Home / Knowledge / News / Apparel/Garments / Will Pak apparel sector benefit from LDC status?
Will Pak apparel sector benefit from LDC status?
18
Feb '13
“The Pakistan Government will apply for Least Developed Country (LDC) status, which it would get by 2014”, the Textiles Minister - Makhdoom Shahabuddin recently told the Pakistan National Assembly.

This would mean that Pakistan would be able to export its textiles and apparels duty-free to countries across the world and would also be able to compete in global markets for orders on strength of the status. 
 
However, Mr Javed Bilwani – Chairman of the Pakistan Hosiery Manufacturers and Exporters Association (PHMEA) is not gung-ho about the benefits that would accrue from receiving the status.
 
Speaking exclusively to fibre2fashion, Mr Bilwani said, “I do not see any real benefits accruing from the LDC status to the apparel sector as I do not see exports from the sector rising in the near term, due to poor infrastructure, shortage of energy and a host of other issues, as we will not be able to scale up production to meet the increase in orders”.
 
“The only beneficiaries will be the importers who will be able to import apparels and related textiles at lower rates due to the duty-free status. Of course, jobs may be created, but not on the scale that a country can really take advantage of the LDC status”, he added. 
 
On the other hand, Mr Faisal Naseem Kari – Director of Nishat Apparels, which produces around 600,000 pieces of garments per month, is very thrilled and excited over Pakistan bagging the LDC status.
 
He says, “Currently we can export only a few items under the current trade concession package of the European Union. Once we receive the LDC status, we will be able to export all clothing items duty free, which will provide a big boost to our garment exports”. 
 
When asked if Pakistan will be in a position to compete with Bangladesh or Cambodia on an equal footing, he explained, “Our biggest advantage is our access to raw cotton, yarns and good quality fabrics, which is not the same with the other two countries. 
 
“Considering wages and other operational expenses, we are at par with Bangladesh. Retailers, who bring out 12 collections in a year and look for shorter lead times, would be looking at a country with all advantages, which is where Pakistan can hope to score over the other two countries with similar status”. 
 
Mr Bilwani replied by saying, “The garment export sector has an exalted status in Bangladesh, which means it gets many benefits, which is not available to the industry in Pakistan. So I am pessimistic about us competing with Bangladesh”.
 
When reminded about the energy crisis in Pakistan, Mr Kari said, “The apparel industry consumes negligible electricity and little or no gas, when compared to the spinning, weaving or fabric process industry. So, I do not foresee these being impediments to the growth of the garment sector if Pakistan gets the LDC status”. 
 

Fibre2fashion News Desk - India


Must ReadView All

Textiles | On 25th Sep 2017

SVP Group to build $300 mn spinning plant in Sohar

ShriVallabh Pittie Industries (SVP) Group, a diversified yarn...

Apparel/Garments | On 25th Sep 2017

Vietnam textile sector to gain if EU FTA gets ratified

Experts feel the Vietnam-European Union (EU) free trade agreement...

Courtesy: Business Wire

Textiles | On 25th Sep 2017

Invista to use ADN technology at joint project in France

Invista, a leading producer of chemical intermediates, polymers, and...

Interviews View All

Binoy Ravjani
Hero's Fashion

‘One of the recent trends in hand block printing is the indigo process,...

Headhonchos
Indian fashion industry

Organic the first choice of any environment-conscious person

Milind Khandwe
Hindoostan Innovation Centre

‘Modern technical textile is an indispensable tool for science and...

Larry L Kinn
Suominen Corporation

Larry L Kinn, Senior Vice President - Operations Americas of Suominen...

Marten Alkhagen
Swerea IVF AB

Marten Alkhagen, Senior Scientist - Nonwoven and Technical Textiles of...

Silke Brand-Kirsch
Schlegel und Partner

Silke Brand-Kirsch, executive partner of Schlegel und Partner, a leading...

Vaanee Bhatia
Gritstones Clothing

<div>Delhi-based Gritstones Clothing offers quality and exemplary style...

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Prathyusha Garimella
Prathyusha Garimella

Hyderabad-based designer <b>Prathyusha Garimella</b> is known for blending ...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search