Window of opportunity for Pakistan to woo investors amid Bangladesh crisis
Business
Major fashion brands have cancelled the orders due to political uncertainty in Bangladesh
LAHORE (Dunya News) – Bangladesh reels under political uncertainty following the departure of former prime minister Sheikh Hasina, forcing investors to turn towards other Asian countries.
A number of factories remained shut for several days due to massive protests in Bangladesh while some state-run workplaces were torched by protesters, causing delay in supply of their textile orders to Europe and North America.
Bangladeshi exporters said some major brands had cancelled the orders for next season and took Northeastern Asian suppliers on board.
The situation has created a window of opportunity for Pakistan to woo the investors and grab garments orders - a move that can help country earn precious foreign exchange.
Bangladesh’s readymade garments exports were recorded at $42.63 billion in July 2023 and they grew to $43.85 billion in May 2024 - an increase of 2.86 percent. However, the exports from Pakistan were recorded at $16.50 billion in previous year.
Now it is crucial for Pakistan to attract international companies by offering them facilities, besides increasing its textile exports.
Bangladesh's $5 billion textile orders could potentially be grabbed by Pakistan. If this opportunity is not seized promptly, these orders may end up with India, Cambodia, or Vietnam.
If the competitive electricity prices at the rate of nice cents are offered and tax reforms implemented, textile exports could increase and create employment for five million people.
