Sharp decline in export of readymade garments

Lack of government support, swelling cost of production, law and order situation, political turmoil and continued disruption of utilities supply to industries have brought down the export of readymade garments by almost 36 percent during August 2008, as compared to July 2008.
According to the official statistics, the country exported $99.579 million worth of readymade garments in August 2008 as compared to $154.966 million in July 2008, depicting a decline of $55.387 million or 34.74 percent. Similarly, the country's export of the readymade garments declined by 8.52 percent in August 2008 as compared to $108.854 million in August 2007, a slump of $9.275 million.
During July-August period of the current fiscal year, the country's export of readymade garments also went down by 3.64 percent, or $9.696 million. The country exported $254.454 million worth of readymade garments during July-August 2008 as compared to $264.15 million during July-August 2007.
Talking to Business Recorder, readymade garments manufacturers-cum-exporters held the increasing cost of production responsible for the decline in export of readymade garments. They said that exporters of this sector are very depressed about the continuing decline in export and unclear policies of the government. They said that the recent wave of violence in the country has also put a negative impact on the future export deals with the foreign buyers.
"It is now difficult for the us (exporters) to invite the foreign buyers to visit our industries and see the products at manufacturing stage with a view to finalise the export orders with them because of travel advisories issued by the Western countries," they said.
Expressing concern over the country's shaky economy, they said that the government has not responded to the swelling trade deficit. The country's exports are dwindling while imports are increasing, he said.
They also resented the government's move of increasing the gas and electricity rates, which will have negative impact on the industrial output. They said that increase in the diesel prices is damaging not only the industrial growth, but is also badly affecting the common man. They urged the government to evolve a sound industrial policy to stabilise the country's economy.