Because of the Coronavirus global economic pause has given many smaller economies an incentive to step up. For example, Pakistan with a complete textile and apparel supply chain existing in the country can take advantage of the slowdown in trade flows in textile products between China and the US and the EU as it can capture some of the fashion market shares.
Around $1.1 billion has been added to exports of apparel and textile products to the EU from 2013 and 2018. In addition, exports of made-up textile products increased to $650 million between 2013 and 2018 due to the preferences of the GSP Plus.
The trade linkages established between Pakistani exporters and their clients can help increase exports and tap newer markets as supply chains are threatened due to the spread of the pandemic. Pakistan should continue with its policies to boost total exports. Although the growth in global trade is likely to slow down this year, Pakistan must contemplate in developing its export sector to take advantage of opportunities as a result of challenges reported by the large manufacturing powerhouses
According to the Statistics Bureau of Pakistan, exports boomed in February 2020 by 13.82 per cent year-on-year. In the current FY, exports from Pakistan have gained 3.65 per cen in the face of a global slowdown in trade. And exports into the EU from the country rose from $6.3 billion in 2013 to $8 billion in 2018. This indicates that the European Union’s unilateral trade incentives in the form of GSP Plus status helped raise export sales to the region and restrict what otherwise might have been a complete decline in the export sector between 2013 and 2018.