20 percent decline feared in garment export

A recent calamity in Japan and popular uprisings in the Middle East and North Africa are expected to reduce Pakistan's apparel products exports by 20 percent this fiscal year, exporters said here on Monday. The other issues which could also aggravate the garments production baldy during the current season included unscheduled electricity load shedding in the industrial zones and deteriorating law and order in Karachi.
"We [exporters] anticipate some 20 percent decline in export of apparel products in the wake of fast changing political situation in the Middle East and in North Africa," said Zonal Chairman of Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea), Javed Chinoy.
The frequent strike calls by political and religious parties and poor law and order situation in the metropolis were also hindering production process on a regular basis, which was making it difficult for exporters to meet the shipment deadlines, he said.
He said the unscheduled power suspension in the industrial zones was also affecting the production process at least by 12 percent a day due to which the exporters were unable to receive more export orders.
"The prices of cotton globally had reduced to $176 per pound today and locally they were also going down with increasing import of the commodity from India and Uzbekistan," Chinoy said. He added both factors would drag the export of readymade garments down in near future as global buyers were trying to delay the ready import shipments from Pakistan, waiting for further decline in garments prices.
Expressing fears, the zonal Prgmea chief said the foreign buyers had always been reluctant to post orders with Pakistan apparel exporters for certain reasons particularly for late export shipments and high prices of products. He said the country's exporters were likely to see a significant cut in orders from European and American sources this fiscal year for their own economic issues coupled with Pakistan's uncertain political and law and order situations.
"Sales of garments in Europe and the US could not fully take off because of economic disturbances in these countries, which affect Pakistan's export," he said. Chinoy feared the industrial production might further decline with rising temperature in the city if duration in electricity load shedding was not fully reduced. "At present three to four hours a day electricity load shedding is carried out in industrial zones every day," he said.