Concern over future growth of garment sector
Naim-Ul-Karim | Tuesday, 8 July 2008
Garment manufacturers have expressed their doubt about whether or not they will be able to maintain the current extraordinary export growth in the new fiscal in the face of external and domestic odds.
The sector grew around 16 per cent to power exports past $12.63 billion in 11 months of just concluded fiscal over that in the same period of fiscal 2006-07.
Leaders of the garment sector expressed their concern over the future growth saying the current pace in garment export can face a setback unless effective measures are taken to ensure uninterrupted supply of gas and power.
They were making observations on export data of first 11 months of last fiscal released by the Export Promotion Bureau (EPB) released Monday.
EPB data shows in the first 11 months of the last fiscal knitwear items such as T-shirts, pullovers, sweaters grew by 21.19 per cent to $4.929 billion while woven items such as denim and shirts recorded a 10.62 per cent growth to $4.627 billion.
"We will face a tough time unless urgent measures are taken to resolve power and gas crisis," Fazlul Haque, chief of knitwear manufacturers' association, told the FE Monday.
"Despite the satisfactory performance we are worried about the future of the sector," he said.
Echoing similar sentiment, leader of woven garments manufacturers Anwar Ul Alam Chowdhury (Parvez) said: "We are not thinking about current growth. It is our headache now whether or not we could maintain the trend."
He feared the price hike of petroleum products that pushed transport fare up will raise the cost of doing businesses by at least 35 per cent.
Under the circumstances, Mr. Parvez said, many factories might turn sick as they will not be able to compete in global market.
"We have already been affected by recession in developed economies," he said, adding external and domestic odds might further affect the entire exports of the country.
Despite the odds, the country's total export recorded a 21.59 per cent growth to hit $1.269 billion in May to power the first 11 months exports past US$ 12.63 billion, which was higher by 15.33 per cent over that of the same period last year, officials said Monday.
The country's total export growth till April was only 14.66 per cent.
The sector grew around 16 per cent to power exports past $12.63 billion in 11 months of just concluded fiscal over that in the same period of fiscal 2006-07.
Leaders of the garment sector expressed their concern over the future growth saying the current pace in garment export can face a setback unless effective measures are taken to ensure uninterrupted supply of gas and power.
They were making observations on export data of first 11 months of last fiscal released by the Export Promotion Bureau (EPB) released Monday.
EPB data shows in the first 11 months of the last fiscal knitwear items such as T-shirts, pullovers, sweaters grew by 21.19 per cent to $4.929 billion while woven items such as denim and shirts recorded a 10.62 per cent growth to $4.627 billion.
"We will face a tough time unless urgent measures are taken to resolve power and gas crisis," Fazlul Haque, chief of knitwear manufacturers' association, told the FE Monday.
"Despite the satisfactory performance we are worried about the future of the sector," he said.
Echoing similar sentiment, leader of woven garments manufacturers Anwar Ul Alam Chowdhury (Parvez) said: "We are not thinking about current growth. It is our headache now whether or not we could maintain the trend."
He feared the price hike of petroleum products that pushed transport fare up will raise the cost of doing businesses by at least 35 per cent.
Under the circumstances, Mr. Parvez said, many factories might turn sick as they will not be able to compete in global market.
"We have already been affected by recession in developed economies," he said, adding external and domestic odds might further affect the entire exports of the country.
Despite the odds, the country's total export recorded a 21.59 per cent growth to hit $1.269 billion in May to power the first 11 months exports past US$ 12.63 billion, which was higher by 15.33 per cent over that of the same period last year, officials said Monday.
The country's total export growth till April was only 14.66 per cent.