KARACHI: The Pakistani textile processors have agreed to support the Sri Lankan initiative to request the Super Regional Cumulation (SRC) linking SAARC and ASEAN countries as one entity for the purpose of Generalized System of Preferences-GSP facility of the European Union.
This was decided at a meeting between Manel De Silva, Consul General of Sri Lanka and the All Pakistan Textile Processing Mills Association members led by newly-elected Chairman, Arif Lakhani.
In a press communique by the association, the meeting intensely discussed the ramifications of this initiative, which will be an agenda item in the SAARC Commerce Secretaries meeting in Islamabad after Eid.
De Silva explained in detail the various issues related to this linkage and asserted that the value-added manufacturers would have a wide choice to source their fabrics.
Arif Lakhani, who was assisted by Vice Chairman, Anis Motiwala, and senior textile processors, Abdullah Rafi, Majyd Aziz, Iqbal Arbi, and Tariq Rafi among others, raised pertinent questions, especially with regard to the impact of some of the fabric producers in Indonesia and Thailand who could under sell and affect the SAARC fabric producers.
Furthermore, the Pakistani fabric manufacturers may lose their market share in SAARC countries. At the same time, Pakistani garment and hosiery manufacturers may also be subject to fierce competition from ASEAN manufacturers in the volatile EU market.