Number of Downlaods: 12
Published Date: Sep 9, 2020
Economic activities all over the world have succumbed to unprecedented shocks. With an already crippling economy, export restrictions and bans have made matters worse for Pakistan with many mechanisms at the brink of collapse. Among these economic fatalities, there also exists the textile and garment industry. The Pakistani textile sector, which is reliant on exports, has been badly bruised. ‘The situation was aggravated by the lockdown across the world including Pakistan in March and April this year.
Owing to the accelerated slowdown of domestic and international markets and delay in receipt of payment in addition to the cancellation of export orders of the organizations and large-scale buying houses, the export-oriented textile industry is facing worst ever liquidity crisis. Textile exports stood at $751 million in May 2020, or a 37% decline when compared to the exports worth $1.19 billion in May last year.
International orders have been cancelled and a suspension of shipments has thus deprived smaller companies of their existence. This is especially dangerous in times of economic recession, and there is a dire need for rational changes, which may help the textile industry to come out of turmoil. A devastating situation thus needs drastic measures to be taken to save our export-oriented textile industry from the negative economic impact of Coronavirus (COVID-19), as it is showing an adverse impact on exports.