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| Exports of readymade garment and fabrics from Pakistan to USA have declined sharply because the country is not in a position to compete in respect of cost and quality with Taiwan, Thailand, China, South Korea and Ukraine. Apart from higher cost and complaints about quality, the delivery period of Pakistani goods has also been a snag from the buyers' point of view. Pakistani goods take a lot more time in shipment. The quota premium for different items also makes Pakistani stuff much less competitive. |
A few countries like China, India, Taiwan and South Korea have set up their warehouse / distribution centres in USA. These houses import goods in bulk and then supply to the local firms in small quantities. This brings good prices and ensures confidence of the local buyers about quality. Unfortunately, very few Pakistani firms have such arrangements abroad. Pakistani fabrics are about 10-15 per cent more expensive than imports from Far East and China. For example, print cloth (category 315) from China is available at 39 cents per meter, whereas the same item from Pakistan costs 43 cents per meter.
The per square meter cost of duck cloth (category 219) offered by India is about 3-4 cents less than that of Pakistan. Similarly, due to price factor, the imports have shifted to Indonesia, Thailand and Russia. Even the countries like Bangladesh are putting up tough competition. It seems Pakistani exporters have not taken their job seriously. The orders are generally placed during the first quarter of the year. It is general practice that the exporters having quota, raise the quota price during this period. As a result, the prices quoted in the market during 1st quarter are higher and orders are shifted to cheaper sources. Besides streamlining the quota availability and its easy access to the exporters having export orders, the government may take action to bring down production cost especially the cost of raw material, financing and electricity.
Pakistan manufacturers of yarn / fabrics should visit the Caribbean region. It will be preferable if a few Pakistani manufacturers open their offices in these countries to promote sourcing from Pakistan.
As a general marketing strategy, EPB should consider participation in regional and retail trade shows rather than high profile exhibitions. This will help to create direct awareness about Pakistani products and exhibitors will be able to get proper feedback from the buyers / and users thus making adaptation in design and products.
Sources say that if Pakistan is desirous of increasing exports it should consider the following proposals:
Garment Industry is considered as a stepping stone to prosperity, Pakistan should therefore focus on apparel exports to fuel the economic growth.
Garment parks may be established at major manufacturing sites at Lahore and Karachi. These parks may be exclusive export processing zones. The garments parks can facilitate the import requirements, help to deal with labour issues. Garment sector is highly labour-intensive. The design institute may be associated with the garment park. This will also help produce value-added garments and attract foreign investment.
Baby apparel market is one of the fastest growing sectors. Unfortunately, Pakistan is not exporting this stuff in big quantities in spite of the fact that it has huge quotas for these products. There was an increase of 26 per cent in import of baby garments in 1999 over 1998 .
Sportswear and active wear are difficult to market. However, the size
of market is very big and rewarding.