Exporters getting unprecedented orders

F.P. Report

ISLAMABAD: The Pakistan Economy Watch (PEW) said Hindu nationalism has tarnished image of India and started ruining its struggling economy.

Continued violations of human rights by NarendraModi administration has prompted many western companies to cancel their orders in favour of other countries leaving Indian export sector in a lurch, it said. Many earlier orders given to Indian companies are now diverted to Pakistan which has resulted in full capacity production of textile industry, said Dr. Murtaza Mughal, President PEW. Pakistani textile exporters have also grabbed many orders given to China and later cancelled due to coronavirus which will improve exports and help earn sizable foreign exchange, he added.

Dr. Murtaza Mughal said that oil price collapse is also a good development which is increasing income of the government while taming inflation and eliminating need for further taxes, he added.

The global slowdown and oil price slide can lead to an interest rate cut by the central bank during the current month which will be a stimulus for economic activities. He said that law and order situation has improved, energy is available, visa restriction has been eased, minorities are safe and the EU has extended trade relations for two years. These positive signals have prompted many western countries and companies to boost trade with Pakistan.

Moreover, western importers are considering not to put all eggs in one basket and diversify their manufacturing and imports so keep supply chain intact in case of a problem in any country. The government should reduce energy tariff and resolve the circular debt to restore the confidence of the business community so that they can expand their manufacturing facilities, he demanded.