pest analysis of ktm.docx

8/19/2019 pest analysis of ktm.docx

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Introduction

Pakistani textile industry has about 50 large and 2500 small garment manufacturing units.

Moreover, it also houses around 600 knitwear!roducing units and "00 towel!roducing

units.#he textile demand in the world increased massively in last few decades. #he global share

of the textile increase about $%& trillion and it is ex!ected to increase 6.5' in future year. (hina

is known as the ma)or ex!orter country of the textile goods in the world. #he world wide textile

ex!ort is around "00& billion. #he *sian (ountries have the ma)or share in global textile

ex!ort .#he share of the china is around 55& billion, the share of the +ong ong is around -%&

billion, the share of the orea is around -5& billion, the share of the #aiwan is around $6& billion

and the share of the ndonesia is around /& billion, ndia also emerged as the ma)or ex!orter of

textile goods. n case of Pakistan, Pakistan also emerged as the textile ex!orter in the world.Pakistan emerged as the ma)or ex!orter of the cotton and cotton yarn, Pakistan ex!ort the -0' of

textile cotton yarn and %' cotton fabric to the world. #he Pakistan textile industry contributes

more than 60 percent to the countrys total ex!orts that sum around 5.2 billion 1 dollars. #he

industry contributes a!!roximately 46 percent to the total out!ut !roduced in the country. n

*sia, Pakistan is the %th largest ex!orter of textile !roducts. #he contribution of this industry to

the total 34P is 8.5 percent. Moreover, it !rovides em!loyment to 38 percent of the work force

in the country, which amounts to a figure of 15 million.

Pakistan mostly ex!orts the textile raw materials to the world and did not ex!ort the value added

items, this is the main !roblem of Pakistan textile sector. Pakistan should learn from angladesh

who im!orts the raw cotton from Pakistan and other countries and then made the value added

items and ex!ort it to the world. f we want to increase our textile revenue then we focus on the

value added items in future ex!orts.

+owever, the textile industry currently faces massive challenges. #he All Pakistan Textile ills

Association *P#M*7 needs to enhance the 8uality of its !roducts, u!grade the technology

used, and encourage effective !esearc" and #e$elopment %!' in order to com!ete

internationally. +owever, *P#M* argues other factors such as high interest rates and cost of

in!uts, non conducive government !olicies, and nonguaranteed energy su!!lies hinder their

com!etitiveness.


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Political

Pakistans #extile industry !rovides /' of the global textile needs and ranked at worlds number

$0 textile !roducers. Pakistans textile industry, based on locallygrown cotton, !roduces cotton

yarn, cotton cloth, and madeu! textiles and a!!arel. Market for im!orted textile machinery and

e8ui!ment in Pakistan is directly !ro!ortional to the overall strength of the local textile industry.

n order to revitali9e this sector, the 3overnment of Pakistan 3:P7 has formulated ;#extile

. *ccording to that ;vision>, 3overnment of Pakistan !lans was to s!end Pakistan

?u!ees --$ billion 14 $.00 e8uals ?s. /2 at the current exchange rate7 in the textile industry

in order to attain fifth !osition as a leading *sian textile ex!orter and to increase the ex!orts to

14 $-.%$5 billion by 200=. #o achieve this goal, it is ex!ected that new investment is more

than Pak. ?u!ees --- billion will be re8uired in different subsectors of textile industry. Pakistanis the eighth largest textile ex!orter from *sia.

Pakistani Private ector@#extile manufacturing enter!rises face the challenge of remaining

com!etitive in the context of the elimination of the MultiAiber *greement MA*7 8uotas on

textile and a!!arel trade under the Borld #rade :rgani9ation B#:7, the emergence of (hina as

a huge textile and a!!arel ex!orter, and new and !otential intraregional trade agreements.

m!lementation of the final B#: ruling against 1.. cotton subsidies, a new 1.. farm bill in

200%, and a !ossible agreement to multilaterally reduce cotton subsidies and tariffs across the

related textile and a!!arel sectors in the 4oha ?ound B#: negotiations may also affect the

cotton and related !rocessing industries of Pakistan.

#extile sector in Pakistan !rovides em!loyment of -% !er cent of work force which amounts to

$5 million. t includes both skilled and unskilled labour. Cearly, %.5 !er cent of (ountrys 34P

share is from this sector. Aibre2fashion, 200%7

#here is tight monetary !olicy im!osed on textile sector by government and increase the cost of

!roduction. Bithholding tax of $' also im!act badly on !roduction and high interest rate

financing cost increases. *ll ma)or financing institutions financing to the industry at high interest

rate also effect on !roduction of textile. tate ank of Pakistan tightened the monetary !olicy for

this sector. #here is no serious measurement on the government side to solve the !roblems.


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1nlike ndia, (hina or angladesh there is no subsidy available for Pakistani textile industry at

all. 4uring 20$020$$ reintroduction of 0.5' of minimum tax on domestic sales and $' of

withholding tax on all textile im!ort that is another shock to the industry. Docal sales also

become unfavorable because of high marku! rate that bound to the industry for increasing !rices

and o!erate under limited resources leading to discourage textile business. Public and !rivate

firms are between the lines and have no other o!tions exce!t shutting down or shifting business

across the border. Even federal government is well aware about the dilemma and never revised

the law

(an)lades"* India and +"ina en)oy com!aratively low interest rates than Pakistan. #he

!revailing rates are as following, %.5 to /.0 !er cent in angladesh, 5.25 !er cent in ndia market

rate is $0.25 !er cent, however exem!tion of 5 !ercent is !rovided to the textile industry7 and5.5% !er cent in (hina. Meanwhile, in Pakistan, the last three to four years has seen the interest

rates to have risen more than $50 !ercent, to $-.25 !ercent. #he increase has essentially cri!!led

the small time textiles owner, while seriously hindering growth of the textile tycoons. #his has

led to textile owners accusing the government and banks for maintaining detrimental !olicies.

believe that it is im!erative that the new government takes actions that have a !ositive im!act on

the industry as textile !rovides em!loyment to a!!rox -% !er cent of our working class. *

coherent !lan should be devised by the Pakistani government that allows some sort of

exem!tionFconcession such as in ndiaG the Ex!ortm!ort ank was set u! for the !ur!ose of

financing and facilitating the industries, es!ecially textile.

Ma)or ex!ort !artner countries of Pakistani textile industry are E1, 1*, (anada and Ha!an. *ll

these countries are im!ort textile !roducts from Pakistan at 8uota system exce!t Ha!an7. Ma)or

influence on industry is from 1* as more than 60' of total ex!ort !artner of country is 1. *s

an external factor, 1* and E1 !olicies related to Pakistani trade are tightened. #here is no

single reason for !olicy making by these two su!er !owers. ?es!ondent highlighted few as!ects

in connection with terrorism and war in *fghanistan. #here are !olitical !ressures from C*#:

and 1 about the su!!ort and coo!eration for war against terror. n case of dis!ute among the

nation, that directly effect to the trade and commerce. * recent survey re!ort showed more than

50' of textile ex!ort orders had been cancelled during 200/20$0 by 1* voluntarily. #he same

was ha!!ened if we talk about E1 market. Euro!ean firms !refer to buy textile !roduct from


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other countries at a chea!er rate instead to go to Pakistan. Meanwhile, 1* im!osed high tax on

im!ort of Pakistani textile !roducts that lead in a bad manner of Pakistani ex!ort to 1*.

Preferences are giving to angladeshi !roducts over Pakistan. #he Pakistani government has

started taken initiatives to im!rove the current state of the textile industries but still these

initiatives are in the early stages.

#he Ministry of #extile ndustry was created in 200", amalgamating all textiles related functions

of the Ministries of (ommerce, Cational Aood ecurity I ?esearch MCA*D7 and ndustries

and Production. +owever, some of the functions of the Ministry of #extile ndustry are still

under the ambit of other ministries, such as trade negotiations on textiles are handled by the

Ministry of (ommerce, while cotton seed !roduction and regulation is with the Ministry of

CAI?. #hese, in turn, are linked to other Ministries and 4ivisions like (limate (hange and:verseas Pakistanis I +uman ?esource 4evelo!ment :P+?47.

#he #extiles Policy 200/$" !rovided a direction to the Ministry of #extiles ndustry and

!re!ared a develo!mental agenda, along with identifying crosscutting issues hindering the

growth of the textiles value chain. t also !rovided subsectoral analyses for s!ecific intervention

schemes that were a!!roved by the (abinet. +owever, due to financial constraints much less

su!!ort was !rovided to the industry as against the ones envisaged in the Policy. #he su!!ort

!rovided was insufficient to attract further investment in new machinery and technology

com!ared to the incentives !rovided by our regional com!etitors like ndia, angladesh,


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,conomic

Pakistans Darge sections of the !o!ulation live in !overty and survive through subsistence

agriculture. nefficient regulatory agencies inhibit business formation. *ccess to bank credit also

undermines entre!reneurshi!, and the financial sectors seclusion from the outside world has

slowed economic freedom score is 55.6, making its economy the $2$st freest in the 20$5 ndex.

ts score has increased by 0." !oint since last year, reflecting im!rovements in investment

freedom and freedom from corru!tion that are largely counterbalanced by deteriorations in labor

freedom and business freedom. Pakistan is ranked 25th out of "2 countries in the *siaJPacific

region and its overall score is below the world and regional averages.

Pakistans economic freedom has advanced modestly in recent years. ince 20$$, economic

freedom in Pakistan has increased by 0.5 !oint, led by advances in investment freedom,

monetary freedom, and freedom from corru!tion. +owever, gains have been outnumbered by

losses among economic freedoms.

Darge sections of the !o!ulation live in !overty and survive through subsistence agriculture.

nefficient regulatory agencies inhibit business formation. *ccess to bank credit also undermines

entre!reneurshi!, and the financial sectors seclusion from the outside world has slowed

innovation and growth.

nflation has direct im!act on industrial sector es!ecially during last cou!le of years, res!ondent

said while interview. Production cost increased because of high interest rate and devaluation of

Pakistani ru!ee. t makes more difficult for textile industry to com!ete in *sian textile region.

nflation is considered a general rise in !rice level during a !articular time !eriod, and decreases

the value of money. (ontrolling the inflation is fundamental task of any government as it has

adverse effect on the economy growth. #extile sector is badly affected due to high !roduction

cost and double the inflation rate within the country. Ex!ort of textile !roduct has been decreased

since 200/. n Pakistan, demand!ull inflation exits when economy is demanded for more goods

and services then available. t is time !eriod when sellers get a chance for increasing the !rices of

goods and services. Prices of electricity and gas have three times since 200% because of increase

demand within the country. n summer, more electricity re8uire and during winter gas demand


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become high and federal government of Pakistan charge high !rices without any subsidy

regardless of domestic or industrial consum!tion. #he same trend has been seen in !etrolatum

!roducts. Prices are reviewed and increased each month of crude oil in the country. *t the end of

20$$, !rice of !etroleum !roducts has been double as com!are to 200=. More than $00' taxes

are included in the !rice of !etroleum that has direct and indirect im!act on textile sector. t is

shameful for the nation that no officials are interested to subsidy this uni8ue sector. f there is no

em!loyment o!!ortunity available in the country, then surviving become harder and economy

starts facing new other challenges that lead to increase the crime rate in the society

?ecession is term that is used by economist for ex!laining 3ross 4omestic !roduct meaning that

reduction in 34P of a country in a s!ecified time !eriod. f we talk about the economy of

Pakistan, then country is considered highly industrial. *griculture is become the basic reason forindustrial growth in the country. #extile sector is biggest as cotton cro!s is cultivated at large

area of the country and overall economy is de!endent on it directly and indirectly.

3lobal recession started in 200%200/ and every country of the world at macro level and almost

all industrial sectors were affected. Dikewise, Pakistani textile was also affected during that

!eriod and received international ex!ort orders at reduced rate. 1nfortunately, there were

multi!le reasons for slum! inside the country. t is im!ortant to consider again the !olitical

instability over the last few years. 3overnment of Pakistan is !laying childish role if we see

overall scenario within the country. #here was no !ro!er !lanning made at the right time even for

any sector including railways, airlines etc. of the country. ndustry is discouraging even now a

day. Meanwhile, this caused very high rate of inflation in the country. n 200%, inflation rate was

)um!ed dramatically from %' in 2006 to 2" in 200%. Bithin 22 months only, there were very

serious changes ha!!ened in the country and lead devaluation of Pakistani ?u!ee. efore 2006,

exchange rate was $14K60 P?s and in 200%, it was $14K %-P?s. #hen !rices of

commodities were really high during that time !eriod and number of !eo!le living below the

!overty line was increased from sixty million to %2 million. :f course, whole system chain was

totally cra!ed and !rices of gas and electricity high enough and surviving was difficult for

society. *ll of above factors directly effected on the textile industry and demand of !roduct was

decreased locally and internationally. nternational orders cut down as there was no surety of


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!olitical stability in the country. 1nem!loyment was very high and standard of living dro!!ed

down.

-ocial

ustainability today has become a necessity driven by consumer awareness and !reference for

sustainable !roducts, com!liance norms, and a reali9ation that to secure the future it is im!ortant

to act today. Dife cycle a!!roach to sustainability in textile and a!!arel industry entails ensuring

the three facets of sustainability the country. * s!urt in the manmade yarn ex!orts and a decline

in the manmade fiber ex!orts in the liberali9ation era is a welcoming trend as yarn is a higher

value added item which contributes more to ex!ort earnings. till ex!orts of cotton have emerged

as a ma)or source of foreign exchange earnings for the country. #he ratio between woven

clothing and knitwear shows an increasing trend in knitwear in the 1 market.

+aving the means to buy clothes has historically been a symbol of status and it still remains one

area of !eo!leLs lives where income differences and social status area readily !erceivable.

#he s!ecifics of the !ast are very different to the !resent, where the average E1

household s!ends only 5.=' of income on clothing and footwear. n the 1, where in 200/

citi9ens bought &-26bn of clothing, !eo!le s!end as little as 2./%' of their income on clothes.

#his is down from ".=%' in $/%% and /' in $/50, confirming a trend that has been a!!arent

since before the econd Borld Bar .

#his goes hand in hand with a fall in !rice!eritem. n other words, we can buy the same, or

even larger, amount of clothing, but s!end substantially less. #he E12= consumer statistical

survey shows that since $//6 overall clothing !rices have, on average, declined J des!ite an

inflation of around 2.2' J which would normally result in a !rice increase. n the 1, garment

!rices fell by an average of $0' between 200- and 200=, and in 2006 !eo!le bought a third

more clothes than in 2002. Bhile the 200= recession left the total sales volume in the 1

clothing retail market largely unaffected, the retail !rice of clothing deteriorated drastically.

:utsourcing to lowcost overseas locations, often lacking governmental enforcement of

minimum health and safety standards, accounts for an im!ortant as!ect of the retail !rice

http://epp.eurostat.ec.europa.eu/portal/page/portal/product_details/publication?p_product_code=KS-DY-09-001http://epp.eurostat.ec.europa.eu/portal/page/portal/product_details/publication?p_product_code=KS-DY-09-001http://mjperry.blogspot.co.uk/2010/03/spending-on-clothing-and-footwear-falls.htmlhttp://mjperry.blogspot.co.uk/2010/03/spending-on-clothing-and-footwear-falls.htmlhttp://mjperry.blogspot.co.uk/2010/03/spending-on-clothing-and-footwear-falls.htmlhttp://onlinelibrary.wiley.com/doi/10.1177/1077727X8901700301/abstracthttp://onlinelibrary.wiley.com/doi/10.1177/1077727X8901700301/abstracthttp://epp.eurostat.ec.europa.eu/portal/page/portal/product_details/publication?p_product_code=KS-DY-09-001http://epp.eurostat.ec.europa.eu/portal/page/portal/product_details/publication?p_product_code=KS-DY-09-001http://mjperry.blogspot.co.uk/2010/03/spending-on-clothing-and-footwear-falls.htmlhttp://mjperry.blogspot.co.uk/2010/03/spending-on-clothing-and-footwear-falls.htmlhttp://onlinelibrary.wiley.com/doi/10.1177/1077727X8901700301/abstracthttp://epp.eurostat.ec.europa.eu/portal/page/portal/product_details/publication?p_product_code=KS-DY-09-001http://epp.eurostat.ec.europa.eu/portal/page/portal/product_details/publication?p_product_code=KS-DY-09-001http://epp.eurostat.ec.europa.eu/portal/page/portal/product_details/publication?p_product_code=KS-DY-09-001http://epp.eurostat.ec.europa.eu/portal/page/portal/product_details/publication?p_product_code=KS-DY-09-001


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decreases in a!!arel. ince the $/=" Multi Aibre *greement, an ever increasing !ercentage of

clothing is !roduced in lowcost countries and im!orted back into western consuming nations.

ut, !ossibly even of more im!ortance, the fast fashion race to the bottom is also accom!anied

by lower !roduct 8uality standards. n 2006, the average life s!an of a garment in Dondon was

three years. +owever, Primark in :xford treet did not o!en until 200=, and it is safe to

s!eculate that the life s!an may now be even shorter.

n 200%, about %0' of all donated clothing was in good enough condition to either be reused as

secondhand clothing, baled goods to develo!ing countries, or sold to rag sorters. n 20$$ this

!ercentage had fallen to between 60 to =0'. n the same !eriod, the total amount of clothing

donated for recycling decreased by about 20', while the total amount of clothing discarded

remained stable or grew.

(ontem!orary fashion consum!tion !atterns, hence, have a direct correlation with lower garment

8uality. * well finished !air of )eans for exam!le, re8uires a certain amount of labor, and

therefore time, to sew. Making more items in a shorter !eriod of time can only mean one thingN

less time !er item, and therefore more mistakes and im!erfections with the result being that the

!roduct will fall a!art 8uicker.

n combination with the !ros!ects of im!ending raw material, water shortages and rising

salaries in !rinci!le manufacturing destinations such as (hina, it is !lausible that changes in

sourcing and manufacturing !atterns are imminent, and will affect brands of all ty!es and !rice

levels.

*n indicator of this is (hinese and Pakistani manufacturers relocating their whole !roduction to

destinations such as the Phili!!ines and angladesh in order to maintain their !rice

com!etitiveness which is !rimarily based on low cost man !ower.

#he rise in costs of u!stream manufacturing will affect consumers in the west, and could trigger

the first clothing !rice increase in nearly a century. #he 8uestion is not if this will ha!!en, but

when.

http://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CFoQFjAA&url=http%3A%2F%2Fwww.unido.org%2Ffileadmin%2Fuser_media%2FPublications%2FPub_free%2FGlobalization_changed_global_dynamics_of_clothing_and_textile_value_chains_and_impact_on_subSaharan_Africa.pdf&ei=LbunT-qpJOqd0AX0upz4Aw&usg=AFQjCNE2BlQ1a5ss4t-Xi-zOxzua7cf8XAhttp://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CFoQFjAA&url=http%3A%2F%2Fwww.unido.org%2Ffileadmin%2Fuser_media%2FPublications%2FPub_free%2FGlobalization_changed_global_dynamics_of_clothing_and_textile_value_chains_and_impact_on_subSaharan_Africa.pdf&ei=LbunT-qpJOqd0AX0upz4Aw&usg=AFQjCNE2BlQ1a5ss4t-Xi-zOxzua7cf8XAhttp://www.guardian.co.uk/sustainable-business/blog/cotton-farming-fashion-fuel-food-shortageshttp://www.guardian.co.uk/sustainable-business/blog/cotton-farming-fashion-fuel-food-shortageshttp://environmentalgeographies.wordpress.com/2012/03/11/water-the-real-fashion-victim/http://www.nytimes.com/2010/07/17/business/global/17textile.html?_r=1&pagewanted=allhttp://www.nytimes.com/2010/07/17/business/global/17textile.html?_r=1&pagewanted=allhttp://www.mb.com.ph/articles/299207/chinese-garment-manufacturers-plan-relocate-here-due-labor-advantagehttp://www.mb.com.ph/articles/299207/chinese-garment-manufacturers-plan-relocate-here-due-labor-advantagehttp://www.just-style.com/news/garment-plants-relocating-to-bangladesh_id111608.aspxhttp://www.google.com/url?sa=t&rct=j&q=&esrc=s&source=web&cd=1&ved=0CFoQFjAA&url=http%3A%2F%2Fwww.unido.org%2Ffileadmin%2Fuser_media%2FPublications%2FPub_free%2FGlobalization_changed_global_dynamics_of_clothing_and_textile_value_chains_and_impact_on_subSaharan_Africa.pdf&ei=LbunT-qpJOqd0AX0upz4Aw&usg=AFQjCNE2BlQ1a5ss4t-Xi-zOxzua7cf8XAhttp://www.guardian.co.uk/sustainable-business/blog/cotton-farming-fashion-fuel-food-shortageshttp://environmentalgeographies.wordpress.com/2012/03/11/water-the-real-fashion-victim/http://www.nytimes.com/2010/07/17/business/global/17textile.html?_r=1&pagewanted=allhttp://www.nytimes.com/2010/07/17/business/global/17textile.html?_r=1&pagewanted=allhttp://www.mb.com.ph/articles/299207/chinese-garment-manufacturers-plan-relocate-here-due-labor-advantagehttp://www.just-style.com/news/garment-plants-relocating-to-bangladesh_id111608.aspx


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Aor many consumers !rice acts as an indicator of 8uality with a higher !rice suggesting better

8uality. *s a conse8uence of rising manufacturing costs, the !rice of fast fashion will go u!,

leaving consumers with the ex!ectation that 8uality will also im!rove accordingly.

eyond 8uality however, higher !rices are !rone to more scrutiny by the consumers overall. Dow

environmental and social standards may be )ust about acce!table for low 8uality and low !rice

!roducts, but not for something of a su!!osedly higher standard, as luxury brands such as

3ucci have ex!erienced.

*ll costs accounted for, !roducing geogra!hically closer to home suddenly becomes financially

more attractive. #his increases the ability to exercise tighter control over !roduct manufacturing

and at the high end of the a!!arel and foot wear market this is already ha!!ening.

t goes without saying that this comes with challenges. Airst, textile manufacturing skills and

8ualified !roduction units have largely disa!!eared over the !ast -0 years, and resuscitating or

rebuilding such skill is a !ainstaking, slow, ex!ensive and difficult !rocess. Producing closer to

home also means that long forgotten about legal and social issues related to textile manufacturing

J such as waste, environmental im!act, fair wages and labour conditions J will demand a local

solutions.

Aast fashion has democrati9ed style over !ast decades, s!ecifically in the west. #his is a

contribution that cannot be ignored. +istorically, buying clothes was in essence and for the vast

ma)ority of !eo!le, e8uivalent to s!ending on something !ractical to cover u! onesL nudity, and

survive under given climatic conditions. 4ressing u! in order to look good was an exclusive

!rivilege of the better off. Aast fashion changed the rules of this game fundamentally.

#he social ga! these days is not any more between those that can, or cannot, afford to look

stylish, but rather between those that can, or not, afford to look classily fashionable. Aor a

fashion business and brand, this means that 8uality in !roduction as well as design will

increasingly be considered a basic !rere8uisite.

n general, com!anies in the talian clothing industry have !ositioned themselves in the middle

and high8uality markets on the basis of high8uality materials, skilled craft and uni8ue design.

http://www.cbsnews.com/8301-505125_162-31041343/cornells-heffetz-price-trumps-quality-perception-in-purchasing-decisions/http://www.cbsnews.com/8301-505125_162-31041343/cornells-heffetz-price-trumps-quality-perception-in-purchasing-decisions/http://business.blogs.cnn.com/2011/10/12/gucci-faces-sweatshop-claims-in-china/http://business.blogs.cnn.com/2011/10/12/gucci-faces-sweatshop-claims-in-china/http://business.blogs.cnn.com/2011/10/12/gucci-faces-sweatshop-claims-in-china/http://www.cbsnews.com/8301-505125_162-31041343/cornells-heffetz-price-trumps-quality-perception-in-purchasing-decisions/http://business.blogs.cnn.com/2011/10/12/gucci-faces-sweatshop-claims-in-china/http://business.blogs.cnn.com/2011/10/12/gucci-faces-sweatshop-claims-in-china/


10/23

(om!any investment in the !roduct design and develo!ment !hases has brought about a

significant ex!ansion of the range of high8uality !roducts offered. *t the same time, the demand

for high8uality !roducts has increased, making it !rofitable to focus on this market segment. n

fact, com!anies which have im!lemented strategies aiming to shift the com!etitive front onto

variables such as 8uality, innovation and !roduct diversification rather than cost have tended to

achieve excellent results in foreign markets. #he market for small lots of high8uality !roducts is

currently growing, and this develo!ment is to the benefit of the local com!anies which are not

able to com!ete with foreign clothing com!anies on !rice.

#he fashion industry is one of those industries that may be most affected by the im!act of socio

cultural trends (urtis, Batson I e!hton, 200=7. Aor instance, it has been witnessed for decades

that the world !o!ulation is aging :E(4, 20$-a7. uch a demogra!hic change may result in athreat for solely teenageoriented a!!arel firms because the com!etition for their shrinking

segment becomes more intense. +owever, an o!!ortunity can o!en u! for new or more flexible

incumbent fashion retailers. #hey may differentiate in the future by additionally focusing on

more mature customers and offer a!!ro!riate si9es and sim!ler designs with more 8ualitative and

durable materials. Moreover, there is an increased demand for a more convenient sho!!ing

ex!erience, es!ecially in times when !eo!le become more careerseeking and have less time left

that can be dedicated for leisure and sho!!ing (haturvedi, Martich, ?uwadi I 1lker, 20$-7.

*nother social trend is that customers are more and more concerned about their health, which

can be confirmed by a steady increase in individual health ex!enditure over the last decade

:E(4, 20$$7. #his may lead to a greater customer interest in the materials used, their origin

and their !rocessing methods, demanding more trans!arency and accountability on behalf of the

fashion firms. n this res!ect, more and more customers have gone Ogreen and su!!ort

sustainable and ethical activities of com!anies Hohansson, 20$0G Pookulangara I he!hard,

20$-7. esides this, fashion tastes and trends of teenagers and young adults are very diverse and

volatile nowadays and are influenced by celebrities and the media ?innebach I ?ichter, 20$"7.

#he Ohi!ster trend is a recent exam!le and com!anies may have to decide if they follow such

tem!orary fads or if their business is stable enough to sustain within their usual channels. #he

media, however, does not only s!read trends to customers but also makes aware of scandals and

negative !ublicity about bad (or!orate ocial ?es!onsibility (?7 !ractices like child labour,


11/23

sweat sho!s or inhumane working conditions as a conse8uence of outsourcing com!anies. :ne

exam!le was the incident at the ?ana Pla9a in angladesh in 20$-, a factory which makes

garments for chains like Primark, where more than $,$00 workers died when the bedraggled

building colla!sed above their heads #he 3uardian, 20$-7. ubse8uent changes in customer

behaviour and attitudes towards fashion com!anies are increasing the demand to more re!orting

activities and auditing !rocesses on labour conditions and wages to ensure a fairer treatment of

workers.

Tec"nolo)ical

#he fashion industry has always been sub)ect to technological changes and has influenced the

way in which a!!arel !roducts are !roduced, su!!lied and delivered to customers. #he

emergence of the nternet and im!rovements in communication technologies have facilitated and

accelerated the information flow of new trends and brands from the customer to the retailer,

which enables com!anies to res!ond more 8uickly to the latest market im!ulses Cenni,

3iustiniano I Pirolo, 20$-7. n turn has this advancement increased customer demands since the

media continuously u!dates them about the newest fashion styles ?innebach I ?ichter, 20$"7.

* similar im!rovement in knowledge transfer and interaction can be witnessed between retailers,

wholesalers and manufacturers, which are able to benefit from more efficient distribution and

communication channels ruce, 4aly I #owers, 200"7. esides, a rise of multichannel

customers ?innebach I ?ichter, 20$"7 has o!ened u! lowcost advertisement and marketing

o!tions for retailers through social media !latforms or a cor!orate website and new ways of

buying fashion !roducts for consumers. nnovations like matrix coding, the cocreation of

!roducts and online sho!!ing has made the decision and !urchase of fashion easier and more

convenient for customers Dester, Aorman I Doyd, 2005G tout, 20$-7. 4es!ite the technological

enhancements that could be detected in the last decades and years, the a!!arel industry remains

rather labourintensive with limited automation because of fre8uent design, textile and demand

changes ura, 200"7.

(ritics argue that the indolent attitude of the industrialist in the $//0s has led u! to the current

crisis. f the textile industrialist had worked with the government towards im!lementing !olicies

that !re!ared for the current international scenario, Pakistan textile industry would have


12/23

boomed. nstead, the industry suffers from Osevere technological obsolescence, insufficient

?I4, falling cotton cro!, and an unclear !ath forward.

#he negligible local !roduction of textile machinery mainly com!rises of s!indles and ring cu!s

for the s!inning industry, !ower looms for the weaving industry, sim!le dyeing and finishing

e8ui!ment, knitting and sewing machines and accessories such as rubber cots !lastic bobbins and

wire for carding machines. n other words, the local industry des!erately re8uires more modern

machinery and techni8ues to com!ete in an increasingly com!etitive industry. n additional to the

basic !roblems, the textile industry is also extremely affected by the national instability due to

the recent )udicial, !olitical, economic, energy and security issues.

#he lack of ?I4 in the cotton sector of Pakistan has resulted in low 8uality of cotton in

com!arison to rest of *sia. ecause of the subse8uent low !rofitability in cotton cro!s, farmers

are shifting to other cash cro!s, such as sugar cane. n Pun)ab alone, the cotton area sown this

season was less by $.$" !ercent as com!ared to the last year. #extile owners argue that although

the +otton ision 2015 targets 20 million bales till 20$5, it is an ambitious target as in reality

cotton !roduction is decreasing each year. t is the lack of !ro!er ?I4 that has led to such a

state. #hey further accuse cartels, es!ecially the !esticide sector, for hindering !ro!er ?I4. #he

!esticide sector stands to benefit from stunting local ?I4 as higher yield cotton is more

!esticide resistant.

Moreover, critics argue that the textile industry has obsolete e8ui!ment and machinery. #he

inability to timely moderni9e the e8ui!ment and machinery has led to the decline of Pakistani

textile com!etitiveness. *P#M* has highlighted that the Pakistan textile industry faces tough

com!etition from the ndian, angladeshi and (hinese textile industries and local !olicies have

resulted in Pakistani textiles facing a critical condition.

/t"er

$. ndustrialists also argue that the nonguaranteed su!!ly of !ower by AP#A Bater and

Power 4evelo!ment *uthority7 is another !roblem that negatively affects the textile

industry. *lthough, some textile units have built their own energy generating !lants to cut

cost these units run on gas7, small units !roduction de!ends entirely on the electricity


13/23

su!!ly of B*P4*. #he textile industry suffered heavy financial losses in 4ec, Han and

Aeb 8uarter, because of the inconsistent electricity su!!lies. #he lack of !roduction

subse8uently resulted in the industry not meeting its target for the 8uarter, massive

financial losses were borne by textile owners and sadly, it hit the most vulnerableN

workers on daily wages. #heir frustration was observed recently, when the B*P4* and

MEP(: Multan Electricity Power (om!any7 offices in Multan, were torched by daily

wage workers, see related !ostQ. #extile owners as well as workers !assionately assert

that the inconsistent su!!lies have and are destroying business across Pakistan. #hey also

highlight that the high cost of the utilities has making Pakistani textile uneconomical in

the international market.eing a develo!ing country, it is hard to overcome the energy !roblems but it does not

mean that whole year load shedding is acce!table at all. Bhile interviewing with MrPehla), owner of textile mill, energy related facts were discussed. +e said that during the

last three years, the largest ex!ort sector of the country is facing critical challenge that is

out of control for management. *lmost every !art of the country load shedding is

common !henomena. #extile !roduction ca!acity, because of this reason has reduced by

25-0 !er cent. eing a ma)or ex!ort sector of the country, economic growth is heavily

de!endent on it. n term of foreign exchange textile sector contribution is almost $0

million 1 dollar every year but in the last year, thirty !er cent loss in the !roduction of

textile !roducts caused by energy shortage in Pakistan. #extile mills o!erate twenty four

hours in three shifts if electricity is available according to re8uirement, but current

situation is less than eight hours electricity su!!ly is !roviding to the sector. *s a

conse8uence, international trade and ex!ort orders have been reduced gradually.

?es!ondent further added the comments that during his eleven years textile career, it is

first time when alternative energy resource like natural gas is also short in the country.

nternational com!etition is effected badly because of high !roduction cost of textile

garments, as entre!reneurs are trying to use alternate energy resource in the form of

generators that lead to double the cost of !roductions. Bhile interviewing, he showed the

documents about $= !er cent ex!ort decrease in Covember 20$$ as com!ared to last year

following month. +e further added that government subsidy is not for industrial sector in

form of s!ecial tariff of electricity. Aew small scale industrialists tried to use alternate

https://changinguppakistan.wordpress.com/2008/04/15/power-cuts-incite-violence-in-multan/https://changinguppakistan.wordpress.com/2008/04/15/power-cuts-incite-violence-in-multan/


14/23

energy resource for industry and installed ca!tive !ower !lants (PP7 for !roduction of

electricity by using natural gas as chea! fuel but desired results were not achieved by

s!inning industry and !ro)ect has failed in s!ring 20$$. Hune and Huly are considered !eak

season for textile industry, because of raw cotton ready is available for !rocessing. n the

year 20$$, ue Corth 3as Pi!e Dines C3PD7 has cut off the su!!ly for almost $00 days

to all textile mills because of shortage, and consum!tion of natural gas during summer is

considered less at !rivate sector as tem!erature is high enough in Pakistan. t has

ha!!ened first time in the history of Pakistan. *s we all are well aware that Pakistan has

significant mineral resources like natural gas, crude oil and !etroleum, according to Mr.

R. Be have no excuse to say about shortage of gas and even it can be available at chea!er

!rice as com!ared to neighbouring countries like angladesh, ndia and ran. ndia is

given most favoured nation and o!ens its borders for trade and investment all over the

world because of !ro!er government !olicies for enhancing international trade. Be on the

other side live in the !ast two hundred years era and try to overcome at basic

infrastructure. :ur 8uality !roduct and !rofessional know how is at risk because of losing

image at international level. 3rowth rate is about 2' in the last three years as com!ared

to last decades when it was above /' annually. 4uring the last four months estimated

loss is %%2 million dollars in the Pun)ab !rovince industry and cancelled many foreign

orders.2. 1nskilled or !oorly trained +uman ?esources. *lso extensive training is re8uired to

refine the skill level of workers in accordance with the latest techni8ues and re8uirements

to com!ete with the local as well as international standards. :ne of the ma)or reasons for

these losses is unskilled workers. t has also been observed that if the industry has

managed to attain advance technology then the semiskilled or even the skilled workers

sometimes struggle to match their ex!ertise to re8uired level of technological advances as

sometimes the new e8ui!ments re8uire more s!eciali9ed skill levels. +ence, the industrial

training management resists training their workers, kee!ing in view the highly fluid and

short lived nature of market in com!arison with the high training costs.-. ?isk of hifting ndustry to angladesh *ccording to M?. a8ib, during interview he

ex!lained that as a ma)or ex!ort sector of Pakistan, it is shocking news for economy of

the country about the shifting textile business to foreign region. #here are many factors

that are encouraging the businessmen to move their business from Pakistan to


15/23

angladesh. hortage of electricity and gas are not the only reasons for moving out but

many other factors are involved in the scenario. angladesh is among the least develo!ed

nations according to 1 and E1 and it is considered !rivileged nation. Many su!er

!owers are assisting to the country for building u! infrastructure and decreasing the

unem!loyment rate. angladeshi textile sector has been s!onsored by 1nited tates and

Euro!ean 1nion. Every year, millions of euro are !rovided by E1 for enhancing the

textile sector in the country and su!!orted in the form of modern machinery and know

how. (ountry has !referential treatment in the E1 and 1 as that said by finance minister

of Pakistan. #extile industrialist is trying to get the advantages of more !rofit while

shifting their business in angladesh. ndustrial investment is considered backbone for

any economy and !lays !rominent role for em!loyment and develo!ment of the country.

Pakistan is agricultural base country and more than =0!ercant is !o!ulation is engaged in

this sector. *ccording to the survey re!orts, more than "0 !er cent of textile industry and

200,000 !owers looms have already shifting to angladesh during the last five years that

are alarming situation within the country. 1nem!loyment rate become very high during

that !eriod, and Pun)ab !rovince that is so called biggest textile region of the country is

affected in term of unem!loyment. *lmost .2 million families are affected directly and

indirectly in the Pun)ab after shifting the industry said by Mr Pehla). ?es!ondent

highlighted some other facts about the moment of industry to the angladesh. n

angladesh, chea! labour force of both sexes is available as com!are to Pakistan and

ca!tive !ower generation using gas as fuel is chea!er than other *sian countries. n the

!receding !aragra!h, it has been highlighted that E1 and 1 already declared

angladesh as !referential country so general system of !reference 3P7 will remain

until 20$5. esides all of these, angladeshi 3overnment is encouraging foreign

investment because of !rivati9ation and su!!orted many cash incentives for the investors

in this sector. :!!ortunity is available for angladeshi industry to ex!and its market

share to E1 and 1 markets because of 3P and many other incentives at the moment.

ut Pakistani industry is unable to get these ty!es of benefits and discouraging !resent

and new investors to invest in the country.

Textiles Polic 20141


16/23


17/23

im!roving com!etitiveness of the entire textiles value chain. % udgetary su!!ortsN Aollowing

schemes have been a!!roved in #he Ainance ill 20$"$5.#he Ministry will endure that these

schemes may continue during the Policy !eriod i.e. 20$" $/N

4rawback for local taxes and levies would be given to ex!orters of textiles !roducts on A:

values of their enhanced ex!orts on an incremental basis if increased beyond $0' over !revious

years ex!orts at the following ratesN 3arments "', Made u!s 2'G and Processed fabric $'.

#he incentives will be !rovided to the ex!orts made in 20$-$" calendar year 20$"7 com!ared

to ex!orts made in 20$2$- calendar year 20$-7 in the year 20$"$5. #he su!!ort will continue

for the rest of Policy !eriod, however, eligibility criteria for the above su!!ort will be !ro!erly

aligned with all Policy goals from budget !eriod 20$5$6 onwards.

Mark u! rate for Ex!ort ?efinance cheme of tate ank of Pakistan is being reduced from

/."' to =.5' from $st of Huly 20$". #extiles industry units in the value added sector would be

!rovided Dong #erm Ainancing Aacility D#AA7 for u! gradation of technology from tate ank

of Pakistan at the rate of /' for -$0 years duration. #he chemes may continue during the

Policy !eriod. n case there would be further decrease in the !olicy rates then subse8uently EA

and D#AA rates would be revised accordingly.

*n ex!editious refund system is being introduced and a fast track channel for manufacturers

cumex!orters is being created, whereby A? would dis!ose of all their !ending sales tax refund

claims within - months, if not earlier.

#extiles sector en)oyed duty free im!ort of machinery under #extiles Policy 200/$". #his

facility ?: %0/7 has been extended for another two years.

* new vocation training !rogram will be launched through P4P to train sufficient men and

women over five years !eriod for skills re8uired in the value added sector such as garments and

made u!s. #he !ro)ect will be com!leted in two !hases while vocational training institutes as

well as factory s!aces will be utili9ed for training !ur!ose.

Polic Inter$entions


18/23

#he tariff structure for entire su!!ly chain will be reviewed in line with effective !rotection rates.

+igher tariffs !rovide excessive !rotection and increased margin for domestic sales. #his

situation does not !rovide any encouragement for ex!orts. n such scenario tariff rates for entire

su!!ly chain need to be rationali9ed while !roviding ade8uate !rotection. #his would increase

the com!etitiveness of the domestic industry while ensuring increased ex!orts and reduce

smuggling of finished !roducts such as manmade finished fabrics and garments.

#he textiles sector value chain will be given !rotection as !er the study carried out by #he

Cational #ariff (ommission C#(7. #his will !rovide a !redictable tariff regime for the

foreseeable future. n order to encourage use of manmade fibers, 4eemed m!orts asis scheme

would be introduced so that the domestic PA industry is also !rotected. *n authentic and

accredited testing system will be established to determine the manmade fiber content in theex!orting !roducts. #he drawback rates for various manmade based ex!orting !roducts will be

determined by the n!ut:ut!ut (oefficient :rgani9ation :(:7. (riteria will be develo!ed

with the consultation of stakeholders and disbursements would be made by the tate ank of

Pakistan. 4rawback on deemed im!ort basis will only be available to the mmf based garment

!roducts initially. Bork is in !rogress with the A? to sim!lify #em!orary m!ort chemes such

as 4#?E in consultation with stakeholders to facilitate the valueadded sectors. * 3PS

(ommittee has been constituted to study the ex!ort trends for which A? is !roviding data from

P?*D.

Measures will be taken to curb smuggling and !rotect the domestic manufacturing sector. /.2

Product diversificationN Pakistan ex!orts limited range of garments and made u!s. Efforts would

be made to widen the !roduction base to include valueadded !roducts such as children wear,

lingerie, beachwear, leisure wear, technical textiles, geo textiles and medical textiles. Aor this

!ur!ose, collaborations with foreign ex!erts, donor agencies and international universities would

be sought and the existing bases at Cational #extile 1niversity, Aaisalabad, and #extile nstitute

of Pakistan, arachi, would be strengthened.

#he 3overnment will establish a Product 4evelo!ment I nnovation Aund to develo! new

!roducts, along with costing, identification of su!!ly chains, raw materials, and dissemination of


19/23

information to the ME sector. *wareness seminars and training on textiles entre!reneurshi! in

new !roducts will be carried out for new business develo!ment and !roduct diversification.

Tec"nolo) 7p)radation und -upport -c"eme

#echnology 1!gradation Aund including for MEs will be extended for this Policy Period as

well. Main aim of the scheme is to im!rove overall technological configuration of the sector,

remove critical imbalances in the value chain and achieve com!liance with international

standards.

-, #e$elopment

:ne of the weakest links in textiles value chain is unorgani9ed !ower loom sector which consistsof mostly " to -2 !ower looms, classified as cottage industry with unskilled labour force.

imilarly, other ME sub sectors also have unorgani9ed structures. #he Ministry of #extile

ndustry would ado!t three !ronged strategy to address this issue. a. Ma!!ing, surveys and

diagnostic studies of existing clusters for various subsectors including wool, silk, hand looms,

embroidery, weaving, knitting and stitching. #he 3overnment will earmark funds for diagnostic

studies and a!!roach foreign donors for the develo!ment of clusters. #he clusters will be

!rovided with various facilities, such as marketing coo!eratives, testing laboratories, training

centers, international and domestic certifications, combined effluent treatments !lants, etc.

:!tion of o!ening engineering cam!uses of recogni9ed universities andFor new universities in

mega clusters will also be ex!lored.

* usiness Portal would be launched to facilitate sales and business !artnershi!s on the internet.

#his would also enable the ME sector to increase usage of (# and modern management

!ractices in their units. #o! fifty MEs each year in ex!orts would be identified and would be

facilitated for organi9ational restructuring, business develo!ment, ex!ort marketing, # usage

and infrastructure etc for their growth in ex!orts and to become listed com!anies.

e)lected -ectors


20/23

#he 3overnment will establish state of the art Product 4evelo!ment (entre along with

machinery, e8ui!ment and training facilities for vulnerable subsectors such as car!ets and

handlooms. #he Ministry would also set u! dedicated fibre develo!ment centres for silk, wool,

)ute, linen, bamboo and other natural fibres in collaboration with relevant Ministries and

!rovincial governments. #he Ministry will a!!roach the concerned 8uarters for allocation of

funds for dedicated training for the handknotted car!ets, which is one of the most value added

subsector of this industry.

Producti$it and /9- Audits and Trainin)s

#he Ministry will carry out !roductivity analyses on !rocesses and energy conservation.

#rainings would be !rovided to im!rove !er ca!ita !roductivity on cost sharing basis. #o attain

international com!liance in :ccu!ational +ealth and afety, trainings would also be !rovided to

the ME sector in !artnershi! with !rovincial governments, D: and other agencies, es!ecially

for initiating etter Bork Programme. #he 3overnment will !rovide necessary funds for

!roductivity and :+ audits. n addition, usiness *lliances and uyers Aorums would be‟

created to assist valueadded sectors in meeting international standards of sourcing.

:oint $entures* mer)ers and relocation o; international manu;acturers

*s suggested by the oard of nvestment, a com!rehensive !lan would be launched in

consultations with trade associations and : to facilitate buyers !resence through )oint‟

ventures and relocation of foreign manufacturing units in Pakistan.

-tren)t"enin) o; textiles ;irms

nitiatives will be taken to strengthen the strategic and com!etitive ca!acities of textiles value

chain and allied industry firms, !romote growth, sustainability, innovation, value addition,

diversification and internationali9ation. 1nder !erforming firms and units will be su!!orted

through management ca!acity building 4 su!!ort, facilitating mergers and ac8uisitions and

any other viable o!tions.

,lectricit and


21/23

#he Ministry will take measures to give !riority to textiles sector for availability of energy to

fully utili9e the 3PS status. Aor this !ur!ose, a )oint committee com!rising senior officers of

the Ministries of #extile ndustry, Petroleum I Catural 3as, Bater I Power and Ainance

4ivision will be constituted to work out solutions on a regular basis to reduce the energy ga! in

the textiles sector. n order to conserve energy, textiles associations would be facilitated to carry

out energy audits within their member units, so that energy consum!tion is reduced through

s!ecific interventions, such as re!lacement of old machinery and !lugging leakages.

Aareness and In;ormation #issemination

Market intelligence including fiber and !roduct mix, information on different countries s!ecific‟

standards and com!liance re8uirements, along with tariffs and !referential tariffs of com!etitor

countries would be disseminated both through the Ministrys web !ortal and in regular meetings

with stakeholders. #he information about best international !ractices in value added chain will be

made available to the stakeholders. /.$0.2 #he Ministry of #extile ndustry will regularly !ublish

domestic and international im!orts and ex!orts data. uch information will also be available on

the Ministrys website. Aurther, the Ministry of #extile ndustry will hold technical seminars and

worksho!s for ME sectors. Aor such !ur!ose international technologists, marketing and

com!liance ex!erts would also be invited. #he associations and manufacturing units will !rovide

s!ace where !ractical demonstrations would be given. #elecenters and P#* (# infrastructure

will be leveraged for the benefit of entire textiles su!!ly chain including farmer community.

GSP PLUS FROM DAWN NEWSPAPER

D*+:?EN #extile ex!orts to the Euro!ean 1nion E17 are ex!ected to surge by u! to &$bn a

year as the 2=nation bloc granted the much soughafter 3eneralised ystem of Preferences

3P7 Plus status to the country, effective from Han $, 20$".


22/23

#hough the brighter !ros!ects of raising ex!orts to the E1 market after the grant of dutyfree and

!referential duty rate access on -,500 !roducts have buoyed the business!eo!le J !articularly the

textile and clothing ex!orters in Pun)ab J growing energy shortages remain a ma)or im!ediment.

#here will be no gas for the ca!tive !ower !lants (PPs7 of the !rovince all through the winter.

;#he E1 trade concessions can !ush our textile ex!orts and generate significant economic

activity,> said heikh Mohammad lyas, the chairman of Aaisalabadbased Pakistan #extile

Ex!orters *ssociation P#E*7, on Bednesday.

;ut much will de!end on regular availability of regular su!!ly of gas and electricity to o!erate

factories,> he said.

*t least "0!c of the installed textile ca!acity in Pun)ab, where =5%0!c of total manufacturing

ca!acity is located, remains ino!erative because of energy shortages, according to the industry.

Pakistans textile ex!orts to E1 markets draw $$!c duty at !resent. #his makes it difficult for the

country to com!ete countries like angladesh, which has !ushed its textile ex!orts to over &25bn

after getting 3P Plus status from the E1.

*ll Pakistan #extile Mills *ssociation *!tma7 Pun)ab chairman .M. #anveer hailed the E1

trade concessions, saying the textile industry could maximise benefits of the scheme. ut, he

said, the government would have to fulfil the energy needs of the textile industry to ensure level

!laying field against com!etitors.

+e said the *!tma ho!ed to double the textile ex!orts to &26bn in four years.

#extile ex!orts of &$-.$bn in the last fiscal year were 5-!c of the countrys total ex!orts of

&2".6bn. #he E1 im!orted almost 2=-0!c of Pakistans total ex!orts during the !eriod.

ilal Tamar, an analyst at H ?esearch in arachi, said that under the new trade concessions,

almost 20!c of Pakistani ex!orts would be allowed to enter the E1 at 9ero tariff and =0!c at

!referential rates.

+e noted that textile madeu!s, home textiles, etc J which lead other textile !roducts im!orted

by the E1 from Pakistan J will be the immediate beneficiaries of the concessions.

*ccording to the P#E*, the country ex!orts &5bn worth of yarn, !lain and dyed fabric to

different countries which, in turn, add value and reex!ort to the E1.

;#he domestic textile industry is likely to take the benefit of adding value itself and increase

direct ex!orts to the E1 after 3P Plus status,> said the analyst.


23/23

+e !ro)ected the textile ex!orts to rise by -!c above the target of &$".2bn for the current fiscal

year to &$".6bn and by 5!c to &$6.-bn during the next financial year.

#he Dahore (hamber of (ommerce and ndustry said the 3P Plus concessions would hel!

boost the countrys ex!orts and create around one million )obs for Pakistani youth.

n a statement, D(( President ohail Dashari said ex!orters from various industries were

anxiously ho!ing to access the Euro!ean markets, which !romised huge !otential for multi!lying

the countrys ex!orts.

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