Exporters urge govt to address cost pressures

Apparel sector becomes uncompetitive due to fuel price uncertainty, costly power and gas

LAHORE:

The Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) has urged the government to take immediate measures to address the growing cost pressures and logistics disruptions affecting Pakistan's export-oriented apparel sector.

In a statement, PRGMEA North Zone Chairman Imran Salahuddin said exporters were facing a combination of unpredictable fuel prices, high electricity and gas tariffs, expensive financing, delayed refunds and disruptions in cargo movement, making it increasingly difficult to remain competitive in international markets.

He said the newly introduced daily petroleum pricing mechanism had added further uncertainty for exporters, "who negotiate orders months in advance at largely fixed prices". "Pakistani exporters cannot simply pass every increase in energy and transportation costs on to international buyers," he observed.

The situation has been further aggravated by the nationwide transporters' strike, which has entered its fifth consecutive day. With cargo movement severely disrupted and warehouses reportedly refusing additional consignments, export containers are stranded at factories, creating risks of missed shipment schedules, demurrage, detention and damage to buyer confidence.