Research Report On Pakistan Textile

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[Acknowledgement\
By the grace of Almighty Allah, I become able to prepare research on Pakistan’s Textile
which will help to rectify some crisis in this sector.
I would also indebted to my friends and family, by whom motivation and guidelines, I
become able to complete this research.
Last but not least, I am especially thankful to Monnoo Group of Industries, Nishat Mills,
ICI Textile, APTMA Punjab Zone, Nadia Textile Mills and S. Fazal-Illahi & Sons and all
other respondents who provide information for preparing my project.
I have prepared my project with full consideration and high efforts. However, “To Err is
Human”, and criticism is necessary for better work. I would appreciate those who identify
my mistakes and make comments on my project for betterment.
Thanks!
With Best Regards

Zameer Ahmad
Author of Project
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“Dedicate to my Grandmother who is not in this
world. May! Rest her soul in peace.”
Aameen!
ii
Electronic copy available at: https://ssrn.com/abstract=1651789

[EXECUTIVE SUMMARY\
The purpose of this research report is to identify and analyze the WTO-related issues for
Pakistan at present in the area of textile sector of the economy. The report focuses on the
challenges faced by the country in implementing its WTO commitments and the
challenges posed by the implementation of the agreements with its major trading partners.
Apart from suggesting on how to cope with the internal challenges, the report also takes
into account on what kind of strategy and course of action Pakistan should adopt, along
with other South Asian countries, in the future multilateral negotiations, to deal with the
external challenges posed by a WTO environment. The theme of report is how to grow
textile sector as it is contributing 35% to 42% of whole exports of countries.
The Convenience Sampling method of Non-probability technique was used because it

provided ease to me gather data form nearby locations in a short period of time. Sample
includes 9 respondents from different textile mills executives in Lahore. Data is collected
through effective questionnaire by e-mail survey and personal interview. Following are
the important facts found during the research study. The respondents of my research
consist of 78% male and 22% female executives. So majority of the sample consist of
male respondents. Average ages of the respondents fall into 35 - 44 categories. Majority
of them are post graduates, position at middle level management and have average
experience between 10-19 years.
Almost 90% respondents are in favor of those hypotheses which I have developed for
research. Majority of them criticize the Govt. active bodies’ poor role in textile sector
development. They also criticized Govt. due to inefficiency on coping current energy
crisis which are causing to destroy the industry.
Research also indicates that Pakistan’s neighbor countries are enhancing and capturing its
markets which are supposed to be loyal from Pakistan’s point of view for many years.
At the end, in appendices, detailed tables and charts are provided regarding to each
questionnaire except descriptive questionnaire. Furthermore hypotheses are tested by
using “T-Test” distribution statistical technique through Minitab statistical software.
iii

[TABLE OF CONTENTS\
Page No.
Ch1. Introduction------------------------------------------------------------------------------1
1.1. Background--------------------------------------------------------------------- 1
1.2. Objectives------------------------------------------------------------------------2
1.3. Significance----------------------------------------------------------------------2
Ch2. Literature Review-----------------------------------------------------------------------3
Ch3. Problem Statement----------------------------------------------------------------------9
Ch4. Theoretical Framework----------------------------------------------------------------10
4.1. Inventory of Variables--------------------------------------------------------10
4.2. Direction of Relation----------------------------------------------------------11
4.3. Established Relation among Variables------------------------------------12
4.4. Inventory of Proposition in Sequential Order---------------------------12
Ch5. Hypotheses-------------------------------------------------------------------------------14
Ch6. Research Design-------------------------------------------------------------------------15
6.1. Classification of Research----------------------------------------------------15
6.2. Data Collection Techniques--------------------------------------------------15
6.3. Population-----------------------------------------------------------------------15
6.4. Sample----------------------------------------------------------------------------15
6.5. Data Collection Tools----------------------------------------------------------15
Ch7. Data Collection, Processing & Analysis---------------------------------------------16
7.1. Data Collection------------------------------------------------------------------16
7.2. Data Processing & Analysis--------------------------------------------------16
Ch8. Findings of Research--------------------------------------------------------------------17
8.1. Feel of Data----------------------------------------------------------------------17
8.2. Goodness of Data---------------------------------------------------------------17
8.3. Hypotheses Testing-------------------------------------------------------------17
Ch9. Conclusion and Recommendations--------------------------------------------------18
Ch10. References---------------------------------------------------------------------------------20
Appendices--------------------------------------------------------------------------------21
Survey Questionnaire----------------------------------------------------------22
Response from Respondents--------------------------------------------------27
A. MCQs Based---------------------------------------------------27
B. Descriptive Based---------------------------------------------29
Feel of Data Frequencies------------------------------------------------------34
Frequencies Tables-------------------------------------------36
Integrity of Data---------------------------------------------------------------- 64
Hypotheses Testing------------------------------------------------------------ 65
iv

[LIST OF FIGURES\
Page No.
Figure1. Theoretical Relationship Model-----------------------------------------------11

Figure2. Schematic Diagram--------------------------------------------------------------13

[LIST OF ABBREVIATIONS\
MFA Multi Fiber Arrangements
WTO World Trade Organization
APTMA All Pakistan Textile Mills Association
EU European Union
SMEDA Small & Medium Enterprise Development Authority
WB World Bank
GATT General Agreement on Tariffs & Trade
NAFTA North American Free Trade Area
CAFTA Central American Free Trade Area
LDCs Less Developed Countries
vi

Chapter 1
Introduction of Research
1.1 Background:
T extile industry has been the rampart of Pakistan's economy. It contributes more than
60% to the total export earnings of the country, accounts for 46% of the total
manufacturing and provides employment to 38% of the manufacturing labor force and 9%
of GDP. Indeed, with exports reaching about $8.6 billion in 2004-05, Pakistan is one of
the largest textile exporters in the world. Although it has captured our 60% of total
merchandize exports which has large share in export but our contribution in whole world
exports with regard to textile industry is mere 3%.
Textile sector includes variety of products ranges from cotton yarn to knitwear. Garment
made-ups and bed wear are the most important export products with an export value of
about $1.35 billion each. Knitwear, ready made garments and cotton yarn also have
important shares in total exports. Overall, the US and the EU are Pakistan’s largest
trading partners accounting for 25 percent and 20 percent share of Pakistani exports
respectively. Other major importers include China, UAE and Saudi Arabia. Textile trade
is classified into two broad categories i.e. textile which include yarn, fabric and made-
ups, and clothing which represents readymade garments.
The growth in the textile sector has been impressive during the four decades after
independence (with an imbalance in favor of low value added products), stagnation has
set in due to certain changes in the global and the domestic factors. With the movement of
textile production from developed countries towards less developed countries, Pakistani
producers are losing their competitive advantage. During the nineties a combination of
factors adversely affected the industry, mainly:
Removal of export duty on raw cotton, increasing domestic prices to international

levels and beyond.
Infestation of the cotton crop by leaf curl virus, reducing supply sharply and
increasing prices.
Frequent changes in governments creating inconsistency in policies of the
Government and Financial Institutions.
Rapid expansion of the installed industry in the hands of new entrants who did not
have the managerial skills or the liquidity base to succeed.
Rapidly changing global markets, especially the shift towards man made fibers.
New era of World Trade Organization has also knocked our door and given us a news of
real challenge for our all sector in general and particular for the “Textile Sector”. The
Post-WTO regime has heated-up competition, opened new avenues for all the countries to
make their all-out efforts and beat their rivals in their respective sectors.
Thus, whole scenario of background tells that there is need to take some preventive and
innovative actions in order to sustain our textile industry in the global world.

1.2 Objectives:
M ajor objectives of this research are as follows:
Identify areas which enhance the efficiency and production of textile industry and
take its activities at peak level in the economy.
Reveals difficulties that it has been faced or facing for attracting investors towards
textile industry.
Spot out the issues that help the Govt. to make decisions which leads to retain
industrialists.
Identify and analyze the WTO-related issues for Pakistan at present in the area of
textile.
Categorize the internal and external challenges which are in the way for exporting
and importing raw material.
To make an effective corporate level strategy that will guide the industry on long
term path.
Identify major competitors which are capturing the share of Pakistan with regard
to textile sector.
1.3 Significance:
S ignificance of this research work is to provide the considered necessary information

that will guide the planners, government policy makers to implement policies and
make decisions to successfully deal with the current problems that textile sector is
counter. The research will also try to add value for business executives, directors and
other stakeholders of organizations through which they will reduce uncertainty that perk
up the decision making process as well as helpful to control over cost factors and
rectification about their export criteria.

Chapter 2
Literature Review
T extile industry has been the bulwark of Pakistan's economy. It contributes more than
60% to the total export earnings of the country, accounts for 46% of the total
manufacturing and provides employment to 38% of the manufacturing labor force. The
availability of basic raw material for textile industry, cotton, has played a principal role in
the growth of the industry (SMEDA, 2006).
A recent study on textile sector analysis (Amir Fayyaz, 2007) shows that Pakistan's
economy is confronted with the problem of chronic negative trade balances. The
government wants to mobilize all its resources to establish a solid export base. The
Textile sector, being the major foreign exchange earner, can serve as a launch pad. The
textile sector exports have been stagnant (i.e. stagnant in growth rate) for the past five
years. Exports have fluctuated between US $4.5 - 5.5 billion. US $5 billion has been a
psychological barrier for the textile industry of Pakistan. The Multi Fiber Arrangement
(MFA) phase out in the year 2005 is likely to result in providing level playing field with
the removal of quotas and lowering of tariff barriers. It is a threat to textile manufacturers
on one-hand and open new landscapes of opportunities for efficient players on the other
hand as well.
In another study in which emphasis on check the MFA effects on Pakistani textile sector
was explored. This study (Chaudhry & Hamid, 1988) tells that Multi-fiber Arrangements
(MFA) leads to harmful consequences for the textile industry of Pakistan. For instance, it
stalled modernization of the sector, as the government provided incentives for expanding
low-cost power loom sector at the cost of an organized mill sector, to reap the advantages
of low-cost. The resulting feature was the technological backwardness of Pakistan
textiles. Encouragement of the power loom, leads to the decline in mill production and
consequently closure of the huge installed capacity.
Another study (Khan & Mahmood, 1996) which is in favor of after MFA regime
describes Pakistan will have an additional market access of about 62 percent and 67
percent for textile and clothing respectively with the eradication of MFA in 2005. The
gain for Pakistan would be more than US$ 500 million with the removal of MFA. Taking
account of the tightness with which MFA has bound Pakistan, this gain might be around
US$ 1-1.3.
As has been estimated (Trela & Whalley, 1990) that Pakistan would gain $0.008 billion
with the removal of both tariffs and quotas. However, with the removal of only bilateral
quota and not the tariffs, most of the developing countries including Pakistan would be
worse off. It indicates the advantageous terms of trade for the developed country as a
result of not eliminating the tariffs.
Although there is so much issues about textile growth but the federal minister for
commerce (Mr. Hummayyun Akhtar Kahn, 2007) tells in his speech that during the first
11 months of 2006-07 fiscal year, the exports of textiles group increased by 6%. It is
heartening to note that within the textile group, exports of some products have almost
doubled in the first 11 months of 2006-07. Among these, Art Silk & synthetic textiles
have grown by 122%, Tents and Canvas by 99%, and Yarn other than cotton yarn by
82.7%. This shows that our product base within textiles is diversifying from the

traditional cotton base but unfortunately we are still unable to capture larger share of
world market. Exports of other textiles products that have continued to grow, during the
same period, are knitwear, and readymade garments, increasing by 12.9% and 5.4%
respectively.
Current issue is that European Union’s drug related GSP incentives to Pakistan’s textile
products ended in 2005. Secondly, some of our competitors especially in textiles enjoy
preferential (duty-free) market access due to their status as LDC’s especially for the EU
and US markets, whereas similar Pakistani products are charged the full duty. The
competition spawned by globalization means that traded goods and services must now
meet stringent international standards. In Western markets the consumer is extremely
environment-conscious, and strict about adherence to international labor, health and
safety standards. Thus, compliance with Social, Environment, and Health standards has
emerged as a serious test for our exporters. Besides the various challenges that I have
highlighted we face the problem of insufficient product diversification, soothe overall
growth goes decline when textile takes a hit. During the first 11 months of 2006-
07 growth rates of textile exports decreased to 6.0% from 14% during the corresponding
period of 2005-06. Within the textiles group, the export of bed wear declined by 3.1%,
Cotton cloth by 4.1% and export of raw cotton decreased by 21.7%. The impact of this
decline was partially offset by export growth in certain other textiles and clothing
products as I have already indicated.
There have been a host of other factors affecting our textile export growth. These include
stiff international competition in Textile products from China, India, Vietnam and
Bangladesh in our major markets of the US and the EU; regional preferential
arrangements such as NAFTA (North American Free Trade Area), CAFTA (Central
American Free Trade Area), and the setting up of U.S. sponsored Qualified Industrial
Zones (QIZs) in Jordan and Egypt which allow duty free access to their products, have
also affected our competitiveness. Among some other factors are, a fall in unit prices in
the textile sector, the 5.8% average antidumping duties in the European market on our
bed-linen exports, and negative (albeit unfair) travel advisories on Pakistan.
This has led to trade diversion from Pakistan to Bangladesh, China and Vietnam who are
our product competitors in textiles. In our export destinations, the major reduction was of
an approximate US$ 300 million in exports to Afghanistan mostly in POL products.
MR. Hummayyun also tells that the end of the textile quotas has opened up vast
opportunities for Pakistani textile products which will however require new investments
in machinery, better labor skills, and improved product quality. He also emphasis on
Research and Development (R&D) to anticipate the challenges to the Garment and Home
Textile Sectors in the post-quota period; the Government introduced a special textile
garments package on the recommendation of the Ministry of Commerce in the shape of
Research and Development (R&D) that support at 6%. This support has helped the textile
garments sector to survive and sustain itself, prevent potential export losses of millions of
dollars, and retain jobs in the sector. A similar support has now been extended to the
Home Textiles sector in 2006-07. This support will continue in 2007-08.
In another research (Muhammad Hussain, 2000) in which some sub areas of textile are
evaluated. The researcher tells that weaving, processing and value added sub-sectors are
mostly small and medium in size and there is technology gap among them, which is major
issue to reluctant in textile growth. The cloth supplied to the garment manufacturers by
the power loom sector (which supplies 90% of the domestic cloth requirement) is

considered to be inferior in quality. The sector of power looms is not very recognized and
is facing problems like low capital investment, inferior technology and low productivity.
As the conventional power loom and processing sectors are the basic source of supply of
cloth, it is practically impossible for Pakistan Textile industry to move towards high value
added segment with out the up-gradation these sectors. Investment in modern looms,
textile dyeing, printing and finishing machinery would enable this sector to be more
competitive, as production costs will reduce and product quality will be improved. The
main obstacle in carrying out BMR in this sector is the weak credit rating of the small-
scale units. Small-scale units in weaving and processing sectors are not able to avail
normal credit facilities due to the low level of capital investment. BMR should be linked
with the export performance of the unit and loans should be provided on the concessional
mark up rate to feed up textile sector. To promote in-house manufacturing of the textile
machinery, foreign investors should be invited to set up textile manufacturing units in
collaboration with local investors.
In another applied (survey) type of research (Kathuria, Martin, and Bhardwaj, 2001), the
study reveals that with the passage of time, all textile stakeholders are becoming
increasingly concerned about how a quota-free regime together with the absence of the
multi-fiber agreement is going to affect the textile and clothing trade in their respective
countries. So far, in Pakistan, there has been a lack of academic discourse on this issue
and most of the stakeholders are not clear as to whether WTO’s new trade regime would
offer benefits or threats to the textile industry in their country. Most experts believe that
the implementation of new rules would offer challenges as well as opportunities to
Pakistan. Nonetheless, there is no consensus on the expected particular impact of the
issue because the prevalent perceptions are mostly based on assumptions and not
empirical findings. Keeping in view the state of such uncertainty and lack of agreement,
this study is undertaken to analyze the expected ensuing affects of ATC on the textile
industry in Pakistan and bring to the fore results grounded in the wider level of
knowledge.
The majority of the studies reviewed by international organizations such as the WTO, the
World Bank, the Asian Development Bank and the United Nations, presumed that there
would be enormous gains for both developed and developing countries such as Pakistan
after the removal of quota restrictions. However, some writers (Spinanger, 1998; Martin
& Winters, 1996) hold much more cautious views, particularly with regard to developing
countries, on this scenario after 2005. Their assertion is that developing countries would
experience negative results after the elimination of textile quota restrictions. They hold
that opinion with regard to almost all the developing countries. They said, in relation to
Pakistan, there are many optimistic and pessimistic opinions that strongly disagree with
each other. In common with the general disagreement regarding the impact of the ATC on
the developed and developing countries, there is no consensus on its impact on Pakistan.
So far, there is a lack of academic investigation on this issue in relation to Pakistan and
therefore most of the stakeholders are not clear as to whether the new trade regime
stemming from the WTO agreements will benefits or threaten the textile and clothing
industry in that country. In relation to this lack of clarity, Asim (2003), while examining
the overall impact of WTO on the Pakistani agriculture and textile sectors, indicates that
most of the Pakistani exporters are also unclear about the impacts and thus hold mixed
feelings about it. He elaborates that, on the one hand, the exporters appreciate that there

would be no limits on exports after elimination of quotas. On the other hand, they are
apprehensive of the consequent competition from China and the Asian tigers
(Bangladesh). However, he still holds an optimistic view and believes that Pakistani
exporters will not face any sudden danger in 2005 due to the possible increased demand
for Pakistan’s yarn and fabric. Even though holding generally optimistic views, Asim
emphasizes the uncertain overall position of Pakistan after the quota-free regime and the
ambiguity pertaining to the future of Pakistan’s textile and clothing sector in the face of
such WTO development. Other authors have clearly linked the quota-free regime with the
positive trends in Pakistan’s textile trade/export (Textile Vision, 2005). About this
positive trend, Mr. Hummayyun Khan, Pakistan’s Minister for Trade and Commerce
(Khan, 2003), has expressed a similarly positive view by referring to the investment
friendly environment especially in the textile sector of Pakistan. Due to reform and
policies made by the present government, he further explains that the new WTO rules for
the textile trade would not create any problem for the textile industry in Pakistan with
reference to its exports in the world market. He made it clear that textile sector should not
be afraid of WTO, which will not create any danger to domestic industry.
With reference to implementation, there is some critical literature. For example, a

prediction of negative repercussions for Pakistan is indirectly supported by Khan (2003)
who asserted that the elimination of a quota-based regime would prove to be of more gain
for the bigger countries, such as China and India, while countries with poor infrastructure
(such as Pakistan) would lose. In this context it is argued in this paper that a quota-free
regime would not prove to be most beneficial for Pakistan; rather it will pose a number of
challenges, which if care is not taken, would cause tremendous disturbance to overall
textile sector. The following section presents reasons why these developments may prove
challenging to Pakistan (Textile Journal, October 2003).
The first and foremost condition that is not conducive to full use by Pakistan of
the agreed quota-free regime is due to its poor and vulnerable industrial base. Historically
this vulnerability emanated from the promulgation of the Multi-fiber Arrangements
(MFA) that carried adverse effects on the textile and clothing sector of Pakistan.
However, most writers on this topic have clearly depicted the MFA as quite destructive to
the textile sector in Pakistan in particular and other developing countries in general. The
promulgation of the MFA left Pakistan with no productive alternative, and for that reason
it lost its so-called textile mill sector that was on the way towards modernization during
1974. It also experienced closure of its huge installed capacity in this sector. The adverse
effects of the MFA have not so far been rectified and Pakistan at present, unlike other
major textile exporting countries, has a weak industrial base in the textile and clothing
sector and especially in synthetics and higher-value-added garment products of textile
sector. Hence, it (Pakistan) would not be in a position to successfully utilize the quota-
free regime and compete with the strong industrial-based countries in terms of quality
product, especially in synthetics and higher-value-added garments in the international
market.
The second factor, which may constrain Pakistan in competing and gain after
the quota-free regime is the pattern of structural changes in the textile trade that has been
taking place in the last decade or two. It is pertinent to note that after the implementation
of MFA, there were tremendous changes in the overall global trade in textile and clothing.
However, the trade in clothing increased at a much faster rate as compared to trade in

textiles. On the other hand, Pakistan has been unable to increase its share of both products
significantly in the world textile trade.
Thirdly, the challenge that Pakistan faces after the quota regime is the
continuation and prevalence of other non-tariff restrictions such as environment, technical
labor standards, anti-dumping and countervailing duties. These non-tariff restrictions are
expected to assume greater significance. In addition, their use is expected to have an
increasing effect due to their reinforcement by the developed countries in the post-MFA
regime. This will pose a real threat for countries like Pakistan, who may find numerous
difficulties in reaching the required level of compliance with these non-tariffs. In the past
many of the textile imports from Pakistan have been subject to non-tariff restrictions
including anti-dumping action by Japan in 1994, the USA during 1997/98, and South
Korea in 2001 and the EU in 2003. If this trend of non-tariff barriers continues, Pakistan
is unlikely to gain significantly in the future, even after the quota restrictions are fully
eliminated. Furthermore, such non-tariff barriers of developed countries would provide
more advantages to other competitive exporters, despite the fact that Pakistani textile
products might be far better in quality as compared to them. Hence, in such
circumstances, Pakistan might fall far short of competing with others and lose its strength
to compete in the world market.
Fourth, Pakistan was not efficient enough to utilize its full quota in yarn, fabric,
made ups and clothing as determined by USA, Canada, EU and Japan in the earlier MFA
scheme. It was comparatively deficient in utilizing its pre-determined quota in value-
added clothing items. It primarily continued its export in yarn and fibers and was left
quite far behind in developing its capability and capacity to excel and compete in value-
added clothing. This inability not only made Pakistan unable to concentrate and utilize the
given quota, but Pakistan also lost its vigor to develop and produce these value added
products. Thus, Pakistan having such a discouraging record gives little assurance of its
ability to compete after the quota-free system. The same has also been reflected and
supported by experts (interviewees) who categorically assert that those countries who
are/were deficient in utilizing their pre-determined quota might find it difficult to realize a
substantial increase in their market share after the quota-free regime.
Fifth, almost 70 percent of Pakistan's textile exports go to quota countries such

as the USA, EU, Canada and Japan. However, among them, the USA and EU are the
major markets for Pakistan’s textile and clothing products. Nonetheless, a decreasing
trend in the overall import of these countries for the last several years has been observed.
This reduction in their imports certainly predicts a non-availability of any encouraging
space after 2005 for Pakistan and its exporters to increase their exports. The association
of this declining trend of these quota countries with the above-mentioned factors would
make it very difficult for Pakistan to properly utilize the quota-free regime and boost its
exports as is being assumed/ predicted. In addition, with the elimination of quota
restriction, the market access for exports of other developing countries to these two major
markets of the USA and EU will also increase. This means Pakistan’s exports will face
greater competition after January 2005 especially from China and other countries like
Mexico, India and even Bangladesh which, according to international trade statistics
2004, are the major suppliers of textile and clothing in both markets (www.wto.org). The
National Council of Textile Organization (NCTO) mentioned in its 2004 report that
“China is the largest supplier of textile and clothing in the world market and it will

quickly come to dominate textile and clothing trade in United States, once the quotas are
removed” (See the China Threat to World Textile and Apparel Trade p.1 at
www.ncto.org) on this issue.
Pakistan, as compared to the aforesaid countries, has a negligible share in these two
important markets, particularly for its clothing products. In these circumstances the other
countries like China, India etc. are expected to dominate world trade in textile and
clothing as the
USA, EU and others open their markets.
Sixth, the future of the textile sector of developing countries such as Pakistan is
likely to suffer at the hands of the lobbyists’ groups in USA who have strong feelings of
protection toward the US textile industry against developing countries. Such protectionist
lobbyist groups are particularly visible in the Southern states of North and South
Carolina, Georgia, Virginia and Alabama where consequently almost 250 textile plants
have been closed down since the agreement on textile and clothing (Textile Journal,
October 2003). Similarly, the recent inclusion of ten countries into the EU, who are
relatively cheap textile manufacturers, have resulted in the concentration of different EU
owned textile producing companies.
Besides the above-mentioned structural issues, there are other micro level factors that
may seriously damage Pakistan’s textile sector competitive position in the international
market in the post MFA regime.
These include:
a) Reliance on low-technology power looms for the production of fabric;
b) Low productivity of labor both in the public and the private sectors;
c) Pakistan’s failure to join any effective regional trade alliance;
d) And, contamination of cotton that badly affects the quality of the final product.

Chapter 3
Problem Statement
T he problem statement has defined as:
“Is Pakistan able to sustain the textile growth in competitive environment and
responding to challenges & opportunities provided by the globalization before and after
MFA?”

Chapter 4
Theoretical Framework
A fter assessing the literature review, defining the problem and setting the objectives
my research needs to establish theoretical frame work. The theoretical framework
comprises on the followings:
4.1 Inventory of Variables:
Dependent Variable:
Growth of textile sector
Independent Variables:
Investment facilities (includes both foreign & domestic)

Protectionism to investors
Export
Technology
Core Competencies
Quality
Processing/Production infrastructure
Education
Cost of production
Pricing
Skilled human resource
Moderating Variable:
Image of Pakistan
Intervening Variables:
WTO Policies
Govt. policies & regulatory system
10

Figure 1
Theoretical Relationship Model
Moderating Variable
Independent Variables
Export
Intervening Variables
Investment Facilities
Protectionism to Investors
Education
Quality
Pricing
Competencies Dependent Variable

Technology
Cost of Production
Skilled human resource
Production Infrastructure
4.2 Direction of Relation:
Investment facilities & protectionism to investment flow have positive

influence on textile sector.
Exports have positive influence on textile sector.
Education, competencies and skilled human resource have positively influence
the textile sector productivity.
Quality is positively correlated to textile growth.
Pricing and cost of production has negative influence on textile growth.
Technology has positive pressure on textile sector growth.
Processing/Production infrastructure also has positive influence on textile
growth.
11

4.3 Established Relationship among Variables:
Better investment facilities (includes both foreign & domestic) as well as

environment for investment and strong protectionism to investors will increase
the flow of investment and create the environment in favor of textile growth.
Overall increments in exports will also an indicator to textile growth by
creating positive environment for Pakistani products.
Highly standardized and quality products fulfilled the buyers’ expectations’
about what they want and make them loyal customers.
Better education facilities and easily available skilled human resource for
textile sector is an indication of motivation. On the other hand, achievements
of core competencies mean achievement of competitive edge.
High prices and increasing cost of production effect the buyer’s buying
decision as well as reducing the producers’ margin respectively.
Up-to-date technology with efficient machinery is also helpful to make goods
that highly appreciated by importers and also helpful to meet demands on
time.
Better infrastructure for production system also helpful for organization to
engage workers in friendly working climate.
WTO policies, principles and Govt. regulation in regard of textile sector are
intervening variables which tells that our export strength, quality of product,
investment policies and educational steps made by Govt. for textile goods and
services improvement (i.e. diversify culture from raw form to value addition)
dependent on these policies.
Our exports, investment inflows and protectionism affected by what image of
Pakistan in foreign world and what investors and other stakeholders perceive
about Pakistan. So, producers also take into account the perception about
Pakistan in global world.
4.4 Inventory of Propositions in a Sequential Order
T he sequential order for propositions of textile growth is:
Timely Adoption of WTO policies;

After that support of Govt (in form of friendly policies & regulations, quick
response for resolutions of issues);
Positive image of Pakistan;
Then proper investment facilities and protectionism to investment;
Good overall exports indicators have positive influence on textile sector;.
Education, core competencies and skilled human resource have positively
influence the textile sector productivity;
Up-to-date technology has positive pressure on textile sector growth;
Quality is positively correlated to textile growth;
Processing/Production infrastructure also has positive influence on textile
growth;
Pricing and cost of production has negative influence on textile growth;
12

Figure 2
Schematic diagram
WTO
10 Policies 2
Pricing & Govt.
Cost of Support &
Production Regulations
9 3
Processing/
Production Image of
Infrastructur Pakistan
e
Growth of
Textile
Sector
8 4
Investment
Quality facilities &
Protectionis
m
7 5
Overall
Up-to-date exports
technology 6 indicators
Education,
Core
competency
& skilled
13

Chapter 5
Hypotheses
I have completed my research by developing and testing these hypotheses:
1. H0 = There is no relationship between WTO policies & textile market growth.

HA =Increase (growth) the market share of Pakistan’s textile industry in global
world is highly associated with adoption of WTO policies.
2. H0 = No relationship between investment and textile growth.

HA = Growth of textile industry is associated with proper arrangement for
investment and facilities by the Govt. that further retain the investors and
industrialist in the country as well.
3. H0 = Textile growth is independent from Pakistan’s image.

HA = Growth of textile industry is highly dependent on Pakistan’s image in global
world.
4. H0 =There is no relation between education, core competencies and textile growth.

HA=To grow textile industry achievement of core competencies and better
education is essential that also enables to face the challenges by competitors in
present era.
5. H0= Textile growth is independent from government bodies intervening for issues
resolution of textile sector.
HA= Growth of textile industry is also dependent on the quick response from the
governing textile bodies (i.e. Ministry of Commerce) to resolve the issue of textile
industry.
6. H0= There is no association of latest technology, skilled human resource and

textile growth.
HA= Growth of textile industry is associated with availability of highly technical
human resource, latest technology.
7. H0 = Overall economic exports indicators have no impact on textile sector growth.

HA = There is strong relationship of overall exports indicators and textile growth.
8. H0 = There is no role of infrastructure in textile sector growth.

HA = If better infrastructure provided then textile sector can grow.
14

Chapter 6
Research Design
6.1 Classification of Research:
T his research is descriptive in nature because, already many studies have been
conducted and large information about situation at hand on when, how this research
issues have been solved in the past but some points may need more illustration about how
to grow textile sector which has not much advanced as it to be.
6.2 Data collection techniques:
I n the research, the quantitative technique for data collection has been used. The data
was collected in a survey by questionnaire from selected respondents. Also, the
statistics and figures are obtained by field work and hidden observations.
6.3 Population:
T he population of this study is executives of all textile companies & mills of different
textile zone and areas of Pakistan as well as government bodies from whom I can
easily obtain my required data for research.
6.4 Sample:
D ue to time constraints, the sampling size is consisting of 9 respondents that are

known as major groups of textile industry. For this, convenience sampling technique
of non- probability method has been used.
6.5 Data collection tools:
T hese tools for data collection are used in this research:
Questionnaire
Field work
Hidden observation
15

Chapter 7
Data Collection, Data processing and Analysis
7.1 Data Collection
F or gathering data, I have used personal contact (Face to Face), explore primary and
secondary data, interviews of respondents, go to different organizations for collecting
statistics, and watch and read electronic and print media news; journals etc.
7.2 Data Processing & Analysis:
T he collected data from different sources were put into computer and by using MS
Excel and Minitab statistical analysis software following analysis was done:
Those variables which were putting a significant impact in my research were tested
through statistical “T-Test” method. This method was used to insure that our findings
should be considered more authentic and reliable for textile sector growth. Pie chart in
different forms as well as histogram diagrams, box plot, dot plot are also explaining the
particular facts and figures that are revealed during this research.
In appendices all the facts & figures have been provided which is considered as necessary
ingredients of this research.
16

Chapter 8
Findings of Research
8.1 Feel of the data:
I n this section I have made frequencies distribution according to my respondents to now

about my data trend and findings in numerical and indexed form. You can see and
evaluate the result of the findings under annexure from table2.1 to table 2.28. Pie charts
at some where scatter and at some places in full formats are also used to have clear idea
about the data.
8.2 Goodness of the data:
I n this section I have focused on data reliability by checking it through cronbach alpha
test. The result shows that data is highly acceptable as the value of alpha is 0.9516
which falls between 0-1. You can see the result in table2 of annexure.
8.1 Hypotheses Testing:
I n this step I tested the relationship between independent and dependent as well as
intervening variables. I have used “T-Test” analysis to show the relation among
different variables of hypotheses. You can see result of the findings under each heading of
hypotheses.
17

Chapter 9
Conclusions & Recommendations
F rom my analysis and findings, my point of view is today the biggest threats to
Pakistan’s textile sector are sustaining its competitive position against its rival
position and retain its target market as well as enhance its share in whole world export.
But, there are some other issues which directly or indirectly are harmful for textile sector.
The other issues are lack of skills, obsolete technology usage, inefficient production and
energy problems (in form electricity, fuel) etc.
To tackle the above mentioned problems and other issues, the following suggestions are
recommended for the revival and development of the whole textile sector:
Shift to the production of high quality and give more attention to value addition
rather than raw form.
Companies should prepare strategic long term plans for setting its objectives &
course of action before what they want to do rather than what they are doing?
Invest in BMR techniques
Supply high quality yarn to the local weavers and knitting units for promoting
them because value addition cause to attract more markets and profit as well.
Increase overseas presence (through Embassies, Commercial offices &
exhibitions).
Govt. and banks should enhance flow of financing from big units to cottage and
medium sectors because their contribution is more.
Periodical training & development (workers, management) programs should be
conducted either through public or public-private joint efforts.
Production quality and efficiency needs to be raised to meet the international
standards and organizations as well as government should pay attention to it
because today it nothing without quality.
Another factor that I have analyzed which is lack of communication between
different stakeholders. Govt. and different textile bodies should arrange meetings
either on monthly or quarterly basis to maintain check & power as well as for
identifying strong and week points.
I think government should also provide exemption on some export income on
those products which already have competitiveness such that cotton yarn and
abolishing the tax incentives will promote the supply of cotton yarn to high value
added sectors.
A textile policy-planning unit should be established within the ministry of
industries. It should gather data on imports and exports, investment, finance,
taxation and industrial locations through conducting surveys and planning for
industrial promotion and the formulation of policies. It should also have branches
elsewhere in the country.
Our more than 50% population consist of women, they can also play a
participative role in textile growth. Although, government has taken major steps in
this regard but most the women are working in services sector. Govt. as well as
other textile bodies also tries to ensure greater access for women to the textile
training and educational programs with a focus in areas such as fashion designing,
knitting and sewing techniques, etc. and a new Garment Training Center for
women should be established.
18

The above mentioned objectives can only be achieved if there is a mutual understanding
amongst farmers, ginners, spinning mills, knitting units, weavers processing, garment
manufacturers, and government agencies.
19

Chapter 10
References
1. Pakistan’s position. Available http://www.cid.harvard.edu/cid.trade/

GOV/Pakistan.html
2. Shaukat Ali, M. (2000).Trade and Industrial Policy in Pakistan, World Bank’s

WTO 2000 Regional Workshop, (p.3). New Delhi: Post Uruguay Round
Challenges.
3. Ashfaque, H. Khan. (1998). Trade Liberalization in Pakistan. Pakistan

Development Review, 37(4), p.680.
4. All Pakistan Textile Mills Association (APTMA) (Various Issues) Annual Report.
5. Anderson, K. (ed.) (1992) New Silk Roads: East Asia and World Textile Markets.
Cambridge: Cambridge University Press.
6. Chaudhry, S. A., and J. Hamid (1988) Foreign Trade Barriers to Exports:

Pakistan. In Foreign Trade Barriers to Export Growth. Manila: Asian
Development Bank.
7. GATT (1984) Textiles and Clothing in the World Economy. Geneva, GATT.
8. Khan, A. H., and Z. Mahmood (1996) Emerging Global Trading Environment:

Challenges for Pakistan. Asian Development Review 14:2 73–115
9. Mahmood, Zafar (1999) WTO and Pakistan: Opportunities and Policy

Challenges, Paper presented at the 14th Annual General Meeting and Conference
of Pakistan Society of Development Economists, Islamabad.
10. Pakistan, Government of (1999-2000) Pakistan Economic Survey. Islamabad:

Ministry of Finance.
11. Textile Industry— Special Report (1995). Economic Review 7, 71–72
12. Asim, A, (2003) From Doha to Cancun: WTO impact on Pakistan, Daily Dawn,
Karachi, Pakistan, 17 May 2003.
13. IMF and World Bank (2001) Market access for developing countries’ exports,
IMF and World Bank Staff Paper, April 27, www.worldbank.org p.45.
14. Textile Vision (2005) Small and Medium Enterprise Development Authority
(SMEDA), Pakistan.
15. Akhtar, Sajjad and Fauzia Malik (2000). “Pakistan’s Trade Performance vis-à-vis
Its Major Trading Partners.” Pakistan Development Review, 39: 37-50.
16. Zaidi, S. Akbar (2005). Issues in Pakistan’s Economy. 2ndEdition. Karachi:

Oxford University Press.
20

Appendices
21

Survey Questionnaire
“How to Grow Textile Sector”
Q (1). Age of respondent
1) Under 25 ___________
2) 25-34 ___________
3) 35-44 ___________
4) 45-54 ___________
5) Above54 ___________
Q (2). Gender of respondent

1) Male ___________
2) Female ___________
Q (3). What is your rank in the organization?

1) Top level executive ___________
2) Middle level ___________
3) Front Line ___________
Q (4). How much experience you have?

1) Under 10 years ___________
2) 10-19 years ___________
3) 20-29 years ___________
4) 30-39 years ___________
5) Above 39 years ___________
Q (5). What is your qualification?

1) Graduation ___________
2) Post Graduation ___________
3) PhD ___________
4) Any Other ___________
Q (6). Is it necessary to have the knowledge about machines to be successful in

textile industry at executive level?
1) Yes ___________
22

2) No ___________
Q (7). Are you satisfied with the current performance of textile industry?
1) Fully satisfied ___________
2) Satisfied ___________
3) Neither satisfied nor dissatisfied ___________
4) Dissatisfied ___________
5) Extremely dissatisfied ___________
Q (8). Where you rank the current export rate of textile sector? It is:
1) Excellent ___________
2) Good ___________
3) Satisfactory ___________
4) Poor ___________
5) Worst ___________
Q (9). At what extent do you think that overall export indicators of economy have
positive effects on textile sector growth?
1) Under & equal to 10% ___________
2) 11%-30% ___________
3) 31%-50% ___________
4) 51%-70% ___________
5) 71%-90% ___________
6) Above & equal to 91% ___________
Q (10). Was textile export growth rate is more in MFA than post-quota regime?
_________________________________________________________
_________________________________________________________
Q (11). What are the effects on textile industry after starting 2005?
1) Bad effects ___________
2) Good effects ___________
3) Neither bad nor good ___________
4) Both good and bad ___________
23

Q (12). What type of environment that textile industry is facing after starting 2005?
1) Full of challenges ___________
2) Full of Opportunities ___________
3) Both opportunities & challenges ___________
Q (13). Which is the most growing sector of textile industry after MFA or in post-
quota regime?
_________________________________________________________
_________________________________________________________
Q (14). Do you agree that if textile industry adopt WTO policies & maintain quality
standards than its market growth rate can be enhanced?
1) Strongly agree ___________
2) Agree ___________
3) Neutral ___________
4) Disagree ___________
5) Strongly Disagree ___________
Q (15). What do you think the role of each factor in textile growth?
Very High High Middle Low Very Low
Core competencies 1 2 3 4 5
Education 1 2 3 4 5
Skilled human resource 1 2 3 4 5
Better Infrastructure 1 2 3 4 5
Production cost 1 2 3 4 5
Up-to-Date technology 1 2 3 4 5
Good quality 1 2 3 4 5
Price 1 2 3 4 5
Investment facilities & protectionism 1 2 3 4 5
Q (16). Do you agree if textile industry maintains low cost per unit then it can fight
against its rivals and make better position?
2) Agree ___________
3) Disagree ___________
24

4) Strongly disagree ___________
Q (17). What is the current image of Pakistan in global world?

1) Pleasant ___________
2) Neither pleasant nor bad ___________
3) In some areas pleasant and in some bad ___________
4) Bad ___________
Q (18). How much dependency of textile growth on Pakistan’s image?

1) High dependency ___________
2) Low dependency ___________
3) Some extent dependent and Independent ___________
4) Independency ___________
5) Highly independency
Q (19). What type of issues today textile sector is facing?

_________________________________________________________
_________________________________________________________
Q (20). Do you agree that Govt. is seriously trying to assist textile industry for coping
current crisis?
2) Agree ___________
3) Neither agree nor disagree ___________
4) Disagree ___________
5) Strongly disagree ___________
Q (21). Do you think that Ministry of Commerce and Textile are active bodies for
resolution of issues like anti dumping duties, countervailing duties and industrial
disputes etc. which are reluctant to textile growth?
1) Yes ___________
2) No ___________
25

Q (22). Are you satisfied with the contribution of Govt. agencies with regard to
tariffs, duties and subsidies on textile sector?
1) Extremely satisfied ___________
2) Satisfied ___________
3) Neutral ___________
4) Dissatisfied ___________
5) Extremely dissatisfied ___________
Q (23). What is the future of textile in Pakistan?

1) Bright ___________
2) Dark ___________
3) Backward ___________
4) Full of Innovations ___________
Q (24). Do you think that Pakistan will be ranked in first 5 Asian exporters after ten
years?
_________________________________________________________
_________________________________________________________
Q (25). Do you have any suggestion for the betterment of textile sector?
_________________________________________________________
_________________________________________________________
26

1:Response from Respondents
(A) Response of MCQs type questions:

Selected No. of Selected No. of
Q.No. Option Respondents Q.No. Option Respondents
1 2 3 11 2 1
3 5 3 6
5 1 4 6
Total 9 Total 9
2 1 7 12 1 1
2 2 3 8
Total 9 Total 9
3 2 4 14 1 5
3 5 2 2
Total 9 4 2
4 1 3 Total 9
2 3 15(i) 1 6
3 2 2 1
4 1 3 2
Total 9 Total 9
5 1 3 15(ii) 2 3
2 4 3 4
4 2 4 2
Total 9 Total 9
6 1 3 15(iii) 1 4
2 6 2 5
Total 9 Total 9
7 2 2 15(iv) 2 7
4 3 3 2
5 4 Total 9
Total 9 15(v) 1 2
8 3 1 2 5
4 5 4 2
5 3 Total 9
Total 9 15(vi) 1 5
9 3 2 2 4
4 3 Total 9
6 4
Total 9
27

Selected No. of
Q.No. Option Respondents
15(viii) 1 1
3 2
4 2
5 4
Total 9
15(ix) 1 4
3 4
4 1
Total 9
16 2 2
3 4
4 3
Total 9
17 1 1
3 5
4 3
Total 9
18 1 6
3 2
4 1
Total 9
20 2 2
3 3
5 4
Total 9
21 1 7
2 2
Total 9
22 2 5
3 1
4 2
5 1
Total 9
23 1 3
4 6
Total 9
28

(B) Response of descriptive questions:
Note: - For simplicity, I have used R1 , R2 , R3 and so on up-to R9 in descriptive questions

which means response from respondent 1, 2, 3 and so on.
Q (10).
R1: Yes, textile growth rate is more in MFA than post-quota because our concentration is
fully on major target markets.
R2: I think no effect has been made after quota period. In my view, textile growth rate is
same as in MFA.
R3: Yes, textile growth rate is more in MFA than post-quota because.
R4: I am in favor of after quota regime because now we can freely explore new markets
and make vital contribution in world share of textile.
R5: I am not in favor of both because it depends on your competencies, qualities,

technology and perceptions.
R6: I think MFA period was a shield on Pakistan’ textile sector in which certain export
already known and on the basis of this you can make better future plans and set the road
map for your success.
R7: I appreciate post-quota regime because it gives the small and medium as well as
cottage sector to participate directly in export.
R8: Both are important because both periods give you some benefits as well as losses.
For example in MFA most focus on European Union countries and American States while
ignore other countries and markets. In post-quota, freedom of export or dealing with any
dealer belongs to any country as well as to tackle major rival forces becoming hard and
hardest.
R9: In my view, post-quota regime is more beneficial for increasing textile sector export
of Pakistan.
29

Q (13).
R1: The most growing sector in MFA was cotton in raw form and in post quota are value
addition products.
R2: The most growing sector in MFA was ginning material and in post-quota apparel and
made-ups.
R3: From my point of view in MFA it was filament and cotton both products and in post-
quota it is weaving and knitwear.
R4: In MFA it was cotton off-course, while in post-quota I will make no hesitate to tell
that knitwear at top and cotton in purification form.
R5: I equally rank both cotton and ginning for MFA and in post-quota it is value addition
products and knitwear at the top.
R6: In MFA it was cotton, on the other hand, sports wear and knitwear under garments
both important in post-quota.
R7: Cotton in first and apparel in second.
R8: Cotton is most growing sector in both MFA & post-quota but I never neglect the
value addition products which will contribute major share in textile export in near future
due to technological development and availability of skilled human resource.
R9: From my point of view cotton in MFA and filament as well as sports wear.
30

Q (19).
R1: Textile sector is facing many crisis such that energy shortfalls (in form of electricity,
fuel and gas etc.), stumpy flow of investment, Govt. restricted policies etc.
R2: The major threat for textile industry is energy shortfall and due to this many mills
have been shut-down. Other factors might be obsolete technology usage in some areas as
well as lack of some managerial and employee relationship.
R3: Today, the major issue is fuel and electricity problems that textile sector is facing.
R4: Energy pitfall is the most emerging issue not only in textile but so many other sectors
of economy as well.
R5: Electricity, fuel, less connectivity between education and industrial require skills and
some Govt. hurdles are common these days.
R6: In these days, our economy is working under Surveillance Govt., so, I can’t tell the
issues of textile in detail but I will point out the major issue which is energy shortage (in
form of gas and electricity).
R7: Energy is the biggest problem today textile sector is facing. High cost of production
is another problem.
R8: Many issues that are acting as barrier of textile growth rate in which energy at top.
While, secondary issues are some tighten Govt. regulations that are not in favor of this
sector.
R9: Shorting of energy, unavailability of raw material in some backward areas,

uncontrolled situations of country, inefficient labor, mismatching between education and
industry demand and bad view of Pakistan in some EU countries and American States are
issues that Pakistan is facing at current period.
31

Q (24).
R1: Insha-Allah, Pakistan will be in top threes rather than top fives after ten years.
R2: It depends on environment, culture and government.
R3: You know that today what type of crisis that Pakistan’s whole economy generally
and textile especially is facing. And our past was also not very bright. So, on the basis of
facts it is harder to say that Pakistan will be in top five after ten years with respect to
textile sector.
R4: It depends on continuation of policies and fair treatment of Govt. with textile sector
and economic conditions of Pakistan during forthcoming ten years.
R5: In my point of five, it will take long time rather than ten years.
R6: I pray for God that it would happen after ten years but current situation is opposite of
it because China, Bangladesh and India is capturing our markets whom we are supplying.
R7: If sustainability of policies, better law and enforcement situation, highly correlation
between education and demand of industry, use of latest technology and availability of
highly skilled labor is achieved then I hope that Pakistan will be in top fives after ten
years.
R8: It all depends on our capabilities, skills, knowledge about environment of different
countries, image of Pakistan in Western world and response from our target markets.
R9: In Pakistan, labor shortage is not the problem but there is lack of minds who work for
the betterment and growth of companies. Our labor requirement is satisfactory but
managerial requirement might be fall in dumpiness. To achieve of ranked in top fives we
must dedicate our skills and knowledge for the betterment of industry.
32

Q (25).
R1: My suggestion for betterment of textile sector is that government agencies and active
bodies take it role seriously and textile organizations must follow WTO policies and
standards if they want to acknowledge themselves in whole world.
R2: I will request rather than suggestion to government that please make effective plans
and projections before what they want to do. Further, it should be cooperative and flexible
with regard to any policy and rules implementation on textile sector.
R3: My suggestions are that we all must implement of WTO policies and take a birds eye
view on over competitors I we want to come in top five positions after ten years from
now.
R4: My suggestions are be fair, honest, hardworking and motivator if we want to

accomplish our objectives at time.
R5: For better textile growth rate we must implement WTO policies, used Up-to-Date
technology, hired skilled human resource on merit, set short term objectives in order to
achieve long term goals and targets effectively. Government role must be supportive
rather than only a regulatory body.
R6: In my view, I think we should follow those strategies, course of action and
implement those policies which is adopted by our those rivals who are successful in the
world with regard to textile sector. Like China and Bangladesh.
R7: My suggestions are we need to change the organizational culture from centralized to
decentralized because this is the way through which modern organizations and Western
world is progressing. I also suggest that make analysis short period basis and take a view
on WTO actions and policies.
R8: Hardworking is the key to success, remember this motto and work for the nation if
you want to recognize them and face any problem humbly. This is teaching of our
religion.
R9: If you want to give better future to textile sector then follow these guidelines:
9 Established and follow defined & real goals
9 Actions and duties must defined first before doing
9 Take review on technology changes with regard to textile
9 Be humble and show patience in any type of difficulty.
9 Don’t over estimate any thing
9 Control cost of production by maintaining standard rules of working
9 You should not show any irresponsibility while exporting because you are
representing not only the textile sector but also your country as well
33

2:Feel of the Data
Frequencies
Position in
Organization
Age Experience Qualification Machine Knowledge Current Performance
Total Respondents 9 9 9 9 9 9
Mean 3.33 2.5 2.5 2.33333 1.5 3.66667
SE-Mean 0.8819 0.5 0.6455 0.881917 0.5 0.881917
St-Dev 1.5275 0.707107 1.29099 1.52753 0.707107 1.52753
Variance 2.3333 0.5 1.66667 2.33333 0.5 2.33333
Median 3 2.5 2.5 2 1.5 4
Minimum 2 2 1 1 1 2
Maximum 5 3 4 4 2 5
Range 3 1 3 3 1 3
Overall WTO
export Effects on policies &
Current contributio Textile after Environmen quality Core
Export n 2005 t after 2005 standards Competencies
Mean 4 4.33333 3 2 2.33333 2
SE-Mean 0.57735 0.881917 0.57735 1 0.881917 0.57735
St-Dev 1 1.52753 1 1.41421 1.52753 1
Variance 1 2.33333 1 2 2.33333 1
Median 4 4 3 2 2 2
Minimum 3 3 2 1 1 1
Maximum 5 6 4 3 4 3
Range 2 3 2 2 3 2
34

Education Skilled human Infrastructure Production
Role resource role role cost Technology role Product quality
Mean 3 1.5 2.5 2.33333 1.5 2
SE-Mean 0.57735 0.5 0.5 0.881917 0.5 0.57735
St-Dev 1 0.707107 0.707107 1.52753 0.707107 1
Variance 1 0.5 0.5 2.33333 0.5 1
Median 3 1.5 2.5 2 1.5 2
Minimum 2 1 2 1 1 1
Maximum 4 2 3 4 2 3
Range 2 1 1 3 1 2
Dependency of
Investment Rivalry & growth on
Product facilities & per unit Pakistan's Pakistan's Govt. assistance
price role protectionism cost image image for coping crisis
Mean 3.25 2.66667 3 2.66667 2.66667 3.33333
SE-Mean 0.853913 0.881917 0.57735 0.881917 0.881917 0.881917
St-Dev 1.70783 1.52753 1 1.52753 1.52753 1.52753
Variance 2.91667 2.33333 1 2.33333 2.33333 2.33333
Median 3.5 3 3 3 3 3
Minimum 1 1 2 1 1 2
Maximum 5 4 4 4 4 5
Range 4 3 2 3 3 3
Role of Ministry
of Commerce in Contribution of Future of Textile
issues resolution Govt. agencies in Pakistan
Total Respondents 9 9 9
Mean 1.5 3.5 2.5
SE-Mean 0.5 0.645497 1.5
St-Dev 0.707107 1.29099 2.12132
Variance 0.5 1.66667 4.5
Median 1.5 3.5 2.5
Minimum 1 2 1
Maximum 2 5 4
Range 1 3 3
35

Frequencies Tables
Table 2.1
Age
Selected Option Frequency Percent Cummulative Percent

2 3 33.33 33.33
3 5 55.56 88.89
5 1 11.11 100.00
Total 9 100.00
35-44 25-34 2
3
5
Above 54
36

Table 2.2
Gender

1 7 77.78 77.78
2 2 22.22 100.00
Total 9 100.00
Male
1
2
Female
37

Table 2.3
Rank

2 4 44.44 44.44
3 5 55.56 100.00
Total 9 100.00
Middle Level
2
3
Front Line
38

Table 2.4
Experience

1 3 33.33 33.33
2 3 33.33 66.67
3 2 22.22 88.89
4 1 11.11 100.00
Total 9 100.00
10-19
1
Under 10
2
3
4
20-29
30-39
39

Table 2.5
Qualification

1 3 33.33 33.33
2 4 44.44 77.78
4 2 22.22 100.00
Total 9 100.00
Post
Graduation
Graduation 1
2
4
Any Other
40

Table 2.6
Machines Knowledge for Success

1 3 33.33 33.33
2 6 66.67 100.00
Total 9 100.00
Yes
1
2
No
41

Table 2.7
Satisfaction about Current Performance

2 2 22.22 22.22
4 3 33.33 55.56
5 4 44.44 100.00
Total 9 100.00
Dissatisfied
2
4
Satisfied 5
Extremely
Dissatisfied
42

Table 2.8
Current Export Rate

3 1 11.11 11.11
4 5 55.56 66.67
5 3 33.33 100.00
Total 9 100.00
Poor
3
4
5
Satisfactory
Worst
43

Table 2.9
Contribution of Overall Export Indicators

3 2 22.22 22.22
4 3 33.33 55.56
6 4 44.44 100.00
Total 9 100.00
51-70%
3
4
31-50% 6
Abov &
Equal 90%
44

Table 2.10
Effects on Textile After 2005

2 1 11.11 11.11
3 6 66.67 77.78
4 2 22.22 100.00
Total 9 100.00
Neither good nor

bad
2
3
Good effect
4
Both good & bad
45

Table 2.11
Environment for Textile After 2005

1 1 11.11 11.11
3 8 88.89 100.00
Total 9 100.00
Both
opportunities &
Challenges
1
3
Full of
Challenges
46

Table 2.12
Adoption of WTO Policies & Quality Standards

1 5 55.56 55.56
2 2 22.22 77.78
4 2 22.22 100.00
Total 9 100.00
Strongly Agree
1
2
Agree
4
Disagree
47

Table 2.13
Core Competencies & Textile Growth

1 6 66.67 66.67
2 1 11.11 77.78
3 2 22.22 100.00
Total 9 100.00
Very High
1
2
3
High
Middle
48

Table 2.14
Education Role in Textile Growth

2 3 33.33 33.33
3 4 44.44 77.78
4 2 22.22 100.00
Total 9 100.00
Middle
High
2
3
4
Low
49

Table 2.15
Skilled Human Resource Role

1 4 44.44 44.44
2 5 55.56 100.00
Total 9 100.00
Very High
1
2
High
50

Table 2.16
Role of Production Infrastructure

2 7 77.78 77.78
3 2 22.22 100.00
Total 9 100.00
High
2
3
Middle
51

Table 2.17
Production Cost

1 2 22.22 22.22
2 5 55.56 77.78
4 2 22.22 100.00
Total 9 100.00
High
1
2
Very High 4
Low
52

Table 2.18
Role of Technology

1 5 55.56 55.56
2 4 44.44 100.00
Total 9 100.00
Very High
1
2
High
53

Table 2.19
Role of Product Quality in Textile Growth

1 3 33.33 33.33
2 3 33.33 66.67
3 3 33.33 100.00
Total 9 100.00
High
Very High 1
2
3
Middle
54

Table 2.20
Role of Product Price

1 1 11.11 11.11
3 2 22.22 33.33
4 2 22.22 55.56
5 4 44.44 100.00
Total 9 100.00
Low
High
1
3
4
Very High 5
Very Low
55

Table 2.21
Role of Investment Facilities & Protectionism to Investment

1 4 44.44 44.44
3 4 44.44 88.89
4 1 11.11 100.00
Total 9 100.00
Very High
1
3
Middle 4
Low
56

Table 2.22
Fight against Rivals by Low per Unit Cost

2 2 22.22 22.22
3 4 44.44 66.67
4 3 33.33 100.00
Total 9 100.00
Disagree
2
Agree
Strongly Disagree 3
4
57

Table 2.23
Image of Pakistan in Global World

1 1 11.11 11.11
3 5 55.56 66.67
4 3 33.33 100.00
Total 9 100.00
In some areas
pleasant & in
some bad
1
3
4
Pleasant
Bad
58

Table 2.24
Dependency of Textile Sector Growth on Pakistan’s Image

1 6 66.67 66.67
3 2 22.22 88.89
4 1 11.11 100.00
Total 9 100.00
High Dependency
1
3
4
Some extent
Independency dependent and
Independent
59

Table 2.25
Govt. Assistance to Cope Textile Crisis

2 2 22.22 22.22
3 3 33.33 55.56
5 4 44.44 100.00
Total 9 100.00
Neither Agree nor

Disagree
2
3
5
Agree
Strongly Disagree
60

Table 2.26
Role of Ministry of Commerce & Textile for Issues Resolution

1 7 77.78 77.78
2 2 22.22 100.00
Total 9 100.00
Yes
1
2
No
61

Table 2.27
Contribution of Govt. Agencies

2 5 55.56 55.56
3 1 11.11 66.67
4 2 22.22 88.89
5 1 11.11 100.00
Total 9 100.00
Statisfied
Neutral 2
3
4
5
Dissatisfied
Strongly
Dissatified
62

Table 2.28
Future of Textile in Pakistan

1 3 33.33 33.33
4 6 66.67 100.00
Total 9 100.00
Bright
1
4
Full of
Innovations
63

3:Integrity of Data
Reliability
Table 3:
Processing Summary
Respondents' Status %
Valid 9 100.00
Excluded 0 0.00
Total 9 100
Reliability Statistics
Cronbach's alpha N of items
0.9516 26
* The table shows reliability of data our data is more reliable because alpha is 0.9516.
64

4:Hypotheses Testing
Hypothesis 1:
One-Sample T: WTO Policies
Variable N Mean StDev SE Mean 95.0% CI

WTO Policies 3 2.333 1.528 0.882 (-1.461, 6.128)
D o tp lo t o f W T O P o lic ie s
( with 9 5 % t- c o n fid e n c e in te r v a l fo r th e m e a n )
[ _ ]
X
0 2 4 6
W TO P o lic ie s
One-Sample T: Textile Problems post 2005

Textile Problems 2 2.00 1.41 1.00 (-10.71, 14.71)
H is t o g r a m o f T e x t ile P r o b le m s p o s t 2 0 0 5
( w it h 9 5 % t - c o n f id e n c e in t e r v a l f o r t h e m e a n )
1.0
Frequency
0.5
0.0 _
X
[ ]
1 2 3
Te xti le P r o b le m s p o s t 2 0 0 5
65

Hypothesis 2:
One-Sample T: Role of Investment

Role of Investment 3 2.667 1.528 0.882 (-1.128, 6.461)
Histogram of Role of Investment

(with 95% t-confidence interval for the mean)
1.0
Frequency
0.5
0.0 _
X
[ ]
1 2 3 4
Role of Investment
66

Hypothesis 3:
One-Sample T: Global image of Pakistan

Role of Pakistan’s image 3 2.667 1.528 0.882 (-1.128,
6.461)
Boxplot of Global image of Pakistan

[ _ ]
X
0 2 4 6
Global image of Pakistan
One-Sample T: Dependency of Growth on Image
Variable N Mean StDev SE Mean 95.0%

CI
Dependency of growth on image 3 2.667 1.528 0.882 (-1.128,
6.461)
D o t p lo t o f D e p e n d e n c y o f G r o w t h o n I m a g e
( w it h 9 5 % t - c o n f id e n c e in t e r v a l f o r t h e m e a n )
[ _ ]
X
0 2 4 6
D e p e n d e n c y o f G r o w th o n I m a g e
67

Hypothesis 4:
Two-Sample T-Test and CI: Role of Core competencies, Role of Education
N Mean StDev SE Mean

Role of Core Competencies 3 2.00 1.00 0.58
Role of Education 3 3.00 1.00 0.58
Difference = mu Role of Core competencies - mu Role of Education

Estimate for difference: -1.000
95% CI for difference: (-3.267, 1.267)
T-Test of difference = 0 (vs. not =): T-Value = -1.22 P-Value = 0.288 DF = 4
Boxplots of Role of Core

competencies & Education
(means are indicated by solid circles)
Role of core Role of

competencies Education
68

Hypothesis 5:
Two-Sample T-Test and CI: Govt Role for Crisis Handling & MOC as Participative

Govt Role 3 3.33 1.53 0.88
MOC as Participative 2 1.500 0.707 0.50
Difference = mu Govt Role for Crisis Handling - mu MOC as Participative

Estimate for difference: 1.83
T-Test of difference = 0 (vs not =): T-Value = 1.81 P-Value = 0.212 DF = 2
Boxplots of Govt Role and MOC as

Participative
Govt MOC as
Role Participative
body
69

Hypothesis 6:
Two-Sample T-Test and CI: Technology & Textile Growth and Skilled HR & Textile

Technology 2 1.500 0.707 0.50
Skilled HR 2 1.500 0.707 0.50
Difference = mu Technology & Textile Growth - mu Skilled HR & Textile Growth

Estimate for difference: 0.000
T-Test of difference = 0 (vs not =): T-Value = 0.00 P-Value = 1.000 DF = 2
Boxplots of
Up-to-DateTechnology and
Skilled HR role in textile sector
2.0
1.5
1.0
Up-to-Date Skilled
Technology HR
70

Hypothesis 7:
One-Sample T: Relationship between overall economic exports & textile sector

Relationship 3 4.333 1.528 0.882 (0.539, 8.128)
Histogram of Relationship between overall

economic exports & Textile
1.0
Frequency
0.5
0.0 _
X
[ ]
3 4 5 6
Relationship between overall
71

Hyp+othesis 8:
One-Sample T: Better Production infrastructure & Textile growth

Better Production infrastructure 2 2.500 0.707 0.500 (-3.85
3, 8.853)
Dotplot of Better Production

infrastructure & Textile growth
[ _ ]
X
-4 -2 0 2 4 6 8
Production infrastructure &
Textile growth
72

Research Report On Pakistan Textile

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The Convenience Sampling method of Non-probability technique was used because it

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Figure1. Theoretical Relationship Model-----------------------------------------------11

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MFA Multi Fiber Arrangements

WTO World Trade Organization

APTMA All Pakistan Textile Mills Association

SMEDA Small & Medium Enterprise Development Authority

GATT General Agreement on Tariffs & Trade

NAFTA North American Free Trade Area

CAFTA Central American Free Trade Area

LDCs Less Developed Countries

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Removal of export duty on raw cotton, increasing domestic prices to international

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M ajor objectives of this research are as follows:

S ignificance of this research work is to provide the considered necessary information

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With reference to implementation, there is some critical literature. For example, a

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Fifth, almost 70 percent of Pakistan's textile exports go to quota countries such

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T he problem statement has defined as:

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4.1 Inventory of Variables:

Growth of textile sector

Investment facilities (includes both foreign & domestic)

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Competencies Dependent Variable

Skilled human resource

4.2 Direction of Relation:

Investment facilities & protectionism to investment flow have positive

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Better investment facilities (includes both foreign & domestic) as well as

4.4 Inventory of Propositions in a Sequential Order

T he sequential order for propositions of textile growth is:

Timely Adoption of WTO policies;

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I have completed my research by developing and testing these hypotheses:

1. H0 = There is no relationship between WTO policies & textile market growth.

2. H0 = No relationship between investment and textile growth.

3. H0 = Textile growth is independent from Pakistan’s image.

4. H0 =There is no relation between education, core competencies and textile growth.

6. H0= There is no association of latest technology, skilled human resource and

7. H0 = Overall economic exports indicators have no impact on textile sector growth.

8. H0 = There is no role of infrastructure in textile sector growth.

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6.1 Classification of Research:

6.2 Data collection techniques:

D ue to time constraints, the sampling size is consisting of 9 respondents that are

6.5 Data collection tools:

T hese tools for data collection are used in this research:

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7.1 Data Collection