Growth in the imports of used clothing to the country averaged a whopping 21.1 percent in the 2006-10 period, compared to CAGR of 10.9 percent in 2003-06 period; contends State Bank of Pakistan, in the "The State of Pakistan's Economy" report for the first quarter of the current fiscal.
The demand of used clothing is attributable to rising brand consciousness among the populace as well as the rising cost of new clothes. "Surprisingly, middle to high income groups are also buying used clothes," asserts the central bank, adding that used branded clothing and accessories are fast gaining popularity in "exclusive Sunday bazaars and other up markets".
The report released here on Saturday contends that constraints in energy supply are "the dominating factors in discouraging additional investments in the (textile manufacturing) sector". The report highlights that investments in the textile sector have persevered despite adverse business conditions at home and abroad. However, the focus of new investments appears to be shifting from manufacturing towards services, most notably retailing.
A survey conducted by the central bank showed that new investments in this sector are predominantly "self funded, smaller in size and largely concentrated in the retailing business". What's more, businessmen besides those already engaged in textile manufacturing are also appearing increasingly interested in textile retail in the country.
Given that majority of the businesses entering into textile retail sector are not registered with SECP, SBP concedes "no matter how obvious the growth is, we unfortunately cannot measure it". However amidst slowing international demand for textile products, the rising trend of textile retailing in the country may help shore the domestic textile players, while also creating job opportunities in the retail sector.
Comments
Comments are closed for this article.