Accidents in RMG Factories Raised Hopes for Pakistan's Garment Manufacturing Sector

The spate of accidents in the readymade garment (RMG) factories of Bangladesh have raised hopes for Pakistan’s garment manufacturing sector, Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) South Zone chairman Shaikh Shafiq Rafiq has said, according to a Tribune report.
 
Mr. Rafiq said Bangladesh is losing its competitive edge due to the accidents and its two advantages—lower wages and duty-free access—are no more helpful for its manufacturing sector. On the other hand, Pakistan is working upon both fronts and expects some of the business from Bangladesh to shift to Pakistan.
 
According to data from Pakistan Bureau of Statistics (PBS), Pakistan’s textile exports increased by 6.14 percent year-on-year to US$ 10.75 billion in July-April 2012-13, as compared to exports of US$ 10.13 billion made during the corresponding period of previous fiscal year.
 
Pakistan’s readymade garments exports increased by 11.82 percent from US$ 1.319 billion to US$ 1.475 billion, during the same period.
 
Pakistan’s apparel exports are also likely to increase as the country is most likely to get the European Union’s GSP Plus status that will provide duty-free access for its garment exports to the EU from next year.