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Musharraf Era Textile Boom Returning to Pakistan?
Pakistan textile industry is booming with exports soaring 27% to more than $6 billion in the first four months (July-October) of the current fiscal year. “We believe that $5 billion investment (in textile industry) in the Musharraf era would be matched in the next six to eight months” says Zubair Motiwala, a leading textile industrialist and chairman of Businessmen Group (BMG), as quoted in the Pakistani media reports. Pakistan textile exports more than doubled from $5.2 billion to more than $11 billion during Musharraf years. Exports soared 19.43% in 2001, 20% in 2004, 24.5% in 2005 and 11.23% in 2006, all on President Musharraf's watch, according to "The Rise and Fall of Pakistan's Textile Industry: An Analytical View" published by Javed Memon, Abdul Aziz and Muhammad Qayyum.
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Pakistani government officials report that the textile sector has invested $3-3.5 billion on modernization and expansion in the last 2-3 years and the investment is likely to match the $5 billion that was witnessed during Musharraf era when the sector was undergoing major modernization, balancing and replacement (BMR). Textile machinery imports jumped 110% in the last four months, according to the Pakistan Bureau of Statistics (PBS). Capital equipment imports are contributing to Pakistan's widening trade gap.
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| Pakistan Textile Exports Boom. Source: Bloomberg |
All sectors of the textile industry from yarn to fabric to ready-made garments are experiencing double digit growth. Ready-made garments exports jumped 22.34% during July-Oct 2021, knitwear exports soared 35.45%, bed-wear posted positive growth of 21.30%, towel exports were up by 14.17%, cotton cloth rose 18.54%. Among primary commodities, cotton yarn exports surged by 71.39%, while yarn other than cotton by 114%. The export of made-up articles — excluding towels — rose by 11.55%, and tents, canvas and tarpaulin dipped by a massive 23.98% during the 4-month period.
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| International Comparison of Textile Machinery Imports. Source: Business Recorder |
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| History of Pakistan Textile Machinery Imports 2004-2021 in Millions of US$. Source: Ali Khizar |
The textile industry is very important for Pakistan's economy. It is a very large employer and contributes nearly 10% of GDP. Textile exports account for more than half of Pakistan's exports. Unfortunately, the textile industry has stagnated in the last 12 years. Textile boom is good news for the country's economy.
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Riaz Haq
Production of home appliances soars
https://www.dawn.com/news/1629800
KARACHI: Easing of lockdown and rising heatwave have caused a sharp rise in production of home appliances with refrigerators hitting a 32-month high in April, followed by 19-month high in air conditioners and 22-month in deep freezers.
Production of refrigerators during April soared to 131,953 units from 6,996 units in April 2020 while in March the production was 119,535 units, showed Large-Scale Manufacturing (LSM) data.
Production of air-conditioners soared to 62,953 units in April as compared to 5,246 units in April 2020 while in March the production stood at 35,418 units, showing a jump of 78pc MoM.
Deep freezers sales also saw a strong rebound, rising to 11,732 units in April 2021 from 1,048 units in April 2020 while March 2021 production stood at 7,236 units.
According to a financial analyst at a brokerage house, demand for electrical goods is rising after tapering off the Covid-19 led lockdown which is much evident from LSM figures of April. Production of other power sector electrical goods such as electric transformers and meters production also witnessed strong rebound in April.
Nov 18, 2021
Riaz Haq
Tweet by Shafaat Hussain:
مہنگائی کے اس شور میں یاد دلاتا چلوں کہ پاکستان میں ایئر کنڈیشنر، فریج، ڈیپ فریزر اور الیکٹرک پنکھوں کی پیداوار میں اضافہ ہوا ہے۔ اس کے علاوہ گاڑیوں، موٹر سائیکل اور ٹریکٹر کی فروخت میں بھی اضافہ ہو رہا ہے.
یہ کوئی چاند سے آکر شاپنگ کر رہا ہے؟
#PakistanMovingForward
https://twitter.com/sshabdali/status/1461404359292600321?s=20
Nov 18, 2021
Riaz Haq
Pakistan Receives $635 Million by Exporting the Information Technology Services
https://www.phoneworld.com.pk/pakistan-earns-635-million-by-exporti...
The Pakistan Bureau of Statistics is a federal agency of the Government of Pakistan tasked with providing reliable and comprehensive statistical research as well as commissioning national statistics services. According to figures from the Pakistan Bureau of Statistics (PBS), the exportation of Information Technology services increased by 40.90 percent between July and September 2021, rising from $348.4 million in the previous financial year to $490.89 million this year. During the first quarter of the financial year 2021-22, Pakistan earned more than $635 million by supplying various IT services to different countries
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Ovais
@Sabbandkardo
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2h
Pakistan IT Exports in OCT 2021 were 195 M$
The momentum of IT exports persisted and IT exports are projected to reach around 2.5 B$ by FY end .
Pakistan should aim to reach 5 B$ soon
#PakistanMovingForward
https://twitter.com/Sabbandkardo/status/1461707968664285188?s=20
Nov 19, 2021
Riaz Haq
Baqir projects sustainable growth
https://tribune.com.pk/story/2321444/baqir-projects-sustainable-growth
Contrary to previous years, Pakistan’s economic growth will be sustainable this time around due to a persistent uptrend in remittances, robust inflows through Roshan Digital Accounts (RDAs) and expected rise in exports owing to the refinance facility, said State Bank of Pakistan (SBP) Governor Reza Baqir.
Speaking at a session titled “The Future of Pakistan’s Economy” at the Leaders in Islamabad Business Summit on Wednesday, Baqir said that the textile sector was aiming to enhance exports by $5 billion after the modern machinery imported with the help of Temporary Economic Refinance Facility (TERF) was installed.
He added that the foreign exchange reserves were climbing due to the receipt of robust remittances and hefty inflows via RDAs. He cherished that on average 1,000 RDAs were being opened every day.
The governor expected the economic growth to consolidate further following capacity expansion of the export-oriented industry as businessmen were upgrading their units with state-of-the-art equipment imported under TERF.
Talking about how monetary and fiscal policies would aid the ongoing growth momentum, the SBP governor pointed out that SBP’s policies had begun responding immediately to the deterioration in macroeconomic indicators.
“The current account deficit has been rising since June 2021 and the exchange rate began adjusting in May, therefore, our policies are responding in a timely manner,” he said. “We now have a market-based exchange rate and it acts as a natural shock absorber.”
He lamented that macroeconomic policies were delayed in previous years whenever imports rose and the current account deficit widened and as a result, the government had to devalue the rupee.
“When imbalances increase and corrective decisions are delayed, difficult measures need to be taken,” he said.
He was of the view that immediate and timely responsive measures would aid the sustainability of growth.
Nov 19, 2021
Riaz Haq
#Pakistan providing subsidies, incentivizing #construction industry. #imrankhanPTI: Rs 35 billion allocated for low income buyers. Rs. 300,000 subsidy on every house for the first 100,000 homes. #NayaPakistan #economy https://www.pakistantoday.com.pk/2021/11/19/govt-providing-subsidie... via @ePakistanToday
While visiting Naya Pakistan Housing Authority’s project Farash Town Apartments in Islamabad on Friday, Prime Minister Imran Khan expressed the government is providing subsidy and incentivising construction industry to help low income people to have their own houses.
The prime minister said thirty-five billion rupees have been allocated for subsidy on construction of houses by the low income people. He said the government will provide three hundred thousand rupees subsidy on every house for the first one hundred thousand units.
He said while one hundred thousand apartments are under construction, the process will now speedily move forward as the structure of the system has been finalised.
He said the construction industry has been incentivised in different ways including tax relief. He said One Window Operation has also been started to facilitate the construction sector.
Regarding Farash Town, the prime minister said of the total 4400 apartments, 2000 each have been allocated for low income people and middle income people and four hundred apartments will be provided to slum dwellers.
The premier, while chairing a separate meeting, said Ravi Urban Development Authority and Central Business District projects will promote modern, self-sustained, clean and green residential and business facilities in the country.
The PM said these projects are very crucial for attracting foreign direct investment in housing and construction sectors in the country. The prime minister directed the authorities to win over maximum investment for both the projects.
Earlier, the prime minister was informed that work on the development of basic infrastructure including roads, sewerage and drainage in the Central Business District is in full swing and is likely to be completed ahead of schedule. The construction work on Bab-e-Pakistan Project will also start soon.
The prime minister was apprised that the Ravi Urban project is all set to develop its Saphire Bay Project. A state of the art industrial estate, powered by renewable energy, is also ready to be launched very soon.
Nov 19, 2021
Riaz Haq
From Twitter:
Arif Habib Limited
@ArifHabibLtd
During Oct’21, technology exports was up 29% YoY to $ 195mn. During 4MFY22, technology recorded exports worth $ 830mn contributing 39% to the overall services’ export and marking a 39% YoY jump.
@StateBank_Pak
@Hammad_Azhar
@aliya_hamza
@MuzzammilAslam3
#Pakistan #Economy #AHL
https://twitter.com/ArifHabibLtd/status/1461747220114550791?s=20
Nov 19, 2021