The Pakistan Hosiery Manufacturers & Exporters Association has welcomed the positive economic indicators and growth recovery, as Pakistan trade deficit has dropped by 10.24% in July 2020 while exports have registered an increase of 6% from $1.88 billion last year to $2 billion during this period.

PHMA vice chairman Shafiq Butt said Prime Minister Imran Khan has already accorded approval to Textile Policy 2020-25 in terms of policy directives on production and diversification of exports, which needs to be implemented timely, ensuring the dividends out of it.

He said credit goes to the government especially the commerce ministry which managed to get notified the regional electricity and gas tariff for the export sector at 7.5 cents per unit and $6.5 per MMBTU respectively in the last fiscal year. He suggested the government to continue the same regional tariff for the export industry in future too.

PHMA vice chairman said that this economic recovery is an outcome of prudent policies of the government and encouraging sign for the value-added textile industry. It is a fact that the Coronarirus outbreak and the subsequent lockdown drastically damaged the world economy and Pakistan was no exception which witnessed negative GDP growth. 

However, due to the prudent policies adopted by the incumbent government, the economic losses were not only mitigated but the economy was also put on the track which is now showing signs of recovery.

He said the economic activity was gaining momentum as there was 22 percent increase in the consumption of cement; the use of petrol and diesel has increased from 6 to 10 percent while the automobile sale has also increased in the month. The PSX has also been performing very well and has already crossed the benchmark of 40,000 shares.

These development indicate an increase in economic activity, he said and added, however, there was a need to carry forward this trend and the government has to introduce comprehensive strategies for this purpose.

Shafiq Butt said that despite enormous challenges at external as well as internal fronts due to outbreak of coronavirus and subsequent lockdown, the country's economic indicators show that coronavirus-hit economy was not only recovering now but was also showing steady growth and gaining stability as suggested by the data of first month of the current fiscal year (July 2020).

Likewise, the global entities, monitoring the performance of different economic sectors across the world, have also started recognizing the growth of Pakistan economy as is indicated by reports and data.

During the month of July 2020, Pakistan's exports registered an increase of 6.04%, from $1.886 billion last year to $2 billion, whereas imports declined from $3.713 billion to $3.640 billion, showing fall of 1.97%. Based on the figures, the trade deficit witnessed a reduction of 10.24% during July.

The revenue collection by the Federal Board of Revenue during the first month of the current fiscal year increased to Rs300 billion, which is 23 percent more than the collection of the same month of last year. On the other hand, both International and domestic confidence was increasing and this could be observed by the performance of Pakistan Stock Exchange, which was declared second-largest market in terms of growth by the Bloomberg. 

In addition, the Moody's rating agency also provided a stable rating for Pakistan economy and confirmed its B3 credit rating. The finance ministry termed the development as an affirmation of the government's sound fiscal and financial policies in these times of unprecedented hardship and uncertainty.