Pros and Cons Table of Bangladesh and Pakistan Textile and Apparel Industry

Pros and Cons Table of Bangladesh and Pakistan Textile and Apparel Industry

Pros and cons table of Bangladesh textile and apparel industry

Pros	Cons
Since its inception in 1970, Bangladesh textile and apparel industries have gone through tremendous growth and have become one of the leading global exporter of RMG.	Infrastructure is a great challenge that is facing Bangladesh textile and apparel industry and this has a negative bearing on the RMG industries growth. These include utilities, port facilities and road networks. This is seen by congested roads, limited inland transport alternatives etc.
The industry contribute immensely in the Countries GDP (13 % of the GDP and 75% of the export) thus making it the leading industrial sector.	Aspects of supplier performance and work force supply such as an expectation of increase rates labor cost and skill, capability and capacity gap.
Bangladesh as an emerging hot spot for RMG has a number of advantages which include aspects of price and capacity. The price levels are competitive and quality levels especially in value and entry level-mid market products. Because of the development in wage, it is expected that Bangladesh price will still remain highly competitive in the future (Verma, 2002).	High dependence on imported raw materials can also be viewed as a major risk. This leads to an increase in fabric lead time for wovens.
With a capacity of 5000 RMG factories which employee almost 3.6 million workers and this put it a head of countries such as Indonesia Vietnam and Cambodia	Aspects of political and economic stability also affects of sourcing in this industry in Bangladesh.
Favorable trade policies e.g. duty free import of import of garments from Bangladesh also put the industry on high pedestal.	High scrutiny by Non Governmental Organizations (NGOs) and Corporate Social Responsibility stakeholders (CSR) with regards to compliance e.g. environmental compliance.

Pros and cons table of Pakistan textile and apparel industry

Pros	Cons
It contributes 11 % of Pakistan Gross Domestic product (GDP) more so in 2004-2005. And represent 46 % of the entire manufacturing sector and employs 35 % of Pakistan industrial labor force (Nordås, 2009).	Low growth performance of cotton production is one of the major cons in Pakistan textile and apparel industry. This is majorly attributed to severe pest infestations. As stated by Abernathy, Volpe and Weil (2006), the major challenge facing Pakistan in cotton production is controlling cotton viruses and other pests.
The cotton based commodities from this industry make 60% of the export and it is a major source of income for most rural households.	Government intervention in the price, trade, and market system is another con of Pakistan textile and apparel industry. Some of these controls have prevented the private sector engagement in the cotton business
Pakistan is a global player in textile and apparel related products and the industry play a great role in reducing the level of poverty in the rural Pakistan.	As in Bangladesh, aspects of political and economic stability also affects of sourcing in this industry in Pakistan.
	Infrastructure is also a great challenge that is facing Pakistan textile and apparel industry and like in Bangladesh, this has a negative bearing on the RMG industries growth. These include utilities, port facilities and road networks. This is seen by congested roads, limited inland transport alternatives etc.

References

Abernathy, F. H., Volpe, A., & Weil, D. (2006). The future of the apparel and textile industries: prospects and choices for public and private actors. Environment and Planning A, 38(12), 2207.

Nordås, H. K. (2009). The global textile and clothing industry post the agreement on textiles and clothing. World Trade Organization (WTO).

Verma, S. (2002). Export competitiveness of Indian textile and garment industry. Indian Council for Research on International Economic Relations, Working Paper, (94).