If prices of other raw materials continue to rise in this manner, the export sector will inevitably feel the pressure. The government should start considering strategies now to manage this impact.
Even before one month is completed in office, Eid celebrations are on the doorstep. Generally, we see that before Eid many problems arise regarding salaries and bonuses of workers, especially in the textile sector. However, so far this year, we have not seen any major issues.
As soon as it assumed power, the government arranged additional loans for textile factory owners. It also released a significant portion of the long-pending cash stimulus by the government.
As a result, owners of the textile and export sectors have received substantial funds, helping them pay workers’ salaries and bonuses.
Finally, my advice to the Government is to keep a close eye on the situation in the Middle East. It should consult economists, experts and stakeholders and make advance preparations to ensure that the already fragile economy does not suffer further shocks.
* AK Azad: Former President of FBCCI and Managing Director of Ha-Meem Group.