ISLAMABAD: As coronavirus threatens the global economy, the United Nations Conference on Trade and Development (UNCTAD) has said that China’s slowdown would also negatively affect Pakistan’s textile and apparel industry, local media reported.
UNCTAD’s report on ‘global trade impact of the Coronavirus (COVID-19) Epidemic’ included Pakistan in the list of 20 economies across the world that have been severely affected by the virus.
According to the report, the slowdown of manufacturing in China due to the coronavirus (COVID-19) outbreak is disrupting world trade and could result in a $US50 billion decrease in exports across global value chains.
In February, the country’s manufacturing Purchasing Manager’s Index (PMI) – a critical production index – fell by about 22 points to 37.5, the lowest reading since 2004. Such a drop in output implies a 2% reduction in exports on an annual basis.
Because China has become the central manufacturing hub of many global business operations, a slowdown in Chinese production has repercussions for any given country depending on how reliant its industries are on Chinese suppliers.
“In addition to grave threats to human life, the coronavirus outbreak carries serious risks for the global economy,” UNCTAD Secretary-General Mukhisa Kituyi said.
“Any slowdown in manufacturing in one part of the world will have a ripple effect in economic activity across the globe because of regional and global value chains.”