22:18
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LAHORE: Despite energy shortages, the apparel sector is making all-out efforts for obtaining market access to the European Union under the GSP plus in 2014, converting their processing sectors to coal-run boilers instead of gas, said an official on Saturday.
“Yes, we are upbeat about the expected market access in another year’s time provided the government ratifies a few conventions as required by the European Union,” said Adil Butt, chairman of the Pakistan Hosiery Manufacturers Association (North Zone).
“We still face energy issues and some technical problems, he said, adding that the knitwear producers now realise that the gas shortages would increase further in the coming years.”
The exporters have shifted their burners from gas to coal, he said, adding that coal is a little more expensive than gas but is much cheaper than all other fuels, which have provided relief to the knitwear producers.
Butt said the power needs of the industry are modest as compared to spinning or weaving. Most of the surviving exporters have installed generators to produce the required amount of electricity when the power from state-run distribution companies is not available, he said.
“We have best cotton suited for knitwear, best machines and a highly skilled workforce, which can compete with any exporter in the world on a level-playing field,” he added.
A leading knitwear exporter said that only the United States and the European markets are worth exporting knitwear, while markets such as Africa and Central Asian Republics are risky.
The new markets in the developing countries have not yet developed creditable financial system and exporters often lose money if they send the consignment on credit.
He said December to February is a lean period for knitwear. The industry, he said, is expecting to be able to take advantage of the recent access granted to the Pakistani textiles by the European Union till the end of 2013.
He regretted that the Trade Development Authority of Pakistan (TDAP) is yet to issue certification required under the new access system that assures that the goods being exported are in accordance with the type for which the market access has been granted.
The exporters face payment problems on goods exported to Africa, he said, adding that Russia is a good market but the Russians still conduct trade on barter system, which is a problem for local exporters.
The problem of generating steam has been addressed to some extent by converting boilers to coal, which needs fresh investment, he said.
However the state supplied power is still erratic. From December 17, the power outages will double from the existing four hours to eight hours due to canal closures in Punjab, he said.
Still he was optimistic that the knitwear exports would increase substantially if Pakistan gets GSP plus status from the European Union in 2014.
It is a credit to the industry that it manages to export its products to the EU at 19-27 percent duties when the Bangladeshi products have access to that market at zero duty. After GSP plus, Pakistan’s exports would also be zero-rated, he added.
Pervaiz Hanif, former chairman of Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea) said that the future of garment exports from Pakistan seems to be good.
Regarding exploring markets other than the United States and the European Union, he said that China and India are the other two large consumers of garments but both the countries cater to their domestic markets, besides exports. Low-income countries that do not export garments still make apparel for their domestic markets, he said. Moreover, he said that exporting garments to those markets is also problematic because of weak financial systems.
“Yes, we are upbeat about the expected market access in another year’s time provided the government ratifies a few conventions as required by the European Union,” said Adil Butt, chairman of the Pakistan Hosiery Manufacturers Association (North Zone).
“We still face energy issues and some technical problems, he said, adding that the knitwear producers now realise that the gas shortages would increase further in the coming years.”
The exporters have shifted their burners from gas to coal, he said, adding that coal is a little more expensive than gas but is much cheaper than all other fuels, which have provided relief to the knitwear producers.
Butt said the power needs of the industry are modest as compared to spinning or weaving. Most of the surviving exporters have installed generators to produce the required amount of electricity when the power from state-run distribution companies is not available, he said.
“We have best cotton suited for knitwear, best machines and a highly skilled workforce, which can compete with any exporter in the world on a level-playing field,” he added.
A leading knitwear exporter said that only the United States and the European markets are worth exporting knitwear, while markets such as Africa and Central Asian Republics are risky.
The new markets in the developing countries have not yet developed creditable financial system and exporters often lose money if they send the consignment on credit.
He said December to February is a lean period for knitwear. The industry, he said, is expecting to be able to take advantage of the recent access granted to the Pakistani textiles by the European Union till the end of 2013.
He regretted that the Trade Development Authority of Pakistan (TDAP) is yet to issue certification required under the new access system that assures that the goods being exported are in accordance with the type for which the market access has been granted.
The exporters face payment problems on goods exported to Africa, he said, adding that Russia is a good market but the Russians still conduct trade on barter system, which is a problem for local exporters.
The problem of generating steam has been addressed to some extent by converting boilers to coal, which needs fresh investment, he said.
However the state supplied power is still erratic. From December 17, the power outages will double from the existing four hours to eight hours due to canal closures in Punjab, he said.
Still he was optimistic that the knitwear exports would increase substantially if Pakistan gets GSP plus status from the European Union in 2014.
It is a credit to the industry that it manages to export its products to the EU at 19-27 percent duties when the Bangladeshi products have access to that market at zero duty. After GSP plus, Pakistan’s exports would also be zero-rated, he added.
Pervaiz Hanif, former chairman of Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea) said that the future of garment exports from Pakistan seems to be good.
Regarding exploring markets other than the United States and the European Union, he said that China and India are the other two large consumers of garments but both the countries cater to their domestic markets, besides exports. Low-income countries that do not export garments still make apparel for their domestic markets, he said. Moreover, he said that exporting garments to those markets is also problematic because of weak financial systems.
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