Pakistan's Non-woven Bag Export Breaks into Crisis

On January 17, at the inaugural meeting of the Export Branch of the Karachi Chamber of Commerce and Industry (KCCI), President Abdullah Zaki highlighted that Pakistan faces strong competition in the non-woven bag export market from Bangladesh, China, and India. These countries provide significant financial support and policy incentives to their non-woven bag industries, which drastically reduces their production costs. In contrast, Pakistani exporters are struggling due to higher operational expenses and a lack of government intervention to ease export burdens. Club President Alamgir A. Shaikh noted that most of the country’s major exporting cities have now joined the Export Branch, allowing them to actively engage with the Export Committee and access key industry resources. He also shared that in July through November 2006, Pakistan’s non-woven bag exports reached $6.9 billion, nearly matching the previous year’s figure of $6.5 billion. However, he pointed out that global market dynamics have shifted from a seller’s market to a buyer’s market, making it more challenging for exporters. To remain competitive, businesses must focus on reducing delivery times, improving customer service, and offering cost-effective pricing—key factors in maintaining market share. Alamgir A. Shaikh further emphasized that energy costs in China and India are significantly lower than in Pakistan. India, in particular, has implemented policies to cut production costs for non-woven bag manufacturers, while existing industrial zones benefit from favorable tax and regulatory environments. He urged Pakistani authorities to introduce targeted measures to support the sector, as non-woven bag companies are currently facing intense pressure from international competitors. With the global demand evolving rapidly, it is crucial for Pakistan to adapt its strategies and create a more supportive environment for its export industry.