Pakistan benefits from India's no:The orders left by India-Bangladesh made Pakistan's textile business shine; set a new export record
Sometimes it has happened that due to any decision of India, Pakistan gets benefit. I don't remember this in the last few years, but this case is different. In fact, the textile sector of Pakistan has set a new record of exports during the Corona epidemic. It has done this by securing the orders left by India and Bangladesh.
According to Bloomberg, Pakistani Prime Minister Imran Khan's commerce adviser Abdul Razak Dawood has claimed that textile exports can increase by a record 40% in the year ending in June, to $ 21 billion, i.e. up to Rs 1.57 lakh crore.
The share of textiles in total exports is around 60%
, Dawood said, adding that in the next financial year this figure will be 1.94 lakh crore, which will surpass the total export figure of last year. The textile industry of Pakistan is growing rapidly. Supplies everything from denim jeans to towels to buyers in the US and Europe. Textiles account for about 60% of Pakistan's total exports.
In 2020, when the epidemic increased, Pakistan had given approval to open factories to compete with countries like India and Bangladesh. Now also won orders from several global brands including Target Corp and Hansbrands Inc. Dawood said that in fact, we had got many orders transferred from Bangladesh and India. The good thing is that we are now in a position to compete with Bangladesh. Three-four years ago Bangladesh had beaten us badly.
Benefit from tax reduction, cheap loans and electricity
Dawood said the government is also planning to issue a proposal to boost exports to new markets like Africa, South America and Central Asia next month. Textile exports have been boosted by measures such as double tax cuts, cheaper credit and power supply in Pakistan than rivals in South Asia.
Our depreciation of 60% against the US dollar since 2018 has also helped us immensely. Pakistan is looking for a way out of economic restrictions to increase its exports. Have sought help from IMF 13 times since 1980. Dawood said that we will reduce the import of such things, whose imports have reached a record level. Especially the purchase of petroleum products and vaccines.
Business grew 12 times in 6 months
Dawood said that this year, due to better harvest, there will be a decline in the import of food items. We will now increase trade with Central Asian countries by allowing free movement of trucks. In just six months of the current financial year, our business has grown from US$ 1.4 crore last year to US$ 12 crore.
Where is India compared to Pakistan?
India's textile exports have increased by 31% to $ 30 billion, i.e. Rs 2.23 lakh crore, during April to December 2021. It is estimated to be $ 44 billion (Rs 3.27 lakh crore) for the whole year. If this happens, it will break the record of 2014-15, when the highest export was $37.7 billion (Rs 2.81 lakh crore). However, Textiles Minister Piyush Goyal has set a target of taking it to $100 billion (Rs 7.45 lakh crore).
Along with cheap raw material, India is also benefiting from the restrictions imposed on China. There is an anti-China atmosphere around the world. In such a situation, companies from America and Europe are going to India, Pakistan, Bangladesh and Vietnam for purchase.
Bangladesh far ahead of Pakistan
The textile industry plays a major role in the economic growth of Bangladesh. It exports textiles worth more than $ 35 billion, i.e. 2.60 lakh crore rupees every year. This sector has given work to about 40 lakh people. Bangladesh has set a target of exporting clothing to $51 billion by 2022.
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