MAJOR PROBLEMS FACING PAKISTAN TODAY Introduction

Pakistan was established in 1947 and since its inception, it has been surrounded by countless issues including but not limited to illformed/missing infrastructure, insufficient refined resources, barren or obsolete factories and technologies, imposed conflicts at ashmir and other fronts and an e!er-ready enemy to underscore all the efforts towards progress" #espite it being rich on raw resources thus far Pakistan is a de!eloping country with limited de!elopment in e!ery era due to the problems it faces" In the following te$t we will shed some light on some of the ma%or problems faced today by Pakistan as a country"

P&'()*+
,ccording to an analysis conducted by the go!ernment of Pakistan and published at hec" -o! "pk.the higher education commission of Pakistan/ shows that the po!erty has increased roughly from 012 to 412 during the past decade" 3onsider that if 412of a country4s population is earning their life below the po!erty-line in which the people are depri!ed of basic necessities of life such as clothing, shelter,food, education and medication, such families and their children will be forced to think of their sur!i!al only"

I55I*(),3+
5iteracy is defined as persons aged 16 or abo!e who can 7read8 and 7write8",ccording to this definition, Pakistanis officially reported to ha!e 612 literacy rate" 9hich means half of its population is illiterate" 9ith such family backgrounds, inflation, po!erty and child labor this rate is e$pected to increase in future" (!en for those who are termed as 75iterate8 are only able to read and write, which in today4s technology oriented world is still considered as illiteracy" :a%ority of the people forming the top controlling tier is almost unaware of technologies and technical mindset" *hus, causing the country to adopt the new technologies at a snail4s speed"

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Pakistan is suffering from a fatal problem known as 7(stablishment8" (!ery !ital department in Pakistan is controlled by the so called 7(stablishment8" (stablishment is a network of key positions in almost all the departments in the country" *his network pro!ides support and safe backing to their 7touts8 to ensure that they remain in control" *he roots of this establishment may !ery well be deep inside underworld and

secret agencies of the dominating nations" It is interesting to note that due to the international interference and manipulation the !ery same people that we label as corrupt %ust sometime ago, blame and rebuke, come back to go!ern us after a couple of years again and people welcome them with open arms" , common (nglish saying goes as 7fool me once, shame on you, fool me twice, shame on me8" *his is probably also the main reason why the political process in Pakistan is not let to prosper" =oon after its inception the sincere and loyal politicians were remo!ed from the main stream and only dummy agents and rubber stamps are put in place, while all the decisions are made outside the country"

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India is typically termed as a con!entional enemy to Pakistan" ,s mentioned before the people of Pakistan need to be trained to think positi!ely about their surroundings" 9e should learn a lesson from ;= and 3anada4s cross border collaboration to impro!e their affairs and pro!ide backing, why can4t Pakistan and India enter into such strengthening relationship@ Pakistan can ne!er mo!e forward with its pro$y war politics with India and its in!ol!ement in the socalled ;= 9ar on terrorism" It has to strike peace with India and other neighboring countries soon so that it can use its resources for its own peopleAs welfare and focus on its collecti!e ob%ecti!es" Pakistan has more potential to be a de!eloped country earlier than India" It has the resources and talent"yet it seems to sink lower by the day" India with a billion plus population has a million problems to handle" +et the focus of India has been right and it shows in its B2 economic growth" Its time Pakistan learns this lesson and corrects its focus"

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*he whole world looks at Pakistan,as a land of terrorists" :ain reason being an e$ploitation through the religious leaders and reaction of the military operations both internally as well as e$ternally" 3hina is getting 10 billion dollars as foreign in!estment because of its stable and in!estor-friendly en!ironment where as e!en tourists are afraid to !isit Pakistan due to the security concerns" (!en smaller countries like )omania and Philippines are getting a lot of foreign in!estments" *here needs to be a big shift in the mind set" Pakistani people should mo!e away from the clutches of the religious fanatics and must realiDe what is best for them and their country"

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,ccording to official Pakistani sites .actual figures may be well abo!e the officially reported facts/, the country has an estimated E2 growth rate which for a country of official population of 1F1 :illion turns out to be roughly around0"E :illion e!ery year"

*his alarming growth rate is causing immense pressure on head of the families who are to support them" -i!en that about 412 of the population is already li!ing under po!erty line and 6"F2 .official figures/ of the population is unemployed, the e!er growing population of Pakistan is %ust adding to the problems of the already under pressure nation" Pakistan has a fast de!eloping economy which is making its middle class grow swiftly" *his is creating more need for energy, food and homes and the prices of these things are gigantic nowadays" ,lso with the internationally growing oil prices are causing e!ery item in the country to doubled .and in some cases tripled/ e!ery year"

PROBLEMS OF TEXTILE INDUSTRY OF PAKISTAN

COTTON

3otton is the largest e$portable crop of PakistanAs economy as e$ports of cotton and cotton made products earn 66 percent of total annual e$port earnings" ,s such, promotion of cotton means promotion of e$ports while failure of cotton crop tantamount to hea!y damage to Pakistan economy" It would be difficult for our te$tile industry to compete with te$tile giants like 3hina, India, >angladesh, 'ietnam and =ri 5anka in e$port of te$tiles when we ha!e to import a larger amount of cotton to meet shortfall of our cotton reGuirements"

Recommendations to Cu ! Im"o t and Inc ease De"endenc# on Loca$ Cotton

1" *o adopt better-managed cotton by adapting latest technology in seed breeding to produce hybrid seeds particularly >t seed !arieties and immediate arrangements be made

to replace the present poor Guality deteriorated seed by new and promising !arieties of seed" ,n arrangement needs to be finaliDed on a war footing basis to introduce culture of >t 3otton =eed in Pakistan with the target to increase production of 3otton up to E1 million bales in ne$t 0-6 years" E" Hoin world cotton producers effort .spearheaded by I3,/ to standardiDe 3otton -rading on the basis of Instrumentation" 0" *o participate and acti!ely promote >etter 3otton Program 3ertification now demanded by top ,pparel buyers" 4" Pursue production of organic, 5ong and ($tra 5ong 3ottons in Pakistan if possible" 6" Ia!e all constrains and bottlenecks remo!ed to make 9ahga an efficient point for cotton imports from India" F" 3ommission a study to ensure %udicious use of 3otton 3ess paid by ,P*:, members .in e$cess of )s"011 :illion annually/ to Pakistan 3otton 3ommittee" 7" Initiate a formal program for regular interaction with -rowers and -inners, particularly to impro!e the spin ability and Guality of cotton" B" ,doption of modern technology for har!esting of cotton crop to minimiDe losses" 9" ,ll ginning units should be updated and moderniDed to impro!e Guality and to standardiDe ginning system" 3otton =tandardiDation should be introduced immediately at ginning stage to impro!e lint Guality to international standards"

B% ENER&Y

Pakistan is passing through the most difficult phase of its history due to the energy crisis that is a threat to its e$port-oriented te$tile units" #uring the last few years, the te$tile e$porters ha!e faced serious power crisis in the industrial areas, which caused million of rupees losses to e!ery year especially from #ecember to Huly as these months are considered the peak seasons of te$tile e$port" *he 3ountryAs energy demand has grown at an annual consumption growth rate of 4"B2 that is e$pected to grow at B to 112 per annum till E111" *herefore, there is dire need to ha!e a sustained growth in energy supply and infrastructure capacity of 7 - B2 per annum to support the steady growth in the 3ountryAs -#P"

Recommendations
1" *o pri!atiDe Public =ector Power ;nits so that these entities could be managed efficiently" E" *he gas tariffs for te$tiles units should be freeDed at the current le!el for atleast ne$t 06 years" 0" *he import of electricity is an option e!en for short/medium term, to meet the high growth rates of demand in the country" 4" *he go!ernment should announce the financial packages for the te$tile industry so that the modern technology be imported to lessen the cost of production !iD a !iD power generation" Possibility of passing the low interest cost offered by !arious International &rganiDations to -o!ernment of Pakistan for power pro%ects@

6" *hermal efficiency of 9,P#, and other Public =ector ;nits be enhanced to atleast F12 to 712 so the ultimate sa!ings can be passed on in the form of lower 9I price to the Industry" F" 3oal based power generation to be e$plored on a priority basis, utiliDing the abundant a!ailability of coal reser!es"

C% MARKET ACCESS

:arket access is critical for economic sur!i!al and growth, especially for nations that ha!e small internal markets, limited domestic resources, and/or rely hea!ily on intl" trade for economic sur!i!al and growth" &nce in a lifetime history pro!ides a window of opportunity, which if a!ailed, can change the destiny of nations" *he window, a!ailable today, is to capture the outposts which are being abandoned by the 9estern te$tiles and which our regional competitors ha!e already marshaled their forces to capture" &nce lodged, it will be almost impossible to o!erthrow them" 9e are positioned to capture them oursel!es pro!ided the reGuired strategies and technical support is in place" 9e should focus to retain our position as a leading te$tile producer and to get greater market share in the coming years" 9e ha!e concerns o!er our ability to continue with the present rate of growth as long as the region does not pro!ide an e!en playing field" 9e are trying to seek ad!antages in the Guality of our market and access to the leading consumers of te$tiles and apparel" In the post Guota era, we must use the 9orld *rade &rganiDation regulations to our benefit and ensure that measures other countries are taking to boost their respecti!e industries are 9*& compliant" Pakistan operates under some of the lowest tariffs in the region but we must continue to de!elop bilateral trade agreements to gi!e us preferential market access" F12 of the world trade is still conducted under bilateral arrangements"

Recommendations
1" Pursue the concept of )econstruction &pportunity Jones .)&Js/ with the ;nited =tates" E" ?ree *rade ,greement .?*,/ with the (uropean ;nion, ;=, and other :arkets" 0" ,nti #umping #uty and other 3ounter!ailing :easures to be tackled with a long-term perspecti!e" 4" <ew K <on-*raditional :arkets to be tapped" 6" (stablishment of 9arehouses and #isplay 3entres F" Preferential *reatment to )egional 3ompetitors 7" *rade Instead of ,id B" 3reation of the Post of *rade <egotiator" 9" -=P Plus issue to be pursued with the (uropean 3ommission"

D% MER&ER ' AC(UISITION

International trade is getting increasingly competiti!e in phenomenon of globaliDation paradigm shift" ?or new demanding world, te$tile sector has stepped in when it has also reached at its maturity" :aturity promises optimum producti!ity but it also reGuires that the producti!e system must ha!e been grown in full" :erger and acGuisition is the indication of same economic reality that brings together scattered parts for collecti!e sur!i!al and to e$ploit the opportunity with the greater strength" ,P*:, as a figurehead of te$tile sector of Pakistan urgently need to build a strategy where we combine together smaller or weaker units lest they die their own"

Benefits / Challenges 1" Synergy: *o a!oid duplication and increase profit margin" E" Increased Market Share: *o absorb a ma%or competitor and thus increase its
power to set prices" 0" Cross Selling: , manufacturer can sell complementary products to the same customer" 4" Economies of Scale: -eographically contiguous industries can a!ail the benefits of economies" 6" Taxes: , profitable company can buy a loss maker to use it for reducing their ta$ liability" F" Resource TransferL )esources can create !alue through either o!ercoming information asymmetry or by combining scarce resources" 7" Di ersification: *his may hedge a company against a downturn and in!estment in other sectors" B" Em!ire Building: :anagers ha!e larger companies to manage and hence more power" 9" "ertical Integration: *he supplier may find more difficulty in supplying to competitors of its acGuirer because the competition would not want to support the new conglomerate"

E% COST OF DOIN& BUSINESS

3ost of doing business specifically for te$tiles is sub%ect to a !ery high operating and financial le!erage" It accounts for 1B per cent of the total credit disbursed in the economy"

#uring the last recent years, our 3ountryAs economic scenario has ad!ersely affected the !iability of the te$tile industry and retarded its growth and sustainability" *he in!estment made during the past 6 - 7 years by all sub sectors in te$tiles ranging from spinning, wea!ing, finishing and fabrication is under serious threat" It is to be noticed that there has been reduction of 1E"BF2 in in!estment in *e$tile :achinery in terms of ;= #ollar this year as compared to the corresponding period last year" If inflation is also factored in, the drop in fresh in!estment in :achinery will be in the !icinity of 112 to 1E2" *his has all resulted because of the slow down in further in!estment in the *e$tile Industry due to high cost of capital borrowing and increased pressure from regional competition" *he financial !iability of the te$tile sector relies on the following factorsL 1" =elf-sufficiency in better-managed cotton crop" E" 'iable financial cost for working capital and long-term financing" 0" Protection mechanism for Pakistani e$porters against the new payment terms being dictated by 9estern 3ustomers like #/,, #P and open terms"

F% )UMAN RESOURCE DE*ELOPMENT

#e!elopment of Iuman )esource be considered as an asset for the organiDation because lesser number of skilled and trained employees are more beneficial for a company rather than number of un-skilled and illiterate workers" ?ollowing measures should be adopted to enhance the producti!ity of the company as well its employeesL 1" Iuman )esource #e!elopmentL ?ocus on education, training and skill de!elopment" E" )espect for human )ights, gender balance, and eradication of child, bonded labour and promote dignity of labour" 0" IarmoniDed labour management relations" 4" Producti!ity and de!elopment based work culture" 6" 'ocational training outside all industrial estates"

C#$C%&SI#$

*e$tile trade in the world is estimated to be around ;=M 011 billion currently" Industry e$perts predict that by E114 when the facilities in the 9est will close down and they will source their te$tiles from more efficient areas of the world resulting in the trade !olume of around ;=M B11 billion" PakistanAs share of the current trade !olume is around 0"62" If we are to maintain our current share of this larger pie, our te$tile e$ports alone are potentially targeted to reach ;=M EB billion" 9e are willing to be the best in the region and an$ious to ha!e the highest rate of growth in the region but for that we ha!e to ensure ways to keep our competiti!e edge as compared to key regional players"

9ith a growing e$portable surplus, our e$isting road and rail infrastructure will soon be inadeGuate to transport our e$portable surplus from upcountry industry clusters" 9e also need to streamline passage to our ports" 9e look to the democratic go!ernment of Pakistan in ensuring that our trade corridor is de!eloped as soon as possible and as efficiently as possible" I would like to assure you that we at ,P*:, are committed to the growth and strengthening of Pakistan" ,P*:, stands for employment, e$ports and !alue addition" 9e are proud of our contribution to the Pakistani economy and will continue to play a part in the achie!ement of PakistanAs goal and ideals"

Cu ent Position and Futu e P os"ects O+ T,e Te-ti$e Indust #

Importance of *e$tile =ectorL ?rom a Nmost non-e$istence at the time of creation of Pakistan in 1947, the *e$tile industry has grown into the largest and most significant economic sector of Pakistan" *he *e$tile Industry contributes o!er F12 to PakistanAs e$ports, o!er 0B2 to employment and E12 to 'alue-added production by manufacturing" *his domination role of the *e$tile =ector in the (conomy of Pakistan, for better or worse, will continue till such time that other economic acti!ities achie!e significant growth and de!elopment" *he *e$tile Industry will continue to play an important role in economy of Pakistan for the following reasonsL Pakistan is one of the four largest cotton growers in the world" ,!ailability of large Guantity .around 11 million bales per annum/ of reasonable Guality is the basis of the de!elopment and sustenance of the local *e$tile Industry" *e$tile Industry is labour intensi!e" Pakistan has the ad!antage of a large labor force with one of the lowest wages in the world" *e$tile produc tion will continue to grow in the #e!eloping 3ountries since the #e!eloped 3ountries are gi!ing it up in fa!our of more technology oriented and !alue added economic acti!ities"

Im" o.ement in Te-ti$e Indust #

In spite of the tremendous growth and de!elopment of the *e$tile Industry o!er the last 61 years, the *e$tile Industry of Pakistan continues to stri!e to attain its optimum potential" If planned de!elopment and professionalism in the management of *e$tile Industry is promoted Pakistan can hope to attain one of the top position in the 9orld in respect of Guality, !olume and !alue-addition of its te$tile products" Pakistan enormous distinct ad!antages in cotton" 9ith concentrated efforts towards Guality impro!ement and !alue addition, !olume and !alue of *e$tiles e$ports from Pakistan can be considerably impro!ed" ,fter four decades of relati!ely comfortable e$pantion and prosperity, the *e$tile =ector of Pakistan is now faced with slower growth, more demanding customers, and intense competition and deregulated global market" *he need for attaining and maintaining international competiti!e ad!antage in business performance is more than

e!er before" Presently, the local *e$tile Industry feels uneasy about its fu ture due to significant changes that ha!e taken place around the world affecting the te$tile business" =ome of these changes are as followsL 9ith the end of 3old 9ar the scope for te$tile production and supply is their competiti!eness in !alue-added and superior products by achie!ing a high le!el of automation and manpower sa!ing, utilising ad!anced technology" (astern (uropean countries ha!e emerged as new and strong competitors on t greatly di!ersified and the market of trade is !irtually internationalised" International trade has been reformed and liberalised as part of the ;ruguay )ound which replaced the :?," )apidly growing economic regionalism has promoted regional economic integration and re shaped the supply pattern of te$tiles internationally" *his regional integration has brought substantial disad!antage in trade condition to non-member countries" ,d!anced countries ha!e further impro!ed the (uropean 3ommunity :arket based on their geographical pro$imity, cultural similarities and potentials in the te$tile industry" #ue to unplanned growth in production capacity in some de!eloping countries, including Pakistan, supply of te$tiles has become considerably more than demand resulting in tough competition among te$tile producing countries" *he challenges posed by strategic international de!elopments and the diseGuilibria in our local te$tile industry need to be tackled urgently" *he e$port-led growth lies in adopting the strategy based on the assumption that !ast international market offers unlimited opportunities for our products" *hese opportunities can be a!ailed by impro!ing Guality, produti!ity and professionaliDation of :anagement and :arketing" *hrough the de!elopment of its downstream sectors, Pakistan can break out of o!er supplied markets with low profit prospecti!e and mo!e into the higher !alue-added segments where growth will be stronger in the years to come" *his mo!e will reGuired a fundamental change of attitude away from a production oriented to a market dri!en management philosophy" rowth in *e$tile ($ports Pakistan is stri!ing to achie!e progressi!e growth in her *e$tile e$ports throughL ;p gradation of Guality of products by adopting suitable technology and professional management" Production of !alue added products in its product mi$" Procuring Guality raw materialslocal and imported-dyes and chemicals, production eGuipment, components and accessories" O >alancing, moderniDation and replacement of obsolete plant and eGuipment" O (stablishing credibility with o!erseas importers by institutionaliDing professional business ehtics" O :eeting and reducing deli!ery schedules" :aintaining Pric"e 3ompetiti!eness" O Hoining (conomic block of like-minded states around Indian &cean, besides strengthening (3& and =,,)3"

PROBLEMS OF INDUS
1) Proper plat for for students discussion: No plat form for the students to discuss their problems and otehr educational discussions. Solution: Awareness of students toward group discussions. ) Facilities: In complete facilities such as water cooler, Ac, no proper vantilation system and also no sport activities. Solution: There should be prper water coolers, AC, and ventilation system in class rooms. !) "o#puters in li$rar%: There are only 3 inefficient PC in the library with very slow internet speed. Solution: There should be proper setup of computers with high speed in the library. ! "ports and gaming activities# There are no sports and gaming and physical activities for the students.

Solution: There should be physical activities regularly. &) Securit%: "ecurity guards only chec$ id cards at morning. Solution: There should be alert security each and every time. ') Notice $oard:

There is not proper availability of class time tables and room numbers at the notice board and students faces too much problems to find the class room. Solution: Class rooms should be fi%ed for every batch. () Boo)s a*aila$ilit%: There are only & copies for each boo$ and the number of studetn is very high. Solution: There should be atleast ' copies for each boo$. +) ,e-tile Depart#ent: Not complete environment for the te%tile practicles.the machines and apparatus are not wor$ing accurately and dead. "olution# The padders and steamer should be maintained and ())* wor$ing. .) /as0roo# tidiness and cleanliness: The conditions of washroom are not good and environmental friendly. Solution: The washrooms should be clean and tidy.

11),ec0nical staff: Technical staff is not available every time. Solution: There should be technical classes and consultants every wee$.

11)Mar)et of Indus: The students of indus has a very low mar$et value. Solution:

There should be proper and srict e%ams and also +tech must wor$ harder. 1 )Infor#ation pro$le#: ,ac$ of information b-w the staff and students and administration. Solution: There should be a proper place for the staff and students to get latest information right at time. 1!)"o2ordination: ,ac$ of co.ordination b-w teachers and students. Solution: There should be friendly and faithfull environmet and proepr co.ordination. 13)E*ents and se#inars: No monthly events and seminar for the students and there sub/ect related. Solution: There should be wea$ly seminar for each department. ('!Internship at time# The internships always starts during classes. Solution The application for the internship should be send before e%ams. (0!1ld procedure of teaching# 1ld procedure of teaching is adopted pro/ectors and tv sessions are not available.

Solution: There should be a pro/ector and a tv for each and every class. 1()Lea*e pro$le#s:

The policy and rule for leave is not acceptable by the studnets atleast ())* attendace is practically impossible in the world. Solution: There should be a proper rule for stri$es and medical leaves. 1+)Pic) and drop facilities: No pic$ and drop facility for the students and staff. Solution: There should be pic$ and drop facility for the students and the staff.