Page 8 - September-October-2020

08 09

Where does Pakistan

stand globally in line of

textile exports

Coronavirus has proven deadly, causing more pre-coronavirus levels. Their economic revival will
than 800,000 deaths within a short span since the be crucial to Pakistan's exports.
first fatality was reported in Wuhan, China, in
early January. It has wreaked havoc on major Pakistan reported a significant dip in its exports
world economies. Apart from China, affected between 2013 and 2016. Exports had dropped
western countries reporting the highest death from $25.1 billion in 2013 to $20.5bn in 2016.
rates include the United States, United Kingdom, Since then, exports had been on an upward
Italy, Spain, France and Germany. trajectory, rising 5.1pc a year to reach $23.8bn in
2019. The most prominent increase however was
During these times, the United States of America in apparel and cereals exports, at 8.2pc and
(USA) remained the top export destinations of the 11.3pc, respectively.
Pakistani products during the eleven months of
current financial year (2019-20), followed by Figures reveal a sharp contraction in exports
China and United Kingdom (UK). The total since March 2020. The exports in April 2020
exports to the USA during July-May (2019-20) decreased to $960 million, a 54pc reduction
were recorded at US $ 3588.819 million against compared to April 2019. Exports of knitwear,
the exports of US $ 3727.390 million during bedwear and ready-made garments were also
July-May (2018-19), showing negative growth of adversely impacted in March 2020. But exports of
3.71 percent during the period under review, surgical goods and instruments and certain
according to State Bank of Pakistan (SBP). leather products (such as gloves) reported
positive growth rates in March 2020, both
This was followed by China, wherein Pakistan month-on-month as well as year-on-year.
exported goods worth $ 1535.454 million against
the exports of $1701.506 million last year, The trend in export figures over the next few
showing decrease of 9.75 percent. months, however, would reveal a better picture of
the impact of the trade plunge itself as lockdown
UK was the at third top export destination, where in Pakistan is lifted. Also, export bans imposed on
Pakistan exported products worth US $ 1491.000 selected items are likely to reduce exports.
million during this year against the exports of US
$ 1622.887 million during last year, showing Pakistani exporters must develop strategies to
decrease of 8.12 percent, SBP data revealed. mitigate the adverse impact from the crisis by
targeting a range of products that may reveal
With textile and leather industries making up a potential but are within the range of their own
majority of exports from Pakistan, policies core competencies. For instance, textile exporters
towards economic revival in the affected western successfully shifting towards production of
countries would influence the pace at which personal protection equipment and face masks
demand for Pakistani products reaches may report a spike in their export activity.

September/October 2020 September/October 2020