High costs & red-tapism force textile exporters exodus to B'ldesh

07 Feb '06

2 min read

Pakistan's textile exporters plan to move their business to Bangladesh and Sri Lanka in wake of high and rising manufacturing costs and bureaucractic hurdles.

Though textile exports went up after abolition of import quotas last year, some bed wear and home textile manufacturers have relocated to Bangladesh and Sri Lanka, informed Bilal Mullah, Chairman of Pakistan Readymade Garment Manufacturers Association.

Many textile companies invested and upgraded their facilities in the quota free regime, but high costs along with bureaucratic red-tapism have increased cost overruns, he said.

One of Pakistan's largest bed wear exporters Shabbir Ahmed, too contends that manufacturing costs may force him to relocate to Bangladesh.

Textile industry contributes about 67 percent of Pakistan's total $13 billion exports earnings, which is 11 percent of the Gross Domestic Product.

Pakistani exports to the EU during January-May 2005 period sank 33 percent, compared to the same period last year.

Meanwhile, textile export to the EU by China registered a rise of 57 percent while India's went up 28 percent, he stated.

Textiles Minister Mushtaq Ali Cheema said that during the first 10 months of the quota free regime, textile industry recorded a growth of over 17 percent, of which, garment exports rose 48 percent, bed wear 14 percent and other made ups by 78 percent.

But industry claims that Bangladesh and Sri Lanka offer better incentives and skilled labor that is cheap.

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