India opened a new economic front, the deal with the European Union gave Pakistan sleepless nights, the textile industry of the neighboring country will be ruined!:

News India Live, Digital Desk: The historic Free Trade Agreement (FTA) between India and the European Union (EU) has created a stir in the economic corridors of Pakistan. Due to this ‘economic surgical strike’ of India, the textile (cloth) sector, considered to be the strongest pillar of Pakistan, has reached the verge of collapse. Experts believe that after this deal, the threat of Indian clothes will increase in the European markets, which will create an existential crisis for Pakistani exporters.

Pakistan’s ‘GSP Plus’ status now ineffective!

Till now, Pakistan used to get huge tax exemption from the European Union under ‘GSP Plus’ status, taking advantage of which it used to sell its clothes in the European markets at cheap prices. But after the India-EU FTA, now Indian garments and textile products will also get the same or better access. India has better infrastructure and bigger manufacturing capacity than Pakistan, which can prove to be a ‘death warrant’ for Pakistan.

Crisis on textile industry: Why is Islamabad scared?

Pakistan’s total foreign exchange earnings are approximately 60 percent Part comes from textile exports. Pakistan’s economic experts say that after this big deal with India:

Loss of Market Share: European buyers will now turn to India for quality and timely delivery.

Lagging behind the competition: The cost of electricity and logistics in India is lower than in Pakistan, which will make Indian products cheaper.

Fear of unemployment: If textile mills are closed, lakhs of people in Pakistan may come on the streets.

India’s ‘economic diplomacy’ defeated

The way India, under the leadership of PM Modi, has signed trade agreements with Britain, Australia and now the European Union in the recent past, has isolated Pakistan on the global trade map. While India is becoming a global hub through ‘Make in India’, Pakistan is still struggling with debt and political instability.

Amar Ujala Special: Will Pakistan’s textile sector survive?

Islamabad-based think tanks have warned that if Pakistan does not immediately improve its policies, it may be cut off from European markets. Pakistani textile industry is already struggling with rising electricity prices and shortage of raw materials. Now this new challenge of India has added fuel to the burning fire.