Abdul Razak Dawood, Commerce Adviser to the prime minister of Pakistan, claims that Pakistan is now becoming competitive with Bangladesh in the sector.
While talking to Bloomberg, he said that the textile sector of Pakistan is all set to swell due to record exports after gaining an edge over its South Asian competitors amid the Covid-19 pandemic. The country’s textile exports are expected to surge 40% from a year earlier to a record $21 billion in the 12 months ending in June, bringing cheer to its flailing economy.
Textiles amount to about 60% of Pakistan’s exports – everything from denim jeans to towels for the US and Europe – is one of the country’s few economic bright spots, reports the popular business news agency.
Pakistan allowed its factories to open ahead of India and Bangladesh when the pandemic began in 2020.
This move led to them drawing orders from global brands, including Target Corp and Hanesbrands Inc. Moreover, the government also plans to announce a proposal next month to provide incentives for exports to new markets such as Africa, South America, and Central Asia.
With measures such as tax breaks, cheap loans, and supplying electricity at rates comparable to rivals in the South Asia region, Pakistan is doubling down to boost its exports.
Meanwhile, speaking about the country’s record-high imports, Pakistan’s commerce adviser said “very little” can be done. The country would be “under pressure” if oil hits $100 a barrel, furthered Dawood hoping that food-related imports will decline this year following a better domestic crop harvest. Pakistan is also pushing to intensify trade with Central Asian nations by signing agreements and allowing free movement of trucks.
Abdul Razak Dawood added that trade has grown to $120 million in six months of the current fiscal year from $14 million of the entire previous year.
