ISLAMABAD: The Pakistan Economy Watch (PEW) on Monday said Hindu nationalism has tarnished image of India and started ruining its struggling economy.
Continued violations of human rights by Narendra Modi administration has prompted many western companies to cancel their orders in favour of other countries leaving Indian export sector in a lurch, it said.
Many earlier orders given to Indian companies are now diverted to Pakistan which has resulted in full capacity production of textile industry, said Dr. Murtaza Mughal, President PEW.
Pakistani textile exporters have also grabbed many orders given to China and later cancelled due to coronavirus which will improve exports and help earn sizable foreign exchange, he added.
Dr. Murtaza Mughal said that reduced imports from China is damaging local textile industry and some other sectors but it is also reducing trade deficit.
Oil price collapse is also a good development which is increasing income of the government while taming inflation and eliminating need for further taxes, he added.
The global slowdown and oil price slide can lead to an interest rate cut by the central bank during the current month which will be a stimulus for economic activities.
He said that law and order situation has improved, energy is available, visa restriction has been eased, minorities are safe and the EU has extended trade relations for two years. These positive signals have prompted many western countries and companies to boost trade with Pakistan.
Moreover, western importers are considering not to put all eggs in one basket and diversify their manufacturing and imports so keep supply chain intact in case of a problem in any country.
Additionally, he said, many companies are trying to relocate to other countries due to increased cost of doing business and coronavirus which should be taken as an opportunity by our policymakers as it can lead to massive industrialisation in Pakistan.
