Garment industry torn over several impediments

PRGMEA chief laments issues that have hindered growth.

LAHORE: Global recession, power and gas outages, internal security concerns, high cost of production and the increase in energy cost are contributing towards impeding growth in the garment industry.

These reasons were given by Muhammad Naseer Malik, vice chairman of Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) North Zone.

He attributed rupee depreciation, persistent increase in inflation and competition from India and China to the steady decline in growth of the industry –textile and garments.

“Law and order problems have forced buyers to abstain from visiting the country, similarly, local exporters are also unable to travel abroad for effective marketing of their products,” he said.

“The heavy duty on import of textile raw material in Pakistan forces garment makers to use cotton as the core input,” he added.

Comparing the country to Bangladesh, Malik said that Bangladesh produces no cotton, allows duty-free import of all kind of raw material, which has pushed its value-added textile exports to $26 billion, while Pakistan has yet not been able to cross $4.5-billion mark.

“So far, Pakistan mainly produces only Generation I and II garments, as production of Generation III and IV garments remain a challenge in the wake of raw material constraints. The Pakistani apparel industry comprises of small and medium size enterprises, which produce high-end fashion products, however, unfriendly import policies restrain these producers from utilising their full potential,” he added.

Malik said that the overall growth of the apparel industry is noteworthy, and regardless of some break in its continuity toward progress, the Pakistani textile sector performing well.

“However, it could have been even better if some of the existing policies and practices are revised and critically reviewed.”

Published in The Express Tribune, March 29^th, 2015.

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