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High cotton & yarn prices hurdles in RMG export targets
Nov '09
High prices of cotton and yarn in the local markets of Pakistan may not allow the local exporters to meet export orders, worth $1 billion for Christmas, from the European and American apparel markets.

Country's apparel industry would see further decline in exports in case of not taking measures to check cotton and yarn exports, said Dr. Shahzad Arshad, Chairman of the Pakistan Cotton Fashion Apparel Manufacturers and Exporters Association.

The government should impose a regulatory duty on the export of cotton and yarn immediately to salvage the export-based apparel industry from the permanent loss, he added.

Compared to the competitor countries, exports of Pakistani apparel are growing with a very slow pace as it has increased from $1.5 billion to only $3.5 billion in the past ten years, while apparel exports of Bangladesh mounted up from $1.5 billion to $12.5 billion during this period, pointed Dr. Arshad.

Further he said that the government should take effective steps to control the cost of executing business as it is continuously soaring up without showing signs of relief to the industrialists, which would force a large number of apparel units to close down their shutters leaving thousands of employees without jobs.

Apparel export industry of the country is the highest employment provider sector, but now constant closure of these units is increasing unemployment ratio in the sector.

At present, apparel exporters of the country are not receiving any orders due to unwillingness of the western customers to place orders in the country because of disturbed law and order situation, and increase in prices of cotton and yarn.

It would be a challenge for exporters to achieve textile export targets if effective remedial measures would not be taken in this direction.

Fibre2fashion News Desk - India

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