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Pakistani Textile firms to relocate to Bangladesh- promised electricity and low taxes

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    Pakistani Textile firms to relocate to Bangladesh- promised electricity and low taxes

    Well done to our government for chasing entrepreneurs out of the country. It is a disgrace that something as vital to the economy as sufficient electricity cannot be provided.



    Pakistani entrepreneurs plan to relocate their textile manufacturing units to Bangladesh in a bid to reap advantages given to least developed countries (LDC) of duty-free markets in the European Union.


    The manufacturers blame Pakistan for rising costs of production, power shortages, higher taxes and poor market access to developed countries, former textile minister Mushtaq Ali Cheema told Pakistan's Daily Times newspaper.

    Bangladesh offered lucrative incentives, including uninterrupted power supply and tax-free status for the first 10 years and tariff-free access to markets in the European Union.

    In September, a Pakistan business delegation held parleys with Bangladesh trade bodies and expressed their eagerness to relocate their textile industries to Bangladesh.

    The exporters and manufacturers are disappointed with the Pakistan government for its poor business vision, which left the Pakistan textile industry in tatters, said Cheema.

    Cheema said the cost of textile production is very high in Pakistan, while labor costs in Bangladesh are cheaper and the workers are more efficient.

    Already several Pakistani entrepreneurs have invested in composite textile units in Bangladesh. The entrepreneurs argue that several facilities give way to profit margins an average 30 percent higher for textile exporters than in Pakistan, Cheema added.

    International buyers and retail giants are reluctant to place orders with exporters because of unpredictable breakdowns in the supply chain, said the official.

    Another huge attraction in Bangladesh is the lack of tariffs in major markets such as the United States and the European Union. Classified as a "Least Developed Country," Bangladesh has been given special tariff-free access to markets in developed countries as an indirect form of aid.



    Read more: http://www.allheadlinenews.com/artic...#ixzz1dQlVnDew
    Muslims are so good at dividing that they can divide the atom. If you see two Muslims, probably they belong to 3 parties.
    Al-Ghazali

    #2
    Re: Pakistani Textile firms to relocate to Bangladesh- promised electricity and low t

    and those who say, Our Lord, Give us, from our spouses and our children, comfort of eyes, and make us heads of the God-fearing.
    [25:74]

    Comment


      #3
      Re: Pakistani Textile firms to relocate to Bangladesh- promised electricity and low t

      Allah Rehm farmae. Hamare mulk ke karta dhartaon ki to wo misaal hai ke jis thaali main khate hain ussi main ched karne pe tulle hain. I just can't understand, how they manage 'no load shedding' for 4-5 Eid holidays. Seems there is some artificial shortage being created.
      We should care for each other more than we care for ideas, or else we will end up killing each other.

      Comment


        #4
        Re: Pakistani Textile firms to relocate to Bangladesh- promised electricity and low t

        Originally posted by mAd_ScIeNtIsT View Post
        Well done to our government for chasing entrepreneurs out of the country. It is a disgrace that something as vital to the economy as sufficient electricity cannot be provided.
        On one hand Bengladesh blocked WTO membership and on the otherhand these paki businessmen wants to transefer their businesses to Bengladesh. It does not make any sense. Normally paki businessmen look for dubai to open business, why Bengladesh???????

        Comment


          #5
          Re: Pakistani Textile firms to relocate to Bangladesh- promised electricity and low t

          ^ the reasons are mentioned in the article, the loadshedding of electricity and gas is worst in Punjab especially faisalabad which is pakistan's leading textile producer. Cost of production is increasing as every other day the prices of electricity is increasing, it seems that Bangladesh provides subsidies and incentives to industries out there. The labour in Bangladesh is cheaper as compared to middle east and then they have access to the European union. It seems that the industrialists are not going to Bangladesh but the government is forcing them to go.
          “The world will not be destroyed by those who do evil, but by those who watch them without doing anything." Albert Einstein

          Comment


            #6
            Re: Pakistani Textile firms to relocate to Bangladesh- promised electricity and low t

            Originally posted by Ali_Syed View Post
            ^ the reasons are mentioned in the article, the loadshedding of electricity and gas is worst in Punjab especially faisalabad which is pakistan's leading textile producer. Cost of production is increasing as every other day the prices of electricity is increasing, it seems that Bangladesh provides subsidies and incentives to industries out there. The labour in Bangladesh is cheaper as compared to middle east and then they have access to the European union. It seems that the industrialists are not going to Bangladesh but the government is forcing them to go.
            That is fine. Bengladesh is also a Muslim country once it was East Pakistan. After getting independence its economy has surpassed West Pakistan's economy.

            Comment


              #7
              Re: Pakistani Textile firms to relocate to Bangladesh- promised electricity and low t

              The priorities of the government are wrong, according to dunya news the new gas loadshedding plan has been approved according to which domestic customers won't be affected but industries will face loadshedding for 3 days a week. When there will be no industries and people will be become jobless will they be able to pay for the gas bills or buy food for the day?therefore if they want to serve the masses they need to give more importance to the industries.
              “The world will not be destroyed by those who do evil, but by those who watch them without doing anything." Albert Einstein

              Comment


                #8
                Re: Pakistani Textile firms to relocate to Bangladesh- promised electricity and low t

                Originally posted by sachaydino View Post
                That is fine. Bengladesh is also a Muslim country once it was East Pakistan. After getting independence its economy has surpassed West Pakistan's economy.
                Bhutta should have thought of that when he said 'idhr hum udhar tum'. The main benefit would have been that not only would West and EaSt Pakistan compete (competition brews success), but today if factories shifted there then Pakistan overall would still benefit.
                Say no to 'islamofascism'..

                Comment


                  #9
                  Re: Pakistani Textile firms to relocate to Bangladesh- promised electricity and low t

                  Originally posted by Ali_Syed View Post
                  The priorities of the government are wrong, according to dunya news the new gas loadshedding plan has been approved according to which domestic customers won't be affected but industries will face loadshedding for 3 days a week. When there will be no industries and people will be become jobless will they be able to pay for the gas bills or buy food for the day?therefore if they want to serve the masses they need to give more importance to the industries.
                  I seriously wonder if this govt was put into power with NRO to make Pakistan a laughing stock of the world. The irony is that that even after all the loadshedding, Pakistan won't go forward with IP pipeline due to obvious reasons and TAPI is a non-starter due to insurgency. Forget gas, we can't even import electricity for the time being from the wakhan corridor when we could re-export to india if we become self-sufficient in the future.
                  Say no to 'islamofascism'..

                  Comment


                    #10
                    Re: Pakistani Textile firms to relocate to Bangladesh- promised electricity and low t

                    The problems of pakistan will be solved when the niyyat of the rulers improves. Gas reserves have been discovered in Balochistan many times bigger than the current gas reserves but we need to bring peace in balochistan and within one year the government can start production. Tapi, ip gaslines can come later. Every country other than Pakistan tries to use their own resources first before turning to foreign solutions. The LPG mafia doesn't want Pakistan to develop new gas fields (read about zin gas fields in balochistan which may have more gas than Sui) but the mafia is making Money out of this crisis as well at the expense of the country.
                    Last edited by Ali_Syed; Nov 11, 2011, 08:34 PM.
                    “The world will not be destroyed by those who do evil, but by those who watch them without doing anything." Albert Einstein

                    Comment


                      #11
                      Re: Pakistani Textile firms to relocate to Bangladesh- promised electricity and low t

                      While Bangladesh has made progress economically, it is inaccurate to say it is has surpassed Pakistan. Both by overall GDP and per capita Pakistan is still quite ahead based on figures by the IMF, World Bank and other international agencies.




                      Last edited by Lex Luthor; Nov 12, 2011, 12:54 AM.

                      Comment


                        #12
                        Re: Pakistani Textile firms to relocate to Bangladesh- promised electricity and low t

                        Many textile units from Faisalabad have already moved to Bangladesh owing to lack of energy available, stimulating investment in Bangladesh and providing jobs to Bangali labor.

                        Comment


                          #13
                          Re: Pakistani Textile firms to relocate to Bangladesh- promised electricity and low t

                          Another good decision by the government, gas for the industrial sector will remain closed for three days as well..



                          [FONT=Arial, Verdana, sans-serif]
                          [/FONT]Faisalabad: 3-day gas closure for stations, industries from today[FONT=Arial, Verdana, sans-serif]
                          [/FONT]
                          FAISALABAD: All the Compressed Natural Gas (CNG) stations and industrial sector will observe three-day gas closure here from Thursday morning, Geo News reported.

                          According to schedule, all CNG stations and industrial sector of Faisalabad will face gas suspension under load management schedule from 6 am on Thursday (today) to 6 am on December 11 (Sunday).

                          On the other hand, the industrial sector of Faisalabad is adversely affected by the gas loadshedding as the production has come to a halt, bringing misery to the daily wagers.


                          The industrialists termed the 3-day closure a disaster for industrial sector and will stage a protest against gas loadshedding at the press club today.
                          “The world will not be destroyed by those who do evil, but by those who watch them without doing anything." Albert Einstein

                          Comment


                            #14
                            Re: Pakistani Textile firms to relocate to Bangladesh- promised electricity and low t

                            Democracy is the best revenge (exacted on people of Pakistan).
                            Grizzly bear

                            Comment


                              #15
                              Re: Pakistani Textile firms to relocate to Bangladesh- promised electricity and low t

                              Originally posted by Iconoclast View Post
                              Democracy is the best revenge (exacted on people of Pakistan).
                              Don't worry the low IQ pakistani nation will stand in long lines to vote these same people again in power. All this just for lisaniat. Despite what anyone says, religion, piety or anything else doesn't make any difference to pakistanis, they always vote based on ethnicity and lisaniat and hence will keep on living miserable lives like animals.

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