Steps to boost garments export by $40 million suggested

25 Jun, 2007

In order to augment the exports of value-added garments by $40 million, the government should form an apparel board to evolve a long-term plan by involving the concerned representatives of only apparel sector, besides capping the utility tariffs at least for two years.
The apparel sector representatives demanded that value-added sector should be separated from other sectors of textile industry, including ginning, spinning, weaving, home textile, etc.
Pertaining to formation of apparel board, they said it should be done under the textile ministry to help increase export ratio manifold. They pointed out that apparel sector had faced multiple issues but for lack of a stable platform, such problems could not be addressed so far, adding that they had no platform to contact with the officials concerned in the government for redressing their problems.
They said this proposed separation of value-added sector from others would help achieve fiscal target easily. "We (manufacturers and exporters) will ensure to boost up value-added export by 400 million dollars within a year, but for this the government should help us by capping utility tariffs by two years," they asserted.
Exporters and manufactures said that a 'task force' is needed in order to monitor the prevailing issues confronted by this sector closely and suggest steps for their resolution. Prime Minster Shaukat Aziz is also urged to intervene to salvage the declining apparel sector, they demanded.
The apparel sector representatives said the government under task force should evolve marketing strategy to promote the apparel goods in the world market particularly in European Union as they had faced stiff competition from China, Bangladesh, and India.Subsidies on utilities should be given to value-added sector in order to meet the cost of production, they said, adding that increasing utility tariffs had left the industry almost down in terms of production and exports, they added.
Predicting to meet the next fiscal year target, they said the government was required to change the policy for the development of this sector, adding that in the presence of increasing utility tariffs and unannounced load shedding would not be possible for this sector to meet the next fiscal year target.
To a question, they replied that orders worth millions of dollars from foreign buyers came to Pakistan due to political turmoil in Bangladesh, however, such orders in future were not expected to occur again, suggesting that the government should chalk out a plan to increase the export volume.

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