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Vast potential for garments export to Iran

MUZAFFAR QURESHI

KARACHI: With the lifting of ban on import of garments by Iran there is vast potential for the export of value added textile products from Pakistan, says a study made by Commercial Section of Pakistan Embassy in Tehran.

The study referred to the Pakistan Readymade Garments Manufacturers and Exporters Association (Prgmea) by the Export Promotion Bureau says that Iran has permitted import of readymade garments on payment of certain protective duty and Pakistani exporters should approach the major importers of textiles/ fabrics to explore the possibility of selling specialised fabrics to Iran.

The research conducted by the Pakistan embassy said that foreign made garments mainly from Turkey, Korea, Taiwan, Hong Kong and Pakistan were available in the Iranian market. Discussions with the Iranian Chamber revealed that the import of items which otherwise had higher import duty was allowed in the Free Trade Zone areas after paying a certain specified duty. These items could either be re-exported after value addition or brought to mainland market in quantity equivalent to the amount of value addition. Besides visitors to the Free Trade Zone could buy these items worth 80 dollars per person as personal baggage.

The study has suggested that readymade garment exporters should consider the possibility of opening their warehouses in the Free Trade Zones in Iran independently or in partnership with Iranians. They could also explore the possibility of setting up joint ventures with the Iranian businessmen. This platform could also be used for increasing Pakistan's exports to quota countries for export from Iranian Free Trade Zones without any quota restrictions.

The study maintained that the Iranian textile industry needed technical expertise for its revival. Pakistan is in a position to provide the same. Providing expertise in the textile sector to Iran can be discussed at the next meeting of Pakistan Iran Joint Trade Commission. In the last meeting it was decided to revive mutual credit of 50 million dollars. A certain amount of this credit can be used to provide components of the textile machinery to Iran from Pakistan.