In an attempt to control the spread of the pandemic, countries had to impose drastic measures including lockdowns, travel restrictions, border closures, airport shutdowns, delaying entry for ships etc. These restricted measures affected the global supply chain. Indian Chamber of Commerce, one of the leading national chambers of India, organized “Integrating BIMSTEC 2022” in collaboration with the Ministry of External Affairs, on the importance of creating a common platform for BIMSTEC countries to participate and carry forward paperless trade. President of Indian Chamber of Commerce, Pradeep Sureka stated how the COVID-19 pandemic and the associated global recession had a devastating effect on international trade. In an attempt to control the spread of the pandemic, countries had to impose drastic measures including lockdowns, travel restrictions, border closures, airport shutdowns, delaying entry for ships etc. These restricted measures affected the global supply chain. He said, “Though we have seen, the effect of Omicron is not that fatal, however there is no guarantee that a fresh pandemic will not cause any more disruptions. While these cannot be avoided, the effect on the economies of countries can be mitigated by generating appropriate solutions. One way is to strengthen regional trade thereby limiting the physical boundaries of disruptions. BIMSTEC was established to leverage the geographical advantage to strengthen economic & physical connectivity through more trade, investments, travel and exchange among member countries. The current trade among the BIMSTEC members has the potential to grow 5-6 folds.” “It can make business transactions more convenient while ensuring regulatory compliances and improving the competitiveness of countries and their industries to move towards paperless chain. It has gained a considerable pace through the development of block chain based solutions, which is definitely a more cost effective way of trading internationally. However, navigation through multiple platforms, e-filing of documents, to avail tax benefits causes hardships. Hence providing ease of compliance is one of the key objectives of the Govt. In this context the ambit of the current ice gate, Indian customs and electronic gateway and national portal of Indian customs is offering a e-filing service to the trade, cargo carriers and providing a centralized filing system for transactions related to cross border trade, SEZ’s etc. so to cover an integrated all related compliance under one umbrella. To summarize trade facilitation is a vital area for all policy makers going forward.”
Source: Economic Times
India's exports to China have increased about 34 per cent to USD 22.9 billion in 2021 from USD 17.1 billion in 2019, according to data from the commerce ministry. Imports, on the other hand, rose 28 per cent to USD 87.5 billion in 2021 as against USD 68.4 billion in 2019. According to the data, the trade deficit has increased to USD 64.5 billion last year as compared with USD 51.2 billion in 2019. Trade experts have stated that India's exports to China have increased at a faster pace than that of its imports from China in 2021 when compared with the normal year of 2019. Khalid Khan, vice-president of the Federation ofIndian Export Organisations, said the huge export potential is there for Indian exporters in China. "Our exporters are doing quite good in China. We can push our exports further," Khan said. The share of raw material, intermediate goods and capital goods imports from China increased in 2021 as compared to 2019, whereas imports of consumer goods have fallen from 14.7 per cent in 2019 to 10.4 per cent in 2021, another expert said. Further, in 2021, the US has taken a top slot as India's merchandise trade partner with a value of USD 112.3 billion. America was followed by China (USD 110.4 billion), UAE (68.4 billion), Saudi Arabia (USD 35.6 billion), Switzerland (USD 30.8 billion), and Hong Kong (USD 29.5 billion). "There is a shift in the growth pattern of trade in 2021 with respect to 2020. In the post-COVID-19 period, India's merchandise trade with all other top trading partners except for Hong Kong and Singapore have registered growth higher than that of the growth registered with China in 2021 over 2020," an expert added.
Source: Economic Times
The outlook for India's manufacturing sector seems to have improved in the OctoberDecember 2021 quarter even as the cost of doing business remains a cause for concern, according to a FICCI survey. The outlook for India's manufacturing sector seems to have improved in the OctoberDecember 2021 quarter even as the cost of doing business remains a cause for concern and hiring prospects remain subdued, according to a FICCI survey. The findings of the latest quarterly survey on manufacturing unveiled on Sunday also reflect sustained economic activity in the sector, with existing average capacity utilisation in the range of 65 to 70 per cent. It also highlighted that manufacturer are looking forward to the upcoming Union Budget to enhance growth and investments in the sector. The Budget will be presented on February 1. The percentage of respondents reporting higher production in the third quarter of 2021- 22 (October-December 2021-22) was around 63 per cent, almost double than the yearround period (around 33 per cent), noted FICCI. This assessment is also reflective in order books as 61 per cent of the respondents in October-December 2021-22 had a higher number of orders as against July-September 2021-22, the survey found. High raw material prices, high cost of finance, the uncertainty of demand, shortage of working capital, high logistics cost, low domestic and global demand due to supply chain disruptions are some of the major constraints that are affecting the expansion plans of the respondents, it said. The survey assessed the performance and sentiments of manufacturers for Q3 (OctoberDecember 2021-22) for 12 major sectors namely automotive, capital goods, cement, chemicals, fertilisers and pharmaceuticals, electronics & electricals, medical devices, metal & metal products, paper products, textiles, textiles machinery and miscellaneous. Responses have been drawn from over 300 manufacturing units from both large and SME (small and medium enterprise) segments with a combined annual turnover of over Rs 2.7 lakh crore. Around half of the participants expect a rise in their exports for Q3 2021-22 as against the same quarter of the previous year. "Hiring outlook for the manufacturing sector remains subdued as around 75 per cent of the respondents mentioned that they are not likely to hire additional workforce in the next three months," FICCI stated on the survey. However, an average interest rate paid by the manufacturers has reduced slightly to 8.4 per cent per annum as against 8.7 per cent during last quarter and the highest rate remains as high as 15 per cent. It highlights that cuts in repo rate in the last few months by RBI have not led to a proportional reduction in the lending rate as reported by around 60 per cent of the respondents. High raw material prices, increased transportation and logistics cost, and rise in the prices of diesel, LPG, natural gas, power, and fuel has been the main contributor to the increasing cost of production. Other factors affecting the cost of production are increasing labour cost, short supply of raw material, high cost of carrying inventory, and fluctuation in the foreign exchange rate, showed the survey.
Source: Business Standard
China-plus-one has created a growth window for the Indian textiles segment, and the PLI Scheme can give the sector a boost. There might not be a more opportune time for the industry to seize an opportunity to grow quickly and counter rising competition from Vietnam and Bangladesh The textiles industry has been struggling to stay afloat in the midst of a raging pandemic that caused acute labour shortages and a surge in cotton prices. If these weren't enough, smaller nations such as Vietnam and Bangladesh are now overtaking India in this segment. Though there has been a 41% increase in textile exports from April-December 2021 against last year, a lot remains to be done to help the sector be more competitive and on a par with global challengers. A report by the Confederation of Indian Industry (CII) and global management consulting firm Kearney released in October last year had stated that India’s textile industry should aim for $65 billion in exports in the next five years, especially with the “China Plus One” sentiments lending India a favourable position — as global companies look at sourcing and manufacturing destinations outside the “factory of the world”, China. Affirming such views, KK Lalpuria, Executive Director & CEO, Indo Count Industries, says a clear opportunity exists for India as textile brands and retailers are trying to de-risk their supply chain by looking at alternative hubs. “China’s cost competitiveness is waning. Their market share is still 30%-36% and even a 1% market share shift will imply a $10-billion market, because the global textiles trade is $1 trillion. So that is the kind of scale that India is looking at,” he says.
Target path
The government’s target of $100 billion in textile exports over the next five years can be achieved only if there is a proper framework, longer term policies and better planning by Indian entrepreneurs, he says. “Besides this, hand-holding on ease of doing business is needed so that we can ensure smooth functioning of the supply chains to the brands and retailers looking to de-risk operations. Also, if India manages its cotton supply well enough, we can have more value addition in raw cotton or yarn exports, which can enable us to scale up operations and grow our market share,” the CEO adds. Adding to this chain of thought, Neelesh Hundekari, Partner, Kearney, says India’s strategic depth in textiles is an advantage that few can boast of. “The biggest opportunity or market is in exports. So at least a $16-billion growth opportunity exists in apparel, and China Plus One is the perfect sentiment (to take advantage of). Every company that sources apparel wants an alternative to China. Another opportunity is in fabrics, where we target a $4-billion jump by positioning India as a regional fabric hub,” he says. Other areas of potential he points to are man-made fibres and yarn, in which India can aim for a $2.5 billion-$3 billion jump; home textiles where a $4-billion increase can be targeted as Indian companies dominate this space; and technical textiles, which can aim for a $2-billion jump on the back of domestic demand growth as well. India’s home textile exports stood at $4.1 billion in FY20, accounting for 7% of the global home textiles trade, according to the CII-Kearney report. India’s market has seen a strong growth trajectory of 9-10% CAGR during 2015–2019. Apparel, which grew at about 10% CAGR from 2015 to 2019, forms the bulk of India’s consumption. The remaining market is technical textiles (23%) and home textiles (7%), the report added.
Capex pain
Referring to another major impediment, Hundekari says high import duties on machinery act as a deterrent for the industry. “There is a 27% import duty on textile machinery and 18% on GST. So, there is almost 45% additional increase in capex when importing machinery. Till some of these duties can be rationalised or indigenous manufacturing promoted, we have to find a way to keep capex down,” he adds. Industry experts also reckon that aspects such as digitisation, design capabilities as well as sustainability and traceability are becoming significant tools for differentiation in the sector. Rajat Wahi, Partner, Deloitte India, says traceability is a big play now. “People want to know if natural fertilisers are being used or synthetics, how the farm is, the quality of the people on the farm, how it impacts the product, etc. We have to see how we can enable such aspects. Besides this, home-textile players have created a big presence here. This should be scaled up further by assuring them of quality, sustainability and getting the products on time whenever they buy from India,” he says. In the Union Budget, experts want the Production-Linked Incentive (PLI) Scheme in textiles to be more broad-based, focus on reducing working capital pressures, spell out ways to implement schemes and build scale for the sector. “Scale will help in our logistics and procurement, and bring down our cost of manufacturing. We need to create manufacturing facilities to be able to compete with the likes of Bangladesh and Vietnam and put our product in parity to them,” Wahi adds.
Source: Economic Times
In a new development on the industrial front ahead of the state assembly election, Punjab Dyers Association (PDA) the body representing dyeing industry, has forged alliance with the Chamber of Industrial and Commercial Undertakings (CICU). Both the associations will work jointly for fast track resolution of the issues being faced by the dyeing and textile industry, which till now remained on the back burner. Upkar Singh Ahuja, president of CICU, said, “PDA has joined hands with CICU, which will further strengthen industrial unity and will make both the associations more powerful. Now CICU, which already represents dozens of industrial sectors, will also represent the dyeing industry. A joint meeting in this regard was held at CICU office in presence of Varinder Sharma, director of Micro Small and Medium Enterprises (MSME) development institute. In the meeting a delegation of PDA comprising Harvinder Singh from Sanchi Processor, Vishal Jain from Amar Dyers, Harminder Singh from Sky Clothing and Rahul Verma from Gulab visited CICU and discussed the issues being faced by the textile industry.” Ahuja also added, “During the meeting, the PDA delegation also highlighted that industry is passing through a crucial time and textile industry is not running according to expectations. Besides, there are number of issues with state and central governments that need to be resolved. The major issues are related to GST departments, Punjab housing and urban development, Punjab State Power Corporation Limited, Punjab Pollution Control Board (PPCB) and customs department. CICU will always fight for the cause of the industry and these issues bothering the dyeing and textile industries too will be resolved at the earliest.” According to Pankaj Sharma, general secretary of CICU, “PDA members expressed their gratitude and happiness on being associated with CICU and their representatives have promised that they will extend their whole hearted support to CICU for the betterment of the industry. CICU with the help of all affiliated association will work together and fight for the betterment of the industry.”
Source: Times of India
Ahead of the Union Budget 2022-23, industry body CII on Sunday pitched for additional incentive rates to be included in the Production Linked Incentive Schemes based on the number of jobs created. The Confederation of Indian Industry (CII) has suggested that employment-intensive sectors such as leather and food processing could be provided an incentive scheme to attract investments and create employment. "With the imperative to support jobs and create new employment as the country recovers from the pandemic, CII suggests that the Budget add a job-creation component to the incentive. CII also recommends that more employment-intensive sectors be brought under the purview of the PLI schemes which will greatly encourage investments in these sectors," CII Director General Chandrajit Banerjee said. The incentives could be based on the proposed number of jobs being created in the project, giving higher weightage to job creation in the PLI schemes, said CII. Apart from the PLI scheme for employment, CII brought out a range of measures that could be taken up in the forthcoming Budget that would help jobs to gain traction as the pandemic impact is being felt across income classes. To provide relief to workers hit by the pandemic in the rural areas, the chamber recommended that the outlay for MGNREGA be enhanced considerably to support the rural poor, which would also encourage consumption growth. It also suggested that Section 80JJAA of the Income Tax Act which provides for benefits for new workers with less than a threshold income of wages of Rs 25,000 per month should enhance the limit to encourage higher skilled jobs creation. Moreover, CII stated that 'on the job' training should be extended to all sectors with industry associations as third-party agencies for scaling up apprenticeship. To reduce the compliance burden for MSMEs in hiring apprentices, it said a fund could be set up to build a real-time information system as a platform to bridge information gaps between workers looking for work and MSMEs looking for workers. The industry body recommended that exports of labour-intensive goods can be stepped up with special economic zones, coastal zones and industrial parks with benefits that are WTO compatible.
Source: Economic Times
At the beginning of the pandemic, many of us opted to buy reusable fabric masks to help fight the spread of COVID - they're better for the environment than disposables, can be locally made, and come in a range of creative designs. But since the highly infectious Omicron variant emerged, we've been urged to wear well-fitted respirator mask as a first choice (N95, KN95, or P mask). These, however, have a short shelf-life, and it may be jarring to switch back to a more wasteful product for many environmentally-minded people. While it's too soon to say exactly how many disposable masks go to landfill, we do know textile waste is already a massive issue. As waste generation is likely to increase as we protect ourselves against Omicron, are there ways we can minimise our waste without compromising our health? Making the most out of masks It has been advised since mid-2020 that N95 masks offer the best protection against coronavirus. They typically offer a tighter fit to the face and a higher level of filtration than fabric masks, protecting the wearer from aerosols and droplets. But supply chain issues, concerns of shortages, and lower transmission rates of earlier variants meant the comparatively less effective fabric and surgical masks were fit-forpurpose in lower-risk settings. This is no longer the case under the Omicron variant. An easy way to minimise waste if you own N95 masks is to safely extend their life. In hospital settings, it's advised to avoid use beyond one day and to dispose if they become soiled or moist. This, however, is not realistic for the general public, such as when supply is low. There are a range of methods to reuse N95 masks safely, which are supported by the mask's inventor. There are also re-usable options such as elastometric respirators. For disposable respirators, the most straightforward reuse method in non-medical settings is to rotate your mask every three or four days, storing it in a clean paper bag when not in use. Wash your hands thoroughly before and after you touch your mask, and keep your mask dry - if your mask gets wet, stop using it. Consider numbering your masks so you don't mix them up. The US Centre for Disease Control and Prevention (CDC) recommends using N95s up to five times before throwing it away (if they've been kept clean and aren't damaged). But it's important to note the long-term effects of cleaning and reuse are still unknown. There's no need to throw away fabric masks. Having your favourite fabric masks on hand as backup in your car, bag or pockets is important because any mask is better than no mask in low-risk and fleeting contact settings, such as outside. Double masking - placing your fabric mask over a disposable surgical mask - offers increased protection compared to a single fabric or surgical mask. And fabric masks will also offer protection against other droplet-based diseases, like the flu. Sustainability in healthcare The surge in disposable mask waste points to a broader issue that's getting increasingly recognised: hospital waste. Take single use plastic hospital gowns, for example. Environmentally sustainable healthcare is an emerging field aimed at finding alternative solutions to the waste generated in healthcare, its impacts on the environment, and how we educate health professionals on sustainable practices. For example, research shows there's potential to expand the "tiered approach", which offers further choice of protection depending on low or high risk settings. For example, integrating reusable gowns when appropriate could help keep people safe, put less strain on supply systems, and help reduce waste. Spearheading this effort is textile scientist Meriel Chamberlin, who is collaborating with clinicians to develop compliant, safe and reusable textile gowns that offer protection and comfort with a lower environmental impact than disposables. When it comes to masks, more sustainable options are also being developed. This includes masks and filters made from biodegradable agricultural crop waste. Research is also underway to identify processes for re-purposing discarded single-use face masks into road pavements materials.
Six ways to offset our daily waste Even during a pandemic, people don't want to be wasteful. Tellingly, "Plastic Free July" saw a huge global increase in participation from 250 million participants in 2019, to 326 million in 2020. There are many ways to reduce waste without compromising your health. The key is to focus on behaviours within your control, such as minimising single-use plastics. To help offset your daily waste from disposable masks, consider: - Making the switch to refillable cleaning products to cut down on single-use packaging (there are even delivery options). - If you've shifted to online grocery delivery, choose paper over plastic bags and either reuse them at home or compost them after use. - When dining at home, repurpose your leftovers, prioritise older food, and avoid over-buying to cut down on food waste. - If you're shopping online more, find second-hand retailers and peer-to-peer platforms to give pre-loved items a new life (there are delivery options for this too). - Before throwing away household items (clothing, furniture), try selling or giving them away online - you'd be surprised what other people find useful. - If your household items are damaged, get them repaired, or use them for a different purpose, such as using well-worn clothes as cleaning rags. Just because we're in a period of significant social change, doesn't mean we have to lose momentum on sustainability.
Source: Economic Times
But since the highly infectious Omicron variant emerged, we've been urged to wear wellfitted respirator mask as a first choice (N95, KN95, or P mask). These, however, have a short shelf-life, and it may be jarring to switch back to a more wasteful product. Every year, each Australian throws away around 23 kilograms of clothes on average, with more than 780,000 tonnes of leather, rubber and other textile waste generated Australiawide. As waste generation is likely to increase as we protect ourselves against Omicron, are there ways we can minimise our waste without compromising our health? Making the most out of masks Australians have been advised since mid-2020 that N95 masks offer the best protection against coronavirus. They typically offer a tighter fit to the face and a higher level of filtration than fabric masks, protecting the wearer from aerosols and droplets. But supply chain issues, concerns of shortages, and lower transmission rates of earlier variants meant the comparatively less effective fabric and surgical masks were fit-for-purpose in lower-risk settings. This is no longer the case under the Omicron variant. An easy way to minimise waste if you own N95 masks is to safely extend their life. In hospital settings, it's advised to avoid use beyond one day and to dispose if they become soiled or moist. This, however, is not realistic for the general public, such as when supply is low. There are a range of methods to reuse N95 masks safely, which are supported by the mask's inventor. There are also re-usable options such as elastometric respirators. For disposable respirators, the most straightforward reuse method in non-medical settings is to rotate your mask every three or four days, storing it in a clean paper bag when not in use. Wash your hands thoroughly before and after you touch your mask, and keep your mask dry - if your mask gets wet, stop using it. Consider numbering your masks so you don't mix them up. The US Centre for Disease Control and Prevention (CDC) recommends using N95s up to five times before throwing it away (if they've been kept clean and aren't damaged). But it's important to note the long-term effects of cleaning and reuse are still unknown. There's no need to throw away fabric masks. Having your favourite fabric masks on hand as backup in y Double masking - placing your fabric mask over a disposable surgical mask - offers increased protection compared to a single fabric or surgical mask. And fabric masks will also offer protection against other droplet-based diseases, like the flu. Sustainability in healthcare The surge in disposable mask waste points to a broader issue that's getting increasingly recognised: hospital waste. Take single use plastic hospital gowns, for example. An estimated 1 million gowns have been used each year of the pandemic at just one (of six) acute public hospitals in Victoria, according to an ongoing investigation undertaken by coauthor Forbes McGain. This number is a conservative estimate, and only captures public hospitals when we know disposal gowns are used in many other settings. This includes in private hospitals, aged care, residential and home care, allied health services and testing and vaccination centres. Environmentally sustainable healthcare is an emerging field aimed at finding alternative solutions to the waste generated in healthcare, its impacts on the environment, and how we educate health professionals on sustainable practices. For example, research shows there's potential to expand the "tiered approach", which offers further choice of protection depending on low or high risk settings. For example, integrating reusable gowns when appropriate could help keep people safe, put less strain on supply systems, and help reduce waste. Spearheading this effort is textile scientist Meriel Chamberlin, who is collaborating with clinicians to develop compliant, safe and reusable textile gowns that offer protection and comfo When it comes to masks, more sustainable options are also being developed. This includes masks and filters made from biodegradable agricultural crop waste. Research is also underway to identify processes for re-purposing discarded single-use face masks into road pavements materials. Six ways to offset our daily waste Even during a pandemic, people don't want to be wasteful. Tellingly, "Plastic Free July" saw a huge global increase in participation from 250 million participants in 2019, to 326 million in 2022. There are many ways to reduce waste without compromising your health. The key is to focus on behaviours within your control, such as minimising single-use plastics. To help offset your daily waste from disposable masks, consider: - Making the switch to refillable cleaning products to cut down on single-use packaging (there are even delivery options). - If you've shifted to online grocery delivery, choose paper over plastic bags and either reuse them at home or compost them after use. - When dining at home, repurpose your leftovers, prioritise older food, and avoid over-buying to cut down on food waste. - If you're shopping online more, find second-hand retailers and peer-to-peer platforms to give pre-loved items a new life (there are delivery options for this too). - Before throwing away household items (clothing, furniture), try selling or giving them away online - you'd be surprised what other people find useful. - If your household items are damaged, get them repaired, or use them for a different purpose, such as using well-worn clothes as cleaning rags. Just because we're in a period of significant social change, doesn't mean we have to lose momentum on sustainability.
Source: Economic Times
Chinese power companies have significant share in Pak FDI, according to a report published by WealthPK. The report says, investment plays a significant role in the economic development of a country. In developing countries in particular, foreign direct investment (FDI) is the primary engine of economic growth. Pakistan receives FDI from different countries, such as China, the United States, Japan, Norway, the United Kingdom, Saudi Arabia, and Switzerland. The target sectors for FDI include the power and energy sector, financial business, construction, transport, textiles, and trade. The power and energy sector of Pakistan, one of the major sectors, receives the bulk of FDI. Recently, the Government of Pakistan announced a new power policy offering different incentives for encouraging domestic and foreign investors to invest in the power and energy sector.
Source: Pak Observer
Chairman of Amun Taraqqi Party (ATP), Muhammad Faiq Shah has urged the government for pragmatic steps to ensure smooth supply of gas and electricity to textile and others industries across the country. He suggested launching of ‘Diplomacy for Tourism’, besides stressed the need of enforcement of agricultural and education emergency across the country, expressing hope that such policies would produce positive results. He also emphasised the initiatives should be made to overcome energy and gas shortages to improve production in textile and other industries. He added the flourishing of businesses, employment and progress on fast tempo can be ensured by uplift of tourism, industrial and agriculture sectors. The ATP chief asserted it is crucial to take prompt initiatives to ensure completion of CPEC projects on a fast track basis and improvement in Sino-Pak relationship and regional trade. He said his party has emerged a strong political force by spearheading a social and political awareness movement in all federating units, including Gilgit-Baltistan and Azad Jammu and Kashmir. We want vibrant and robust progress and reforms in the country, said Faiq while speaking to different political, social and businessmen delegations here on Sunday, wherein a large number of people announced to join the ATP. Faiq welcomed the joining of large number of people into the party fold and called them as diplomats for mission of accomplishment of Pakistan and builders of radiant future, asking them to convey message of peace and progress wherever they go, with prime goal to gain high repute for Pakistan internationally as a strong economic and social nation. He reiterated his resolve that his party stands for building peace and progress with every segment. He maintained it is highly distressing that democracy, politics and society were being used for personal benefits and gaining power. We want to directly connect people by nurturing real democracy, meant to ensure their participation in power and carry forward process of progress as well as accountability, Shah vowed. He emphasised that politics based on personality should be eliminated. He said democracy can deliver by delegating powers at grassroot level.
Source: Business Recorder
Cash-trapped Pakistan is looking to secure a USD 3-billion loan from China and investments in half a dozen sectors during PM Imran Khan's visit to Beijing next week, a media report said Cash-trapped Pakistan is looking to secure a USD 3-billion (PKR 529 billion) loan from China and investments in half a dozen sectors during Prime Minister Imran Khan's visit to Beijing next week, according to a media report on Sunday. Khan will visit the Chinese capital on February 3 to attend the opening of the Beijing Winter Olympics and to also meet the top Chinese leadership on the sidelines for bilateral talks. The Express Tribune reported quoting government sources that a final meeting to shape the agenda of the visit would take place on Tuesday. A senior finance ministry official said the government was considering requesting China to approve another loan to the tune of USD 3 billion in China's State Administration of Foreign Exchange, known as SAFE deposits, so as to boost its foreign exchange reserves. China has already placed around USD 11 billion (PKR 1.940 trillion) with Pakistan in the shape of commercial loans and foreign exchange reserves support initiatives, including USD 4 billion (PKR 705 billion) in SAFE deposits. The Chinese money is part of the country's current official foreign exchange reserves recorded at USD 16.1 billion (PKR 2.8 trillion). In the last fiscal year, the country had paid over PKR 26 billion in interest charges to China only for using a USD 4.5 billion (PKR 794 billion) Chinese trade finance facility to repay the maturing debt. Last month, Pakistan also received a loan from Saudi Arabia of USD 3 billion (PKR 529 billion), which the country has used. The Pakistan government aims to secure Chinese investment in six priority sectors by highlighting the competitive advantages that the country - cheap but skilled labour, geographic access to Europe and Asia and tax exemptions. "We will market textile, footwear, pharmaceutical, furniture, agriculture, automobile and information technology sectors for Chinese investment," said Chairman of Board of Investment Azfar Ahsan. The government is expected to tell the 75 Chinese companies that it provided access to trade routes to the Middle East, Africa and the rest of the world offering greater incentives in the shape of reduction in freight cost. "Unlike in the past when we would only talk about Pak-Sino friendship being higher than the Himalayas and sweeter than honey, this time we are going to prepare for China with a structured approach," Federal Planning and Development Minister Asad Umar told The Express Tribune. He added that with the involvement of the China Pakistan Economic Corridor (CPEC) Authority the government had selected those sectors for foreign investment where there was evidence of huge benefits for Chinese investors. Pakistani authorities said they believe its labour is two-times cheaper than that of China. This offers a greater opportunity for relocation of the dying Chinese industries. However, all these areas and the competitive advantages are already known to the investors but they remain reluctant to bring in big money to Pakistan because of its inconsistent fiscal and energy policies. China has decided to move into a more sophisticated and high-tech-driven textile and apparel industry and engage in more value-added functions under its 2021-25 plan.
Source: Business Standard
THE PHILIPPINES is getting closer to its goal of producing en masse that most luxurious of textiles: silk. On Jan. 25, during the SEDA Conference webinar, the Department of Science and Technology – Philippine Textile Research Institute (DoST-PTRI) unveiled the Silk Research and Innovation Center in Misamis Oriental. The center is the first fully operational filature facility in Mindanao, and outside the PTRI headquarters in Bicutan. The Mindanao facility can convert 25 kilograms of dried cocoons into seven kilograms of raw silk yarn daily. DoST Secretary Fortunato dela Peña said, “It bridges the seemingly hopeless gap that has beleaguered the Philippine silk industry for a very long time.” He also observed that compared with the initial efforts for Philippine silk in 1982, he said, “What we have now is truly a breakthrough.” A series of “periodic silkworm rearings” were conducted from 1978-1981 “to evaluate the performance of silkworm races for selection of breeds for the production of local hybrids that can yield good quality cocoons and silk,” said an article, “Silkworm breeding for the development of Philippine pure lines,” in the International System for Agricultural Science and Technology (AGRIS), which was first published in the National Science and Technology Authority Technology Journal in 1982. The data from this study showed that the cocoons produced back then met the standards set in Japan and Korea. Alongside the launch of the center was the unveiling of the SEDA Pilipinas brand, that aims to develop the silk industry in the Philippine with programs in silk production. The final product, a collection from clothing brand Bayo, was shown to an audience on Jan. 25. A Memorandum of Agreement was also signed between the DOST-PTRI and Bayo, which will result in special collections made from the Philippine silk. This was shown in an exhibition at the PTRI, with Bb. Pilipinas International Hannah Arnold serving as ambassador. The clothes, according to DOST Secretary Fortunato dela Peña, featured natural dyes. Cheryl Lopez, Program Leader of SEDA Pilipinas, and Senior Science Research Specialist of the DOST-PTRI showed the inroads they have made in silk production, as well as the resources needed to further the program. For example, she notes that from traditional handwoven methods, they have been exploring digital options in applications of patterns and designs. They have also been doing genomic studies on Philippine-reared silkworms, to produce better, suitable, and productive strains. As for the silk production hubs or silk farms, they have created crop rotation programs for the farmers who plant the mulberry (on which silkworms feed), utilizing one-fourth of a hectare at a time. Ms. Lopez also reported that the Silk Research and Innovation Center in Misamis Oriental will be capable of producing 40% of the annual local raw silk demand of 10 tons. This translates to 1,612 boxes of hybrid silkworm eggs, 80 hectares of mulberry plantations, and 161 silk production hubs. As of 2022, they have only reached 25% of the resources needed for the center to produce at full capacity. This comes from gaps in the overall system: this year, they only have 20 hectares of mulberry plantations, as well as 40 cocoon producers. They plan to reach their goals in 2025, working to double their resources by next year, to reach a goal of 40 hectares of mulberry plantations and 80 cocoon producers. Technical Education and Skills Development Authority (TESDA) is offering courses in Cocoon Production as well. “We should have, within the first semester of the year, plied silk yarns from Bago City, Negros Occidental, and reeled silk from Kalinga,” said Mr. Dela Peña of plans for increasing the size of the country’s silk production. “The future is one that is creative, sustainable, and inclusive. From this, we can nurture the Filipino dream, and clothe the Filipino spirit.” — Joseph L. Garcia
Source: Business World online
