Apparel sector shows encouraging performance despite all odds

07 Jun '08

3 min read

Available statistics show that the Pakistan textile industry contributes more than 60 percent to the country's total exports and has emerged as the eight largest textile exporters in Asia.

However, rising input costs like hike in energy prices, workers wages, raw materials and uneven playing fields and ineffective policies have put an immense pressure on the textile industry of Pakistan, and the garment industry, which despite of producing the finest quality of apparel products, is unable to compete with its neighbouring countries due to heavy overhead expenditures.

Experts from Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) suggest that the country must improve on its capacity to boost its exports and the Government should take all the necessary steps to encourage and promote all entrepreneurs engaged in exports of garments and apparels.

Further, there is a dire need to enhance the quality of its products, upgrade the technology that are used, and encourage effective Research and Development (R&D) in order to compete with countries like India, China, and Vietnam.

Reports show that 90 percent exporters fall in the category of Small and Medium Enterprises. Growth of SMEs is essential for the development of bigger industries and the whole world is focusing on their growth and to maintain that level, Research and Development support is very much required as it is considered as the heart of any industry.

Anticipating the challenges to the garment and home textile sectors in the post quota period, the Government introduced a special textile garments package on the recommendation of the Ministry of Commerce in the shape of Research and Development (R&D) Support at 6 percent. This support has helped garments industry to survive and sustain itself, prevent potential export losses of millions of dollars, and retain jobs in the sector.

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