Connect with us

Business

Pakistan’s textile exports see massive decline of 28% in Feb

Published

on

  • Textile exports plunge to $1.2 billion in February.
  • Exports in first eight months of FY 2023 decreased by 11%.
  • APTMA urges govt to seek concession from IMF for exporters.

KARACHI: Pakistan’s textile exports dropped for the fifth consecutive month in February, seeing a decline of 28% and landing at $1.2 billion as compared to the same month of the last fiscal year, The News reported Tuesday. 

All Pakistan Textile Mills Association’s (APTMA) data showed a dismal picture of the exports of textile goods — the largest contributor in the overall export sector as well as the largest employment-generating sector of the economy.

The country’s textile exports in the first eight months of the current financial year decreased by 11% to stand at $11.24 billion, declining from $12.60 billion recorded in the corresponding months of the last financial year, said the APTMA. 

The decline in textile exports comes at a time when the country is already facing depleting foreign exchange reserves, which are just $3.81 billion, hardly sufficient for less than a month of imports.

Last month, APTMA urged the federal government for a level playing field by implementing a uniform gas price of $7 per mmBtu for the export industry across the country. 

It also warned that the decision of the government to suspend the regionally competitive energy tariff (RCET) of electricity for export-oriented units (EOUs) would hurt the textile industry, particularly in Punjab.

APTMA’s Secretary General Shahid Sattar in a letter to the government said that the textile industry has been asking for an electricity tariff of 9 cents despite the fact that the electricity cost, including transmission and distribution losses, stood at 8.1 cents per unit if cross-subsidies were excluded as per Central Power Purchasing Agency (CPPA) and National Electric Power Regulatory Authority (NEPRA) calculations.

The textile body wants the government to persuade the International Monetary Fund (IMF) to continue RCET for the exporters, particularly the textile sector, which was vital to make the products competitive in the international market.

“We have invested $5 billion in the textile sector over the last three years, and the textile sector surged to $19.5 billion in the financial year 2022 from $12.5 billion in FY2020,” Sattar said. 

If the government succumbs to the IMF pressure, the robust growth of 55% in exports in FY22 and investment of $5 billion would go to waste, he pointed out.

Business

Donald Lu visits Finance Minister Aurangzeb at the World Bank headquarters.

Published

on

By

Wednesday saw Minister for Finance and Revenue Muhammad Aurangzeb meet US Assistant Secretary of State for South and Central Asian Affairs Donald Lu and Principal Deputy Assistant Secretary Elizabeth Horst.

The finance minister briefed US officials on Pakistan’s reform plan at the World Bank. Meeting both delegations decided to improve bilateral ties.

Meeting topics included alternative energy, agriculture, climate, and tech industry. Boosting the Pakistan-US economic partnership was another finance ministry priority.

With US officials, Pakistan’s Finance Minister Muhammad Aurangzeb addressed IT, agriculture, and other business potential.

Pakistan would collaborate with the US International Development Finance Corporation and Exim Bank, according to Muhammad Aurangzeb.

His name is Donald Lu.
Over 30 years of US government service for Lu as a foreign service officer.

What Pakistan calls the “cipher” dispute involves the American official. The Pakistan Tehreek-e-Insaf (PTI) founder claimed that a supposed official letter between Washington and Islamabad proved his ousting as PM was a US conspiracy.

Washington has strongly refuted Khan’s allegations.

The State Department’s top South and Central Asia diplomat is Donald Lu, assistant secretary of state.

Continue Reading

Business

Huge investment potential exists in the telecom and IT sectors. Shaza Fatima

Published

on

By

According to Shaza Fatima Khawaja, Minister of State for IT and Telecommunication, there are numerous investment prospects in Pakistan’s IT and telecom sectors.

She noted that the current administration is dedicated to fostering foreign investment in the nation, in line with the Prime Minister’s goal.

According to a news release, CEOs Wateen Adil Rashid and Muhammad Shahbaz Khan of Taavun (Pvt) Limited, who paid her a visit on Tuesday, spoke with Minister of State for IT and Telecommunication Shaza Fatima Khawaja.

She declared that the private sector would receive complete support because it is essential to growing our exports.

Regarding youngsters, she stated that they are our greatest asset and that efforts are being made to further their growth.

Sheikh Nahyan bin Mubarak Al Nahyan of the United Arab Emirates was thanked by Shaza Fatima for his particular interest in promoting additional investment in Pakistan’s telecom industry.

Continue Reading

Business

WB pledges complete support for changes aimed at stabilizing Pakistan’s economy.

Published

on

By

Federal Minister for Finance and Revenue, Muhammad Aurangzeb, met with President of the World Bank Group, Ajay Banga, according to a press release from the ministry of finance here. During the meeting, the minister discussed Pakistan’s progress under the nine-month Standby Arrangement (SBA) program as well as ongoing reforms in priority areas of taxation, energy, and privatization.

According to the statement, the minister also extended an invitation to the president to visit Pakistan, and both parties acknowledged the necessity of a rolling 10-year country framework plan.

The minister also talked on safeguarding Pakistan’s eligibility for concessional funding and future project pipeline during a meeting with Masatsugu Asakawa, President of the Asian Development Bank (ADB).

The chief executive officer of the US International Development Finance Corporation (DFC), Scott Nathan, also met with the minister of finance.

They discussed during the conference how DFC may increase its investments in Pakistan after resolving unresolved conflicts in a cooperative manner.

According to the minister, the government is supporting creative financing strategies to maximize PPP potential and private sector participation.

According to the statement, he gave his word that the government will do everything in its power to assist investment projects by both foreign and local businesses in Pakistan.

Continue Reading

Trending