Garment cities can grab $120b export market

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LAHORE  - The proposed garment cities have a tremendous potential to generate employment with a relatively low investment and less energy needs, besides grabbing share of $120 billion export market that China holds, as it is moving away from clothing industry. 

“Currently countries like Vietnam, Cambodia and Indonesia are picking up the major chunk of the global garment market share. Bangladesh and India also seem to be preparing themselves to grab some share. The proposed cities will give the producers a flexibility to compete in a wide variety of garment categories, sources in garment industry stated on Monday.”

“This is also true in context of our application for duty-free access to the EU under the GSP+ scheme, the prospect of including ready made garments for export to China under the FTA regime granted by China to the ASEAN countries. Not discounting the hope that somewhere down the years’ trade with India will liberalize. All of the above need capacity building and new industrial infrastructure for the ready made garment industry, they observed.”

They said that if Bangladesh has managed to cross over $20 billion worth of garments export without growing cotton and leaving Pakistan far behind, why Pakistan cannot which is cotton growing country, he put the question. They said that new industrial cities will put a huge youth population into work force.

Meanwhile Pakistan Garments Manufacturers & Exporters Association Central Chairman Sajid Salim Minhas while addressing the executive committee meeting, called to consult recommendations for the establishment of garment cities, appreciated Punjab CM Shahbaz Sharif’s plan of establishing garment cities in the province. He observed that this sector generates 4 times the employment at one fourth of the energy requirements compared to other textile sectors.

The meeting was also attended by PRGMEA former central chairman Mr. Ijaz Khokhar and north zone chairman Mr. Farooq Mayer.

Chief coordinator and former chairman Ijaz Khokhar said that the PML-N government should make it a top priority for obtaining Generalized System of Preferences (GSP) Plus status for Pakistan to strengthen the country economically, besides improving foreign exchange.

He observed that obtaining GSP Plus status for Pakistan is a challenge for the new government. Mr. Khokhar demanded the government to hire competent lawyers to plead Pakistan’s case in the European Union (EU) for Generalised System of Preferences, as Pakistan would get the status once the legal formalities are completed.

North zone chairman Farooq Mayer added that it is unfortunate that we still have to submit at least five more progress reports for our application to be processed by the EU.

He informed that GSP plus will add over half billion dollars of exports every year with over 25,000 new jobs every year. Further the chairman also stressed for allowing duty-free imports of fabrics and other raw materials for re-export.

Courtesy:  Nation

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