- Tanveer Malik
- journalist
image source, Getty Images
Pakistan’s textile industry is going backward
When many countries imposed lockdown to stop the corona virus epidemic in the world, instead of complete lockdown, the policy of smart lockdown was adopted in Pakistan and the export sector was allowed to work.
Meanwhile, industrial work has come to a standstill due to the lockdown in other countries of the region, especially in India and Bangladesh.
That’s why exporters of domestic textile and garments in America and Europe started placing orders to Pakistan, which greatly benefited Pakistan’s textile sector.
Sialkot-based exporter Hasan Ehsan was also among those who benefited from these orders.
When he started getting a lot of orders from exporters in America and Europe, he also agreed to pay more money to the workers to fulfill them.
According to Hasan Ehsan, these export orders were not only with him in abundance, but exporters of these products in Faisalabad, Lahore, Multan and Karachi were also getting orders from Europe and America.
It was the time of Corona and the government in Pakistan refrained from imposing a complete lockdown and allowed the export sector to function. But a complete lockdown was imposed in India and Bangladesh to stop the corona epidemic.
This was the reason that orders for home textiles and readymade garments started coming to Pakistan from America and Europe. Due to this, an increase was also seen in the total export of textile of Pakistan.
Why did the moving factory stop?
image source, Getty Images
Two years back, Ehsaan was paying more to the workers because of the large number of orders he had received. But some time ago they closed the factory. He also had to fire his employees.
Hasan Ehsan says that by investing the accumulated capital and savings he has somewhere outside the country, he now wants to shift abroad with his family.
He said that now the situation has become such that he is finding it difficult to restart his business.
Women’s clothing manufacturer and exporter Seema Khan’s factory in Karachi is functioning, but she says her export orders have dropped by 50%.
He said that the orders received from America and Europe have reduced a lot.
Seema said that two-and-a-half years back, she was getting a lot of orders from the US and European markets.
Definitely the reason for this was the lockdown due to Corona virus in Bangladesh and India, which diverted the export orders to Pakistan. But now these orders have become very less.
Hasan Ehsan and Seema Khan are people working in the textile sector who have faced difficulties due to the decline in exports of Pakistan’s textile sector.
Pakistan’s textile and garments exports, which averaged more than $1.5 billion on a monthly basis in the last financial year, have been limited to an average of $1 billion on a monthly basis in the first six months of the current financial year.
The main reason for the reduction in these is the huge reduction in the goods sold to the two main markets America and Europe. Two years ago, Pakistan had increased its exports to these markets significantly.
Exporters of the garment sector are facing losses due to the decline in huge orders received by Pakistan two years ago during the Corona virus era.
Where have the orders for Pakistan’s textiles and garments gone?
Talking to PRESS24 NEWS, Hasan told that they were exporting goods in large quantities to Europe and America, but then it started decreasing.
He says that when he asked his buyer where these orders are going now, he said that ‘now they are getting most of the goods from Bangladesh and India’.
Hasan said that his buyers told him that his first priority is Bangladesh, because he fulfills orders very quickly, and then he moves to India.
Hasan said that since he has stopped work, his buyers have now gone to Bangladesh.
Seema Khan told that their old buyers are still there and they are still taking goods from them, but after knowing about the decrease in their orders, it was found that now they are being fulfilled from Bangladesh.
image source, Getty Images
Why did Pakistan’s business go to Bangladesh and India?
According to people associated with the textile sector, there are some important reasons for Pakistan’s textile orders going to Bangladesh and India.
Hasan said in this regard that as far as he is concerned, the buyers of the American market still want to buy the products made in his factory, but he himself is unable to fulfill these orders.
He said that for example, our buyers in the US market ask to supply T-shirts for $10, as Bangladeshi goods are available in the US market at this price. Retailers will only pick up the goods at this price.
But due to the rising cost of trade in Pakistan, it is now difficult for them to deliver T-shirts to the US market for $10.
He said that apart from the increase in the prices of raw materials in Pakistan, along with the increase in the rates of electricity and gas, there has also been a tremendous increase in the shipment charges. So it has become difficult to make a T-shirt for ten dollars because of the extra cost.
Seema Khan also confirmed this. Their buyers also tell them to reduce the cost and give us cheaper products, but it is difficult to do so in Pakistan due to rising costs.
He said that in some products they are trying to keep the cost low, but in such a time it is difficult to reduce the cost on all the products. How is this possible when the prices of clothes as well as other costs and shipment charges have increased.
image source, bbc sport
What is different about Garments Products of Bangladesh?
There is a decrease in Pakistan’s textile products and more orders are going to Bangladesh. People and experts associated with the textile sector say that the recession in the world has also affected the purchase, but Bangladesh has been able to export more even in this situation. Used to be.
Ejaz Khokhar, regional president of the International Apparel Forum and an organization working in the textile sector, said that Pakistan’s internal political situation has affected the economy. This has affected textile exports and the worldwide recession has affected Pakistan as well, but Bangladesh is spared.
He said that the main reason for this is that the cost of doing business in Bangladesh is less. Also their product line is much more as compared to Pakistan.
He clarified that the range of products in the textile sector is less in Pakistan, while Bangladesh is manufacturing a much wider range of products and exporting it successfully.
Naveed Ahmed, vice chairman of All Pakistan Textile Mills Association, the largest representative organization of the textile sector in Pakistan, said that the reason for Bangladesh’s success is that the export culture has now developed so much that international buyers and investors are given a VIP status. Is.’
He said, “Even today, 95 percent of Dhaka’s five-star hotels are occupied by international buyers and investors. This is the reason that Bangladesh has made so much development in the garment sector. Now it has become the center of attraction of the world.
Naveed said, “The Bangladesh government gives a lot of importance to the export sector. Prime Minister Hasina Wajid meets representatives of the Garments Association every week, who have only one agenda, how to increase the country’s exports.
Naveed told that at present women are most active in the garments sector in Bangladesh and they have a large participation in the working class.
Naveed further said that there is a general perception about women workers that they work with more honesty and hard work and this is clearly visible in Bangladesh.
“The cost of doing business in Bangladesh is relatively low compared to Pakistan, although the government in Pakistan subsidizes the industry,” he said.
“But a big difference is their export culture of garments, which has become so common in Bangladesh now that the whole country and the government are active in increasing exports in this sector and on the basis of this they are increasing their exports.”
What do the textile export figures of Pakistan, Bangladesh and India say?
America and Europe are the major markets for the clothes manufactured in Pakistan, India and Bangladesh. If the exports of all the three countries are reviewed in these markets, there is a decrease in the exports of Pakistan.
During the Corona era, when there was a lockdown in Bangladesh and India, Pakistan increased its textile exports in these markets, but now the situation is looking different.
According to government data, in the first six months of the current financial year, there has been a decline of 15 to 19 percent in different types of textile products from Pakistan in the US market.
Similarly, exports to the UK have decreased by 11 to 18 percent, while exports of some textile products to other EU countries have seen a slight increase.
image source, AFP
According to the data of the Reserve Bank of India, there has been an increase in the textile products of India in the month of November. The amount of products exported to America has increased from Rs 469 billion to Rs 485 billion in Indian rupees.
Products sent to Holland increased from Rs 118 billion to Rs 147 billion, similarly exports to Germany and Italy have also seen an increase.
According to data from Bangladesh’s Export Promotion Agency, Bangladeshi garments exports to the European Union increased by 16 percent from July to December.
Similarly, exports to Britain registered an increase of eleven percent, while on the other hand, exports to America registered an increase of more than one percent.
Disclaimer: This post has been auto-published from an agency/news feed without any modifications to the text and has not been reviewed by an editor.
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