A large number of knitwear units and ready made garments would be forced to relocate to the neighbouring countries if the government does not grant incentive to manufacturers of exportable items, a spokesman for Pakistan Readymade Garments Association (PRGA) and Pakistan Hosiery Manufacturers Association (PHMA) warned in a press release on Saturday.
"The skyrocketing cost of production is forcing knitwear manufacturers to seriously consider relocating their business elsewhere," the spokesman said, adding that the neighbouring countries were providing an enabling atmosphere to compete in the international markets.
He expressed fear that if knitwear industries shift to other countries more than 50,000 workers would be rendered jobless.
He said the export of knitwear was the largest by the end of quota regime in 2005 and had prepared itself to meet the new WTO challenges but unfortunately, Pakistan government failed to provide a level playing field to local industries, while the neighbouring countries enjoyed all the incentives offered by their governments to boost its exports in the post-quota free era.
MAJOR CAUSES: He said: "The exorbitant rates of utilities, fuel prices, increased financial cost and labour rates are the major causes of shutting down of knitwear units."
Local exporters met all compliance required by the foreign buyers and adapted themselves to the latest global trends, which the government suggested earlier in order to compete with international markets, he added.
He further elaborated that during 2002 the gas rate was Rs 166.6 per MMBTU, which was 13 percent higher than that of the main competitors, Bangladesh, while in 2005 the government was planning to increase gas rate to Rs 208.56, which would become 26 percent more than the Bangladesh gas rate.
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