Looming US Economic Recession and Pakistani Textile Exports

“If America sneezes, everyone catches cold” has been an economic adage for some decades. This is because America accounts for 17% of global imports and 28% of the world economy. With American consumers cutting back on spending because of the looming economic recession, the fear is that who is going to buy things which the rest of the world hopes to be bought by the US consumers. About one fourth of total Pakistani exports are to the United States. About 63% of Pakistan’s exports comprise textile and clothing. Given these facts, it is imperative that Pakistan diversifies its export markets with less reliance on the US. Pakistan should seek to increase its exports share in the rich countries of EU, Middle East and Asia Pacific.