Thursday 10 April 2014

Bangladesh's Negative Policy Compels: Pakistanis To Shift Textile Units Back To Country

Pakistanis are shifting their textile units back to the country in the wake of Bangladeshi government's 'negative' and `biased' policies that triggered insecurity among the investors, industry sources said on Wednesday. The political turmoil that culminated in hatred against Pakistan largely caused worrisome to the investors who had relocated their units from Karachi or other cities of the country to Dhaka, they said.


"Bangladeshi government also blamed Pakistan for overplaying the collapse of a textile factory building in Dhaka at global markets," said Chief Co-ordinator Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea), Ijaz A. Khokhar. He said the Pakistani investors found the Bangladeshi government's policies 'hostile' and its bureaucracy difficult to deal with since the political tension gripped the nation after trials and punishment of Jamaat-i-Islami leaders for 1971 war charges.


"The entire atmosphere changed there against the Pakistani investors and Bangladeshi government singled out Pakistan for all faults including the factory collapse despite its friend -India had aggressively propagated on the tragedy along with EU," he said.


It is now an established fact that the new investors have scarped their plans to set up units in Bangladesh after its government stepped up a drive against Pakistan, he said, adding that "a number of investors relocated their units back home". He said a majority of units that Pakistan investors had set up were from home textile sector, who were in a search for duty-free access that Dhaka provided for its being Least Developed Country (LDC) in the EU. "Now GSP-Plus provides the same facility for local exporters, upstaging the Bangladeshi factor that attracted many to return after political turmoil in Bangladesh," he said.


However, he lamented the energy crisis had played a bad role that scaled back textile production phenomenally in Pakistan though the country has attained a GSP-Plus status to EU, Khokhar said. Chief Co-ordinator, Pakistan Hosiery Manufacturers and Exporters Association (PHMA), Javed Bilwani said the investors have been panicked owing to Bangladeshi government's policies. He said several had fled with their capitals back home.


"The remaining investors are worried and feeling insecure in Bangladesh and will sooner rather than latter will escape to Pakistan because the sudden political shocks they received from Bangladeshi government have left them altogether panicked," he said. However he said the investors will have no significant business in Pakistan since the country is passing through acute short of energy and fluctuating tariffs of utilities, besides poor law and order.


"How can the GSP-plus status help the nation if the country is already having big tax rate, no rebate, no energy, rupee value fall and rise, delays in refunds and other such issues that hinder the production and export of textile," he queried.


Source:- brecorder.com





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