Though Pakistan seems to have placed a lot of faith in the ‘game-changing’ China-Pakistan Economic Corridor (CPEC) but local business community is concerned. Stakeholders in the country’s textile sector are anticipating a further decline fearing if Chinese companies started relocating their textile units in different tax-free industrial zones in Pakistan, they would go out of business.
In a talk, Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) Senior Vice President Jawad Choudhry said whenever China enters any country, it damages the domestic market. He observed that the readymade garment industry was currently facing a decline due to the high cost of doing business and productivity whereas China plays with price by increasing its production, he added.
Experts believe if China locates textile units to Pakistan, they will have an edge over existing players due to tax-free zones, under CPEC. An additional benefit for them would be the energy prices as they are setting up their own power plants to feed their industries in Pakistan.