The loss to textile business could run into millions of dollars, thousands of workers would be unemployed and small and medium-sized enterprises would shut down. PHOTO: FILE
This strategy was being prepared in consultation with the stakeholders to address concerns of US companies, he said, adding Pakistan, on its part, was striving to get its Worldwide Governance Index (WGI) ranking upgraded by 2014.
Speaking to members of the Pakistan Textile Exporters Association (PTEA) here on Wednesday, Qureshi pointed out that the US was a major export destination for Pakistan and elimination of Pakistan from the Permitted Sourcing Countries list would lead to a huge loss of export earnings.
Walt Disney Company claims to be the world’s largest provider of licences, since consumer products of Disney brand are being produced by thousands of independent vendors working in thousands of manufacturing facilities around the world.
As part of an ongoing review of its policies and procedures, Walt Disney Company has made changes to its sourcing guidelines that will improve management to meet the challenges associated with a complex global supply chain.
Underlining the adverse impact of such a move, PTEA Chairman Sheikh Ilyas Mahmood said the revision in Disney’s policies would have implications for textile exports from Pakistan.
“This decision has the potential of triggering a snowball effect as Marvel, the subsidiary of Walt Disney, will follow suit,” he cautioned.
Likewise, other major retailers such as WalMart, Target, Sears, Kmart, Macys and Gap may also be forced to stop sourcing their products from Pakistan.
The loss to textile business could run into millions of dollars, thousands of workers would be unemployed and small and medium-sized enterprises would shut down, Mahmood said. “If European textile brands follow suit, the loss will be exponential.”
Textile exporters are estimated to lose export orders worth $150-200 million per year and 25,000 people may lose their jobs.
Federation of Pakistan Chambers of Commerce and Industry Vice President Azhar Majeed Sheikh said Pakistan had been fighting the war on terror since 2001 as a frontline ally of the US and had continued to pay a heavy price in terms of both economy and security.
Published in The Express Tribune, December 26th, 2013.
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COMMENTS (33)
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Don't loose hope! They can be brought back after their workers safety demands are met. Now is that something we can't produce from that millions of dollars we generate from the manufacturing? Make strict rules and policies along with new worker friendly facilities. Our fabric industry is a giant and has leverage with the top power brokers in Islamabad.
Hmm So there was a report published which explained how Pakistan was using it's limited water supply to produce cotton which fetched marginal profits. Yet the people were focused on those marginal prices and profits. Yet Pakistanis do not understand the concept of opportunity cost.
25 000 jobs lost and orders of 150-250 million lost. The amount of resources that are wasted on these orders is absolutely ludicrous. The only benefits from this deal was that the 25 000 people were probably getting paid $2 per day. Now is a prime opportunity to allocate these resources (electricity, capital, land, water etc.) into greater investments which can reap many rewards for futures whilst saving precious resources.
Will Pakistani's finally understand this or opt for the short-terms approach again?
They want less costs and less headaches like fire or building collapses that disturbs them. They dont wanna hear about collapses or dead workers because thats a headache as they dont care about workers, factories and safety measures. Thay care about their products, cheap prices and profit margins. Why do the people here blame them, factory is in our teritory, we are responsible about everything. We dont concentrate on our peoples' security and safety why would they do this. Our inspections about safety are neglected, that mean u are neglecting ur peoples' lives, not the disney or wallmart or anyone else.
So no Pakistani Mickey Mouse ?
It's the end game for Pakistan economy I feel. Soon, we will have no industry left
@saf WOW..so you are going to ban the Pirated movies you buy and watch.. and how is that going to hurt Disney?
Pakistan should start making plans to ban disney movies,products and cartoons
Disney has already eliminated Pakistan from the list. The decision was taken in March 2013 and will take effect from March 31, 2014. Govt and industrialists just woke up to the news
http://www.nytimes.com/2013/05/02/business/some-retailers-rethink-their-role-in-bangladesh.html?pagewanted=2&_r=2&hp&adxnnlx=1367496086-EZmsLe4U4sGG2uP06n2W0gx%x
http://thewaltdisneycompany.com/citizenship/policies/permitted-sourcing-countries-policy
Many don't understand that the USA is your largest export market - the engine which drives your economy and source of much of your "hard currency". What's the old saying? Something about you never appreciate what you have until it goes away?
@Zif
NO ONE in the corporate world is partial to one country or another due to YOUR POLITICAL VIEWS.. the animosity between you and India is YOUR issue not theirs...
Having worked in these corporations
They are looking for the following things which Pakistan / BD have not provided and refuse to provide.
1: Keep their name out of issues which arise from labor problems .. such as child labor, slave labor etc. 2: Provide them with Perfect goods.. without a single issue. (yes, any item which does not come to their issue is junked). 3: Accoring to their timelines.. they want their items delivered to them within a 24 hour period without a single excuse.. (Pak/BD refuse to comply with those requirements.
Well like my previous post says.. Pak/BD etc. want to sell according to thier wishes without considereing what the customers want..
Time to PUT CUSTOMER FIRST!!! if you really want to do business with these people or you can sell it to someone else (in this case these is no other customer)
for some reason in Pakistan Customers come last.. the attitude is.. "we will do it our way .. if you like it you can buy the product from us... this is true for all sectors.. the corner shop right up to the corporations..
What Pakistanis need to do is change this attitude.. and give the Customer what THEY want.. we need to comply with 100% of their needs .. wishes and requirements..
If this attitude is not eliminated from the National Psychy Pakistan will keep loosing customers and guess what just like the Ship Breaking industry.. the World Cotton Market we will loose the left over sales Pakistan has left.
Why? Whats the reason to stop sourcing? beacause they are partial to us n soft on India?
Vague. and why would all follow disney?
Thank you ET for upholding the highest standard of Journalism. The reporter and editor should be teaching at some International Journalism School!
Thanks Faraz!
Thanks Faraz for letting me know of factual position.Since I read the news I too was confused for the cause of stop-sourcing-goods from Pakistan.After reading the link I must say that this is a very humane gesture by Disney to make us realize of the dignity and value of human life
These corporations , Americans and developed world exploiting people in countries like Pakistan, Bangladesh, China India Vietnam,Philippine etc. They are not ready to pay the higher prices but blabbering about working conditions. Once proper working conditions would be implemented, it will translate into higher prices but they want it cheap at any cost with good quality. It simply cannot happen. Hypocrites should either pay higher prices or forget about this PR exercise.
But why in the first place? why is Walt Disney stopping? What is the reason? is it the cost, quality or politics?
It is all apart of wealth globalization and hopefully Pakistani labour movement would jump up and provide directions with the industry to provide for a safe work place with a living wage for all.
I do not think it would happen as in the end the bottom line matters for the buyers too. It is a shame but a reality, buyers would find a way around and as long as they can save a dime they would.
Ah it's nothing. They don't source much from Pakistan anyway so it is an easy public relations win for them. The author's conclusion that others will follow suite is totally wrong. The one's that do source significant quantities from Pakistan will not switch. Almost all the other low cost sourcing countries have unsafe working conditions and the brands have already refused to discuss higher prices. No one cares about dead Pakistanis anyway. Just see the difference in international media coverage of the Bangladesh factory disaster vs. the Pakistani baldia factory fire.
If Disney wants to force better working conditions on foreign suppliers, and they are willing to pay proportionately higher prices, who objects? Pakistan, India, China, Bangladesh, Vietnam, Thailand, Philippines, everyone looks forward to earning American wages and delivering American quality. Point is, like the British of old, the Americans today are a hypocritical lot that strike a sanctimonious pose in public, while negotiating starvation prices from countries which have little negotiating strength. When a factory collapses in Bangladesh, notice that it is local building norms which are the cause - never the fact that no decent capital budgeting can be done on the prices they are paid. Take heart! You are not the only country with dishonest corporations and government, and an ill-informed and apathetic public. Even in that, the Americans and Europeans claim first place.
The story does not explain why Disney may stop sourcing merchandize!?!
As far as the reversibility of this decision is considered, below is the excerpt from the news published on Daily Kos link provided by @faraz above:
"The Disney official said the company would consider permitting its licensees to again produce in Bangladesh and Pakistan if those countries get the Better Work program to help their factories."
@faraz: Thanks for posting the link. At least that article makes some sense.
Wonderful reporting skills. More articles, more page views, more ad clicks and more money.
http://money.cnn.com/2013/05/02/news/companies/disney-bangladesh/index.html?hpt=hp_t2
Why Walt Disney is doing it? I'm also not getting in the article.
Thanks to IK. Let's stop more NATO supplies.
Why is walt disney trying to do this? Kindly excuse my ignorance if it's already stated in the article.
Confusing and poor article. Why exactly will Walt Disney stop sourcing from Pakistan and what exactly was the strategy the government will execute to stop it ?
Got to give it to Mr. Nawaz Sharif. He really is bringing change to Pakistan