Pakistani businesspeople who have invested in Bangladesh’s textile sector are concerned since the country’s recent upheaval and unrest has created the same level of uncertainty as in Pakistan.

Previously, several Pakistani textile entrepreneurs shifted their companies to Bangladesh. Lower production costs, preferential trade agreements, and improved infrastructure in Bangladesh all contributed to this trend.

Bangladesh is the second largest exporter of apparel in the world after China and is regularly encroaching on the Chinese share, which has been slapped with sanctions by Western nations. Most of them have established their operations in recent years in special export processing zones of Bangladesh. Entrepreneurs from more than a dozen Pakistani textile industries, particularly in the home textiles and readymade garment sectors, have moved their units to Bangladesh to reduce production costs by nearly 50 per cent.

Soorty Enterprises has invested US $ 35 million to set up a garment factory in Bangladesh, employing around 6,000 Bangladeshis. Other notable names include, Interloop Limited, Pak Denim Limited, Crescent Textile Mills, Gul Ahmed Textile Mills, Kohinoor Textile Mills, Al-Karam Textile Mills, Nishat Mills Limited (Part of the Nishat Group), Artistic Milliners and Masood Textile Mills.

These individuals and businesses have relocated or extended their operations to Bangladesh due to lower manufacturing costs, improved market access, and advantageous economic policies. Bangladesh’s strategic advantages, including as low labour costs and good trade agreements with the European Union and the United States, impacted the relocation, as they provide Bangladesh better market access and lower tariffs than Pakistan. (The European Union granted Pakistan GSP+ status in 2013). These incentives have made Bangladesh an appealing destination for Pakistani textile companies seeking to increase earnings and market reach.