To understand the disparities in textile exports between Pakistan and Bangladesh, it is essential to examine several key aspects, including value addition, technological advancements in the textile industry, labour costs, government policies, and product positioning in the global market.
These factors collectively impact the export performance of both countries, enabling Bangladesh to achieve higher export values with comparatively lower cotton consumption, while Pakistan, despite its significant cotton production, has yet to realize comparable financial gains.
For instance, Bangladesh exports products worth over $40 billion from around 7 million cotton bales, whereas Pakistan exports only $17-18 billion worth of products from approximately 10 million bales.
Firstly, the difference in value addition is evident in the textile industries of both nations. Bangladesh has placed a strong emphasis on increasing the value of its products through advanced processing technologies and a focus on value-added goods.
The Bangladeshi textile sector has integrated automation and computerized machinery, enabling the production of high-value items, such as ready-made garments and high-fashion apparel. In contrast, however, Pakistan’s industry primarily exports raw or semi-finished fabrics, which are less competitive in the global market.
To elevate the value of its exports, Pakistan’s textile sector must adopt modern technology and shift its focus towards value-added products. Bangladesh has made significant investments in technological upgrades, which have directly contributed to its export growth.
The industry has embraced cutting-edge advancements like robotics, automation, digital fabric printing, and computerized management systems, which have improved production speed and quality, facilitating exports that meet international standards.
Pakistan, on the other hand, faces challenges in technology adoption, resulting in slower production and quality issues that weaken its global competitiveness.
Moreover, Bangladesh has implemented favourable policies that have propelled its textile sector’s growth, including the establishment of special economic zones, tax exemptions, and investment incentives. These policies have attracted foreign investors, fostering industry growth and facilitating the introduction of advanced machinery.
Conversely, Pakistan lacks comparable incentives, limiting the ability of its textile industry to compete internationally. To enable its textile sector to access modern technology and achieve global production standards, Pakistan must consider adopting similar supportive policies.
Differences in labour costs and infrastructure also play a significant role in the export gap between the two countries. Lower labour costs in Bangladesh have enabled the country to produce high-value goods by combining affordable labour with advanced technology.
In contrast, Pakistan faces higher labour costs and infrastructural challenges, including energy shortages and rising operational expenses, which directly impact production efficiency and product quality. Additionally, cotton quality and availability differentiate the two industries.
Although Bangladesh produces very little cotton domestically, it has sustained its industry by importing high-quality cotton, ensuring the consistent supply of superior raw materials.
Pakistan, however, faces quality issues and a decline in domestic cotton production, resulting in supply constraints for its textile sector. Investments in research and technology are critical for Pakistan to enhance cotton quality and yield, allowing the textile sector to benefit from high-quality, locally sourced raw materials.
Branding and positioning in the global market are also essential factors in Bangladesh’s success. Bangladesh has strategically marketed its products internationally, leveraging modern positioning strategies that have led to significant export success. In comparison, Pakistani products lack a strong brand presence in global markets, making them less competitive. Enhancing global positioning and branding efforts for its products could strengthen Pakistan’s international standing.
Considering these factors, Bangladesh has maximized its limited resources by leveraging modern technology, supportive policies, and labour cost advantages to drive growth in its textile sector. Despite Pakistan’s larger cotton production, it has struggled to achieve the same value and competitiveness in its products. Pakistan can draw lessons from Bangladesh’s model by focusing on value addition, technology upgrades, and implementing globally aligned policies in its textile industry to enhance export value in international markets.
Although Pakistan’s textile sector has received government subsidies and incentives, growth in value-addition has remained modest. To address this, the government should consider linking incentives to value-addition requirements, ensuring the industry delivers a meaningful increase in product value.
Without a focus on value-added exports, the existing incentives risk supporting only raw material exports, which do not contribute significantly to the national economy.
By implementing a model similar to Bangladesh’s, Pakistan could strengthen its global market position through value-added products, technological advancements, and strategic branding, ultimately boosting export value and contributing to economic stability.
Copyright Business Recorder, 2024
Comments