Rising costs, transport strike threaten garment export

Readymade garment exporters in Pakistan are pressing the government to act quickly, saying that climbing fuel and utility costs and an ongoing transporters' strike are threatening the sector's competitiveness in overseas markets. The plea came from Imran Salahuddin, chairman of the PRGMEA North Zone, as reported by Business Recorder. He added that costly financing, delayed refunds and cargo disruption are compounding the problem for apparel shippers.

Salahuddin said the newly introduced daily petroleum pricing system adds uncertainty, since exporters usually agree orders months ahead at prices that stay largely fixed. He stressed that manufacturers cannot simply pass every rise in energy and transport costs on to foreign buyers. The transporters' strike, now in its fifth consecutive day, has severely hampered cargo movement.

Warehouses are reportedly turning away extra consignments, leaving export containers stuck at factories. Salahuddin warned this raises the chance of missed shipment dates, delay charges on containers and damage to buyer confidence.