diverse economic relations. German-Pakistani
trade amounts to over 2.3 billion euros (2021) and makes Germany Pakistan's fourth-largest trading partner.

According to the data released by the Pakistan commodities of exports during April, 2022 were
Bureau of Statistics (PBS), the textile group exports knitwear (Rs90,096 million), readymade garments
increased by 7.015% on a month-on-month basis. (Rs64,669 million), bed wear (Rs51,398 million),
They remained $1.739 billion in April 2022 compared cotton cloth (Rs38,763 million), rice others
Cotton made in Africa breaks supply basis, textile group exports witnessed 30.50% yarn (Rs18,016 million), made-up articles (excl.
to $1.625 billion in March 2022. On a year-on-year
(Rs32,704 million), towels (Rs19,974 million), cotton
growth in April 2022 compared to $1.332 billion in
towels & bedwear) (Rs15,277 million), rice basmati
and demand records April 2021. Textile group exports during the first 10 (Rs15,198 million) and surgical goods & medical
months (July-April) of the current fiscal year 2021-22
instruments (Rs8,067 million).
hit a record high of $15.981 billion against $12.688
billion during the corresponding period of the last
financial year 2020-21, showing an increase of Pakistan’s Generalised Scheme of Preferences
(GSP+) status is about to end in December 2023,
Cotton made in Africa has again achieved record levels of supply and demand with textile production doubling, 25.96%. Cotton yarn exports registered a growth of but the country is yet to take full advantage of the
to 600 million items, and cotton production in Africa rising by 10% in 2021. According to CmiA, new and 22.11% during July-April 2021-22 and remained at scheme. Contrary to the objective of GSP+ status,
existing clients are seeking to purchase greater amounts of cotton verified through CmiA and CmiA Organic. $1.006 billion compared to $823.952 million during ie trade diversification, Pakistan is heavily relying on
the same period of last year and decreased by only textiles to date. For the continuation of GSP+
A total of 600 million CmiA textiles were brought to market, more than doubling Cotton made in Africa’s volume 4.95% in April 2022 and remained at $97.655 million status beyond 2023, Pakistan would need to make a
from the previous year. In addition, the number of licensed retail and brand partners has risen by around 30% when compared to $102.736 million during the same fresh application seeking an extension of the
in the past four years and now encompasses some of the world’s biggest retail and fashion chains, including month of last year. scheme, underlined the Pakistan Businesses Forum
Bestseller, Lidl, LPP, and the Otto Group. The production of CmiA-verified cotton also grew by 10%, to 690,000 (PBF). Pakistan is the 8th largest exporter of textile
tonnes, meaning that 40% of all cotton produced in Africa is now verified by CmiA. The country’s overall exports from July-April (2021-
22) totaled $26.247 billion against $20.905 billion products in Asia. It is the 4th largest producer and
Cotton made in Africa follows a licensing model that requires all textile companies to pay licensing fees for during the corresponding period of last year, 3rd largest consumer of cotton. It comprises 46% of
CmiA-verified cotton to the initiative, which reinvests the proceeds in cotton-growing regions in Africa. Some of showing an increase of 25.55%. The country’s the total manufacturing sector and employs 40% of
these funds go towards regular certifications that are conducted at the field and ginnery levels by external exports during April 2022 were $2.897 billion com- the total labor force. 5% of the total textile compa-
auditors to monitor compliance with social, economic, and environmental sustainability criteria. pared to $2.777 billion in March 2022, showing an nies are listed on the stock exchange. There is a
increase of 4.32 percent and by 30.61 percent strong need to uplift the sector to further increase
compared to $2.218 billion in April 2021. The main exports by pro-industry budget and facilities.

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