PAKISTAN: Garment exports in double-digit FY drop
Pakistan's apparel exports fell by 12% in value terms to US$3.61bn during the fiscal year to the end of June, compared with US$4.08bn the year before.
Exports of woven ready-made garments plunged by 8% to US$1.6bn and knitted garments were down by 14% to US$1.9bn. The shipments dropped 23% in volume terms, reflecting a slump in garment output.
Ejaz Khokhar, chief coordinator and former chairman of the Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA), told just-style that garment production has declined by 35-40% during the past year, mainly due to acute shortages of electricity and gas.
He urged the government to provide a 5% relief in taxes and levies to help revive output and offset the country's soaring inflation and rising cost of doing business.
A spokesperson for the All Pakistan Textile Mills Association (APTMA), also told just-style that buying houses are shifting to other countries and garment makers have to travel to Singapore or Dubai to meet the buyers.
According to a study conducted by the Pakistan Institute of Development Economics (PIDE), 67.5% of the country's textile firms face delays in orders, 70% have seen lower output, and the sector's overall loss from the breakdowns amounts to PKR819bn.
Energy accounts for around 35% of the operating cost in the textile industry. However, the sector is being supplied with gas for just five days a week and is also being hurt by power cuts that last 6 to 10 hours a day.
- Improved supplier capabilities benefit Next
- China and Vietnam lead US apparel imports in July
- Next H1: What the analysts say
- THE FLANARANT: Understand win-win or lose out
- Abercrombie & Fitch to lose logos in fashion focus
- Hanesbrands axes Costa Rican jobs in Vietnam move
- Brandix selects first "game-changing" innovations
- Apparel fuels global manufacturing downturn
- VF taps Nike exec to lead innovation centres
- Bagir to invest in Ethiopia as H1 loss deepens
- Wool in the 21st Century: new prospects for a familiar fibre
- Apparel Market in China to 2018 - Market Size, Trends, and Forecasts
- Global market review of denim and jeanswear – forecasts to 2020
- Global Database of the Top 1000 Apparel Producers - Company Names, Financial Performance, Key Executives, and Contact Details
- Global Database of the Top 1000 Cut and Sew Apparel Producers - Company Names, Financial Performance, Key Executives, and Contact Details