More than a dozen textile units have as a last resolve decided to relocate their production units to Bangladesh which is offering tax-free investment incentives to Pakistan's textile industry.
The country's textile industry had early this year announced intention to relocate units to Bangladesh to reduce their production cost.
Readymade garments, bedlinen, and knitwear industry units numbering around about 20, have finalised shift to Bangladesh in a month or two to acquire any running units in Bangladesh.
Consul-General of Bangladesh in Karachi had discussed plans to relocate with senior Pakistani officials during Prime Minister Khaleda Zia's Pakistan visit, disclosed a senior textile industrialist.
Few members from among bedwear and readymade garment manufacturers have visited Bangladesh and have prepared the initial groundwork for investments, he said.
Bangladesh Government has put into motion the process to offer incentives to textile industry which may require some time and believe no serious steps are likely to be taken by industrialists, said Syed Masood Alam Rizvi, Federal Textile Secretary.
The Ministry approached Government agencies including Central Board of Revenue due to many complaints related to tax authorities, he said.
Mainly bedwear product orders from European countries declined sharply after imposition of a 13.1 percent anti-dumping duty on imports from Pakistan, in March 2004 by the EU, he said.
A senior bedwear exporter claims that some among them plan to move to Bangladesh due to mishandling of the matters related to anti-dumping duty with the EU and market access issue with the US.
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