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Denim exports drop as production cost go up

11 Jan '06
1 min read

Denim exports to the US declined following the quota-free realm as Pakistani exporters find it tough to compete with other countries, where production cost is cheap and government levies are moderate.

Exports figures show a decline of 7.9 percent, said Malik Muhammad Afzal, a leading exporter of denim.

Afzal further lamented over the poor facilities provided by Pakistani Government, and added that Government of China does not take any charge on electricity consumed by new units for first three years, while Indian Government also offers incentives.

Statistics of US Office of Textiles and Apparels (OTEXA) revealed a 6 percent increase in denim exports to the US in 2005, compared with the 1,044 percent growth registered by China, said Afzal.

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