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'Pakistan Apparel Forum' to represent whole apparel sector
Jul '08
Mr. Bilal Mulla, Central Chairman PRGMEA in a statement has said that Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA), Pakistan Hosiery Manufacturers Association (PHMA), Pakistan Knitwear and Sweater Exporters Association (PAKSEA) and Pakistan Cotton Fashion Apparels Manufacturers & Exporters Association (PCFA) are the real stakeholders of the apparel sector who have jointly established a forum “PAKISTAN APPAREL FORUM”, which is the real body to represent the whole apparel sector of Pakistan, and the apparel sector of the country shall only accept such proposals which meet the expectation of real stakeholders and it is submitted that before finalization of any proposal the real stakeholders viz “PAKISTAN APPAREL FORUM” should be invited and consulted in the matter.

He further said that out of all Textile Sectors, Apparel is the only sector which has shown consistent growth from about 2.2 Billion US $ in 2003 to about 3.3 Billion $ in 2007 but still Pakistan's market share in global apparel market is least among its competitive countries.

Pakistan has only 1.3% in Global apparel market, compared to Bangladesh which has 2.8% market share, India at 3.3% and China at 31%.

The significance and importance of Value Added sector can be evaluated by the fact that 1 Cotton Bale exported earns 238 $ in foreign exchange, while on other hand clothing made and exported from 1 Bale of Cotton earns the foreign exchange of 1,600 $.

During the period of July till Mar 2008 exports of Textile declined by 4.7% due to Political instability, deteriorating law & order conditions, judiciary turmoil, negative travel advisory, worsened energy crisis and other such factors.

But Woven Garment sector showed an increasing trend. Its export has increased by 7.3% during the same period.

As regards, proposed formula of R&D Support on slab basis, Mr. Bilal Mulla said that most of the value added garment exporters, almost 91% of SME Sector, has annual export of 3 million US $ or lower, only 4 % of exporters fall under the category of 3 to 5 million annual exports, 3% fall under category of 5 to 10 million $ of annual exports, where as exporters under the category of 10 million $ and above are only 2%.

The R&D Support was utilized most effectively as our exports have increased by 37% in the countries where government has provided R&D support.

Apparel Industry currently provides direct employment to over 1 million people and about the same number of people are employed indirectly through vendor industries.

If R&D Support is discontinued then Pakistan will not only loose golden opportunity to gain major global share in coming years but also thousands of workers will become unemployed as they can not be easily absorb in any other industry.

Mr. Bilal Mulla further propose to the government that R & D Support with enhanced rate should continue for further 5 yearswith extended markets / countries and said that a summary for extension of existing R&D Support was deferred in the last meeting of ECC held on 1st July 2008, Apparel sector is disagreed with this summary and need one rate of R&D Supports one sector without any discrimination.

Pakistan Readymade Garments Manufacturers & Exporters Association

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