LAHORE, Jan 10: Can Bangladesh’s loss prove to be Pakistan’s gain? Most textile exporters say it can only if the current political unrest and violence in that country continues for quite some time and hits its garment industry’s output, as well as dents its exporters’ ability to ship orders on time.

“The reports that the ongoing political turmoil and strikes in Bangladesh have earned Pakistan’s garment exporters new orders worth $500 million are preposterous as buyers (importers from Europe and the US) don’t act on whims. “The current turmoil hasn’t, so far, hit garment production in Bangladesh in a very big way to cause serious worries among buyers about the ability of Bangladeshi exporters to ship the orders on time,” says Mr Ijaz Khokhar, chairman, Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA).

He says the current unrest and strikes might have hit only 10 per cent or less production, which should not be worrisome either for the Bangladeshi exporters or their foreign buyers. “This small loss in production can be made up by increasing the working hours or workers’ shifts for a few days,” he says.

Another leading knitwear exporter says the European or American textile importers will turn to Pakistan or other garment producers only if their deliveries from Bangladesh are hit for a very long time and cause disturbances in their business.

“The garment exports from Bangladesh to EU have an advantage of 12 to 14pc and to the US close to seven per cent over its regional competitors, like Pakistan and India, in the shape of special treatment accorded to them on account of being one of the Least-Developed Countries (LDCs).

“No importer can ignore this price advantage unless he really feels his shipments threatened by the political uncertainty and unrest,” he says.

In all, he adds, a garments exporter from Bangladesh has 22 to 23pc price advantage over his Pakistani counterpart due to higher production cost in Pakistan.

Former Pakistan Hosiery Manufacturers Association (PHMA) chairman M.I. Khurram says the buyers of Bangladeshi textile garments may turn to Pakistan to source their needs in the next six months provided the political environment there remains unsettled for weeks to come.

A woven garments exporter, nevertheless, does not expect buyers of Bangladesh’s textile to come to Pakistan.

Khokhar, however, says there are chances that some importers might have indicated to Pakistani exporters that they may shift a small part of their orders to them in the long-term if the political turmoil in Bangladesh persists for very long.

“But I don’t see any evidence of buyers shifting to Pakistan in the short-term because if Bangladesh fails to make deliveries in time because of political unrest, we shall not be able to do because of other constraints, like unavailability of raw material, workforce, etc.”