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Pakistan’s textile sector has devised a strategy to boost diminishing exports, damaged by the lethal Covid-19 pandemic, by exporting health-related products such as protective gowns, scrubs and masks.
“In June 2020, textile exports are expected to surpass $1-billion mark,” said the management of Gul Ahmed Textile Mills Limited in a corporate briefing held on Monday.
Business suspension during lockdown coupled with loss of export orders caused a financial dent of Rs8 billion while contribution margins fell Rs1.6 billion, the management said. It pointed out that the retail segment had not yet normalised because outlets were functioning for limited timings and remaining completely closed at weekends, which was usually the time of increased sales.
However, July is expected to turn out to be promising for the textile industry owing to a large number of orders related to the health segment such as protective gowns, scrubs and masks, which have been approved by the US Food and Drug Administration (FDA).
“While retail stores of the apparel segment remained closed during the lockdown, Gul Ahmed stayed shut for approximately eight weeks,” said Topline Research analyst Hammad Akram.
The home textile segment was another section where the company was confident of getting export orders and it was expected to grow because demand had increased significantly as people spent more time at home, said Akram.