Issues of Readymade Garments Industry
The demand for readymade garments during the past five years increased manifold due to increase in GNP, urbanization and growth in population.despite all available opportunities and strengths, Pakistan’s readymade garment industry has failed to develop a comfortable place in local and foreign markets. There are a number of factors responsible for this state of affairs:
There is a lack of concrete initiatives for accelerating industrialization and no proper and on-time implementation of policies and strategies. Bureaucracy, corruption and political instability contribute to a weak industrial structure.
There is lack of innovative approaches to adopt modern machinery and use updated data.
Economic depression has resulted worldwide in a sudden downfall of purchasing power of the general consumer. Poverty levels are increasing while FDI (Foreign Direct Investment) and exports are seeing a major decline.
Paucity of power is biggest major problem affecting the readymade garments industry presently. Unannounced load shedding has deeply hurt production and delivery schedules increase in electricity prices has further added to the manufacturing costs.
Frequent Price Fluctuations
Even after the budget is announced, prices of raw materials, processing materials and other products keep rising, adding to the already high production costs.
Lack of infrastructure
Physical and organizational structure of the industry needs immediate attention as it is being destroyed by terrorism and lack of maintenance.
Absence of organized data to monitor growth or expansion in the sector.
Research and Development
Lack of research-oriented attitude leads to deterioration of the industry. New and innovative products can only be produced if there is extensive support through R&D