KARACHI: The garment sector lost export orders of $800 million during the first five months of this fiscal year because of the electricity crisis. The garment exports declined by 10 per cent in October and 17 per cent in November.
“If the European Union puts a ceiling on the export of seven items which are included in the market access package, the garment exports will fall further and thousands of workers will lose their jobs,” Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea) chairman Shehzad Salim said at a media briefing here on Tuesday.
He regretted that Bangladesh and Indonesia continued to oppose the EU package for Pakistan whose economy had badly suffered because of the war on terror, floods and earthquake.
Mr Salim said it was unfortunate that despite assurances given at the government level to withdraw its objection from the World Trade Organisation (WTO), Bangladesh continued to oppose the market concession given by the EU to Pakistan.
He apprehended that Pakistan’s textile exports to the European market would badly suffer because of the opposition by Bangladesh and Indonesia and it would also have an adverse effect on “our position to qualify for the GSP-plus”.
The Prgmea chief urged the government to take immediate measures and start lobbying with EU member states to get the GSP-plus status which was presently enjoyed by 49 countries, including some African states.
He suggested that the government should also hire the service of a lawyer to plead the case. “There is a greater need that government officials lobby with importers’ bodies of the EU because this will help Pakistan strengthen its case in the member states,” he added.
Prgmea (south zone) chairman Atiq Kochra said the government would have to make all-out efforts and engage a reputed law firm because the EU member states were expected to take a decision on the GSP-plus over the next eight to ten months.
He said textile exports to the EU were already suffering because of the lack of interest at the official level in getting the market access package for 72 Pakistani textile items.
“Although the package is not enough to compensate the losses Pakistan has suffered because of floods, heavy rains, earthquake and the war against terrorism, it will help, to some extent, generate jobs,” he added.
Shehzad Salim said that threshold for GSP-plus qualification suggested that a country’s exports to EU member states should not be over one per cent, whereas Pakistan’s exports presently stood at 1.4 per cent of the total EU imports. However, he said, the EU was open to revise the threshold at two per cent and Pakistan could quality for the GSP-plus.
He was of the opinion that strong lobbying and good lawyer were two important factors which could help Pakistan achieve its goal of getting the GSP-plus by 2014.
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