Since 2013 World cotton price have declined by 30%-35% where cotton constitutes about 15%-20% of Pakistan's total export. Garment, textile related export is about 30%-35% of total export. Low-valued garment sector is highly price competitive and most probably Pakistan have lost export here at the expense of others gain; where associated cause could range from productivity loss, supply-chain constraints to marketing deficiency (who knows). Although the during same period PKR was relatively cheaper!
Now Isolating only these 2 vital export sectors, a PKR appreciation would certainly not help export since Pakistan is not a cotton importer. As Pakistan is a Net Importer overall, a PKR Appreciation does bear a lot of Credibility. End of the day you gotta put all the pieces of jigsaw puzzle into its places to get a full picture, which task ultimately belongs to the policy makers hence the govt.
Now Isolating only these 2 vital export sectors, a PKR appreciation would certainly not help export since Pakistan is not a cotton importer. As Pakistan is a Net Importer overall, a PKR Appreciation does bear a lot of Credibility. End of the day you gotta put all the pieces of jigsaw puzzle into its places to get a full picture, which task ultimately belongs to the policy makers hence the govt.
