Textile industrialists from Punjab have followed their counterparts from Karachi to explore business opportunities in Bangladesh due to high production costs and shrinking profit margins.

However, establishing new joint venture project or an individual business would be more beneficial for Punjab investors than relocating, as shipping the machinery would prove to be much costlier.

Karachin based Pakistan Bedwear Exporters Association (PBEA), Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA) and knitwear entrepreneurs from Lahore, Pakistan Hosiery Manufacturers Association (PHMA) have also conducted a study on the cost benefit in setting up shop in Bangladesh.

Mohammed Ayub, Secretary, PHMA said that factors such as electricity, labour and other incentives have lured local entrepreneurs to relocate their business to Bangladesh.

Bangladesh apparently offers inherent advantage by way of low petrol price and highly skilled cheap lobour.

Besides, social security or old age benefits for the workers are not provided for.

Besides, production cost is almost half of what it is in Pakistan added with the duty-free entry passage for Bangladeshi products to Europe and the US, altogether sounds profitable business proposal to them.

Those in manufacture of basic textiles believe abolition of sales tax refund and rebate prompts textile tycoons of Karachi to mull over Bangladesh moves.

This apart, a check on fraudulent practices like fake refunds and rebates also is an extended reason for considering the shift to Bangladesh.

Fibre2fashion.com