Pakistan's Exports Surging At The Fastest Rate in South Asia

[Imran Khan]

i wish glory to be back enough of mess

 

[BATMAN]

Lmao 40% surge in IT and Service providing exports is also counted in as Mangoes and Oranges ? btw yeh sardio me mangoes kon uga k export karta he

Wese bugz hakoomat ki b had hoti he

relax, IT exports are covered in auto pilot mode remarks.

 

[TacOps]

good luck, but i hope you know the exports are surging because of Pakistani mangoes and oranges and currency exchange rates. While there's zero efforts of regime, who is as well informed from news as we do. Pakistan is in auto pilot mode, here public has to earn for them selves and for the politicians and their useless slaves aka bureaucracy.

Critics (after one year): Exchange devaluation to boost exports is so 1900s - see it didn't work
Critics (now): So what! Export growth is mainly due to currency devaluation.

It is also clear that textile is contributing as well (don't know about agri stats). While I am also skeptical about export growth, but it is due to different reasons: I believe this is a COVID related impact whereby some companies moved to alternate suppliers (in PK) as India and Bangladesh were hit. Unless we capitalise on this opportunity by making ourselves more cost effective, things will revert to pre-COVID state with orders moving back.

There is a lot of momentum around the VC space as well. A lot of investors abroad who I speak to are seeing Pakistan at the cusp of India-esque burst of startup activity and are watching the space closely.

 

[TheSnakeEatingMarkhur]

relax, IT exports are covered in auto pilot mode remarks.

Lolx yeah sure everything is auto pilot now

 

[My-Analogous]

No one is interested

Every patriot have interest in it

Pakistan's Exports Surging At The Fastest Rate in South Asia

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With several major brands moving production to Pakistan amid the COVID19 pandemic, the country's exports have grown at a faster pace than those of Bangladesh and India, according to Bloomberg News. Pakistan's total textile shipments rose 7% in September, compared with New Delhi’s 6% and Dhaka’s 3.5%.

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South Asia Region's Exports. Source: Bloomberg

“Pakistan has seen orders shifting from multiple nations including China, India and Bangladesh,” said Shahid Sattar, secretary general at the All Pakistan Textile Mills Association, in an interview with Bloomberg's Faseeh Mangi. “Garment manufacturers are operating near maximum capacity and many can’t take any orders for the next six months.”

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Pakistan's Textiles Growth. Source: Bloomberg

Bloomberg attributed Pakistan's export surge to Prime Minister Imran Khan’s administration to be the first in South Asia to ease the COVID19 lockdown after controlling the spread of the disease. It helped draw companies like Guess Inc., Hugo Boss AG, Target Corp. and Hanesbrands Inc.

Investor Confidence:

Pakistan's benchmark stock index KSE-100 has soared 52% since March, beating runners-up Vietnam and India, and gaining twice as much as China, according to Bloomberg News. In spite of the rapid rise, the valuation of the KSE-100 listed companies is among the world's lowest with forward price-earnings multiple of just 7.4 times. Pakistan is heading for an IPO spree, with as many as 10 companies lining up to go public.

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IPO Spree in Karachi Stock Market. Source: Bloomberg

V-Shaped Recovery:

With coronavirus spread contained, Pakistan economy is rebounding with V-shaped economic recovery. Pakistanis have once again defied all foreign and domestic doomsayers, including media, activists and think tanks of all varieties. The nation's monthly Quantum Index of Manufacturing (QIM) for July 2020 has returned to where it was a year ago in July 2019, according to data released by Pakistan Bureau of Statistics. Meanwhile, the number of daily new cases has declined from over 6,000 a day in June to around 500 a day now. There has also been dramatic reduction in hospital admissions and the need for intensive care. The LSMI output increased by 5.02% for July, 2020 compared to July, 2019 and 9.54% in June, 2020. The recovery in manufacturing is quite broad, extending from cement production to fuel sales and growing demand for automobiles to home appliances, according to Bloomberg News. Pakistan has successfully overcome the challenges posed by the pandemic and its economic impact. Khan-Bajwa cooperation has been one of the keys to the country's success in dealing with the twin crises.

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Covid19 Cases in Pakistan. Source: Our World in Data

Broad Recovery:

The recovery in manufacturing is quite broad, extending from cement production to fuel sales and growing demand for automobiles to home appliances, according to Bloomberg News. The nation's monthly Quantum Index of Manufacturing (QIM) for July 2020 has returned to where it was a year ago in July 2019, according to data released by Pakistan Bureau of Statistics. Meanwhile, the number of daily new cases has declined from over 6,000 a day in June to around 500 a day now. There has also been dramatic reduction in hospital admissions and the need for intensive care. The LSMI output has increased by 5.02% for July, 2020 compared to July, 2019 and 9.54% if compared to June 2020. Month-wise trend of QIM from July, 2018 to July, 2020.

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Pakistan Monthly Quantum Index of Manufacturing. Source: PBS

Cement Sales:
Pakistan is once again experiencing a construction boom with new incentives under Naya Pakistan Housing Program. Monthly cement sales rose to near all-time high of almost 5 million tons in July 2020 as construction activity picked up in both housing and CPEC-related projects.

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Pakistan Cement Sales. Source: Bloomberg

Car Sales:
Gasoline sales in June, 2020 hit new record and local car deliveries rose to about 10,000 units as people returned to work after easing of lockdown in May, 2020. Kia Motors Corp.’s local unit is planning to add a second shift at its factory in Karachi from January.

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Pakistan Car Sales Recovery. Source: Bloomberg

Multiple Sectors Growing:
Sectors including food, beverages & tobacco, coke & petroleum products, pharmaceuticals and non metallic mineral products saw an increase in production in July 2020. Muzzammil Aslam, chief executive officer at Tangent Capital Advisors Pvt., was quoted by Bloomberg as saying, “It has surprised everybody". Aslam expects Pakistan economy at 4%-5% in current fiscal year, higher than the government’s 2.1% target. “The growth is led by an aggregate demand push.”
Summary:

Pakistanis have defied all foreign and domestic doomsayers, including media, activists and think tanks of all varieties. Pakistan has successfully fought off the deadly COVID19 virus and begun to bounce back economically. With several major brands moving production to Pakistan, the country's exports are rebounding faster than its peers in South Asia. Moody's rating agency has raised Pakistan's economic outlook from "under review for downgrade" to "stable". Pakistan's Planning Minister Asad Umar is talking of a "V-shaped recovery". Monthly cement sales have rebounded to pre-pandemic level, fuel sales have increased, tax collection is up, exports are rising and the Karachi stock market is booming again. Prime Minister Imran Khan and Army Chief General Javed Bajwa have been on the same page in tackling the health and economic crises faced by Pakistan. Contrary to the critics of Pakistan's civil-military ties, Khan-Bajwa cooperation has been one of the keys to the country's success in dealing with the twin crises.
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COVID19 in Pakistan: Test Positivity Rate and Deaths Declining
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Pakistan's Exports Surging At The Fastest Rate in South Asia

News, analysis and opinions about India, Pakistan, US, Canada, Europe, Mid East, South Asia, Silicon Valley, High Technology, Economy, Politics, World

www.riazhaq.com

InShaAllah, Pakistan will come back very strong. Year 2026-27 is very especial for Pakistan and most of our dames will be completed that year and Pakistan economy will be back on foot, InShaAllah

 

[BATMAN]

Lolx yeah sure everything is auto pilot now

May be not... than you can show us what efforts of Imran Kahn contributed to the result?

As i said, it's hard work of Pakistanis in private capacity, we had to deal with red tape, corruption, health issues, social issues before earning for the politicians and their slave bureaucracy and what ever is left belong to us.

Imran Khan can't run existing operations and projects, how can he plan and buildup better ones?

Every patriot have interest in it

InShaAllah, Pakistan will come back very strong. Year 2026-27 is very especial for Pakistan and most of our dames will be completed that year and Pakistan economy will be back on foot, InShaAllah

All in auto pilot mode... regime have no efforts to show beside news.

 

[IceCold]

No one is interested

Speak for yourself.

 

[Flash_Ninja]

May be not... than you can show us what efforts of Imran Kahn contributed to the result?

As i said, it's hard work of Pakistanis in private capacity, we had to deal with red tape, corruption, health issues, social issues before earning for the politicians and their slave bureaucracy and what ever is left belong to us.

Imran Khan can't run existing operations and projects, how can he plan and buildup better ones?

Smart lockdowns, promoting the construction industry, balancing the deficit, reducing the import bill.

Beating corona and getting the economy back on track is entirely the work of the government. You can stick your head in the sand and claim otherwise, but all the efforts of the govt, SPB, and industry are out there for all to see.

All in auto pilot mode... regime have no efforts to show beside news.

Even if it is "auto pilot mode" then that should be lauded, considering virtually every other developing nation has suffered immensely from the pandemic and have poor growth projections. If this "auto pilot" was set up by someone like say Altaf Sharif then Pakistan would certainly have been bankrupt and in ruins by March at best.

 

[TheSnakeEatingMarkhur]

May be not... than you can show us what efforts of Imran Kahn contributed to the result?

As i said, it's hard work of Pakistanis in private capacity, we had to deal with red tape, corruption, health issues, social issues before earning for the politicians and their slave bureaucracy and what ever is left belong to us.

Imran Khan can't run existing operations and projects, how can he plan and buildup better ones?


All in auto pilot mode... regime have no efforts to show beside news.

Nations dont prosper alone by effort of govts... Khan made tough and right decisions that led to betterment...

 

[Chakar The Great]

Good to see that things are getting better but Pakistan has long way to go.

 

[Vapour]

Time to build the industrial capacity of these fields that are driving exports, pick a new city/area in the country which isn't developed yet, create new manufacturing units there. Investors should see this as a great opportunity to boost ROI in the longer term by investing now and seeing perhaps, faster returns than usual, due to high demand levels.

 

[CrazyZ]

May be not... than you can show us what efforts of Imran Kahn contributed to the result?

As i said, it's hard work of Pakistanis in private capacity, we had to deal with red tape, corruption, health issues, social issues before earning for the politicians and their slave bureaucracy and what ever is left belong to us.

Imran Khan can't run existing operations and projects, how can he plan and buildup better ones?


All in auto pilot mode... regime have no efforts to show beside news.

IK had some good timing and luck. His government was forced to devalue PKR and focus on exports right before Covid 19 pandemic. Western nations were looking to diversify supply chains and Pakistan was now competitive. Result was a surge in exports.

Hard part is still to come....that is invest the current gains into future export growth. Past Pakistani leaders have done a poor job on this. As gains were sent abroad to buy real estate and such. The Sharif empire is a classic example of this.

Export growth is actually pretty easy.....throw alot of investment capital and labor at a sector....ensure its structurally competitive and continue to reinvest the gains to expand or develop new industry. East Asia has followed this approach. Even Bangladesh has done this well with garments.

 

[Norwegian]

Lmao 40% surge in IT and Service providing exports is also counted in as Mangoes and Oranges ? btw yeh sardio me mangoes kon uga k export karta he

Wese bugz hakoomat ki b had hoti he

I sense Patwaris are burning. Give them burnol

May be not... than you can show us what efforts of Imran Kahn contributed to the result?

Yeah since your Ganja Sharif himself built metros and motorways from his own private account?

Imran Khan can't run existing operations and projects, how can he plan and buildup better ones?

BRT, New dams, Ehsas program, Health cards. Are they not running?