LAHORE: The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) has urged the government to revise the current Textile Policy, advocating for a separate five-year 'Apparel Policy' that would grant the garment sector autonomous status.
"The government should present a separate five-year 'Apparel Policy', detaching the garment sector from textiles and giving it an independent status in the aftermath of the expiring GSP Plus status and opening up of new opportunities in view of the U.S. International Trade Commission's (ITC) report on the competitiveness of Pakistan’s apparel industry to be submitted at the end of August this year," PRGMEA chairman Mubashar Naseer Butt said in a statement on Wednesday.
Butt appreciated the government’s urgent response to the US ITC report on the competitiveness of the apparel industry of Pakistan, observed that the move holds significant implications, presenting a valuable opportunity for the country's apparel industry to enhance its export because the US' major focus is also on apparel import from Pakistan.
"So, we need to strengthen this sector, giving it an identity like the rest of the world does, as the EU country’s single demand is also just apparel products, not the raw material or fabric," Butt added.
He said the textile industry is the most important manufacturing industry in Pakistan, with a relatively complete industrial chain—from raw cotton, cotton ginning, spinning, clothing, printing and dyeing, to garment manufacturing.
PRGMEA chairman appreciated the Pakistani team for preparing a strong case, presenting it in a befitting manner before the US International Trade Commission along with the PRGMEA, as it would prove to be a stepping stone for Pakistan's apparel export. “So far, the team of Pakistan has done a good job—a well-coordinated work of politicians, bureaucracy, and private stakeholders.”
Butt advocated for the launch of a new and totally independent apparel policy in line with the textile policy for the next five years, besides constituting an Apparel Council at the federal level, as the formulation of sector-wise policies is the only remedial solution to avoid a decline and stabilize textile exports.
“We ask the government to review its textile policy and introduce an apparel policy because our issues are completely different. We have no particular sales tax issue, and we are labour-intensive and a major employment generator as compared to the textile sector.”
The garment sector has an immense potential to create jobs with comparatively low investment and less energy needs, as it generates four times the employment at one-fourth of the energy consumption compared to other textile sectors. "Countries like Vietnam, Cambodia, and Indonesia are grabbing a major share in the global garment market, while Bangladesh and India are also preparing themselves to pick up a greater share," he said.
"The US is the largest export destination for Pakistan, as our apparel exports constitute around 85 percent of total exports to the US, and it can be enhanced significantly if we exploit this new opportunity fully."
Pakistani representatives testified about the comparative advantage of the apparel sector before the US International Trade Commission. It was a public hearing by the ITC on the export competitiveness of the apparel industries in the South Asian countries, including Pakistan, in the US market.
PRGMEA EC member and former chairman Sajid Saleem Minhas, who was representing PRGMEA in the hearing, pointed out that it could be a strategic opportunity for Pakistan to showcase the strength and potential of our apparel industry, believing that a well-crafted response from our end could lead to positive outcomes for our trade relations.
Minhas said that presently Pakistan has a very little share of the US market in the apparel sector because they are subject to applicable MFN tariffs of up to 38.3 percent. “It is the first step to get duty-free access to the U.S. market, and the government should also support the private sector by taking effective steps to make the value-added textile industry competitive and vibrant in the US market.”
Stressing the need for establishing an ‘Apparel Council/Committee,’ he said that it would include both the public and private sectors to monitor the apparel sector’s all activities and policymaking for escalating the country's exports. He also called for giving special attention to manmade fiber in the context of its huge demand in the US market.
"In the new apparel policy, we also need to enhance manmade fiber capacity because there is great potential for it in Pakistan. We need to make strategies with the help of the government on the issue of how we can attract further investment in this regard," Minhas said.
“Finally, the U.S. is giving us an opportunity to trade and not depend on aid through the ITC report, which will be submitted by the 30th of August. Now, it depends upon the government how they lobby and pursue to encourage the US government to open discussions for a possible tariff-free agreement on apparel exports from Pakistan.”