Poor govt policies proving peril to garments exports, units' survival
KARACHI: It is staggering Bangladesh that import cotton yarn from Pakistan has brought to its garments exports to over $15 billion besides other competitors of Pakistan like India, Sri Lanka and Vietnam have increased their garments exports to even more than Bangladesh.
The current situation is extremely worrying the precious foreign-exchange earning industries and the increasing cost of utilities and inputs is causing closure of many value-added export oriented garments units across the country.
Member units of Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) said inordinate delay in announcement of much trumpeted Textile Package is further deteriorating the largest industrial sector of the country and the biggest export earner.
Senior member Arsha Aziz said biggest foreign exchange earning sector of textiles that was touching almost $4 to $5 billion before Peoples party’s regime was now dwindling and fallen to less than two billion dollars during current fiscal year.
Textile Package delayed has created further unemployment and closure of many units, which could not survive due to funds stuck up in refunds and no package announced to compete with the competitor countries which have given the incentives to the exporters, increasing their export under Generalised System of Preferences
plus facility by the European Union.
It was facing hardship due to stuck up capital with the government to the tune of billions of rupees and rendered us unable to exploit this opportunity. Unfortunately we are unable to increase the exports nor able to sustain but in fact we have lost our market share to the competitors, he added.
Many units could not survive due to stuck up funds in refunds and no package announced to compete with the rival countries.