Pakistan garment sector picks Cambodia for relocation

fibre2fashion.com

April 25, 2012 (Pakistan)

The value-added textile sector, as the garment sector is called in Pakistan, has chosen Cambodia as an alternative destination for relocating their manufacturing units, owing to continued electricity and gas supply problems in the country. The power and gas shortage is affecting productivity in Pakistan’s apparel sector, which in turn, is affecting the sector’s exports. In March 2012, garment exports from Pakistan declined to US$ 125.329 million, as against the exports of US$ 165.094 million during the same month last year, showing a year-on-year decline of 24.9 percent, according to the Pakistan Bureau of Statistics. Mr. Ijaz Khokhar is Chief Coordinator of Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA). He told fibre2fashion, “Energy crisis, especially shortage of electricity and gas, in Pakistan is causing garment manufacturers to lose out on their productivity by more than 50 percent. It is also the main reason for some garment producers considering relocation of their units from Pakistan to other countries.” “Secondly, our customers like to enjoy the duty free access, which is already available for the Cambodian market. We are trying to establish a cluster i.e. a group of 5-6 companies which will join together to establish one processing unit there for a six-month project,” he informs. Making a mention of the products that would be manufactured in Cambodia, he says, “The consortium will be manufacturing sportswear, martial arts uniforms, hospital garments, knitted sportswear, etc. This will be on an experimental basis. We are very keen to proceed with this venture and if it goes alright then we will extend it further, else we shall look for other avenues.” Sharing details about other countries that are being considered by garment makers for relocation of their units, Mr. Khokhar says, “Cambodia, Bangladesh and Vietnam enjoy duty free access to Europe and America. So, we are just looking for the best place. We are surveying Bangladesh and Vietnam as well and we are planning to visit these places in the near future.” Disclosing about investment and present status of Cambodian project, the PRGMEA Chief Coordinator says, “It is not decided how much investment we will have to put in for this venture. We are assuming it to be around Pk Rs. 100 million, but it could be more. A Cambodian agency is currently preparing a feasibility report for us. Once it is ready, we will be visiting the place. Our target is to move forward with the project this year itself.”

Fibre2fashion News Desk - India