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With the advantage of cotton inputs the garment sector of Pakistan
is expected to survive during the quota free era. However, it
would have to opt either for high value addition or the large
quantity production. Pakistan will have to avoid competition
with China and it would have to get its share from the international
garment market worth $400 billion, according to an expert who
worked to compile a report on the Lahore garment cluster with
the United Nations Industrial Development Organisation (UNIDO).
During the last few years, the segments of selected items of
ready-made garments have shown an appreciable rising trend in
exports. However, Pakistan's textile sector is relatively weak
in synthetic fibre products, such as women's garments and fancy
apparels. The export of value-added products depends heavily
on quota imposing markets.
The safeguard and anti-dumping measures are effective tools
in the hands of developed importing countries to block exports
of developing countries. Pakistan's bed linen export has been
repeatedly subjected to anti-dumping proceedings. Export of
shop towels has now invited counter-veiling duties from USA.
There is now more focus on export of garments in Pakistan.
At present there are 5000 plus garment units operating in Pakistan.
Of these 12% are said to be large scale and 88% small almost
cottage industry level. There are about 2,50,000 industrial
sewing machines and half a million domestic sewing machines
in this sector. In knitting too there are about 750 big and
small units. Pakistan fetched more than US $2 billion from export
of garments and knitwear during last fiscal year and expects
to push up earnings in the current fiscal year too. These two
sectors, said to be the highest value added textile products,
are likely to emerge main foreign exchange earners in the post-2005
world export market.
The garment industry provides highest value addition in the
textile sector. This sector is distributed in small, medium
and large-scale units, most of them having 50 machines and below.
The sector is comprised on 600 large and 4500 small units. This
industry is also a good source of providing employment to a
large number of people at a very low capital investment. It
mainly uses locally produced raw materials. The sector is attracting
considerable investment and many new units are coming up in
the organized sector every year.
Pakistan produces a wide variety of garments, which to some
extent are popular all over the world for their colours and
fine quality besides competitive prices. Pakistan's textile
designers have the ability to innovate new designs in fashion
garments. For domestic consumers they present a combination
of old and new fashions. They manufacture Pakistan's traditional
dresses with modern designs taking into account the utilisation
aspects as well. The local requirements of readymade garments
are almost wholly met by this industry. Its exports in 2002-2003
stood at US $ 1,093 million.
The European Union has recently announced withdrawal of General
System of Preferences (GSP) duty-free concession on import of
clothing from Pakistan from January 2005. The Chief, Pakistan
Readymade Garments Manufacturers and Exporters Association (PRGMEA)
Tahir Aziz said that after the withdrawal of GSP, Pakistan would
lose its edge over India and Bangladesh in garment exports,
and buyers would now turn to our rival countries in exports.
However, US studies indicate that the end of quota in textiles
and apparel in 2005 is expected to be a boon for apparel manufacturing
industries in only a handful of the 146 World Trade Organization
(WTO) nations. Pakistan's industry would not only survive but
the garment exports are expected to increase by least 50%.
Pakistan's textile sector has made considerable advances in
production capacity and capability in the last three years.
Today it contributes 67% of exports, and many product lines,
such as bed linen and garments, are expanding rapidly.
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