Pakistan’s readymade garment exporters want measures that will bring down the cost of doing business. They say this will help them become competitive vis-a-vis other countries in the region. In five years, China has added 35.29 million spindles, India has added 14.2 million spindles and Bangladesh 1.98 million spindles. In Pakistan, only 1.02 million spindles were added.
Pakistan’s textile exports consist of apparels, knitted and woven garments, bed wear, made-ups, processed fabric, knitted and woven fabric, towels etc. The value-added textile export sector generates almost 34 per cent of the nation’s total employment.
Pakistan’s wages, interest rates, electricity, gas and water tariffs create hurdles for smooth business. The available gas is being supplied to unproductive sectors, causing a loss in terms of foreign exchange. The GSP Plus facility does not seem to have brought about the desired results. Exporters say they have been unable to produce export surplus due to massive energy constraints. They want policies that will encourage investment in the textile sector.
Few years ago, Pakistan’s textile exports were close to Indian textile exports but since then, Indian textile exports have surged ahead mainly due to conducive policies and a business-friendly environment.