Buyers forced to delay shipments, claim textile exporters

European buyers are reaching out to Pakistani textile exporters and urging them to delay shipments owing to growing uncertainty in the wake of coronavirus pandemic.

Europe is now the epicentre of the global coronavirus outbreak, declared the World Health Organisation on Friday. The Europe Union (EU) is the second biggest trading partner of Pakistan where around 20 per cent of Pakistani exports have dutyfree access while 70pc avails preferential treatment.

However, since the coronavirus outbreak, things looking testy. According to a news report, Zara's parent Inditex would temporarily close all its stores in Spain due to coronavirus. Other major brands are likely to follow suit.

Talking to Dawn, Chief Coordinator Pakistan Hosiery Manufacturers and Exporters Association (PHMA) and Chairman Pakistan Apparel Forum, Muhammad Jawed Bilwani said two major developments have taken place since coronavirus cases emerged in European countries. "Some EU importers of textile have started asking Pakistani suppliers to slowdown their production while others are seeking late deliveries by one to one and a half months," he explained.

When asked whether exporters have followed the request of production slowdown, he said, export units continue to produce goods in a bid to meet the now delayed shipments.

Chairman Council of Textile Association (CTA), Zubair Motiwala also said European buyers are insisting to delay shipments by one to three weeks on old orders, adding, "Fortunately, we have not received any cancellation of old orders from Europe."

Motiwala feared the situation may turn ugly as coronavirus is spreading fast in Europe. He said "amid looming uncertainty, we have continued our production."

President Site Association of Industry, Suleman Chawla said European and American textile importers have asked Pakistani exporters to continue making textile products but delay their shipments by a week. According to Chawla, exports to European countries reach in 15-21 days time.

"Importers have informed local exporters about closure of ports in European countries. The situation will clear in next one to two weeks," he added.

Chairman Pakistan Leather Garments Manufacturers and Exporters Association (PLGMEA), Fawad Ejaz Khan said coronavirus in Europe has caused uneasiness among exporters as some of them have faced 50 per cent decline in fresh orders. "Some European buyers are also asking Pakistan exporters to send shipments only on the requests made by them. Many renowned stores are being closed down in Europe," he said.

President Federation of Pakistan Chambers of Commerce and Industry (FPCCI), Mian Anjum Nisar urged the government to take preventive measures and develop a strategy to protect the pace of economic and trade progress of Pakistan from likely impacts of world economic slowdown apprehended by leading think tanks due to the recent global spread of the novel coronavirus.

Globally, more than 145,682 people have been diagnosed with coronavirus. The death toll above 5,436, in China death toll 3,173, South Korea, mass testing has turned up over 6,000 cases and more than 60 deaths.

Italy has confirmed more than 17,660 cases, along with more than 1,200 deaths. Iran has announced 514 deaths and 11,364 cases. The United States confirmed 41 deaths from the outbreak, along with more than 1,264 confirmed cases.