“South Asia has taken many steps in recent years to support the textile and apparel sector, but it now needs to step up its game by tackling inefficiencies that are undercutting its competitiveness”, said Gladys C. Lopez-Acevedo, one of the authors of the report and a Lead Economist for the World Bank. “Pakistan should use this opportunity and implement policies to become a regional leader in creating good jobs, bringing more women into the work force and diversifying its products and end markets to increase skills and value.”
Despite establishing a successful and growing apparel manufacturing industry, Pakistan can do more to realize its potential as a regional hub and to continue to boost opportunities, especially for women and the poor, according to a new World Bank report.
The Stitches to Riches? Apparel Employment, Trade and Economic Development, launched in Pakistan on#
The report suggested that Pakistan could benefit from four particular policies. The first is to increase product diversity by reducing barriers on imports to ease access to manmade fibers (such as duty and tax remission for exports, and export processing zones).
It could also attract Foreign Direct Investment by adopting policies to reduce red tape and increase transparency to close the gap with South Asian countries whose textile and apparel industries are located primarily on the coast.
The report also suggested diversifying markets by taking advantage of access to emerging markets. Shortening lead times by improving road infrastructure to facilitate access to ports for exporting firms and by clustering strategies to provide key infrastructure and common facilities would help towards that end.
The fourth policy involves enhancing perceptions of stability as many buyers are reluctant to travel to Pakistan, which makes sourcing complicated. (SH)
ALCHEMPro News Desk – India
marketing@alchempro.com
