China’s growth rate expected to fall 5%

F.P. Report

ISLAMABAD: Former President ICCI ShahidRasheed Butt on Wednesday said that Pakistani export sector should take advantage of a steep decline in Chinese production and exports to win back its lost share in the international market.

In a statement, he said that growth rate of China is expected to fall to five percent while its $266 billion share in global textile exports of $837 is contracting which can be used by Pakistan to improve its share in export market which has reduced from 3 percent to 1.6 percent,

The countries dependent on Chinese raw material for their exports are also facing difficulties as Indian exports have plunged by 2.3 percent, Thailand exports have witnessed a fall of 2.5 percent, Sri Lankan exports are down by 3.6 percent, Indonesian exports are depressed by 5 percent, Malaysia witnessed six percent reduction while Bangladesh lost seven percent of exports.

Pakistani export sector is also dependent on Chinese raw material but the exports have increased by 4.5 percent during the first six months of the current fiscal, for which credit goes to the government and the resilient private sector, he said.

ShahidRasheed But said that government should try to find new sources of raw material for the local textile sector which is facing shortages of raw material due to crisis in China while other countries have jacked up prices to benefit from the opportunity.

Moreover, he said the government should announce relaxations for the local investors so that they can start production of raw material in the country to reduce dependence on foreign nations.

He noted that many countries have suspended trade with China and cancelled orders while India and some other countries are trying hard to grab these orders which should be noticed by our government and the private sector.

He said that textile sector could help the government earn extra billions in foreign exchange for which it should increase its capacity while government should ensure economical loans, cheap energy prices, and swift payments of all outstanding refunds.

Banking on the opportunity can stabilise the economy that will enable the government to provide relief to the masses, he said.