Export orders of $57.6 million for readymade and knitwear garments have been diverted from Pakistan to the regional competitors like India, Sri Lanka and Bangladesh during the current fiscal year, sources told Business Recorder here on Saturday.
Levy of anti-dumping duty, increasing cost of production, higher mark-up rates, reduction in cotton production, non-adjustment of exchange rates and non-availability of technical staff are the continuously hurting textile exports.
Sources said that Textile Commissioner Muhammad Idrees had recently held a meeting with the major textile industrialists to discuss the problems being faced by them due to power shortage. "The textile industrialists demanded of the government to eliminate customs duty on the import of power generators", sources said.
They emphasised that as compared to last year the inquiries for sampling of textile exports had come down to one-third due to untimely deliveries of export orders and high cost of production that led to 12 percent increase in the prices of products as compared to the regional competitors.
"Almost 70 percent textile mills including 300 spinning mills and weaving units have been closed due to gas load shedding which is being supplied to the mills just for 3 days in a week, especially in Karachi, that is the major hub of the textile industries", sources said.
Moreover, Bangladesh enjoys zero duty on its fabric import from European Union (EU), while Pakistani exporters have to pay 10 percent import duty. There are one million garment workers in Bangladesh whose average wage is Rs 1400 while Pakistani workers get minimum wage of Rs 4,000, despite the fact that in Bangladesh there is more skilled labour than in Pakistan.
Total international trade in textiles is currently about $350 billion, out of which Pakistan''s share is less than 3 percent. By the year 2014, this global volume is expected to touch $800 billion. If Pakistan maintains its current share, textile exports will increase by three times and if Pakistan can double its share, the textile exports may increase by six times to almost $50 billion.