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Pakistan apparel exports to fall further in December
Dec '11
Apparel exports from Pakistan are likely to witness a further fall in the month of December due to reduction in the number of orders flowing in from other countries. Entrepreneurs have cautioned that exports to the United States may get more affected due to the prevailing political impasse.

As claimed by the textile entrepreneurs, while overall textile exports dropped by 14 percent during the month of November, the decline in knitwear and garment exports during the period may be much higher.

MI Khurram, Ex-Chairman, Pakistan Hosiery Manufacturers Association, said buying houses opted not to place orders with them for the spring season as they found the rates quoted by us on higher side. He added that presently Pakistan is completing only those low value orders for apparels that are not produced either by India or Bangladesh.

Blaming political impasse for coming in way of implementation of majority of the concessions declared in trade policies during the past five years, Mr. Khurram said even meagre facilities allowed to the exporters, like subsidy to meet the expenses incurred for getting their products tested from accredited laboratories, are not being granted over the past five years.

He informed that the sum of such outstanding claims of each of the apparel exporters has risen significantly. He further said that even the claims for one percent refund on export of polyester-based products have not been settled over the past one year.

Mr Khurram said the high cost of obtaining finance and up to 70 percent gas load shedding for textile industry of Punjab are the key issues confronting the exporters of Pakistan.

Former Chairman of Pakistan Sweater Exporters Association Shahzad Azam Khan said rapid deterioration in the domestic currency is also a threat confronting the Pakistani apparel exporters.

He said that overseas buyers force the exporters to share a part of the advantage that they reap due to deterioration in domestic currency with them, however they do not realise that cost of raw materials that these exporters need to ship in form around 25 percent of their overall production cost and cost of these inputs go high with every deterioration in value of domestic currency.

Meanwhile, Mr. Khurram lamented that the Textile Ministry Commission report prepared by the current Government has been shelved. The report presented an analysis of facilities furthered by Governments of other competing nations in the region, and amongst others suggested extending five percent interest subsidy facility to exporters on their technology upgradation expenditure, he said and added that if technological upgradations are not done, it will reflect in the quality of textile products.

Fibre2fashion News Desk - India

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