20000316

Study on marketing strategy

Prgmea hires

services of KU

economics dept

RECORDER REPORT

KARACHI: The Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea) has hired the services of the Department of Economics, University of Karachi, to prepare a study on marketing strategy after the abolition of quota for the EU and the USA.

The study which is to be submitted to Prgmea before the Trade Policy for 2000-2001 is announced, will also take into account the role of the information technology in promoting garment exports and government policies for export led growth.

The Chairman of Prgmea Sub-Committee on Research and Developments Vaqar A. Khamisani held a preliminary meeting with Shafiq-ur-Rehman, chairman of the Economics' department of the university on Tuesday. The latter was accompanied by Dr. Qazi Masood and Prof Ahsan Hasan.

During the discussions, the two sides agreed that the use of modern technology and marketing through e-commerce was a must to cope with the challenges of export in future. The greater use of e-commerce could reduce the marketing cost to a bare minimum which in turn could raise the competitive edge of the Pakistani products.

Vaqar pointed out that the main problem for Pakistani exporters was the absence of an import culture whereby an exporter should be able to get any raw material from abroad by just making a phone call. Citing Bangladesh's success in textile exports, he said that the cycle of textile industry in that country started from manufacturing of value-added products which led to the setting up of looms for weaving and spindles for yarn. But in Pakistan spindles were erected first followed by looms and then garment manufacturing. The reversal of the textile industry cycle was the root cause of the problems faced by the exporters, he added.

Masood Naqi, former zonal chairman of Prgmea, said in Pakistan exporters spent more time with Customs and in ports than in their factories. He said that the cheap labour was not the main reason of Bangladesh's success but it was the export-friendly policies of the government. Continuous run of factories having tremendous export orders reduced their cost of production, he added.

With regard to the hidden costs involved in the manufacture of exportable products, the two sides suggested that the CBR should make rebate and sales tax refund within 24 hours and if not it should give exporters the benefit of input adjustments.

The meeting was attended by Javed Chinoy, Chairman, Prgmea, Central, Zubair Parekh, Talib Suhail and Saud Elahi. The next meeting to finalise the study project will be held on March 28, 2000.