Pakistan outsourcing textile production to Bangladesh

Pakistan is losing textile production to lower-cost Bangladesh, the Daily Times of Pakistan said Monday.

Makers of bed linens, readymade garments and knitwear have begun shifting operations to areas around Dhaka, in part because of lower labor costs and in part because of government tax incentives, officials said.

Textile companies are also responding to European anti-dumping duties on Pakistani products. Those duties do not apply to Bangladesh, which retains strong cultural and religious bonds with Pakistan.

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