Karachi, January 18, 2018 (PPI-OT):A high level meeting with Mr. Ahsan Iqbal the Federal Minister for Ministry of Planning, Development and Reform was held at Islamabad on Wednesday 17th January, 2018 on the subject of Garments Manufactures Units Project. On the occasion, Shaikh Mohammad Shafiq, Chairman Central, Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) brief about the facts that The Textile and Clothing Industry has been the main driver of the economy for the last 50 years in terms of foreign currency earnings and jobs creation.
The Textile and Clothing Industry will continue to be an important engine for future growth of the economy; there is no alternative industry or service sector that has the potential to benefit the economy with foreign currency earnings and new job creation, especially if synergy is developed amongst different sub sectors and efforts are made to aggressively grow the Readymade Clothing Sector.
During the meeting, hindrances of textile export were also discussed. The Minister assure to do their best in this regard, and announced a Project of interest free loan upto Rs,5,000,000/- (Rs. Five Million) for new stitching units on easy instalments for 10 years and instalments will starts after two years. To obtain the benefit from this Project an investment of 30% is required from the investor while reaming 70% will be given without interest (upto Rs. Five Million).
Pointing towards the stiff competition offered by global rivals such as Vietnam and Bangladesh, chairperson of PRGMEA, Sheikh Mohammad Shafiq sought the lower utilities cost further benefits the manufacturer. Pakistan has also failed to improve its share in the international market and the only exports to already available markets in USA, China, UAE, Afghanistan and European Union were declined in the last four years due to lack of interest by the government and for taking adequate measures to boost exports in these markets as more than 60 percent of the total exports destinations are in just these few countries.
He further said that we have full confidence in Mr. Ahsan Iqbal’s ability and expertise to uplift the economy. However, the government needs to provide a conducive environment by reducing cost of inputs to achieve export targets and special strategy may be formulated to strengthen Pakistani brands in the international market as well as support local SMEs to develop their own brands locally as well as in international market. Small schemes may be launch, to re-initiate with more vigour and government support.
The PRGMEA chairman highlighted the low cost of labour in Bangladesh goes in favour of exporters. While the minimum wage is around $68 in Bangladesh, in Pakistan it is $125 and rising. Their exports are now increasing at $3.5 billion per year and expected to hit $50 billion per year by 2020. Additionally the lower utilities cost further benefits the manufacturer, he pointed out. Terming funds blockage is another reason behind the continuous drop in exports. He said the export sector was unable to tap its potential as per its capacity. Pointing towards the stiff competition offered by global rivals such as Vietnam and Bangladesh, Chairperson of PRGMEA, Sheikh Mohammad Shafiq sought the lower utilities cost further benefits the manufacturer.
For more information, contact:
Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA)
3rd Floor, Plot No. 57-C, 24th Commercial Street,
Phase II (Ext), DHA, Karachi, Pakistan