Textile sector wants two-year rates freeze

KARACHI - Central Chairman Pakistan Readymade Garments Manufacturer and Exporters Association (PRGMEA) Mohsin Ayub Mirza has said that apparel industry of Pakistan was already at a verge of collapse due to non-availability of electricity and 6 percent further increase in electricity tariffs would put the industry into serious crisis.
The interrupted utilities supply has resulted in a complete catastrophe for the industry especially for the small players who dont have their own emergency power generation, he said this while addressing a press conference at the Karachi Press Club here on Wednesday.
He said that due to power shortages, the exporters were unable to deliver foreign orders on time as a result they are losing credibility in the world market while India, China and Bangladesh are fast filling the gap with cheap rates and timely delivery of apparel goods.
He urged the government to cap the electricity prices for two years for textile sector so that a better pricing could be worked out to compete in the international markets.
He said that government has set the export target of $25 billion for textile sector, so keeping in view the target, a proper marketing strategy has to be defined and implemented.
For this, he said, the government has to set up worldwide trade houses on the pattern of Korea, Indonesia etc., and local professional should be hired for this purpose to create an image of Pakistan and promote its product.
Mohsin Ayub said that due to tough competition with India, China and Bangladesh and high cost of doing business in Pakistan, countrys apparel sector was fast becoming uncompetitive and the exporters are losing business due to high cost of doing business.
He said that exposure of Pakistani products in international markets through trade officers should be the government priority while quality, good compliance and timely delivery could ensure the respect of label Made in Pakistan.
He exhorted the need for setting up of training centres across Pakistan, introduction of textile as a subject in the curriculum so that the new generation could learn about the potential of this industry. He said training of middle management was seriously lacking, so there was a need of institute giving diploma for merchandising.
A single factor which could result in immediate boost is the GSP and no duty on our products to European Union and America, he said and added that Pakistani government especially the President has been working in this direction. He hoped that this would definitely result in boost of Pakistani export since competitors like Sri Lanka and Bangladesh already enjoying the same.
He demanded that 60pc of the balance R&D matter should be immediately resolved, as the industry was already facing serious liquidity problems.