Pakistan’s Textile Exports to Surge as Orders Move From Rivals

[Crimson Blue]

Someone ??? Really who the chaokidar??

We'll chat again in September 2022 to see if Chowkidar was right.

 

[Clutch]

You may know well that soaring fuel cost and energy crisis is a global issue. It is not something that ANY Pakistani gov. can control

Sure... But the Imported Beggars can't be Choosers could have bought oil and gas from Russia at a discount to offset some of that.... Just like India, China, Europe, and Germany (still one of the largest importer) are doing from Russia.

But the failed banana state of Pakistan rather worship people who will still drone bomb you back!! Even after all the boot polishing!! Lol

 

[Wood]

Sure... But the Imported Beggars can't be Choosers could have bought oil and gas from Russia at a discount to offset some of that.... Just like India, China, Europe, and Germany (still one of the largest importer) are doing from Russia.

But the failed banana state of Pakistan rather worship people who will still drone bomb you back!! Even after all the boot polishing!! Lol

Importing Russian oil to resolve energy issues that Pakistan can face is a PTI manufactured myth. It is simply devoid of reason or rational.

1) When the cost of fuel goes up as high as it has now, subsidies will only help create BOP issues like the one that Pakistan is reeling from already. If the fuel that is exclusively used for export is low cost, then your industries will start importing more to produce goods and result in a overheated economy. The 6% growth rate that PTI supporters are cheerful about is the real reason for BOP in Pakistan. Countries like India are able to combat the deficit problem through FDI while Pakistan simply does not have that lever to pull.

2) Russian fuel subsidy to India is around $35 per barrel. The cost of fuel transport and insurance for Russian crude is $25 and therefore the net benefit is $10 per barrel. Assuming that Pakistan can get the same level of subsidy, how much of this fuel can Pakistan import without loosing its preferential trade market access in Europe? If Europeans say that Pakistan cannot export its textiles to EU (under GSP+ scheme) if it imports large volume of fuel from Russia, then who will Pakistan export to? Is the $10 worth of margin in fuel enough to upset Pakistan's trade partners? Recently it was reported that Russia is reconsidering the discount in fuel for India. Why would you believe that Pakistan can continue with discounted Russian oil forever?

PTI supporters need to accept the reality. The problems that Pakistani textile sector faces now have nothing to do with who is in charge of the government. For what it is worth, Miftah has already said in CNN interview that there is no offer from Russia to sell discounted oil to Pakistan anyway.

 

[Flight of falcon]

We'll chat again in September 2022 to see if Chowkidar was right.

Pretty stupid if you ask me …. Everywhere in the world oil is impacting industry. It’s called inflation.

If oil is gone expensive Rs has also depreciated …. Economics 101 … weak Rs is good for exports .

 

[Clutch]

Importing Russian oil to resolve energy issues that Pakistan can face is a PTI manufactured myth. It is simply devoid of reason or rational.

A lot of the world is.... Everything is irrational for slaves.

 

[Crimson Blue]

Pretty stupid if you ask me …. Everywhere in the world oil is impacting industry. It’s called inflation.

If oil is gone expensive Rs has also depreciated …. Economics 101 … weak Rs is good for exports .

Economics of an industry is just not as simple as that. If you know about depreciation of currency & cost of petroleum, that's just the beginning.

For example, textile exports in Faisalabad are still waiting for their DLTL rebates for past 2 months. They cannot pay their bills without those rebates. However mainstream media only covers politics, so this was highlighted only briefly on only one news channel. Then there is RLNG allocation issue for textile industry, as rumor is government has not been able to secure a tender for LNG for month of July 2022. Few more things are happening in background.

But I shall ask you for more economics 101 lessons in September.

 

[Crimson Blue]

Economics 101 … weak Rs is good for exports .

Lets just revisit your Economics 101 here. Now that PKR has pretty weak as compared to year 2021, how did weak PKR help to increase Pakistani exports as per your economic theory?

 

[maithil]

What will be the impact of flood on cotton cultivation and therefore on textile sector ?

 

[Wood]

Lets just revisit your Economics 101 here. Now that PKR has pretty weak as compared to year 2021, how did weak PKR help Pakistani exports as per your economic theory?

If devalued PKR does not correspond with a proportional increase in wages, then you have lower cost of production

 

[Ssan]

@Wood is spouting nonsense. There is something called J-curve. After currency devaluation, exports come down in short term before going up. Devaluation this year will do no good to exports. It will decrease imports though which might be good for our CAD nonetheless. Keep in mind, J curve lag takes a year or two.

Also it is pretty clear that Russian oil would have staved off our inflation cycle now. Proof is in pudding when they are offering Bangladesh oil at 69$ / barrel. At 69$ we wouldn’t have had to increase oil prices. So IK turned out to be right.

 

[Wood]

@Wood is spouting nonsense. There is something called J-curve. After currency devaluation, exports come down in short term before going up. Devaluation this year will do no good to exports. It will decrease imports though which might be good for our CAD nonetheless. Keep in mind, J curve lag takes a year or two.

Also it is pretty clear that Russian oil would have staved off our inflation cycle now. Proof is in pudding when they are offering Bangladesh oil at 69$ / barrel. At 69$ we wouldn’t have had to increase oil prices. So IK turned out to be right.

This 'nonsense' was all that PTI followers were spouting when Imran was in government. You also said the same but added a small time dimension to the trend. I've not said anything about the time because it is common sense

 

[Ssan]

This 'nonsense' was all that PTI followers were spouting when Imran was in government. You also said the same but added a small time dimension to the trend. I've not said anything about the time because it is common sense

Nope, find one single post where I made that claim- I made the claim a year or two after 2018 devaluation. This is because I am not a hack and don’t speak out my a$$.

 

[Wood]

Nope, find one single post where I made that claim- I made the claim a year or two after 2018 devaluation. This is because I am not a hack and don’t speak out my a$$.

You are not the only PTI supporter in this forum and I have no interest into looking up your early post history. Your self certified competency on the internet does not matter

Edit: think that you have misinterpreted my post from before. I meant to comment on the line that has been highlighted from your post - not your historical posts from the past

 

[Dalit]

You are not the only PTI supporter in this forum and I have no interest into looking up your early post history. Your self certified competency on the internet does not matter

Engage in nonsensical diatribe when running out of arguments. You are still very good at it.

 

[Wood]

Engage in nonsensical diatribe when running out of arguments. You are still very good at it.

You will know how 'nonsensical diatribe' looks like for sure. That is all you write anyway