The country's readymade garments' export target of $3,252 million for the current fiscal year 2005-06 is in jeopardy mainly due to the tough competition in the international market and increased cost of doing business locally, trade sources told Business Recorder on Friday.
Albeit the exports of Pakistan's readymade garments have witnessed a smart growth of around 14 percent during July 05-February 06 period, which currently stands at $1993 million, compared to $1754 million for the corresponding period of last year, its share in the international market has been declining, gradually.
"The aggregate exports of readymade garments from the country currently stand at $1993 million and we have still to fill the remaining gap of $1259 million in more or less three months. That is quite difficult," said a leading exporter.
"Despite the fact that the exports ratio has increased in terms of value, its share in the country's total export has slashed to 7.7 percent, from last year's 10 percent," he elaborated.
Another exporter pointed out that consistent and hectic efforts of the exporters with the assistance from the government have resulted in market diversification and exploration of new trade avenues.
"We (Pak exporters) have recently explored new markets in Poland and Romania," said a Karachi-based exporter, terming it a 'good omen' for the country's readymade garment exports.
He said that since the EU countries are considered among the biggest markets of the world, Pakistan's exporters have been concentrating meticulously on that region and have been striving to get further trade access in that region.
Baside that, some 800 members of Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea) across the country are engaged in exporting locally manufactured garments mainly to European Union (EU) countries followed by United States, Canada, United Arab Emirates (UAE) and Japan.
However, in total exports, the trade share of Karachi city is the biggest, followed by Lahore, Sialkot and Faisalabad.
According to statistics, China enjoyed biggest (19 percent) share of United States market in 2004-05. India was 8th in ranking with 3.4 percent, followed by Bangladesh and Pakistan with ranking 10th and 21st and market share of 2.8 percent and 1.7 percent, respectively.
Similarly, regarding EU countries, major chunk of export was claimed by China (13.2 percent), followed by Bangladesh (3.8 percent market share) and ranked 5th, India (2.9 percent) 6th in ranking, and Pakistan stood 11th with 1.1 percent market chunk during 2004-05.