Abstract
Textiles and apparel is the largest industrial sector of Pakistan and plays a
significant role in its economy, particularly in export earnings. It has been
observed that the small and medium enterprises (SMEs) within the apparel
sector also contribute to exports. However, this contribution is marginal when
compared to the role played by SMEs of other South Asian apparel exporters.
This qualitative study is conducted to explore the challenges and opportunities
for the apparel exporting SMEs in Pakistan. After literature review, 6 SMEs – 2
from each apparel clusters of Lahore, Faisalabad and Karachi – were selected
using purposive sampling. In-depth semi-structured interviews were conducted
with senior managers at these firms. Findings suggest that the burden of
terrorism on the SME is far greater than that of the energy crisis. The energy
crisis and compliances drive up the costs of production and reduce international
competitiveness of the suppliers. However, terrorism creates an unlevel playing
field that has a much larger impact on the overall apparel sector. This study
finds that opportunities lie in policy reforms and the GSP Plus Status granted to
Pakistan by the European Union. The paper ends by recommending how
institutions, bilateral trade and particularly the China Pakistan Economic
Corridor can sustain the SME sector of Pakistan
Mahwish J. Khan. (2017) An Exploratory Evidence of the Types of Challenges and Opportunities Perceived by the Small and Medium Enterprises (SMEs) in the Apparel Export Sector of Pakistan, Abasyn Journal of Social Sciences, Volume-10, Issue-2.
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