Islamabad, Pakistan
Pakistan saw 3.4
times increase in textile exports in April 2021. This growth was due to the low
base effect in April 2020 when the first wave of COVID-19 affected industrial
activity across the globe and in Pakistan.
As per the data
by the Pakistan Bureau of Statistics (PBS), exports in April were the
third-highest monthly figure in the last year at $1.337 billion. This scenario
was despite the misleading growth percentage and the month-on-month decline.
The textile exports have been on an upward trajectory due to growth in export
of the value-added segment. April also saw a jump in the exports of basic
textiles like cotton yarn and cotton cloth. In the value-added segment,
knitwear, bed wear and home textile recorded double-digit growth.
The State Bank
of Pakistan (SBP) expects the current account deficit to be below 1% of GDP for
FY21. The recent, more deadly COVID-19 wave has reduced the textile exports of India
and China leading to a surge of exports from Pakistan. The ECC has allowed the
duty-free import of cotton yarn until June 30, 2021, addressing the cotton
shortage issue temporarily. Policy consistency such as the continuation of LTFF
and TERF schemes and competitive energy tariffs are other key drivers that will
determine the growth in textile exports going forward.
Source – Business Recorder
Image Source: Unsplash
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