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The textile sector in Pakistan holds a highly significant position as for the past few decades this has been our only backbone of the industry. It accounts for more than 60% of our export earnings - which, needless to mention, aren’t a lot already (there are other issues with our total export figure as well as for every $1 we export, there is a $0.30 - $0.40 of the imported item, but that is for another article). Given the recent global economic turmoil as a result of Covid-19 and the subsequent unprecedented increase in money supply at extremely low-interest rates followed by what has come to be known as one of the longest and most aggressive global monetary policy tightenings, Pakistan’s economic conditions turned murky as interest rates have increased more than 77% in one year and the rupee has devalued more than 50%. In this article, I will briefly export its effect on textile sectors.
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