Weak trade diplomacy behind dwindling exports: PEW
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Textile sector loosing sheen despite increased loans
The Pakistan Economy Watch (PEW) on Sunday blamed failed trade diplomacy behind dwindling exports which has forced government to borrow from international lenders to save country from default.
Fundamental changes should be introduced in the export sector otherwise government will have no option to borrow to keep forex reserves in respectable limits, it said.
Textile sector, the backbone of economy is going down while Aptma has projected a loss of 3.5 billion dollars by the yearend for which export managers are responsible, said Dr. Murtaza Mughal, President PEW.
He said that exports of other countries are going well but local authorities get comfort in blaming global recession. The limping textile sector secured loans worth 82.6 billion rupees in the first six months of the current fiscal year but its exports fell to 6.5 billion dollars which will result in defaults, he said.
Dr. Murtaza Mughal said that Rs 14 billion textile sector hold 57 percent share in exports, 46 percent in manufacturing, 38 percent in labour and nine percent share in GDP which cannot be left on the mercy of semi-educated officials who prefer to spend six out of twelve months abroad.
He said that textile sector continue to await refund claims worth 110 billion rupees which has compromised its ability which is a great threat to 3.5 million people linked to it.
Other countries stabilise their forex reserves trough exports while Pakistan is forced to beg for it which required radical changes in export sector plagued by nepotism.
