The exit of major garment brands and retailers like M&S, Zara owner Inditex, Primark, and Zara from Myanmar, provides an opportunity for other countries in Asia like Pakistan, India, Sri Lanka, Bangladesh, and Vietnam to divert the sourcing to their countries.
The political crisis in Myanmar has led to widespread protests and businesses are facing disruptions due to strikes and general unrest. Several factories have closed down and workers are either in hiding for fear of prosecution or unemployed.
As companies look for alternatives to the uncertain business environment in Myanmar, Pakistan could become an attractive destination for relocating sourcing since Pakistan has a relatively cheap labor force, while having access to domestically available raw materials.
Following in the footsteps of other global brands and retailers like M&S, Primark, and Inditex, H&M had earlier this week expressed that it would be gradually reducing sourcing from Myanmar, which could open new opportunities for garment exporters in Pakistan.
It is estimated that H&M and Inditex source around 15 percent of their garments from the South East Asian country and these brands will need to find alternative sources within Asia since the continent is known for its competitive production costs.
The political crisis in Myanmar has led to widespread protests and civil disobedience. Businesses have faced disruptions due to strikes and general unrest. The labor market is in shambles, with factories closed and workers either unemployed or in hiding due to fear of persecution.
Myanmar crisis opportunity for the Pakistani garment sector
