For reasons more geopolitical than economic and financial reliability, Pakistan has obtained from the IMF the approval of the EFF (Extended Fund Facility) program with the seventh and eighth tranches of 1.17 billion dollars. Will this be enough to save the exports of the leather sector which, according to data from the Pakistan Bureau of Statistics (PBS), have decreased by 18.99%?
Pakistan would like to be considered the hub of contract production of high-quality leather goods and leather products. There are about 800 tanneries in the country actively engaged in the production of finished leather of the best quality of bovine, buffalo, sheep and goat skins and employ thousands of workers.
It is the second largest export industry after textiles, contributing about 5.4% to exports in 2020.
According to the Pakistan Bureau of Statistics (PBS ), the country's leather exports fell by 18.99% in the first month of fiscal year 2022-23 compared to the same month of fiscal year 2021-22.
Leather exports were recorded at $50.319 million in the first month of fiscal year 23 versus exports of $6.133 million in the first month of fiscal year 22.
The country's monthly leather exports fell 7.26% to $50.319 million in July 2022 compared to $54.256 million in June 2022.
Leather garment exports also fell 22.85% to $26.390 million in the first month of fiscal 23 compared to $34.206 million in the same month of fiscal year 22.
Month-over-month, leather clothing exports fell 8.01% in July 2022 to $26,390 million compared to $28.689 million in June 2022.
Similarly, leather glove exports decreased by 14.51% to $22,457M in July 2022 from $26,269M in July 2021. Exports of other leather products also decreased by 10.13% from $1,638M in July 2021 to $1,472M in July 2022.
Month-over-month, leather glove exports fell 7.15% to $22.457 million in July 2022 compared to exports of $24.187 million in June 2022.
Textile exports fell 13.21% month-on-month to $1.481 million in July 2022, from $1.706 million in June 2022.
Pakistan would like to be considered the hub of contract production of high-quality leather goods and leather products. There are about 800 tanneries in the country actively engaged in the production of finished leather of the best quality of bovine, buffalo, sheep and goat skins and employ thousands of workers.
It is the second largest export industry after textiles, contributing about 5.4% to exports in 2020.
Faced with changing global circumstances, Asian economies such as China and India are experiencing remarkable growth. Pakistan would also have plenty of room for expansion, but political uncertainty, socio-economic issues and a lack of modern technologies hinder economic growth.
Now, "Alhamdolillah (by the grace of God), the International Monetary Fund has approved the resumption of our EFF (Extended Fund Facility) program. We should now collect the seventh and eighth tranches of $1.17 billion." So on Twitter the Pakistani Minister of Finance Miftah Ismail, who conveniently left out a couple of things.
For example, that the release of yet another IMF loan is due, more than to the grace of God, to the desperate phone calls made by General Bajwa to the US Undersecretary of State Wendy Sherman and, above all, to the logistical support and not only provided to the Americans to kill Ayman al-Zawahiri. In addition, that in order to get the money necessary not to go bankrupt like Sri Lanka, Islamabad had to ask for more money from the usual notables with whom it is already heavily indebted: China, Qatar, Saudi Arabia and the United Arab Emirates. And that the loan, if you do not make structural reforms that seem more distant than ever, is practically a drop in the ocean of the usual corruption of the Pakistani ruling class and the army that, in addition to the Armed Forces, governs above all the economy of the country: it is difficult to find a company engaged in construction or public works without a member of the army sitting on the board.
Everyone knows this, but everyone pretends nothing. Pakistan holds fast to its main instrument of foreign and economic policy: terrorists. Blackmailing in a more or less veiled way the rest of the world and, in particular, the Americans. The atomic bogeyman in the hands of jihadists always works, as does the threat of assorted terrorists ready to attack the West and even China.
Pakistani entrepreneurs must get busy! They see that Faced with changing global circumstances, Asian economies such as China and India are experiencing remarkable growth. Pakistan would also have plenty of room for expansion, but political uncertainty, socio-economic issues and a lack of modern technologies hinder economic growth.
