Pakistan’s textile industry fears of losing EU garments share to Vietnam
The Pakistan Readymade Garment Manufacturers and Exporters Association (PRGMEA) Chief Coordinator Ijaz Khokhar said that the country’s export of textile and clothing have been declining sharply during the last six months (July-Dec) of 2015 and the government needs to take preventive measures to enhance textile exports
Pakistan’s export market has already shrunk due to high energy cost, and discriminating import duties on the industry’s raw material and a decline in cotton production, said Ijaz Khokhar.
He said that the government should take preventive measures following the EU and Vietnam have reached an agreement for a free trade agreement, as the emerging economy can capture Pakistan export market.
Further, PRGMEA has urged the government to address the issues of the value-added textile sector, as the continued drop in exports may further widen due to Vietnam and European Union’s (EU) Free Trade Agreement (FTA).
Experts feared that Vietnam will capture Pakistan textile value-added export market despite having status of GSP Plus because Pakistan is not availing this facility due to very limited product lines mainly due to strict import policy of government.
PRGMEA chief coordinator asked Prime Minister Nawaz Sharif to personally direct the policy makers for reduction in all input costs otherwise the export-oriented industries would not only close down their operations but millions of workers would also lose their jobs. He added that the value added textile sector is burdened with multiple taxes with high cost of inputs, tariffs of gas, electricity, raw material, and is further harassed due to short supply of all these most essential utilities.