Devil Soul
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Between hope and fear
AFSHAN SUBOHI
Having assumed size and exposure, businesses seem to moving out of state patronage to grow on the strength of productivity and competitiveness, while capitalising on the comparative advantage of the country’s resource base.
A move by a textile body to open a liaison office in Europe does not seem to be coincidental or a one-off occurrence. Nor is the participation of hundreds of businessmen (financed by their own companies) in the Heimtexil trade fair at Frankfurt last week.The export potential created by GSP Plus seems to be stimulating export-oriented industries to clinch a greater share of the international trade pie.
“Yes, 20 years back, we used to look up to the government to sponsor participation in international trade events. Now, neither do we have the time nor the energy to deal with reluctant ‘babus’ who are conditioned to impede more than to facilitate things,” Shabir Ahmed, chairman of the Pakistan Bedwear Exporters Association (PBEA), told Dawn before leaving for Frankfurt.
He informed that PBEA is opening an office in Paris to defend the interests of home textile exporters in Europe. “We have hired a well connected expert to manage our affairs, and to enable and advise us to conduct the business prudently.”
The director-general of the Trade Development Authority, Yousuf Khan, says that his organisation has “sponsored a 45-member delegation of exporters to the event, besides putting up an impressive show for the country at the venue of the exhibition.”
Insiders informed this writer that the authority spent 162,000 euros on the event, whereas the bill of participation of about 400 businessmen was funded by their companies.
“For the past many years, exporters have been participating in the exhibition. But this year’s profile is certainly different. Everyone who is somebody in textiles is in Frankfurt. If you want to get the feel of the situation, visit Faisalabad,” he added.
A senior officer who had to defer a scheduled event of the government’s interaction with businesses in Faisalabad confirmed this. “Yes, a few government business meetings had to be rescheduled because so many tycoons are out of country,” he informed from Islamabad.
“I fail to understand why people are so fixated on textiles. GSP Plus covers a wide range of products. It has given Pakistan duty-free access to a developed market, with big South Asian diaspora, in two-thirds of all product categories. The other 10 countries, like Liberia, Sudan, Burma, etc., are not in competition with Pakistan,” an officer of the ministry of commerce told this writer.
“Pakistan ratified all relevant 27 conventions relating to human and labour rights, environment and good governance. The implementation of these conventions is Pakistan’s soft belly.”
The commerce ministry has been active on the issue and is generating material to educate the business community on the provisions of the conventions, while also lining up interactive events in all major cities to facilitate their implementation.
“Post- devolution, most areas covered by ‘standards and conventions’ fall under the purview of provincial governments, which are neither equipped nor so far inclined to move to get the conventions implemented,” a senior commercial officer said.
“The situation is scary in the realm of implementation of conventions all over the country. We considered certification by the government for exporters, but discarded the idea of direct inspectors’ intervention because of the risk of corruption,” a researcher at the Pakistan Institute of Trade and Development (PIDT) informed from Islamabad.
“Instead, we are considering getting international accreditation to both public and private certifying labs and institutions to increase the acceptability of exportable products in the developed markets,” he said.
Some leading lights of the textile sector were also a bit cautious. They were not too comfortable with the hype created around GSP Plus. “We must not underplay the challenge or we would miss the opportunity.”
“No one should forget that this is not some backwater region that can be flooded with sub-standard products. Europe is a highly demanding market, and exporters will need certifications that are not easy to attain. Besides, the country lags in trade infrastructure and it will have to be upgraded for exports to jump quantitatively,” a former All Pakistan Textile Millers Association official informed from Lahore.
However, the chairman of the Pakistan Textile Exporters Association, Sheikh Ilyas Mahmood, who is also attending Heimtextil, is quite optimistic. He informed his colleagues back home last week that he expects Pakistani participants in the exhibition to secure orders worth one billion dollars.
AFSHAN SUBOHI
Having assumed size and exposure, businesses seem to moving out of state patronage to grow on the strength of productivity and competitiveness, while capitalising on the comparative advantage of the country’s resource base.
A move by a textile body to open a liaison office in Europe does not seem to be coincidental or a one-off occurrence. Nor is the participation of hundreds of businessmen (financed by their own companies) in the Heimtexil trade fair at Frankfurt last week.The export potential created by GSP Plus seems to be stimulating export-oriented industries to clinch a greater share of the international trade pie.
“Yes, 20 years back, we used to look up to the government to sponsor participation in international trade events. Now, neither do we have the time nor the energy to deal with reluctant ‘babus’ who are conditioned to impede more than to facilitate things,” Shabir Ahmed, chairman of the Pakistan Bedwear Exporters Association (PBEA), told Dawn before leaving for Frankfurt.
He informed that PBEA is opening an office in Paris to defend the interests of home textile exporters in Europe. “We have hired a well connected expert to manage our affairs, and to enable and advise us to conduct the business prudently.”
The director-general of the Trade Development Authority, Yousuf Khan, says that his organisation has “sponsored a 45-member delegation of exporters to the event, besides putting up an impressive show for the country at the venue of the exhibition.”
Insiders informed this writer that the authority spent 162,000 euros on the event, whereas the bill of participation of about 400 businessmen was funded by their companies.
“For the past many years, exporters have been participating in the exhibition. But this year’s profile is certainly different. Everyone who is somebody in textiles is in Frankfurt. If you want to get the feel of the situation, visit Faisalabad,” he added.
A senior officer who had to defer a scheduled event of the government’s interaction with businesses in Faisalabad confirmed this. “Yes, a few government business meetings had to be rescheduled because so many tycoons are out of country,” he informed from Islamabad.
“I fail to understand why people are so fixated on textiles. GSP Plus covers a wide range of products. It has given Pakistan duty-free access to a developed market, with big South Asian diaspora, in two-thirds of all product categories. The other 10 countries, like Liberia, Sudan, Burma, etc., are not in competition with Pakistan,” an officer of the ministry of commerce told this writer.
“Pakistan ratified all relevant 27 conventions relating to human and labour rights, environment and good governance. The implementation of these conventions is Pakistan’s soft belly.”
The commerce ministry has been active on the issue and is generating material to educate the business community on the provisions of the conventions, while also lining up interactive events in all major cities to facilitate their implementation.
“Post- devolution, most areas covered by ‘standards and conventions’ fall under the purview of provincial governments, which are neither equipped nor so far inclined to move to get the conventions implemented,” a senior commercial officer said.
“The situation is scary in the realm of implementation of conventions all over the country. We considered certification by the government for exporters, but discarded the idea of direct inspectors’ intervention because of the risk of corruption,” a researcher at the Pakistan Institute of Trade and Development (PIDT) informed from Islamabad.
“Instead, we are considering getting international accreditation to both public and private certifying labs and institutions to increase the acceptability of exportable products in the developed markets,” he said.
Some leading lights of the textile sector were also a bit cautious. They were not too comfortable with the hype created around GSP Plus. “We must not underplay the challenge or we would miss the opportunity.”
“No one should forget that this is not some backwater region that can be flooded with sub-standard products. Europe is a highly demanding market, and exporters will need certifications that are not easy to attain. Besides, the country lags in trade infrastructure and it will have to be upgraded for exports to jump quantitatively,” a former All Pakistan Textile Millers Association official informed from Lahore.
However, the chairman of the Pakistan Textile Exporters Association, Sheikh Ilyas Mahmood, who is also attending Heimtextil, is quite optimistic. He informed his colleagues back home last week that he expects Pakistani participants in the exhibition to secure orders worth one billion dollars.
