Pakistani textile units in Bangladesh forced to move back home over unfair Bangladeshi policies

YarnsandFibers News Bureau 2014-04-11 10:50:00 – Lahore

The unfair policies of Bangladeshi government has created an insecurity amongst the Pakistani investors who had relocated their textile units in Bangladesh as they faced acute energy shortage and fluctuating tariffs of utilities in Pakistan. The Investors of Pakistan textile units in Bangladeshi are left with no other alternative but to move back home once again.

Bangladeshi government policy has left Pakistani investor altogether flustered, as Bangladeshi feels Pakistan is responsible for overplaying the collapse of a textile factory building in Dhaka at global markets.

According to Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea), the Pakistani investors are finding the Bangladeshi policies ' argumentative ' and its system difficult to deal with after the trials and punishment of Jamaat-i-Islami leaders for 1971 war charges.

The political chaos has ended up in repugnance against Pakistan largely upsetting the investors who had relocated their units from Karachi or other cities of the country to Dhaka.

The entire atmosphere is against the Pakistani investors and Bangladeshi government pulled out Pakistan for all flaws including the factory. Due to this, the new Pakistani investors have scarped their plans to set up units in Bangladesh after its government stepped up a drive against Pakistan.

A number of Pakistani investors have starting to relocate their units back home. Majority of units that were set up in Bangladesh were of home textile sector, due to duty-free access that Dhaka provided for its being Least Developed Country (LDC) in the EU. But, with the granting of GSP-Plus to Pakistan, it provides the same facility for Pakistani local exporters.

Although, Pakistan has attained a GSP-Plus status, it energy crisis, huge tax rate, no rebate, delays in refunds and other such issues is playing a bad role in scaling up textile production and its exports. However, some of the remaining investors in Bangladesh are worried and feeling insecure in Bangladeshi will be sooner rather than latter moving back to Pakistan has there are have no other option before them.

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