Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) Central Chairman Shaikh Mohammad Shafiq, in a statement, congratulated Dr. Miftah Ismail’s appointment as Adviser to the Prime Minister on Finance, Revenue and Economic Affairs, with the status of Federal Minister.
Shafiq expressed full confidence in Dr. Miftah’s ability and expertise to uplift the economy as he is a renowned businessman. Referring the TV talk show, he appreciated his enthusiasm to focus on resolving social and economic challenges faced by the county. He requested the PM to support him to achieve his goals, however, he notes that the Government needs to provide a conducive environment by reducing cost of inputs to achieve export targets.
Despite of capabilities and qualities of leadership Miftah can't achieve export targets unless he takes steps for the removal of hurdles hindering exports of textile sector. They should invite and consult with us to overcome these, he averred.
He urged all the stakeholders to play their role and trade Associations can also play a vital role and provide assistance in this regard. PRGMEA is a largest representative of value added sector, it can be beneficial to overcome these issues if takeen into confidence.
Utilities cost such as electric, gas and water are very high compare to our competitor country, he decried, for instance steam cost per ton per hour for Pakistan is US$ 16.44 and for Bangladesh its only US$ 5.6; whereas the Electricity/Kwh for Pakistan is 0.21$ while in Bangladesh it is 0.11$
The PRGMEA Chairman highlighted the fact that the low cost of labour in Bangladesh goes in favour of exporters. While the minimum wage is around $68 in Bangladesh, in Pakistan it is $125 and rising. Their exports are now increasing at $3.5 billion per year and expected to hit $50 billion per year by 2020. Additionally the lower utilities cost further benefits the manufacturer, he pointed out. Terming funds blockage as another reason behind the continuous drop in exports. He said the export sector was unable to tap its potential as per its capacity.
Pakistan's major competitors such as India, Bangladesh and China were utilising all the channels and resources for capturing world market. “Under the prevailing situation we need to opt for similar approach to survive well in the market.” He advised.
