“TEXTILE POLICY 2009-14”

MINISTRY OF TEXTILE INDUSTRY (MINTEX), GOVERNMENT OF PAKISTAN

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TABLE OF CONTENTS
1. EXECUTIVE SUMMARY
2. GOVERNMENTAL VISION,

MISSION & COMMITMENT
3. MINISTRY PROFILE

4. INDUSTRY PROFILE 5. TEXTILE POLICY 2009-14 6. CRITICAL EVALUATIONS 7. SUMMARY 8. BIBLO GRAPHY. 9. APPENDIX.

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EXECUTIVE SUMMARY
On August 13, 2009, Pakistani Government unveils first ever five year textile policy; The Federal Textile Minister, Mr Rana Farooq Saeed Khan, announced the first ever five-year Textile Policy 2009-14 that aims at taking the country’s textile exports from the existing US $10 billion to $25 billion by the year 2015. This policy has been framed in extensive consultations with all the stakeholders, including industrialists, exporters, investors, State Bank of Pakistan and Ministries of Finance, Industries, Commerce, Agriculture, Planning and Investment. Since, inception, textiles have been the mainstay of the Pakistan economy and exports. This sector provides livelihood to more than 10 million farming families. It also accounts for 40% of the industrial employment. Despite the recent downturn in the global demand, textiles and garments exports accounted for more than 50 per cent of exports during the last fiscal year (2008-09) and the country is the fourth largest producer and third largest user of cotton. Yet, Pakistan is twelfth in terms of international trade, which means much of its advantage is lost in low value added semi-manufactured exports. A variety of reasons explain the poor state of the textiles sector. Machinery and technology has not kept pace with world standards, infrastructure has been lacking, especially power, gas and clean water, available skills are deficient and high degree of fragmentation mars efficiencies. Uneven growth of value-chain undermines balanced development of the sector, external restrictions such as quota and restricted access provided limited opportunities and absence of a well defined policy framework created uncertainties and promoted haphazard development of the sector. The textile policy, while addressing the above failings, has been prepared with the over-riding objective to realize the true potential of this sector. Presently, the Pakistan textile sector is converting one bale of cotton into $1000, whereas its competitors are converting it to up to $4,000. In the five years from 2009-14, the first textile policy targets that this rate of conversion should be doubled from $1000 to $2000. This will require increasing the level of exports to $25 billion by the end of the policy period. The Textile Policy represents a new beginning for the textiles sector. Through this policy, the government has not only set out a road map for the development of this sector but has provided the necessary support without which rapid progress of this sector is not possible.

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GOVERNMENTAL VISION
On August 12, 2009, Federal Cabinet approved textile policy in a meeting at Prime Minister Secretariat here with Prime Minister Yousuf Raza Gilani in chair. The cabinet in the five-year textile policy has set the textile exports target at 25 billion dollars. The cabinet also decided to take steps to boost the production in textile sector. Prime Minister Gilani also formed a ministerial committee to monitor the enforcement of the textile policy. Prime Minister Syed Yousuf Raza Gilani Wednesday said the Textile Policy aims at incorporating the strategies that are essential to address the challenges confronting this sector on a sustainable basis besides meeting the expectations of the industry. Addressing the Special Cabinet meeting convened to consider the Textile Policy 2009-14 at the PM Secretariat, the Prime Minister said for the first time in the history of the country, the government was adopting a five-year Textile Policy, which would give the vision that was needed for the textile sector.

MINISTRY’s MISSION
The Federal Textile Minister, Rana Muhammad Farooq Saeed Khan, who chaired the 1st meeting of Textile Policy Implementation Liaison Committee, informed that the government has allocated Rs 10 billion for various initiatives under the textile policy for the current fiscal year. He added by saying that out of the Rs 10 billion, Rs 5 billion had already been released to the State Bank of Pakistan and that he would ensure that the textile policy would be implemented in its true spirit for the development of textile sector in the country.

SECRETARIAL COMMITMENT
Dr. Waqar Masood apprised the participants, who represented all the sub-sectors of the textile industry about the progress on implementation of the policy in detail and that notifications regarding important initiatives of the policy have already been issued.

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GOVERNMENT OF PAKISTAN 5 of 40 .FEDERAL MINISTRY OF TEXTILE INDUSTRY (MINTEX).

Senator Muhammad Ali Durrani Member 4. Senator Prof. Senator Muhammad Akram Member 7. Muhammad Ismail Buledi Member 6 of 40 . Senator Dr. Ministry of Textile Industry Senate Standing Committee On Ministry Of Textile Industry 1.THE MINISTRY Rana Muhammad Farooq Saeed Khan Federal Minister for Textile Industry Secretary “MINTEX” • Dr. Senator Hafiz Abdul Malik Qadri Member 8. Senator Muhammad Azam Khan Swati Member 11. Senator Farooq Hamid Naek Member 10. Senator Ahmed Ali Member 6. Senator Waqar Ahmed Khan Member 2. Sajid Mir Member 9. Waqar Masood Khan Secretary. Senator Asif Jatoi Member 5. Senator Sardar Mehmud Khan Member 3.

research for quality improvement and productivity enhancement throughout the production/value chain. Karachi • • • • • • • 7 of 40 . Karachi/Faisalabad National Textile University. generates half of the production of manufacturing sector and shares 9% in GDP and also has the potential to meet the challenges of the highly competitive global market especially after the removal of trade barriers under W. surveys. Mushtaq Ali Cheema. are: 1. Faisalabad and Karachi • Pakistan Cotton Standards Institute. employs 38% of the industrial labor force. analysis and dissemination of information and reports on international demand patterns. Management of Textile Quotas. market access etc. 2. and. Karachi Textile City Projects. 9. Functions The functions allocated to Ministry of Textile Industry in terms of Rule 3(3) of Rules of Business 1973. commercial intelligence. goes to the credit of the previous government that they established the Ministry of Textile Industry on 2nd September. except trade negotiations. Textile related statistics. Minister for Textile Industry. 2004 and appointed Mr. Coordination and liaison with Federal agencies/institutions. who is also a leading industrialist of the country. Administrative control of: Federal Textile Board Textile Commissioner s Organization Synthetic Fiber Development and Application Center.T. 5. Training. 8. Faisalabad Directorate General of Textiles & Quota Supervisory Council All textiles related EPB/EDF funded institutes concerned with skill development in various sub-sectors of textile industry • Textile Testing Laboratory. Liaison. 7. 3. constitutes more than 60 % of to the export earning of the country. 4.O regime. and cooperation with international donor agencies and multilateral regulatory and development organizations with regard to textile sector. Linkages with cotton and textile producing countries. negotiations. Formulation of Textile policy. Faisalabad • Garment City Projects at Lahore. skill development. provincial Govts and Local Governments entities for facilitation and promotion of the textile sector. Setting of standards and monitoring and maintaining vigilance for strict compliance of the standards throughout production and value chain. 6. It however.History The need to establish a separate ministry for textiles had been on the cards for several years as this sector contributes 8. dialogs.50% of the national income.

9 million has been provided.28 million was provided in the first year of its existence i.The Rules of Business also provide that: Ministry of Commerce will consult Ministry of Textile Industry on textile trade negotiations and also associate it with Textile Sector Trade Promotion. • Ministry of Food. A budget of Rs. financial year 2004-05.e. • The Ministry is working with a skeleton staff of 58 persons since February 2005. In the current year 2005-06 Rs 20. Agriculture & Livestock will have the administrative control of Pakistan Central Cotton Committee with participation and inputs of Textile Industry Division. Organization Chart 8 of 40 .

7. R&D support will also be available for exports of the following: • a. In addition. Both these taxes will be their final tax liability. Lahore & Faisalabad is in progress. • A committee is being formed to consider Zero duty on import of weaving machines and spare parts.5% from 9%. Gradual reduction of import duty on textile machinery and parts to 5%. 2. • A committee is being formed to examine actual zero rating of all textiles & clothing exports. 2006 approved a textile package to give boost to the Textile Industry which has the following salient features: State Bank of Pakistan will provide long-term financing for export oriented projects at reduced mark up of 7% and 6% for 7½ year and 3 year period respectively. 6% R & D Support to garment exports. 9 of 40 . Dyed/Printed Home Textiles @ 5% A committee is being formed to explore the possibility of re-inclusion of “Fabrics” in SRO-410. (LFT-EOP) scheme vide SBP. 3. Import duty on ginning presses has been reduced to 5%. It has also simplified the procedure. 2006. • Dyed/Printed Fabrics and white-Home Textile @ 3% b. Circular letter No 19 dated 2nd June 2005. • The re-financing rate has been reduced to 7. The ECC of the Cabinet in its meeting held on 15th July. Establishment of Textile City at Karachi and Garment Cities at Karachi. 1. 4.Incentives to the Industrialists Government of Pakistan has taken various initiatives/steps to boost the textile sector and to make it compatible with the other global competitors in the end of quota regime. The 15% Sale Tax levied earlier on retailers has been reduced to 2%. 6. Turn over tax has been reduced to 1% on retailers of specified textile fabrics and articles of apparel including readymade garments or fashion wear. Establishment of Federal Textile Board to take decisions for the development of textile industry. • R&D support @ 6% shall be continued to be given to Ready Made Garments and Knitwear exports. The said committee shall report by August 1. Weaving sector has been included in the long term financing for export oriented projects. 5.

Ministry of Commerce • Vice Chairman. PCFMEA. and. • Representative from TUSDEC The Board. PAKSEA. 10 of 40 . In its first meeting held on 26th October 2006 the Board had asked the member garments associations to furnish to the Board with lists of units. Ministry of Textile Industry Chairman • Secretary. PHMA as members • Representative from TEVTA. the Prime Minister was pleased to direct the Ministry of Textile Industry that the skill development programme for workers should start in the garment units within 8-10 weeks. syllabus of training institutes and examinations. The composition of the Board and its tasks are as under: Composition • Secretary. teaching. In a meeting presided over by the Prime Minister on 1st February 2006.DEPARTMENTS UNDER MINISTRY Textile Skill Development Board Textile Skill Development Board was set up in the Ministry of Textile Industry in pursuance of the Trade Policy 2005-06 initiatives for support to the textile garment sector wherein garment manufacturing units were to be declared as skill development training institutes. i. 15th and 16th of February 2006 in Karachi & Lahore followed by a meeting of Textile Garments Skill Development Board on 21st February 2006 to put the scheme on ground. monitoring and certification activities. Export Promotion Bureau • Chairman of major garment manufacturing associations. amongst other tasks. seeking affiliation from international organizations specializing in this field and element of subsidy to be provided by the Government. In pursuance of the Prime Minister s decision. PRGMEA.e. several meetings were held with the garments sector on 7th. was to chalk out modalities for selection of such units to be declared as training institutes and to determine the fees/expenses of students/trainees. funding for which will be made through the EDF. who would be willing to offer their units as training institutes on cost sharing basis. approval of curriculum.

averaging 7500 each from Karachi.per trainee/per month i. Subsequently.e.000 to 22. inviting the candidates to apply for training.e. The Textile Skill Development Board in its meeting held on 25th May 2006 has finalized administrative and other details relating to curriculum. The TORs of the committee are as under:• • The Committee will review the Textile Vision 2005 and formulate a National Textile Strategy upto the year 2005.5 million was required for advertising the scheme in the print media. The programme is set to be launched from 1st week of July 2006. Tariq Saigal was formed who submitted its recommendations to the Prime Minister. The EDF Board in its meeting held on 22-03-2006 sanctioned an amount of Rs. National Textile Strategy Committee A Committee under the Chairmanship of Minister for Textile Industry was constituted in July.per trainee per month. 31 Units have expressed their willingness. For imparting training to a maximum of 150 trainees in 05 batches in each of 60 units over a period of 12 months i.2500/per month) and the cost of trainer to the extent of Rs. A further 1. to create an impact and bring in a visible change. 95. The Textile Garments Skill Development Board has advertised the scheme in the print media. 2007. Secondly the scheme is targeting fresh trained hands and will not be available to those who are already working as machine operators. Lahore & Faisalabad. The Committee to submit its report to the government within a period of three months of its first meeting.19. Each unit is required to carry out a training of a minimum of 15 to a maximum of 40 candidates in one batch in such a way that each trainee will be assigned a separate machine for training. were asked by the Board to communicate their willingness in writing on a prescribed format so that the scheme is advertised for launching. 44 Units. 1000/. which had conveyed their willingness to join the program through their associations. One of the main features of the scheme is that lady candidate who fulfill eligibility requirement will be given preference and 75% of the seats in each unit will be reserved for then. duration of training. a total of Rs.5 million. a Sub-Committee headed by Mr.500 workers in one year. Federal Textile Board (FTB) Federal Textile Board (FTB) is functioning under the Ministry of Textile Industry with the following terms of reference:- 11 of 40 .4 million to the Skill Development Board for the first batch s training. a total of 9000 trainees the cost worked out to Rs. number of machines which will be dedicated by each participating unit for training program (@ one machine per trainee).The Board in its meeting held on 21st February 2006 decided that the training programme of workers (machine operators) should be started immediately with the aim to train a critical mass of 20. It was also decided that Government would bear the cost of stipend of a trainee (Rs.3500/.96 million and out of which it has released Rs.

quality issues in our exportable goods. Any other task that the Board may decide for itself to attain the overall objectives. which will help Ministry of Textile Industry to take better quality decisions to help export led growth. Development and Advisory Cell in the Ministry. devising policies to encourage exporting units to commit more funds in certain sectors/products. interpret and analyze competitors data vs. if any. analysis of export figures in different sub-sectors of the textile trade. the cost of doing business. 10. Production of Contamination-free cotton. from production of contamination-free cotton onwards. 3. difficulties in implementation of the recommendations. Project financing for small and medium entrepreneurs in high value added textile sectarian. Development and Advisory Cell Ministry of Textile Industry has established a Research. matters relating to WTO. The Board would liaise with the Provincial Government approach to achieve the objective of value addition in the textile sector. Human Resource Development for Textile Industry. Review of domestic and international prices of cotton. establishment of a data bank of national and international textile related figures including trade. The Board would take such steps as necessary to provide inputs. 5. 7. The Board would meet at least once in a month to review progress and take decisions to remove. establishing bench marking of textile policies with regional and intra-regional textile players of the world. capacities. investments and competitors performance etc and analysis of this database to draw results on monthly or quarterly basis. 6. Measures to make the textile products internationally competitive in respect of prices & quality. machine tools (ginning saws) and other raw materials etc to ensure movement of the textile sector towards value addition. 8. 9. Liaison with all stakeholders from cotton growers to textile exporters for removing any bottlenecks / problems in implementation of the recommendations. 2.The Board would facilitate the implementation of the recommendations contained in Textile Vision for: 1. trends. The under mentioned positions have been approved by the Prime Minister of Pakistan on contract basis for a period of two years. devising measures to improve skill development of the Pakistani labour force. 4. and. which is focusing on devising policy guidelines for the government to boost the textile sector on the prospective trade figures for future exports in different textile product categories. Research. fertilizer. to ensure a fair return to growers and maintain stability in domestic prices. 12 of 40 . for example certified seed. Pakistan export data and infer findings. and analysis of various SROs in order to rationalize them and to make them textile industry friendly. The R&D and Advisory Cell is responsible for the study and analysis of existing textile policy guide-lines and their alignment for the future drive of the industry. antidumping and countervailing duties etc. skill development in the textile sector and on the export led growth in certain sub sectors of the textile trade.

The summary for the appointment of MP Scale posts had been sent to the Prime Minister through the Establishment Division for approval. Mr Arsalan Ghani. and then merged with the Department of Supplies and Development in 1959. Information Technology Officer The Finance Division has sanctioned a supporting staff of 25 persons who have also been hired. Mr Adil Majeed. The Prime Minister has been pleased to approve the appointment of the following candidates: 1. It was again made an independent Organization headed by a Textile Advisor in 1961 but abolished in 1962 and the organizational setup was merged with the Investment Promotion Bureau. Karachi Mission Develop & revitalize the Textile Industry in Pakistan to establish solid export base by creating / maintaining Textile database & serving as bridge between Industry & Government. its administrative control was transferred to this Ministry. Textile Commissioners Organization. and headed by a Textile Commissioner was created and separate budget was allocated. Nasim Qureshi. Mr Zia-ul-Haq Farani. In September 2004 after the creation of Ministry of Textile Industry. Mr Kanwar Usman Director R&D (MP-II) 4. under the title of Directorate of Textiles. Islamabad with the approval of the Prime Minister. Director (Textile Technology/ Productivity/Skill Development) (MP-II) 3. In order to accommodate the RD&A Cell. In November 1973. Introduction Textile Commissioner’s Organization existed even prior to independence as an attached department. Mr. Manager Financial Analysis (MP-III) 5. After independence the Organization was first set up as a subordinate office of the Ministry of Industries. 13 of 40 . the Textile Commissioner’s Organization with the status of an attached department under the Ministry of Industries. This arrangement continued till the year 1973.• • • DG/Head of Research Cell (MP-I) Director (R&D) (MP-II) Director (Textile Technology/ Productivity/Skill Development) (MPManager (R&D) (MP-III) Manager (Financial Analysis) (MP-III) Manager Information Technology (MP-III) Information Technology Officer II) • • • • These posts were advertised in the National press medium as well as on the Ministry’s website and a special selection board headed by the Minister of Textile Industry completed recruitment process. Mr Abbas Mahdi. a house has been hired in sector I-8/4. Manager Information Technology (MP-III) 6. Additional Secretary (BS-21) has been reemployed against the post of Director General 2.

Plays a role of a bridge between Textile Industry & Government. It provides Cess Collection Service to Faisalabad Textile University. Faisalabad National Textile University is an educational institution that has taken many steps for raising the overall standard of education and to boost up the Textile Industry of the country to compete in the international market. Faisalabad Textile Machinery Company Representation on Sub-Committee in relation to various subsector of Textile Industry o Pakistan Standard and Quality Control Authority o Pakistan Textile City Company Limited/Garments City Company. hiring of new faculty at competitive salaries. It helps in monitoring the process of permeation of policies Textile Commissioner’s Organization is also represented on the following Textile related concerns: Karachi Cotton Association Pakistan Central Cotton Committee National Textile University. 14 of 40 . 1. upgradation of facilities. Determines the interaction within different sub-sectors of textile industry & evaluates the proposals made by different sub-sector to draw up a consensus with national importance & priority. departments.pk National Textile University.tco. please visit TCO`s website www. introduction of semester system and introduction of new discipline like Garments manufacturing.gov. It takes up the problems of Textile Mills to Government for their solution. 3. It collects/maintains a database of entire Textile Industry of Pakistan & provides the required data to Ministries & other Govt. • • • Services TCO provides every possible support to Ministry of Textile Industry on Textile Sector of Pakistan. The most notable have been: rationalizing of tuition fees. • Monitors the process of permeation of policies and appraises the effects of policies. It constantly: Monitors moves in the textile industry locally and internationally. It provides help in drafting new laws & regulations. 2. 4. Gathers statistical data Accurately grasp the problems and difficulties of the industry and draw up appropriate policy measures to solve them.Role Textile Commissioner’s Organization is the professional body to advice government on technical matters relating to the Textile industry. • Drafts new laws and regulations & follows the process of their enforcement and execution. Karachi o o o o o For Further details. 5.

pk 15 of 40 .edu. 95% of textile industry is being run by NTU graduates 2. Research & Development Programmes 3.NTU Contribution to the Industry 1. Textile testing services Future Plans 1. the leading institute with maximum numbers of textile graduates per year 4.ntu. Till 1992 the only Nationalized Institution producing textile graduates 3. Only Institution in the country preparing graduates with special focus on export oriented segment of textiles 5. increase of students intake 2. Presently. Doctoral Studies 4. New Disciplines proposed:  Textile Management  Textile & Apparel Designing  Knitting Technology  Industrial Engineering  Polymers & Composite Sciences  Non Woven Materials For further details please visit NTU`s website: www. Considering the increased demand of Textile Industry.

PAKISTANI TEXTILE INDUSTRY 16 of 40 .

The exports of textile and textile products of Pakistan have shown a significant increase in the recent years. In the period July2007-June2008. The government has offered various incentives for the industry’s up gradation and modernization. Pakistan has 13% of the market share. Pakistan holds the distinction of being the world’s 4th largest producer of cotton as well as being the 3rd largest consumer of the same.Cotton is the cash crop of Pakistan. Apart from fulfilling its local requirements. There exists a strong political will to modernize the textile sector and there is an increasing demand for compliance with ISO and other international quality certifications and standards. The quality of cotton and cotton related products of Pakistan are unmatched in the international markets. Pakistan has emerged as the textile hub of the region. Pakistan’s textile industry is a major contributor to the national economy in terms of exports and employment. textile exports were US$ 10. The ever-growing textile industry of the country has shown consistent expansion and stability over the last many years.62 Billion and accounted for 55% of the total export. Pakistan is at the center of a rapidly developing textile & garments manufacturing region. Therefore. As the textile industry of Pakistan being is in the midst of industrial up gradation and the businessmen are seeking newer solutions to bring more efficiency in their production systems. the pioneer of grasping this opportunity will be the most successful business organization in Pakistan as none of the local industry can 17 of 40 .

TEXTILE POLICY 18 of 40 .cater this tall order. National organizations will enjoy the benefit of globalization and will witness more joint ventures and collaborations between local and international brands.

and their inputs are fully reflected in policy. Industries. Commerce. This sector is providing livelihood to more than 10 million farming families. Ladies and Gentlemen! 2. You are all aware of the importance of the textiles sector. Let me just say that from the inception of Pakistan. We have held extensive consultations with all the stakeholders. Despite the recent downturn in the global demand.2009-14 THE MINISTER’s SPEECH Ladies and Gentlemen! 1. including industrialists. It also accounts for 40% of the industrial employment. This policy was approved today by the Federal Cabinet. textiles have been the mainstay of our economy and exports. investors. exporters. I am grateful to the Finance Minister for his invaluable support and advice in the formulation of this policy. State Bank of Pakistan and Ministries of Finance. It is a matter of great privilege for me that the Ministry of Textiles has transformed the vision of Shaheed Benazir Bhutto into reality by formulating the first ever textiles policy of Pakistan under the guidance of President Asif Ali Zardari and Prime Minister Syed Yousuf Raza Gilani. It is also a matter of great honor for the People’s Government that it has succeeded in given this policy which aims to develop this sector as an integrated chain. Agriculture. Planning and Investment. the textiles and garments exports accounted for more than 50 percent of our exports during the last financial year (2008-09). We have a world 19 of 40 . The efforts and devotion of the officials of the Ministry of Textiles are also duly acknowledged.

government will contribute up to 20% of capital cost as a grant. Under this scheme. whereas our competitors are converting it to up to $4.standing in this sector. Infrastructure Development: 20 of 40 . enhancing skills. We are the 4th largest producer of cotton and 3rd largest user of cotton. I will first explain those initiatives that affect the entire value-chain. while addressing the above failings. uneven growth of value-chain undermines balanced development of the sector. government will pick-up 50% of interest cost of new investment in plant and machinery with a maximum of 5%.6 billion in the current financial year for this scheme. Through this fund following initiatives will be undertaken: Technology Up-gradation Fund (TUF): 8. better marketing and use of information and communication technology (ICT). A variety of reasons explain the poor state of our textiles sector. For this purpose. This will increase to Rs. To facilitate new investments and upgradation of technology Government will contribute part of the investment financing or part of the investment cost through the TUF. In the five year from 2009-14. Presently. For small investments. 5. available skills are deficient. high degree of fragmentation mars efficiencies.000.1. The textiles policy. Government has kept a budget of Rs. we are converting one bale of cotton into $1000. 17 billion by 2014. A Textiles Investment Support Fund (TISF) will be established for incentivizing investments in specific areas including modernization of machinery and technology. Machinery and technology has not kept pace with world standards. Let me briefly touch upon the major thrust of the textiles policy 2009-14. for capital intensive projects. gas and clean water. Yet we are 12th in terms of international trade. 4. removing infrastructural bottlenecks. 3. has been prepared with the over-riding objective to realize the true potential of this sector. which means much of our advantage is lost in low value added semi-manufactured exports. especially power. infrastructure has been lacking. This will require increasing the level of exports to $25 billion by the end of the policy period. external restrictions such as quota and restricted access provided limited opportunities and absence of a well defined policy framework created uncertainties and promoted haphazard development of the sector. 7. the first textiles policy targets that this rate of conversion should be doubled from $1000 to $2000. Key Initiatives under Textiles Policy 2009-14 Cross-cutting Issues 6.

A legal framework will be developed to specify standards and testing requirements. Government plans to set up more such industrial estates to ensure availability of all industrial amenities at reasonable cost. Schemes for common warehousing. storage and marketing facilities will also be launched to ensure timely and cost effective availability of inputs. 11. research centers. common sheds etc. Efforts will be made to identify all direct and indirect levies that add to the cost of doing business without appropriate compensation so that remedial measures can be adopted. An amount of Rs. Government recognizes the principle that exports should not be taxed. prescribe disclosure requirements and other matters relating to the practices and methods relevant to the sector. A comprehensive training plan will be developed to upgrade the overall pool of skills in the textiles value chain in close consultation with the industry and will be implemented during the next five years. Government will allocate Rs. 12.9. 15. 10. Standardization: 18. 16. The clusters will be provided with laboratories. Facilities will be provided for audits to enhance productivity and efficient processing. product development centers. This has become necessary in view of compliance standards imposed by major importing countries. Government will also support acquisition of foreign expertise in enhancing local productivity and supervisory skills and for this purpose Government has exempted foreign experts from income tax. 1 billion is being allocated this year for infrastructure development in the areas just mentioned and all measures will be initiated on public private partnership model. Zero Rating of Exports: 19. 1 billion during the current year for skill development initiatives. 17. Rationalization of Tariff Structure: 21 of 40 . Skills Development: 14. Based on the experience from textiles city and garments cities models. With a view to bridging a major gap in compliance support will be provided for setting up effluent treatment plants for the existing industry. 13. Clusters will be developed where small investors can set up their facilities.

handloom and handicrafts. labeling and such other activities that would add value to the textiles chain. The policy will also focus on certain sub-sector issues from fibre to garments including ginning. 22 of 40 . bank or problems faced by the buyer country. Marketing Support: 23. Government is planning to treat local sales of yarn and fabrics to large exporter as deemed exports. To initiate a process of building big export houses. Marketing Insurance Scheme: 25. weaving. Government will also support efforts aimed at enhancing efficiency through the use of information and communication technology in such fields as development of websites and e-commerce platforms. Export House Scheme: 24. regulations. spinning. carpets and technical textiles etc. grading. processing. 2 billion has been budgeted for the current year for this scheme. Government will be expending concerted efforts to secure due access for Pakistan in some of the key destinations of our exports. Government will provide necessary support for branding. Information and Communication Technology: 26. appropriate measures will be adopted to simplify or remove such irritants. Market Access: 22. small producers will get 1% drawback on levies and unadjusted taxes on sales to the export houses. This scheme will help remove uncertainties currently faced by the exporters. levies and other regulatory constraints that hamper the development of the sector.20. An extensive exercise will be undertaken covering all sub-sectors. An amount of Rs. especially in a global markets hit by a massive financial crisis. The principle of cascading will be implemented while ensuring adequate protection to the local industry and removing anomalies. procedures. A working group will be set up to develop a feasible scheme for the consideration of the government. fashion designs. Based on this exercise. Removing Regulatory Bottlenecks: 21. to identify rules. Sub-sector Initiatives 27. which may arise due to failure of the buyer. Preferential access as well as FTAs in such markets will be the focus of such efforts. Government will introduce an insurance scheme to protect our exporters against unforeseen losses. For this purpose. knitting.

Government will also ensure skills development and research through Synthetic Fiber Development and Application Centre (SFDAC) to facilitate the manufacturing of finer filaments for value addition. Government will be provided financial and technical assistance to those who would be willing to use more efficient technology. Fibres: 29. mostly on public-private partnership basis. to upgrade and improve these sectors. 37. 36. The policy will also aim at providing a paradigm shift and concentrate on other high value added fibres. Specific schemes will be launched. measures will be introduced for cultivation of organic cotton in new areas to increase value and production. NTC will determine required protection for such industries. Simultaneously. Necessary incentives will be provided to encourage investment in additional capacity in the MMF industries at competitive prices. Measures will be introduced for production of long staple cotton for value added products and to meet domestic demand for high quality fabrics. There is a need to improve efficiency.28.). to enrich the export mix. 30. A comprehensive scheme will be prepared and implemented for conversion of ginning industry into an efficient ‘service sector’ to benefit the growers. The persistent problem of contamination and trash content will be addressed through enforcement of the standards laid down in the Cotton Control Act and Cotton Standardization Ordinance. Ginning: 35. Measures will also be taken to develop other vegetable fibres (jute. 34. flax etc. To make industry further viable mergers and acquisitions will be facilitated along with consolidation. NTC will determine the required protection needed for the healthy growth of this industry. Similar initiatives will be taken in other cotton growing areas including Vehari. 31. especially manmade fibres. Filament Yarn: 38. A comprehensive training and capacity building program will be developed to establish a system in the private sector for grading and classifying cotton. A ginning institute will also be established at Multan to undertake research in improved ginning methods. 23 of 40 . competitiveness and economies of scale in the filament yarn industry. including introduction of BT cotton on priority basis. 33. Incentives will be provided to ensure that proper premiums are paid for increased production of contamination free graded cotton. 32. wool and sericulture for supporting diversification within the natural fibres.

Processing: 42. Investments in rotor technology and specialized attachments like compact spinning. Here the efforts will have to focus on fashion and design and branding. especially in the processing of narrow-width fabric and knit dyeing. knitting and power looms sector up-gradation. However. Of late. Home Textiles: 43. up-gradation and defragmentation. In particular. Policy will support new investments in processing industry. Non-woven: 41. Weaving and Knitting: 40. promotion of fashion designs and support in development and marketing of brand names. Up-gradation of existing machinery and technology will also be supported. The non-woven sector is one of the emerging sub-sectors having considerable uses in value-added products.Spinning: 39. To overcome the problems of power shortage. Garments: 44. 45. Pakistan has made significant advances in this area and its products are ranked amongst the best. the values realized are still low compared to those available to other brand names. government will endeavor to make this sub-sector the manufacturing hub for highest value added products including availability of trained manpower. To encourage this sector. Home Textiles is the first stage of high value-added products. Common working sheds and clusters will be developed to ensure availability of utilities and to encourage consolidation of non-mill sector. The subsector faces a number of challenges that hamper utilization of its fullest potential. Garments sub-sector is the ultimate value-spinner for the textiles chain. will be encouraged along with ring spinning to attain economies of scale. Entrepreneurs will be encouraged to take maximum advantage of abundant labor and for this purpose sourcing and marketing training will be provided 24 of 40 . measures would be taken to incentivize power generation by the mills. training modules will be developed to impart knowledge and skills. Cost-sharing and technical assistance will be provided to encourage Investment in shuttle less looms. The policy will address the challenges to facilitate promotion of this important sub-sector. Assistance will be provided for increasing capacities. lycra etc.

25 of 40 . Government will facilitate consolidation and adoption of new technology in dyeing. This will include increased number of fashion institutes. Textiles sector has grown to be the single largest manufacturing sector of Pakistan. sourcing raw materials and marketing. especially fabrics and garments. To enhance production and exports. Steps will be taken to identify clusters for the traditional textiles within each subsector. support industries like textile machinery manufacturing. To ensure requisite protection to the domestic industry. on public-private partnership basis. Arrangements will also be made to link up these clusters with fashion schools so that new designs and modern trends are assimilated in the traditional crafts. and establishment of research and development. There is an urgent need to promote development of industries that would ensure indigenous supply of such important technology and raw materials at home at competitive prices. special programs for local brands and designers recognition. textile dyes and chemicals and accessories industry has not developed proportionally. Indigenization: 52. and testing and product development in carpet industry. However. Government will develop a proper strategy for the promotion of technical textile in the country. finishing. To promote value added industry. availability of fine raw materials. dissemination of information on new fashion trends. industry linkages. there is a critical need to develop the fashion and design industry. Carpets: 51.along with the establishment of product development centers. affiliation with international fashion institutes. testing and product development centre. 50. product development centers. faculty development. introduction and availability of new fibres and their processing etc. Fashion and Design: 46. For this purpose an exclusive centre of excellence. Technical Textiles: 47. Training and facilitation will be provided to strengthen traditional craftsmanship for production set-up. Technical textile is an emerging area of high value addition where given our strength in heavy clothing we can claim a significant share of the world market. steps will be taken to eliminate illegal imports of the value added products. Handloom and Handicrafts: 48. Most of the demand is met through imports. assistance will be provided for anti-child labor certification to ensure wider acceptability of Pakistani carpets. 49.

53. Women Employment Support Program: 56. The cost of Rs. We recognize that contribution of women is equally important for achieving our economic objectives. The policy proposes a long-term comprehensive approach for sustained growth of the sector. government will pick two regulatory costs to employers. Viability studies for production of textiles dyes. To mitigate the heavy burden of financing cost on existing units. together with a grace period of one year on both existing and converted facilities. the industry is facing serious challenges and its continued survival will call for immediate action in certain critical areas. chemicals and accessories will also be initiated. the following measures are being proposed to be financed from the textile investment support fund initially: Export Refinance at Lower Rates: 59. Support for Disabled and Handicapped: 57. 54. Intensive training and awareness campaigns will be initiated to disseminate information on comparative benefits of upgrading machinery and using domestic resources. the long term loans will be converted on the same pricing as applicable to LTTF scheme. To encourage women participation in the industry. 26 of 40 . Promotion of joint ventures with leading international brands will be a key objective of the policy. Government will provide appropriate incentives to encourage such initiatives. However. 55. without the facility of refinancing. To further Government’s policy in this area. This objective has been translated into one of the initiatives being taken in the textiles policy. namely social security and EOBI. Based on these studies measures will be introduced for encouraging establishment of industries considered economically viable.5 billion. The export refinance will be available at 5%.2 billion for the current year. This would entail a support of Rs. it is proposed that EOBI and social security contributions of such persons will be also be picked up by the Government.5 will be borne in the budget. Immediate Measures Ladies and Gentleman! 58. Accordingly. providing opportunities for women has been an essential element of our socioeconomic policies. Value added textiles sector also has the capability to give employment to disabled and handicapped. The cost of this measure is estimated at Rs.2. Relief on Existing Long Term Loans: 60. As such.

Monetization of PTA: 67. In addition.1% of the FOB value of exports _ Home Textiles ………………. To deal with deeper problems of problem loans to textiles sector. cross subsidization in prices of utilities and frequent closure of industry on account of law and order add further burden to our industry. It is proposed to compensate our value-added textiles exports for a period of two years through provision of drawback to offset the costs imposed on them directly and indirectly by a variety of government agencies and disruptions caused by law and order problems. this support will be linked partially to performance. Additionally.Restructuring and Reorganization of the Textile Sector: 61. interest rate relief.4 billion. investment tax credit etc. However. Government will support the process through the issuance of warrants to those acquiring the units.3% of the FOB value of exports 64. The scheme will cost Rs.. a two pronged strategy will be adopted. There is a multitude of costs imposed on exporters that raise the cost of production and render our exports uncompetitive. monetization of customs duty of PTA is being continued to offset additional cost for 27 of 40 . which will be valuable once the restructured units are brought on the stream by the new owners. additional financing.17 billion during the current fiscal year (2009-10) and Rs. Exporters are also losing business or merely holding on to the existing businesses because the buyers have stopped visiting Pakistan. outages of power and gas. This process will be helpful throughout the industrial sector not limited to textiles alone. and many more. Drawback of Local Taxes: 62. Government is allocating Rs. For this purpose following drawback scheme is proposed: _ Processed Fabric ………. To promote utilization of manmade fiber and diversify the export mix. factors it is very difficult for our exporters to be able to compete with nations which face no such problems. 63. 5. For all these.2% of the FOB value of exports _ Garments …………………….27 billion for the next fiscal year (2010-11). relaxation of prudential regulations..…. those who will achieve an increase of 15% in exports relative to last year will be given 1% additional draw-back. Those textiles units which are suffering from the general market slump but are otherwise technically viable will be helped through transitional support – in the form of loan restructuring. 65. whose establishment is currently in hand at the Ministry of Finance. Others that lack technical viability would be encouraged to merge with sounder units through the vehicle of Resolution Trust Corporation (RTC). To settle the past claims under R&D scheme of 2007-08. Refund of past R&D Claims: 66..

the government has not only set out a road map for the development of this sector but has provided the necessary support without which rapid progress of this sector is not possible.5 billion approximately during current financial year (2009-10). 69. exporters. This alone will pave the way for Pakistan to earn its rightful economic place in the comity of nation. Through this policy. The issue of this duty will be finally decided by the National Tariff Commission during the year. It is now the responsibility of the private sector leadership sector. If we have to depend on our own resources and would like our debt burden to lessen. The exports target of $25 billion is ambitious but not beyond our potential. I appeal to the national spirit of all those associated with the textile sector to rise to the occasion and expend their best efforts to achieve the goals of the textiles policy.4. This would entail an expenditure of Rs. which was the dream that our beloved leader Shaheed Benazir Bhutto had nurtured. Ladies and Gentleman! 68.the users for the current year. labors and others connected with this sector to transform the vision of the policy into reality. then it is only the textiles sector that offers the requisite opportunity to strengthen our economy and support it to stand on its own feet. Pakistan Zindabad 28 of 40 . The Textiles Policy represents a new beginning for the textiles sector.

29 of 40 . besides repayment of earlier research support. the government has issued two policies for the promotion of exports — the four-year trade policy announced in July focused only on non-textile products.  There is also no mention of increasing production which has reached a saturation point and is producing low-quality products.  Without amending the rules of business.CRITICAL EVALUATIONS POSITIVE ASPECTS  The hefty package for the sector carries special duty-drawback rates.  The policy focuses on export promotion measures. subsidy on long-term financing loan and development and other subsidies. instead of steps to increase production and revive the ailing industry.  The textile policy does not mention any specific target for sub-sectors.

Another Rs5. A textile investment support fund and technology upgradation fund (UTF) will be set up. this fund will go up to Rs. the textile industry has been exempted from load shedding. A decision about this duty will be taken by the National Tariff Commission during the year.2.  Another Rs5 billion has been allocated to convert long-term loans on the same pricing as applicable to the LTTF scheme together with a grace period of one year on both existing and converted facilities.17 billion by 2014. Pakistan’s textile and clothing sector sells its products cheaper than Bangladesh in the international market. An amount of Rs.27 billion in 2010-11. two per cent of the FOB value on home textiles and three per cent of the FOB value on garments.  The proposed rates include one per cent of the FOB value of exports on processed fabric.  Under the new policy. without the facility of refinancing. ‘How come you expect foreign investment in a sector which produces low quality products?’ they said. An amount of Rs1.2 billion.5 billion has been allocated to continue monetization of customs duty of PTA to offset additional cost for users for the current year. exporters achieving an increase of 15 per cent will get one per cent additional drawback. the government will pick two regulatory costs to employers — social security and EOBI. It will also enjoy priority in gas allocation like the fertilizer sector.000 over the next five years.  An amount of Rs.  Under UTF for capital intensive projects.  The government has set a target to increase the rate of conversion of cotton from $1.44 billion as special drawback rates will be provided to value-added textile exports for two years — Rs17 billion in 2009-10 and Rs.  In addition. According to analysts.6 billion has been allocated for the UTF for the first year. the government will pick up 50 per cent of interest cost of new investment in plant and machinery with a 30 of 40 . For this purpose.5 billion has been allocated to make export refinance available at five per cent.000 to $2. However. small producers will get one per cent drawback on levies and unadjusted taxes on sales to export houses which will cost Rs.  In order to encourage women’s participation in the industry.  An amount of Rs4.2 billion for the current year.4 billion has been earmarked for earlier refunds of research and development subsidy for the sector.  The government plans to treat local sales of yarn and fabrics to large exporter as deemed exports. The cost of this measure is estimated at Rs. Textile machinery will be zero rated.

 A ginning institute will also be established in Multan to undertake research in improved ginning methods.  An amount of Rs.  The persistent problem of contamination and trash content will be addressed through enforcement of the standards laid down in the Cotton Control Act and Cotton Standardization Ordinance. An insurance scheme will be introduced to protect local exporters from unforeseen losses and help the industry in IT-related issues.1 billion has allocated for skill development initiatives. government will contribute up to 20 per cent of capital cost as a grant. For small investments. prescribe disclosure requirements and other matters relating to practices and methods relevant to the sector. Specific schemes will be launched. mostly on public-private partnership basis. labeling and other activities that would add value to the textiles chain. grading.  The principle of cascading will be implemented while ensuring adequate protection to the local industry and removing anomalies. to upgrade and improve these sectors. All regulatory bottlenecks will be removed.maximum of five per cent. wool and sericulture for supporting diversification within natural fibres. besides developing clusters. More industrial estates will be established.1 billion has been earmarked for infrastructure development for 2009-10 in public-private partnership. spinning. Similar initiatives will be taken in other cotton growing areas. flax etc. weaving. fashion designs. carpets. A comprehensive training plan will be worked out.  The policy will focus on certain sub-sector issues from fibre to garments. handloom and handicrafts. Market access will be increased through free trade agreements.  An amount of Rs.  A legal framework will be developed to specify standards and testing requirements. processing. knitting. 31 of 40 .). Measures will be taken to develop other vegetable fibres (jute. including ginning. technical textiles.  The government will provide necessary support for branding.

 Cotton remains a primary raw material for the textile industry in Pakistan. core and developmental sectors.  Pakistan's textile and clothing exports fell in the first eight months of the current fiscal year. energy crisis.NEGATIVE ASPECTS  In the trade policy announced on 18th July 2007.  But Textile Policy 2009 is heading for disaster due to bureaucratic roadblocks. financial costs and global recession. due to surging raw material prices. purchase of locally manufactured machinery and compact spinning. lack of interest and influence of mafias to safeguard their interests. non-coordination between ministries. accounting for over 70 percent of the total production cost. scope of the scheme was further enlarged to cover export oriented. 32 of 40 .

500 megawatts which results in around four to six hours of daily power cuts. knit wear garments by 3% during the period.  Since 2004. rose from 2 percent to an excessive 7. during the last six months and inflation in the country has reached 21%. State Bank of Pakistan raised its bank lending rate in early November by 2 percentage points to 15 percent.8 billion with the support of friendly government policies. shortage of energy also affected the textile industry and exports from Pakistan. gas prices by 91 percent.5 percent 33 of 40 . minimum wage of unskilled workers by 140 percent. electricity cost by 60 percent. interest rates have risen dramatically. exports of cotton cloth and Towels went up by 6% and 10% respectively.1 percent (YoY) in February 09 due devaluation of the local currency by around 27% against the US dollar in last one year. the government of Pakistan has announced an increase in minimum wages of unskilled workers to PKR6000/month (US$75/month). international propitious environment. woven readymade garments by 12%. but there is reported wide payment of the older rate still.75 percent. While since 2004. diesel prices in Pakistan has gone up by 150 percent.  Consumer price index (CPI) in Pakistan reached the highest level 21.  However. of PKR4000/month (US$50/month). on a weighted average basis.  Cotton yarn. and lower cotton prices. The interest rate is charged at around 7.  To counter the rising inflation in the country. 2006-07 (July-June) was the best year for Pakistan’s textile and clothing industry when the industry managed to export US$ 10. Widening demand and supply gap of cotton is pushing cotton prices to higher levels. Interest rate has gone up by 20%. the bank spread.  On the domestic front.  Likewise. During the summer season electricity shortfall is about 2.  Cotton production in the country is stagnant at around 12 million bales of 170 kg while cotton consumption has passed the 16 million bales mark due the massive expansions in spinning sector during the last five years. petrol prices by 71 percent. Kibor (Karachi InterBank Offered Rate) has surged 261 percent.  Shipments to foreign countries were down 6 percent in value terms during the first eight months of the current fiscal year compared with the same period last year.  In order to cover the way for the IMF bailout. the primary export earning category went down by 15%.  Furthermore. bed wear by 10%.

SURVEYS & REVIEWS  According to a survey conducted by The Financial Daily. 5% on dyed and printed home textiles.  The government of Pakistan had been paying a 6% Research and Development (R&D) subsidy on exports of woven and knitted garments. apparel & fashion industry. reflecting the lack of modernization in the industry. when interest rates were extremely low.  According to a study of Pakistani textile and apparel sector conducted by Werner International. There are 60 per cent dues of R&D yet to be paid.against normal rates of 12 to 13 percent. This size of bank spread is among the highest in the world. That was an internal negative factor whereas external factors included no 34 of 40 . This was US$438 million in the last fiscal year.  The textile industry in Pakistan invested US$6. as a result reached the highest level of US$928 million during the fiscal year 2004-05. 90 percent of Pakistan's textile industry is losing money losses and facing closure. management consultants to the world textile.  According to Pakistan textile industry association. some of the garment units were over-staffed by 57 per cent. The textile industry has been facing financial crunch and is still waiting for the R&D claims. the value-added apparel exports are facing serious decline due to the unrestricted export of cotton and cotton yarn and other reasons. More than two months of production has been lost due top lower cuts and gas shortages.  These payments are now suspended since July 2008.4 billion during the period 1999-2007.-repayable in 7 years. Textile machinery imports. and 3% on dyed and printed fabrics.

Morocco 19 per cent and Pakistan 13 per cent.duty-free market access to the EU and negative image and perception of Pakistan abroad. was the main hurdle in implementation of notification under the Policy. While Baig told that Labor productivity is very low & our regional competitors take 75 minutes to complete and produce one piece of cloth whereas we take 133 minutes for the same work. Vietnam 28 per cent.  Chairman Pakistan Apparel Forum (PAF) and Coordinator Pakistan Hosiery Manufacturers Association (PHMA) told TFD that the first-ever Textile Policy 35 of 40 .5 per cent while the Philippines had lost 11 per cent of the market. India 18 per cent. In the European market. China tops the US market with a share of 36 per cent followed by Bangladesh 21 per cent. We also waste 30 per cent in finishing and 12 per cent in washing. Reuters  Federal Textile Adviser Dr Mirza Ikhtiar Baig accepted that Pakistan has a very low share of the international textile market. South Korea has lost 20 per cent of the US market. India 19 per cent and Pakistan only 1. HURDLES FACING  According to a letter of the State Bank addressed to the Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA). and the global recession have changed the scenario for textile exports from Pakistan.  European buyers suggested Baig that Pakistani garment manufacturers could cut their cost up to 45 per cent in sewing by improving efficiency. Now the textile industry in the country is passing through a very critical period with number of closures and shutdowns. China tops again with a share of 29 per cent.  Bilal Mulla. told The News that the current procedure of registration and verification of export units is very cumbersome.  The shift in government policies. The State Bank of Pakistan has received Rs. Chairman FPCCI Standing Committee on Value Added Textile Products and former chairman PRGMEA. increases in input costs.5 billion from the government under the textile package but there are no instructions by the ministry for utilization of the amount despite several demands by the textile industry.

the huge amount may be misused. Rs. The existing training institutes had not delivered desired results.2009-2014 greatly increased the flow of orders for garments.  Pakistan Powerlooms Association Secretary General Khaliq Qandeel Ansari said some of the incentives might not yield positive results and might lead to pilferage or wastage of money like the establishment of warehouses abroad as importing countries were reluctant to even grant visa to Pakistanis and they might not allow warehouse facilities due to terror threat. but much would depend on its implementation. but due to the skyrocketing prices of cotton yarn. it wasn’t clear whether the service charges of banks were included in the subsidy on mark-up.  Chairman Pakistan Readymade Garments Manufacturers and Exporters Association. but no timeframe had been set for the purpose. the textile industry cannot compete in the international market as the cost of doing business has also gone sky high.4 billion earmarked for the payment of pending claims of research and development grant would clear dues of exporters. The 5% mark-up rebate on upgrading technology was also a positive step.  Chairman APBUMA. The mills already running on 100% capacity would not be able to get one per cent additional rebate on increase of 15% in exports. Central Chairman PHMA Rana Mohammed Mushtaq Khan. complained that exports of cotton and cotton yarn to the neighbouring countries are harming textile sector. The policy gave the priority to the textile industry in the supply of power and gas. Syed Muhammad Asim Shah termed the reduction in refinance rate to five per cent as a positive step. Central Chairman Pakistan Knitwear and Sweater Exporters Association (PAKSEA) Kamran Chandna. Over the offer of 1% additional duty drawback on 15% increase in exports. however. he said no major exporter would benefit from that concession. So.5. Mohsin Ayub Mirza. 36 of 40 . The fund for technology up-gradation would be wasted as it would not be possible to install new equipment in view of ongoing electricity power and gas shortages. but mills had received notices for a cut in gas supply in the coming winter.

SUMMARY The textile sector holds a lead role in the development of the manufacturing sector in Pakistan. provides employment to the bulk of the manufacturing sector labour force and it is a major foreign exchange earner for the country. That’s why. following PM’s speech for the textile sector is considered by the industry as a think pad of current government. It comprises majority of the manufacturing sector output. Textile Policy Aims At Making for Sustainable Growth: PM 37 of 40 . The trade in textiles is directly affected by the phenomenon of globalization that is leading to lower tariff barriers and removal of quantitative trade restrictions. It is the textile sector which converts raw cotton of 67 cents a pound into value-added finished goods worth $5 to $6 a piece and earn valuable foreign exchange for Pakistan and the largest employment provider.

At present the textile industry is beset with energy shortages. Soorty Enterprises (Pvt) Ltd.textile. Soorty Enterprises (Pvt) Ltd. and stressed the need for its improvement for the benefit of people. BIBLIOGRAPHY • • • http://www. He said the ultimate goal of the textile policy is the creation of an enabling environment for the industry to grow. security concerns and high cost of capital. Last year Pakistan’s total exports were down by 6.pk/ Media Articles of some Economists & Industry Related Intellectuals Interviews to -“Mr. Pakistan is no more known for its premium quality cotton and cotton products as value conscious competitors have edged us out in the international market. job generation and industrial development very high on its agenda and is taking all possible steps in this direction. • Discussions with different Governmental Officials 38 of 40 .General Manager. The Prime Minister said keeping both domestic and global contexts in mind. Pakistan is the fourth largest producer of cotton but is ranked 12th in global textile exports. We also need to look at external factors which affect our industry seriously. He hoped that the textile policy 2009-14 is equipped with appropriate policy instruments. Textile exports last year. Textile sector has been the major provider and foreign exchange earner and must continue to be so. Muhammad Hanif”. He said a quota-free trade regime has brought more challenges than opportunities while exposing the ill-preparedness of our textile industry in a competitive global grade environment. -“Mr. with robust beginning that lost the momentum halfway. Ismail Ahmed”. Shuakat Khatri”. He said textile sector is plagued by inherent problems which are historical and complex. He said focus on this sector should give a clear message that this government puts poverty alleviation.Manager ‘Exports’. The recent global financial meltdown and sharp falls in trade volumes have thrown up new challenges. he added. Soorty Enterprises (Pvt) Ltd. registered a negative growth of 9.gov.PM Gilani said the textile industry has had its highs and lows.5 percent.7 percent and textile exports 9. -“Mr. it was necessary than ever before to come up with a comprehensive response strategy.5 percent mainly because of global demand shrinkage. which is a matter of serious concern.Manager ‘Imports’.

During the seminar. Special attention is being given to develop the areas of human resource. Mergers and Acquisition 39 of 40 . Ministry of Textile Industry has also planned to create awareness among the industrialists through seminars. As a part of this program. quality and marketing. productivity. the experts deliver lectures and give presentations on the following topics: 1.APPENDIX Better Strategy for Development of Textile Sector Ministry of Textile Industry is taking various steps to improve efficiency of textile industry in all its spheres like management. technology and infrastructure to boost the textile sector to achieve the objectives of gaining proper share in the international market. Technical Textiles 2. keeping in view the challenges of the free global trade regime.

CEOs of textile companies/mills and business entrepreneurs of various sub-sectors of textile industry have been participating in the seminar. Business Plan for a new SME 4. 40 of 40 .Economy.3. Economical use of Dyes and Chemicals (4E . Ecology. Efficiency and Energy) 5. Competitiveness of Textile Industry – Issues and Challenges The heads of different textile associations.