Seeking separate ‘apparel policy’, PRGMEA underscores need for detaching garment sector from textiles

LAHORE: The Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) have called for a revision of the Textile Policy. They are urging the government to introduce a separate five-year ‘Apparel Policy’, detaching the garment sector from textiles and granting it independent status.

This proposal comes in light of the expiration of the GSP Plus status and the emergence of new opportunities, particularly following the forthcoming report by the U.S International Trade Commission (ITC) on the competitiveness of Pakistan’s apparel industry, scheduled for submission at the end of August this year.

Mubashar Naseer Butt, central chairman of PRGMEA, has commended the government’s prompt attention to the U.S ITC report. He emphasized the significance of this move, noting the potential for Pakistan’s apparel industry to boost exports, especially considering the U.S’s interest in apparel imports from Pakistan. Butt stressed the need to strengthen the sector’s identity, aligning it with global standards, as evident in the EU’s singular demand for apparel products over raw materials or fabrics.

During a recent hearing, the U.S International Trade Commission questioned why Pakistan primarily exports raw materials instead of focusing on value addition. Mubashar Butt highlighted Pakistan’s robust textile industry, encompassing a comprehensive industrial chain from raw cotton to garment manufacturing. He expressed gratitude for Pakistan’s cohesive effort in presenting a compelling case before the U.S International Trade Commission, stressing its pivotal role in paving the way for enhanced apparel exports. He advocated for the launch of an independent apparel policy, distinct from the textile policy, for the next five years. He proposed the establishment of a federal-level Apparel Council to formulate sector-specific policies, essential for sustaining textile exports. He emphasized the divergent challenges faced by the garment sector, underscoring its labor-intensive nature and significant employment generation capacity compared to the textile industry.

Highlighting the garment sector’s potential to create jobs with minimal investment and energy consumption, Butt pointed out the growing market shares of countries like Vietnam, Cambodia, and Indonesia. He emphasized the need to fully exploit the potential of Pakistan’s apparel exports, particularly to the U.S, which constitutes the largest export destination for Pakistani apparel products.

During a public hearing by the ITC on the export competitiveness of South Asian apparel industries in the U.S market, Pakistani representatives underscored the strategic importance of showcasing the strength and potential of Pakistan’s apparel industry.

Sajid Saleem Minhas, PRGMEA EC member and former chairman, emphasized the imperative of securing duty-free access to the U.S market and urged government support to enhance the competitiveness of the value-added textile industry. Minhas stressed the establishment of an ‘Apparel Council/Committee’, comprising both public and private sector representatives, to oversee sector activities and policy formulation aimed at boosting exports. He emphasized the need to focus on man-made fiber capacity and encourage investment in this sector, alongside fostering young entrepreneurship to bolster national exports.

In conclusion, Minhas highlighted the opportunity presented by the forthcoming ITC report and urged the government to engage in discussions with the U.S for a potential tariff-free agreement on apparel exports from Pakistan.

Copyright Business Recorder, 2024