Textile industry shifts to Bangladesh to seek more profit
Tuesday, January 31st, 2012 6:07:55 by Wajahat Javed
Textile industry shifts to Bangladesh to seek more profit
Monday, January 30, 2012: The Textile Minister, Makhdoom Shahabuddin, has divulged that the textile industry in Pakistan is shifting to Bangladesh to seek more profit. The Minister turned down that claims that industries were reallocating
themselves to Bangladesh because of the shortfall of electricity and gas outages prevailing in Pakistan.
Shahabuddin said that Bangladesh textile receives special privileges from European Union and the United States. Both EU and USA are a major market for textile companies so in order to increase their market share, companies are
shifting to Bangladesh.
Shahabuddin while talking to the media in Muzaffargarh about the condition of Pakistan’s textile sector, said “Bangladesh is a privileged country as it has been counted among least developed nations by the EU and US. It has been
given facilities and its textile sector has been sponsored and supported financially by the big economic powers. This is the reason for shifting the textile industry from Pakistan to Bangladesh.”
According to the Shahabuddin, in the last five years around 200,000 power looms (more than 40% of the textile industry) have been shifted to Bangladesh, and this abrupt shift has caused unemployment in the country at a large scale.
In southern Punjab only, more than 60,000 families, who were dependent on daily wages, are finding it difficult to make both ends meet due to job losses. In the whole Punjab, 200,000 families have been directly and indirectly affected.
The Minister said that electricity shortfall is not a problem in Pakistan only, rather other Asian countries are also facing this predicament. Shahabuddin also defended the tariffs and gas outages in the country.
He said, “This is a major challenge as well for the industrial sector in Southeast Asia.”
Shahabuddin drew a perfect picture for textile companies in Pakistan. The minister claimed that electricity shortfall would be minimised this year and soon afterwards power tariffs would be brought down according to the demand
in the country. He further said that the government would create a tax-free zone for the textile sector in southern Punjab, which is considered a hub of textile industry.
Short URL: https://www.newspakistan.pk/?p=11170
Posted by Wajahat Javed
on Jan 31 2012. Filed under Business, Pakistan, USA.
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