New Russian markets have very big potential for Pakistani leather garments and it is expected that Pakistan will enter the market within next few years. According to the Pakistan Leather Garments Manufacturers and Exporters Association (Plgmea), about 16 members from Pakistan participated in the current exhibition, named 'Lee Show' at Moscow.
Chinese and Turkish products are usually sold in the Russian market. The market is not systematic, as there is a lack of distribution and banking channels, besides customs complications.
The Plgmea said, to enter in the market, we were analysing various aspects. It is expected that Russia will enter in World Trade Organisation (WTO) by next year, therefore there was a chance that they would make an agreement with Pakistan and provide benefits in duties that was currently 40 to 45 percent.
Regarding competition with China, it said that drastic measures had to be adopted by the Pakistani exporters to counter the cost-advantage of Chinese exports and build comparative advantage for our products in the international markets, by quality improvement.
The exporters have to engage foreign expert technicians to guide them to improve the quality of their garments. The productivity of the Pakistani workers is much below the productivity levels of Pakistan's competitors.
There is an urgent need to boost the productivity of the workforce. Proficient foreign consultants have to be hired by exporters to train the local workforce. The training should be on a continuous basis to ensure that benefits of training are fully utilised.
The exporters also need to upgrade their machinery and use latest specialised machines for reducing their costs and increasing productivity. Chinese exporters had installed latest machines in their factories, which not only reduced costs but also improved productivity and the quality, the Plgmea said.
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