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Pakistan’s RMG sector suffers amid lack of govt support

Though the country enjoys the Generalised Scheme of Preferences (GSP) Plus status to the European Union (EU), garment exports from Pakistan continue to deteriorate due to lack of support from the government.

The industry is facing several challenges such as security challenges, energy shortage, high interest rates, lack of policy implementation and high utility prices among many others are leading to a decline in textile exports. According to the World Trade Organisation (WTO), world trade in textiles and clothing increased to $766 billion in 2013 from $454 billion in 2004, a significant increase of 69 per cent despite the fact that the world experienced one of the worst financial crises in 2008-09.

However, Pakistan’s textile export share in the global market decreased from 2.2 per cent in 2006 to 1.8 per cent in 2013. During the same period, Bangladesh’s share jumped from 1.9 per cent to 3.3 per cent, China’s share increased from 27 per cent to 37 per cent and India’s share improved from 3.4 per cent to 4.7 per cent, according to data compiled by the All Pakistan Textile Mills Association (Aptma).

Total exports of Pakistan in fiscal year 2014-15 were $23.6 billion, down 4.8 per cent from $24.8 billion in fiscal year 2010-11. Similarly, textile exports have been hovering around $13 billion for the last five years. Rising gas and electricity rates have been negatively impacting the manufacturing industry.

www.wto.org

 
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