Travel barriers: garment industry missing $600 million orders annually

29 Jan, 2007

The export-oriented readymade garments industry of Pakistan is missing around worth $600 million orders annually, due to travel barriers mainly in the United States region, sources in trade told Business Recorder on Sunday.
Leading exporters said the local exporters often find difficulties during their visits, particularly to United States, as there was stiff immigration procedures on arrival, resulting in wasting of several precious hours of visitor.
"Besides high production costs, the ratio of textile exports has also scaled down by $ 600 million or 20 percent annually due to travel barriers," said Ijaz Khokhar, Chairman, Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea) when contacted over telephone.
"Foreign buyers from United States and European Union are also advised by their respective travel advisory boards to avoid travelling to Pakistan, which also diverts fresh orders from local exporters to other regional countries, bringing the already declining textile exports further down," he remarked.
Gurus of readymade garment exports pointed out that travel barriers, since 9/11, had badly hit the flow of textile orders in value-added garments from the US-based interested parties. "We are now practising the least effective way of attracting foreign orders these days," exporters said, adding the local exporters mostly finalise orders from US buyers through phone and faxes, which were believed to be the least effective ways to attract foreign customers.
The Prgmea chairman was of the view that the rising textile export deficit could be stemmed by around 30 percent by exploring new avenues and markets in the world and the government should support and encourage readymade garments exporters by giving them incentives.
"African and South American regions are the potential markets of our textile products, which is thought to help augment domestic production and exports manifold, despite being faced with a continuous failure in the western markets," he added.
He also stressed on setting up of innovative trends in the production of readymade garments with a view to lure the buyers from across the globe, which would not only help augment their exports but also enable them to compete with the regional competitors in the world market.
Ijaz called upon the government to evolve a long-term plan for the increasing of textile exports, adding that consulates could play a vital role to help the country''s exporters establish their domains in various EU and other Western countries, besides US.
Regarding the country''s image building, he urged upon government and its consulates abroad to play their due role to dispel misconception about Pakistan as it was being depicted in the West through its electronic and print media, also called for an exhaustive plan to encourage foreign customers.
He said, "Setting up outlets in western markets is the expensive venture and requires capital in million of dollar, which is unaffordable for most of the exporters".
He also called for travelling support fund, and urged the government to evolve a serious plan to support textile exporters in the course of their travel to EU and US. The exporters also highlighted the issue of deteriorating law and order situation in the country, which restricts the foreign buyers from coming to country to place fresh orders.

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