Tag: exports of pakistan

  • ‘Pakistan is not going to default’: Miftah Ismail

    ‘Pakistan is not going to default’: Miftah Ismail

    The pressure on the Pakistani rupee will “vanish” in a few weeks, according to Finance Minister Miftah Ismail, who also stated that Pakistan is not going to default.

    He predicted that dollar inflows into Pakistan will exceed dollar outflows soon, creating a “stable exchange rate”. Additionally, he said that within three months, imports will “organically” decline, and exports will soar as a result of the government’s impending strategic plan.

    “It’s no fun going to the world, to the International Monetary Fund (IMF), to the Chinese, to the Saudis, asking for money,” said Miftah Ismail in an interview with Mosharraf Zaidi, CEO of advisory services firm Tabadlab.

    According to Miftah, the IMF loan influx will be completed within weeks.

    “The only thing is that from August 1 to August 15, the directors of the IMF are on vacation. That’s why the meeting is starting a little later than I’d prefer,” he added.

    The finance minister defended the government’s policy of limiting imports to stop the dollar from leaving the country during the discussion. “Nobody is happy with the surgery, but sometimes it’s necessary,” he added.

    Without mentioning the country, Miftah stated that Pakistani authorities had requested a “friendly country” to shore up foreign exchange reserves through dollar-denominated deposits but it turned down Islamabad’s request, saying the latter never returned the deposits.

    The friendly nation subsequently expressed interest in purchasing shares of publicly traded government-owned companies under a buyback arrangement, giving Islamabad the option — but not the obligation — to repurchase the same ownership at a 5 per cent higher price.

    In addition to stating that “there’s not even (a question of) price discovery,” the minister stated that the country “tried to help Pakistan and is giving a great deal”.

    =Earlier today, the Pakistani rupee again fell to a record low versus the US dollar. During intraday trading on Wednesday at 1:00pm, the US dollar reached Rs239.

  • Massive growth: 50,000 closed power looms now operational

    Massive growth: 50,000 closed power looms now operational

    Faisalabad is witnessing an upward trend in the textile sector because 50,000 closed power looms have been turned operational.

    As per the details, experts have forecasted that another 30,000 looms will be installed as the textile industry witnesses massive economic growth following the high demand for export times.

    The recently-announced incentive of electricity supply for the industrial sector at subsidised prices by the government has also played a vital role in this development.

    On Thursday, Prime Minister (PM) Imran Khan shared a television news report on Twitter regarding the revival of the textile industry.

    The report highlighted the rise in economic activity in Faisalabad and the shortage of 0.2 million labourers that are required to meet the high demand of orders in the sector.

    The textile sector had been adversely affected by the power crisis and neglect of the previous governments. However, due to the incumbent government’s effective smart lockdown policies during the coronavirus pandemic, numerous countries have diverted their orders to Pakistan’s textile sector.

    According to the news report, the textile industry in Faisalabad has 1.3 million workers with 1 million native workers. In its recent report titled “Opening Early helped Pakistan Boost Exports during the Pandemic”, Bloomberg also underlined a major surge in Pakistan’s textile exports.”

    Bloomberg’s report also quoted Shahid Sattar, the Secretary-General of the All Pakistan Textile Mills Association, as saying, “Pakistan has seen orders shifting from multiple nations including China, India, and Bangladesh”.

    He added, “Garment manufacturers are operating near-maximum capacity and many can’t take any orders for the next six months”.

    The report also mentioned that the outbound textile shipments of Pakistan grew at a faster pace than those of Bangladesh and India, and accounted for half of the total export. Islamabad saw total shipments grow 7 per cent in September, compared with New Delhi’s 6 per cent and Dhaka’s 3.5 per cent, the report stated.