Textile traders in the city having business in Sri Lanka are closely monitoring the situation in the neighbouring island nation where socioeconomic conditions have turned volatile due to public unrest. However, even though the total trade of textile products to Sri Lanka is small, businessmen have stopped taking new orders. Another blow to the Sri Lankan importers is the devaluation of the local rupee. Sri Lankan rupee that valued Rs 190 a few weeks ago for one dollar is now above Rs 315. This has put the Sri Lankan importers in a fix and the exporters from India have put a break on future trade. “No Surat textile firms are doing business with Sri Lanka at present. It had stopped completely for almost two years during Covid and as the markets are reopening the situation is preventing Surat textile firms from reaching out to their clients there,” said Kanti Mehta, a sales person. It should be noted that the trade from the city with south Indian states was already impacted in some key products like zari due to the sharp rise in silk prices. Many units in south India have discontinued production of silk saris in which zari was used. Surti sari is another product that was supplied to south India and a small portion of the total supply was sent to Sri Lanka through Tamil Nadu. Through brokers in Tamil Nadu, city’s traders exported the saris to Sri Lanka. But with the volatile situation there, the brokers are not placing new orders. “Saris made in the city enjoy good demand in Sri Lanka. But due to the payment crisis we are not supplying now. Further the devaluation of the Sri Lankan rupee makes it risky to do business,” said Aashish Lodha, a textile businessman. Fabric manufacturers who supply raw material for garment manufacturing units are taking time in supplying products. “Majority of garment units in Sri Lanka that buy fabric from Surat have their head offices in the UK or other countries. Hence, fabric suppliers may not face payment issues but the situation is not favourable for smooth business operation hence we have stopped business at present,” said Dhiraj Shah of Shahlon Silk Ind Ltd.
Source: Times of India
Surat, the diamond and textile hub of the country, will focus on promoting startups and various other industries at Udyog 2022, a biannual trade and industry fair, which is scheduled to take place from April 8-12, 2022. The organisers of the event are the Southern Gujarat Chamber of Commerce and Industry (SGCCI) and the Southern Gujarat Chamber Trade and Industry Development Centre (SGCTIDC). The local manufactures, MSMEs decided to keep the textile machinery out of the fair as two expos specifically on textile machinery have already been organised in the recent past. Exhibitors from all across India are expected to participant in the fair with an estimation footfall of 175 exhibitors coming from cities such as Mumbai, Pune, Delhi, Gurugram, Panipat, Noida, Bhopal and Coimbatore. Ashish Gujarati, President, SGCCI said that about 18 startups will be showcasing their products and ideas and no fees have been charged for utilising the exhibition facilities to encourage participation of startups. SGCCI officials are optimistic that the exhibition will provide a platform to industries as the city is expanding itself bigger than just diamond or textile hub. The exhibition will take place at the Surat International Exhibition and Convention Centre from 10am to 6pm.
Source: KNN India
Recent trade agreement expected to provide employment to around 40,000 more persons The recent trade agreement between the Indian and Australian government is expected to provide employment to around 40,000 more persons in the textile sector. The revenue to the country is also expected to grow by as much as three times. P. Gopalakrishnan, chairman of Handloom Export Promotion Council, said India would benefit from the preferential market access in Australia for its 100% tariff lines. India currently earns $392 million through export of textiles and apparels.. It is expected to reach $1,100 million in the next three years. “At present the export value is 10 million USD and this is expected to increase manifold. We expect a multifold increase in textile export to Australia especially handloom and luxury high quality products,” he said. The Indian government has permitted 3 lakh bales of duty-free cotton to be imported in to the country. “This would help high-quality, high-style cotton products with export opportunities in Australia,” he explained.
Source: The Hindu
Exports Rise To Rs 18,021 Crore In 3 Years Despite Intermittent Covid Waves Over Two Years; Textile, Diamond, Solar Equipment, Tobacco Products And Plastic Exports Rise Covid pandemic has played havoc with global economies including India, but Surat Special Economic Zone (SEZ) provided a silver lining for the local economy by registering a 250% increase in exports over two years. Experts attribute the feat to the US and Europe boycott of Hong Kong and China post the break out of the pandemic, which benefited the Surat jewellery industry. Textile, diamonds, solar equipment, tobacco and plastic sectors registered exponential exports. In 2018-2019, exports from the Surat SEZ were Rs 7,655 crore, which increased to Rs 18,021 crore in 2021-2022. The products made in the SEZ have high demand in the US, Europe and the Middle East. Lab grown diamonds, in particular, have registered a 50% rise from markets like the US. Plastic, rubber, solar energy and tobacco products registered a rise ranging from 5% to 40%. Surat SEZ continued operations during pandemic Addressing journalists, Director General of Foreign Trade officer Virendra Singh said the Surat SEZ has taken a huge leap in the last four years. There has been substantial demand for natural polished and lab-grown diamonds in Europe and the US. During the pandemic, when the rest of the businesses were closed, special permission was accorded to the units in the SEZ to resume production. During the first wave of the pandemic in March 2020 and subsequent lockdown, when diamond exports from Mumbai stopped, Surat took the lead. Gems and Jewellery Export Promotion Council (GJEPC) Chairman Dinesh Navadiya said, “Post the outbreak of Covid from China, US and Europe boycotted gems and jewellery trade in Hong Kong and China. This proved beneficial for Surat. Also, jewellery made from lab-grown diamonds and silver has registered a rise from the American market. All this helped the Surat diamond industry.”
Source: Ahmedabad Mirror
Union Minister for Commerce and Industry, Consumer Affairs, Food and Public Distribution and Textiles, Shri Piyush Goyal has invited Australian businesses to Make in India and said that the Startups from both nations must engage with each other. He underscored that Australia has fantastic innovations and research and new ideas and India has the talent pool to take these to the world. Expressing the hope that Investments will flow into India from Australia at a faster pace, he said that Western Australia can be at the forefront of the expanding relationship between the two nations. “The proximity between the region and India provides an opportunity for much deeper economic engagement,” said Shri Goyal, addressing the gathering at the Business Luncheon hosted by Deputy Premier Roger Cook in Perth, today Speaking of India’s bid to build strategic partnerships, the Minister said that India has become a part of QUAD and the Supply Chain Resilience Initiative (SCRI). Referring to the disturbances that afflicted some parts of the world, Shri Goyal asserted that two strong democracies, two friends working together for shared prosperity, trusting each other, believing in each other would send a strong message of unity, a message of ‘ekta’ to the world. “Together we will make our geopolitical presence stronger and work to maintain the IndoPacific area as a region of peace, prosperity, stability, tranquility and growth,” he said. Shri Goyal said that that the India-Australia Economic Cooperation and Trade Agreement (Ind-Aus ECTA) will take relationships between the nations to greater heights and added that the spirit of cooperation and friendship with which the negotiations happened was truly remarkable. Outlining areas of focus under the agreement such as education, research, innovation, technology, manufacturing etc, the Minister called for deepening engagements in areas such as the space sector and sustainability. Commenting that despite challenging times, the relations with two nations were only getting better and better, he expressed his gratitude to Australians for the love and care they bestowed on every Person of Indian Origin who had made Australia their home. This truly defined the brotherhood between the two nations, he said. Speaking of the fruitful engagements he had during his tour, the Minister quoted Prime Minister Narendra Modi and said that ‘this EKTA (ECTA) is a watershed moment for our bilateral relations and our economies have great potentials to meet each other’s needs’. He opined that the Prime Minister’s vision clearly reflected the complementarity between our two economies. The Minister termed the agreement as an important milestone which will contribute to development of many multi-sectoral relationships. “This is but one step in a long journey and I hope that this journey will not be just a trot but a marathon,” he said. Stating that the Ind-Aus ECTA is a very balanced and fair, equitable agreement that provided opportunities for all, Shri Goyal said that with ECTA, it is possible to take bilateral trade between the two nations to USD 100 billion by 2030. The Minister emphasized that India has a large aspiring population looking for a better quality of life and hoping to experience the prosperity that a large part of the world enjoys. This is an opportunity knocking at the doors of Australia, he said. “We must continue working together, all the while respecting each other’s sensitivities, positions in terms of levels of prosperity, market size etc,” he said. Speaking of the initial bilateral trade target of USD 45 billion set under the agreement, Shri Goyal said that after engaging with the businesses and the community of Australia during the visit and getting a sense of the immense opportunities for economic cooperation, he is confident of achieving the enhanced target. Shri Goyal stressed that this relationship comes very naturally to Indians and Australians who have always been natural partners. He reminded that at one point in time, the two nations were geographically contiguous. Both India and Australia are members of the Commonwealth, vibrant democracies who are committed to the rule of law, transparent governments, he said. He also quipped about the shared love for cricket which brought the two nations closer together. Shri Goyal said that Indian and Australian economies hardly compete with each other and added that the two economies complemented each other beautifully. Citing a few examples of this complementarity, the Minister said that Australian sheep wool woven to fabric or apparel in India, will make an excellent offering to the world and that Australia can benefit from the immense talent and skills of the Indian population, especially the youth. Observing that Australia has been a provider of raw materials and intermediate products to large parts of the world, the Minister said that India could convert these to finished products using its vast, skilled labor force and serve the world. Later, delivering the Keynote address at the Tourism event in Perth, Shri Goyal said that education should be one of the key focus areas in the partnership between India and Australia. He called for further mutual recognition of each other’s education systems, efforts to take technology to students on both sides of the ocean and exploring ways to have dual degrees. The Minister also said that the ECTA has received huge traction and support among the people and media in both nations. Referring to Australia’s competitive advantage in rare earth minerals, the Minister said that this will be absolutely crucial in the times to come because they can help technology flourish and create millions of jobs, particularly in a country like India with a vast, young skilled population aspiring for a better future. Referring to WACA ground as the Mecca of cricket, the Minister said that though India and Australia competed fiercely in cricket but the love for the game in fact brought the two nations together. He observed that cricket brought the people of the two nations closer and unless people came together, businesses cannot prosper. At one level, leaders are committed to the relationship. But the subtext is that people work together, trust each other and enjoy the friendship that comes with the union, he said.
Source: PIB
India's exports grew by 37.57 per cent to USD 9.32 billion during April 1-7, according to preliminary data of the commerce ministry. Exports excluding petroleum increased by 24.32 per cent. Imports during the period rose by 8.29 per cent to USD 10.54 billion, the data showed. India's merchandise exports soared to a record high of USD 418 billion in the 2021-22 fiscal on higher shipments of petroleum products, engineering goods, gem and jewellery and chemicals. 's merchandise exports soared to a record high of USD 418 billion in the 2021-22 fiscal on higher shipments of petroleum products, engineering goods, gem and jewellery and chemicals.
Source: Economic Times
Businesses want to gear up for some stiff queries from items and providers tax authorities, as they start scrutiny of returns for the primary time for the reason that new oblique tax regime was launched in 2017. The Central Board of Indirect Taxes & Customs (CBIC) on Sunday rolled out computer-assisted automated choice of returns below GST, which will probably be primarily based on sure risk-based parameters together with claims of enter tax credit score. CBIC chairman Vivek Johri has written to area formations asking them to guarantee scrutiny is carried out in a time-bound method. “Zonal chiefs may like to have the data examined and suitably taken up as per the prescribed SoP (standard operating procedure) in a time-bound manner,” Johri mentioned in a letter, dated April 4, seen by ET. Johri mentioned the primary tranche of GSTINs (GST Identification Numbers) chosen for scrutiny, on the premise of danger parameters, had already been shared by the directorate basic of analytics and danger administration with area formations.
A authorities official mentioned the directorate basic would ship all of the monetary knowledge and transaction particulars associated to the GSTINs which might be picked for the scrutiny case, in order that officers would take much less time. “In case any discrepancies are found, a notice may be issued by the department with a specific query and backed by documents, which will reduce the time taken in the scrutiny process,” the official added. A authorities official mentioned a number of the danger parameters included enter tax credit score claims not matching the GST return with revenue tax return and previous information of tax evasion. “With a view towards enhancing compliance through effective and standardised scrutiny of GST returns, the board has been working towards automating the scrutiny process,” Johri wrote within the letter. The official mentioned the federal government was working onerous to enhance compliance and scrutiny of returns can be a key focus to plug in any income leakages. “Scrutiny of returns is our focus this year and we will be using technology such as AI to assess risk parameters in a better way,” the official mentioned, including that the division had knowledge helpful and the method would go a great distance in bettering compliance. Experts mentioned companies want to be further cautious whereas filling their return as knowledge analytics would make it simpler to detect evasion. Businesses should make sure the GST knowledge are reconciled earlier than submission, MS Mani, accomplice, Deloitte India, mentioned. The CBIC had final month issued the SoP to streamline the scrutiny of GST returns filed for the monetary years 2017-18 and 2018-19. Last month witnessed an all-time excessive gross GST assortment at Rs 1,42,095 crore for the Centre and states collectively. This was 15% larger than the GST income in the identical month final yr. The common month-to-month gross GST income in 2021-22 was Rs 1.23 lakh crore as in contrast to Rs 94,734 in 2020-21 and Rs 1.01 lakh crore in 2019-20.
Source: Economic Times
Gajendra Singh Shekhawat, Union Minister of Jal Shakti and Smt. Darshana V Jardosh, Minister of State for Textiles & Railways today jointly inaugurated the Trade Facilitation Centre at Boranada, Jodhpur in presence of ShriShantmanu, Development Commissioner (Handicrafts), Shri Raj Kumar Malhotra, Chairman-EPCH, ShriRakesh Kumar, Director General – EPCH, EPCH’s CoA members, and prominent exporters from Jodhpur. Export Promotion Council for Handicrafts (EPCH) in collaboration with O/o Development Commissioner (Handicrafts) has set up an infrastructure project at Jodhpur in Rajasthan, to be known as ‘Trade Facilitation Centre’ (TFC), situated at Boranada, Jodhpur. The purpose of TFC is to facilitate development, promotion and marketing of handicrafts products of Jodhpur cluster, the. The Centre would provide the necessary infrastructure and support services comparable to international standards to host buyers, designers and resource persons and provide all required support services. Speaking on the occasion ShriGajendra Singh Shekhawat, said that since this facility has been set up in my constituency and it gives me additional pleasure that with such initiative, avenues for skilling and marketing will be available to both existing exporters and the budding entrepreneurs.He urged everyone to take full advantage of the facilities available at this centre.The Minister appreciated the enterprising nature of the handicrafts exporters of Jodhpur and hope that the exports from city and state would grow in future. He further requested Darshanaji to sanction a Textile Park and Vande Bharat Train for Jodhpur city. Smt. Darshana V Jardosh, Minister of State for Textiles & Railways said that the Trade Facilitation Centre would usher in a new era in exports from this mega cluster as this facility would enable and encourage existing exporters to increase exports through various marketing initiatives undertaken at this venue in the coming years. She further said that, this venue will also pave way for the budding entrepreneurs of the city, as Jodhpur is a land of entrepreneurship and this venue will act as a catalyst to stimulate young minds in the city to take up handicrafts as a viable vocation in future. She further informed about the various schemes like production linked incentive scheme, PM Mitra Park and One Station One Product for the growth and development of the Textile Sector from the country. Shantmanu, Development Commissioner (Handicrafts) in his address said that the gift of TFC given to Jodhpur will provide impetus to exports from the city. A detailed action plan will be prepared so that exporters and artisans can benefit from the programs organized in this center. Shri Raj Kumar Malhotra, Chairman – EPCH informed that in order to facilitate development, promotion and marketing of handicrafts products of Jodhpur cluster, the Export Promotion Council for Handicrafts (EPCH) in collaboration with O/o Development Commissioner (Handicrafts) has set up an infrastructure project at Jodhpur in Rajasthan, to be known as ‘Trade Facilitation Centre’ (TFC). The state-of-art ‘Trade Facilitation Centre’ at Boranada, Jodhpur will serve as a platform to hold trade fairs, retail exhibitions, buyer-seller meets, special promotional events, conduct workshops and conferences. He further said that he is confident that this venue will be an important land mark in Jodhpur nurturing entrepreneurship, facilitating exports of handicrafts and providing livelihood to many more. On the occasion, ShriRakesh Kumar, Director General-EPCH said that the council has over the years have taken various initiatives for growth and development of handicraft sector at Jodhpur which include a common facility centre, international furniture fair, Vriksh compliance scheme for wooden handicraft exporters, regular workshops and training programmes. Today with the inauguration of this trade facilitation Centre which is another feather in the cap of Jodhpur City would surely provide impetus to our initiative of convergence of backward linkages with forward linkages and thereby contribute to enhancing exports from the city. Smt. Darshana V Jardosh,also visited some craft clusters around Jodhpur which were strengthened and promoted under CHCDS scheme of the Ministry of Textiles, Govt. of India. She also visited some of the major wooden handicraft manufacturing units in the city. The exports of handicrafts for April-March (provisional) of the current financial year 2021-22 is at Rs.32,417 crores (US$ 4347 million) registering a growth of 26.24% (Rupee terms) and 25.66% (dollar terms) over the same period last year, informed ShriRakesh Kumar, Director General-EPCH. Export Promotion Council is a nodal agency for promotion of exports of handicrafts from the Country and create brand image of magic of the gifted hands of millions and millions of artisans and craftspersons engaged in production of home, lifestyle, textiles and fashion jewellery& accessories products in different craft clusters of the Country.
Source: Orissa Diary
Vietnam’s index of industrial production (IIP) in the first quarter (Q1) of this year continued to flourish with a year-on-year (YoY) increase of 7.07 per cent, according to the General Statistics Office (GSO), which recently said the rise—much higher than the 6.44 per cent seen in Q1 2021, contributed 2.42 percentage points to the economy's growth in Q1 2022. The processing and manufacturing industry had a yearly IIP rise of 7.79 per cent. Key industries that recorded high increases in Q1 include clothing (up 24.1 per cent) and machinery and equipment (16.2 per cent). On the contrary, several industries, such as rubber and plastic products and crude oil and natural gas, witnessed a decline in industrial production. The GSO also said the consumption index of the processing and manufacturing industry in Q1 rose by 6.6 per cent compared to the corresponding period last year. In March, the index increased by 19.1 per cent month-on-month and 11.2 per cent YoY. The average inventory rate of the processing and manufacturing industry in the first three months was 79.9 per cent, higher than the 75.1 per cent recorded last year. The ministry of industry and trade said it was necessary to ensure an adequate supply of raw materials for energy production, business recovery, and socio-economic development in the coming months. The ministry recommended removing obstacles to important industrial projects and maximum support for factories to maintain production, keep orders, and maintain the supply chain.
Source: Fibre2 Fashion
A virtual platform was launched recently for the business communities of Mexico and Bangladesh at a webinar organised by the Mexican Business Council for Foreign Trade, Investment and Technology. Federation of Bangladesh Chambers of Commerce and Industry (FBCCI) president Mohammad Jashim Uddin urged Mexico to invest in research and development in thriving sectors. Diplomatic ties between both countries were officially established on July 8, 1975. FBCCI director Abul Kasem Khan briefed the webinar on trade and investment opportunities in Bangladesh and Mexico, according to a news agency.
Source: Fibre2 Fashion
Special Economic Zones, a key component of China Pakistan Economic Corridor (CPEC), are expected to usher in a new era of industrial development and economic growth in the country in the days ahead. As both the Pakistani and the Chinese authorities at a recent interaction had reviewed progress on Special Economic Zones, they had a common notion that SEZs would help boost economic activity in the country, generate employment opportunities and earn foreign exchange. Officials of Board of Investment (BoI) Pakistan and Chairman National Development and Reform Commission (NDRC), China, Ying Xiong, the Zhejiang, Shandong and Guangdong provinces had reiterated to encourage their enterprises to develop linkages with Pakistan’s provincial BoIs and invest in the SEZs. Pakistan is currently developing five out of nine SEZs nominated under CPEC including Allama Iqbal Industrial City in Faisalabad, Punjab, Dhabeji SEZ in Sind, Rashakai SEZ in Khyber Pakhtunkhwa and Boston SEZ in Balochistan. Another fast-track SEZ is in Gwadar namely Gwadar Free Zone is also under progress. First phase of Gwadar Free Zone at an area of 60 acre land is already fully functional while the mighty second phase spanning over 2200 acres of land is under construction. According to the CPEC officials, dozens of Chinese firms were operating at Pakistan’s various economic zones as both the governments were actively engaged to carry forward the SEZ projects and making them operational at the earliest possible. In recent past, numerous Chinese companies’ representatives had visited Pakistan to discuss some outstanding issues and were informed that all issues on way to make these projects a success, would be resolved on priority. Pakistan is interested to relocate the Chinese industries in the CPEC SEZs to benefit from the expertise of the companies. Textile, information technology, agriculture, science and technology sectors, and mining sectors are the key areas in which Pakistan is keen to bring foreign direct investment in a bid to boost exports and to substitute the country’s imports. The upcoming projects in CPEC would mainly be in these sectors which would act as dualbeneficial tool, cutting down the country’s imports and increasing the exports. Meanwhile, a senior official on the CPEC Authority has informed that it was a wrong perception that only China was involved in the CPEC projects. He said a number of investors from other countries such as United States, Germany, United Kingdom, Canada, and the Netherlands were also participating in this mega project and around 20 companies from these countries had already invested in the Allama Iqbal Industrial City. With respect to Rashakai Economic Zone, he said its completion would encourage foreign investment and provide adequate facilities to foreign investors. Rashakai SEZ is to be developed in collaboration with a state-owned Chinese enterprise, that makes this development agreement first of its kind with Chinese counterpart being one of the parties to the development agreement. The official said that over 84% of industrial area has been allotted in the SEzs, 46% of investment has been realized with 50% of it being Foreign Direct Investment (FDI). The Federal Government has exempted Rs 49.39 Billion of custom duties and taxes on the import of plant and machinery for setting up of units in these zones. Overall, the official said that all the notified SEZs together in across the country, account for approximately 10,029.64 acres of industrial land out of which 5,220.62 acres (52%) have been allotted to investors for setting up of industry with planned investments of Rs. 633.9 Billion, 43.6% of this comprises of FDI component (USD 1.73 billion). It is also significant to mention that under the SEZ Act 2012, a zone enterprise is obligated to start construction within six months and to get into commercial production/operations within 24 months of its approval, whereas title to land is to be transferred only after it has performed regular operations for six months. Experts believe that China Pakistan Economic Corridor is a rare opportunity for Pakistan to boost its economy and overcome deepening economic recession. Since, the country is facing trade deficit, depleting reserves, downing rupee value and number of other challenges; this initiative can turn things around leading the country to economic stability. They also expect from the upcoming government to fully focus these projects so the country could be able to reap the benefits of this historic project between China and Pakistan at the earliest possible.
Source: China Daily
River Island, Oliver Bonas and eBay are some of the new firms to sign up to the Textiles 2030, an initiative which sees firms pledge to reduce carbon and water footprints and accelerate circularity in the UK. Textiles 2030’s ambitions will be further realised later this year as the first in a planned Global Network of agreements to be launched in Denmark. Environmental NGO WRAP launched the agreement 10 months ago and now has commitment on environmental targets from retailers and brands making up almost two thirds of clothing placed on the UK market, UKFT said in a press release. Textiles 2030 is an action-oriented initiative based on tackling climate change through circularity, so as more of the sector gets involved, faster progress can be made and with greater impact. UKFT’s CEO Adam Mansell is on the advisory board of the initiative. “WRAP wants to create a world in which climate change is no longer a problem. But, with the global fashion industry being responsible for creating more emissions than all international flights and maritime shipping combined, we won’t achieve this if we don’t tackle the way clothes are produced, used and disposed of. Textiles 2030 is a dynamic and fast-paced approach to the problem with the long-term goal of radically changing how we use textiles to a more sustainable model – for all textiles in the home. We are delighted that after less than a year we have 100 signatories from across the textiles sector committed to this goal,” Marcus Gover, CEO of WRAP, said. WRAP and Textiles 2030 will bring these different businesses together to collaborate on key science-based targets. By 2030, signatories aim to reduce the carbon footprint of new products placed on the market by 50 per cent, and the water footprint by 30 per cent. Progress of these individual businesses is tracked by WRAP through annually submitted data as well as actions taken against each stage of the product lifecycle. The Textiles 2030 Roadmap outlines scenarios, activities and milestones that demonstrate how the absolute targets can be achieved and shows what signatories must do to deliver the targets, with key outcomes by the end of 2022, 2025 and 2030. The latest updated version of the Textiles 2030 Footprint Tool, which allows businesses to calculate the greenhouse gas emissions and water footprint associated with their textiles product ranges, was launched in March 2022. This tool improves the data available to inform decision-making and covers the whole life cycle of those products, from the production of raw materials, through various manufacturing processes, wear and washing by consumers while the products are in use, and final waste disposal.
Source: Fibre2 Fashion
The foundation of Bangladesh's economy is heavier than the tourism-dependent economy of Sri Lanka as it is driven by garment exports, remittance and agriculture, economist Binayak Sen said today. "One of the reasons for Sri Lanka's crisis is that they are a tourism-dependent economy and the country's tourism sector is largely affected by the pandemic," he added. "For that, they fall into a macroeconomic crisis,' said Sen, director general of Bangladesh Institute of Development Studies (BIDS). However, there are other factors of the slump in Sri Lanka's economy, he added. He was speaking at an event titled "The Covid-19 Pandemic and the Hospitality and Tourism Sector in Bangladesh" organised by the BIDS at its conference room in Dhaka. The current situation in Sri Lanka proves that there are chances that if the tourism sector gets damaged, the entire economy could be affected. So, Bangladesh has a lesson to learn from the situation in Sri Lanka, he said.
Source: The Daily Star
The political pendulum has swung wildly in the last few weeks, as it often does in the country, but exports and trade prospects appear largely unaltered regardless of the shenanigans or the hike in the interest rate. At the time of writing, the results of the noconfidence votes were not announced but stakeholders appeared to consider the outcome a foregone conclusion and responded accordingly. “With more stability, there will be more certainty and it is likely that the new government will push for regional trade to source raw materials such as cotton. If sanctions are lifted on Iran, Pakistan could import cheaper energy which would help across the board,” says Dr Manzoor Ahmed, a former ambassador to the World Trade Organisation. Dismissing any threat of punitive actions by the United States, Dr Manzoor said that with the regime change, the risk has been averted. “As far as the US, UK and Europe is concerned, consumers purchase goods where they see value. If Pakistani products are competitive, they will be purchased regardless of political developments. The buyers are independent of the government and make decision based on commercial interests,” said Ehsan Malik, CEO of the Pakistan Business Council. “Contrary to some people, the tariffs imposed on Pakistan’s textile products is the same as those imposed on competing countries. Since the buyers in the US are trying to diversify in anticipation of possible moves by various big players, Pakistan is a beneficiary of that as well. However, the major beneficiaries of US importer efforts of diversification are countries like Laos and Cambodia. “Obviously, when the government intervenes such as in the case of GSP Plus then the framework has to be complied with. For example, Cambodia failed to comply and was expelled from the programme a year ago. “What really needs to happen for managing imports is to withdraw the subsidy that was given on fuel and a physical rationing it because if the things continue as they are, we may end up alarming like Sri Lanka is today,” cautioned Mr Malik. “The increase in interest rate is cushioned by the exchange rate adjustment,” says Khurrum Mukhtar, Patron in Chief of the Pakistan Textile Exporters. “Though rupee’s devaluation will make imported raw material more expensive, the human resource costs have gone down in dollar terms. Other than the overall slowing down of the global economy, there is no major impact on textiles exports of the economic and political turmoil in the country.” Pakistan Bureau of Statistics data shows textile exports increased by 35.72 per cent in dollar terms and 50.51pc in rupee terms in February 2022 over the same month last year, indicating that the devaluation has been in favour of the country’s main exports. As dollars fetch in more rupees, labour costs are mitigated even when accounting for increases in salary linked to inflation. The orders that were diverted to Pakistan from Bangladesh, India and Vietnam during the lockdown are still continuing, asserts Mr Mukhtar. “The order book is full as far as apparel is concerned though home textiles is suffering but as we go into peak period of May-September in the run up to the autumn-winter season and Christmas, things will improve.” Furthermore, Walt Disney has accepted Pakistan as one of the permitted sourcing countries after the ban in 2013 through the Better Work Programme that focuses on improving textile sector’s labour conditions and competitiveness. This is a big development for licensed home textiles and apparel with business prospects of $500-800 million, he added. Pakistan’s share in apparel business is 1.5pc globally whereas share for home textiles in 17pc, he said while expecting some stability after the no-confidence vote. While the story seems positive for textiles, the conditions for leather are not so sanguine. “At the moment, prospects for leather are not optimistic because post-Covid people have stop indulging in leather garments which are viewed as a luxury items. Leather garments are usually bought in person — as an expensive product people prefer to physically go to the shop to try it out and assess the cut and fitting. Thus, the boom of online shopping versus physical shopping has adversely affected leather sales. This has led to a decline in Pakistan’s leather exports of more than 26pc over the last year,” says Syed Shujaat Ali, former chairman of Pakistan Leather Garment Manufacturers and Exporters Association. “The Asian Pacific Leather Fair is the world’s biggest leather show and has been around for over two decades, taking place in Hong Kong usually. It had not taken place for the last two years because of the pandemic lockdown. This year it was held in Dubai from March 30th to April 1st. It was a flop. “Vendors from China did not participate, resultantly buyers from Europe and the US did not attend the fair either. I forsee a tough couple of years for Pakistan’s leather exports, especially since the measures taken for the promotion of textiles did not extend to the leather industry. The fault also lies with the industry for not taking proactive measures to market their products. In the face of falling exports, banks were hesitant to finance leather exporters as well,” he said. While the Ukraine fallout remains insignificant for rice exporters for whom Europe is a key market, shipping remains the biggest challenge especially on the European and African routes, said former chairman of Rice Exporters Association of Pakistan Safdar Hussain Mehkri. Devaluation is a boon as it makes Pakistani rice cheaper than its competitors such as India and always helps in the short run. “However, in the longer run, devaluation brings a higher cost of doing business,” he says. Other than the usual woes, crop availability and pricing is good he asserts confidently.
Source: The Dawn
