Increased Pakistani exports in the textile sector.

How did it surpass Pakistan, India and Bangladesh in the race for access to the US market?

امریکی منڈی تک رسائی کی دوڑ میں پاکستان، انڈیا اور بنگلہ دیش سے آگے کیسے نکلا؟

"Exports of my factory-made textiles to the United States continue to grow. If you look at the exports in the first six months of this financial year, the increase is about 50 percent.

Javed Balwani, an exporter of value-added textile products in Karachi, added that this trend of increasing exports has persisted for the past several months.

He said that apart from his company, exports of other Pakistani companies exporting goods to the United States in the value added textile sector have also increased.

Yassin Siddique, owner of a textile mill, said that the yarn produced in his factory is exported to the United States and if taken in the first six months of this financial year, the yarn exported from his mill to the United States is about Rs. An increase of up to 25%.

The overall effect of the increase in exports to the United States by Javed Balwani and Yasin Siddique was also seen in Pakistan's exports to the United States, which according to the Trade Development Authority of Pakistan (TDP) are moving towards higher levels with significant growth.

According to Razzaq Dawood, trade adviser to the Prime Minister of Pakistan, the United States is Pakistan's largest export market, surpassing 60 600 million in December alone.

Before knowing how much Pakistan's exports increased and how much India's exports were affected during this period, first read what products Pakistan exports to the United States.

Pakistan's exports increased and how much India's exports
Pakistan's exports increased and how much India's exports

What is exported to USA?

Pakistan exports various products to the United States, but the largest share of these exports is textile products. Javed Balwani says that most of the products going to the United States from Pakistan are home textile products.

In addition to home textiles, men's and women's clothing and yarns are also exported in large quantities to the United States.

Asif Inam, chairman of the All Pakistan Textile Mills Association (APTMA) South Zone, said that the United States has seen an increase in almost all textile products exported.

It may be recalled that with the increase in exports to Pakistan from the United States, Pakistan's total exports have also increased and more than 15 15 billion has been exported in the first six months of the current financial year.

Did Pakistan get export orders from India and Bangladesh?

The trend of export of Pakistani products in the US market has been observed since last financial year and it has continued to this day.

Zubair Motiwala, a textile exporter and former president of the Karachi Chamber of Commerce and Industry, says the industry was operating in Pakistan when India and Bangladesh were completely shut down due to the corona virus.

The US market needed supplies at a time that could not be met due to the closure of India and Bangladesh, so international buyers turned to Pakistan. Once an American buyer turns to the Pakistani market, they are still placing orders with Pakistan.

According to the data released by the Pakistan Bureau of Statistics, the country's exports at the beginning of the last financial year had either negative growth or very little growth.

According to a report released earlier this year by Apparel Resources, a website on trade in apparel and textiles, Pakistan has overtaken India in US exports of apparel.

According to India's Textile Excellence website, exports of Indian textile products declined by nine per cent in 2020-2020. According to the data, the largest market for India's textile exports was the United States. Exports declined by 29 per cent and women's clothing by 26 per cent, as well as knitwear.

The month of September 2020 saw an upward trend in Pakistan's exports when exports started growing at a rate of 7%.

This was the time when industries in India and Bangladesh were closed due to lockdown and export orders started coming to Pakistan.

This increased further in December 2020 to 20% and will continue to increase in the coming months.

Last fiscal year, total exports grew by 18%, with exports to the United States alone increasing by 17%, the largest increase in Pakistan's exports compared to any other country.

This increase continues into the current fiscal year, and exports to the United States increased by more than 40% in the first six months of this year.

Motiwala said that in the global market, a buyer changes his supplier with great difficulty. In India and Bangladesh, when the industry was completely shut down due to Corona virus, buyers who turned to Pakistan are still placing their orders in Pakistan and have not returned to India and Bangladesh. Because Pakistan continues to export to the United States.

In this regard, Javed Balwani said that one of the reasons for the increase in Pakistan's exports is that when the demand for the product increased in the US market, then Pakistan's export sector was working and it met this demand.

He says it also happened that when the United States was locked down and Americans were locked in their homes, the United States provided great assistance to its citizens.

Javed said the package provided by the United States to its citizens consisted of billions of dollars, which increased their purchasing power and increased the demand for home textiles and men's and women's clothing as they stayed at home. The demand was met by Pakistan's export sector.

He said demand remained high even after the end of the lockdown and that goods arriving in the United States from all over the world had arrived in such large quantities that it had blocked US ports.

Is Pakistan's textile industry replacing India globally?
Is Pakistan's textile industry replacing India globally?

Is Pakistan's textile industry replacing India globally?

What is the reason for Pakistan's increase in exports of domestic garments over India?

What is the reason for the superiority of Indian basmati rice over Pakistani rice in the world market?

Balwani said that although the US market is a low-cost market compared to Europe, the consumption of products exported from Pakistan is high there.

Exporter Yaseen Siddique said, "Of course, the credit goes to Prime Minister Imran Khan who, despite pressure, did not impose a complete lockdown in the country and announced to deal with the Corona epidemic through smart lockdown."

How did the Sino-US dispute support Pakistan's export sector?

Pakistan's exports to the United States and its increase are also linked by Pakistan's export sector to the US-China trade dispute and US concerns over alleged human rights abuses in China's Xinjiang province.

Asif Inam says that due to the trade dispute between the US and China, when the US increased the trade duty on Chinese products, it also benefited Pakistan to some extent.

Pakistan's textile sector benefited even more when the demand for these items in the US market was met by the Pakistani textile sector.

Yassin Siddique says that a large part of China's textile industry is operating in Xinjiang province and that it is one of the largest cotton growing regions in China. The United States also has concerns about child labor in the region, along with human rights abuses, and wants to reduce Chinese products from the region.

Most of these products are textiles and various US sanctions on them have greatly benefited Pakistan's textile products which has led to an increase in Pakistan's exports to the US.

To what extent did domestic policies affect?

Pakistan's export sector, on the one hand, managed to export more to the United States due to regional and global conditions, on the other hand, domestic policies also played a role.

According to people in the export sector, the government has provided a lot of support to the sector, such as providing relief to the export sector in energy prices, as well as the central bank's efforts to expand and innovate the export sector at low interest rates. Loans provided by

Zebar Motiwala said that among other factors, the quality of Pakistani products has been very good due to the investment made in this sector.

He said that if we take the last two and a half years, we have invested  3.5 billion in the export sector which has not only expanded the sector but also improved its quality due to modern machinery.

Asif Inam expressed concern that exports are still increasing but gas shortage in Pakistan is creating problems for the export sector and it is feared that the increase in exports to the United States will continue. Don't stop