The deteriorating law and order situation has negatively impacted foreign investment as the number of foreign investors has gone down by 25-30 percent as compared to last year, and if the trend is not averted the this percentage is likely to increase further as textile exports.
The main foreign exchange spinner, would reduce by 50 percent till July 2008, Dr Shahzad Arshad, Chairman, Pakistan Cotton Fashion Apparel Manufacturers and Exporters' Association told Business Recorder on Monday.
October, November and December are peak months for textile export orders from foreign businessmen, but the deteriorating political conditions in the country, especially after the assassination of Benazir Bhutto, have hurt the economic activities so drastically that the European customers are hesitant to place orders for the year 2008.
In international market, Pakistan is fast losing its business reputation. "Our output is 40 percent less than the neighbouring countries like Sri Lanka and most of our textile exporters are shifting their business to Bangladesh", Shahzad said.
He said that if the situation remained the same, the country night have to face an extreme reduction of 50 percent in the textile exports by July 2008. Pakistan's share in textile exports is more than 60 percent and a reduction of 60-70 percent would be alarming.
This clearly shows how the political unrest in a country affects its economic conditions. Political stability and the economy stability of a country go hand in hand. A political disorder can make the economy meet the disastrous consequences, he added.
Comments
Comments are closed.