PROJECT

Student Names: Syed Abdul Rehman

Registration Ids: FA18-BEL-015

Submitted To: Vajhiya Ilyas

Pakistan Studies
Subject:

Date: 15-05-2019
 Question:
Current Social Challenges related to Textile Industry of Pakistan since
Partition.

INTRODUCTION:
Pakistan is the fourth biggest producer of textile products, According to APTMA
(2009-2012) it contributes 52% of absolute fares which is about 12.36 Billion US
Dollars, 46% of all out assembling, 40% of all out work power 8.5% of all out GDP
(Gross Domestic Products) and 5% of the market capitalization. It is likewise
essential to specify here that the geological area of Pakistan is the most loved for
the global exchange it shares northern border to China, eastern border offers to
India, western border with the Afghanistan and Iran and southwestern shares to
the Arabian Sea.
For the social advancement of Pakistan, textile sector of the country played an
important role for a long time, the fundamental goal of any country possibly it is a
developed country or a developing country ought to be to augment the part
which contributes such an extraordinary offer in fare and GDP also the producing
of duty income and giving jobs to the workforce of the nation (Sarwar 2012).
The improvement in this division was noteworthy in the past since four decades
after independence of Pakistan. At the time of independence of Pakistan there
were just two material factories OKARA Textile Mills, OKARA and Lyallpur Cotton
Mills which was situated at Faisalabad, were in procedure (PACRA 2011). With the
progression of time this part begun its improvement procedure continuously
lastly Pakistan wound up fourth biggest textile exporter however tragically
material area of Pakistan confronted intense difficulties, for example, vitality
emergencies, fluctuating yarn costs, lack of gas supply and burden shading for a
few days to the area, lawfulness circumstance in the nation, debasement of
Pakistani rupee, absence of (R&D) establishments in the nation to improve the
nature of crude material, absence of present day gear and hardware, expanding
cost of creation because of high fuel costs and so forth because of all the above
circumstances the makers and exporters of Pakistan are losing their upper hand in
worldwide markets.

The point of this project is to recognize the possibilities of difficulties and

challenges looked by the textile industry of Pakistan and the apparel segment to
discover a few solutions which may support this part to restart its adventure
towards the advancement procedure of the economy of the nation. This
exploration paper will likewise feature the progressing status of the material
business of Pakistan.

Justification:
The purpose behind leading this exploration is to locate some purposive answers
for conquer the issues looked by the material business of Pakistan and this
examination is led for the satisfaction of the prerequisite of my degree, So,
because of restricted spending plan and time, such a large number of angles
couldn't be secured altogether yet at the same time this investigation will
understand numerous issues looked by the business. Because of restricted time
amid my semester (which was about just four months) just as absence of
spending plan) I couldn't accumulate the increasingly boundless information to
make this exploration most important and bona fide anyway it will lead specialist
to do more distant work and concentrate this division in detail.
The examination strategy embraced in this exploration is Qualitative method and
this exploration is elucidating in nature in light of the fact that such huge numbers
of analysts have completed a ton of work on a similar part and a gigantic measure
of data is accessible as of now however a few are basic to consider and inside and
out investigation to survive furthermore, take care of the issues looked by the
material business of Pakistan for its further sustention is required. The
information utilized in the investigation is optional information gathered from the
Statistical Bureau of Pakistan, State Bank of Pakistan and All Pakistan Textile Mills
Association's legitimate site were likewise presented a few discoveries without
anyone else perceptions and unstructured meetings structure field master were
likewise included.
Review :
Material and dress is the essential need of person, the interest of materials
everywhere throughout the world is about 18 trillion US dollars and it is relied
upon to increment by 6.5% (Spinanger 1995). The Asia is the focal wellspring of
giving material products to the European Union, USA and numerous other nations
of the globe.
Pakistan is the preeminent exporter of material merchandise particularly cotton
material items producer and exporter on the planet advertise as of now Pakistani
material items lose its intensity in the worldwide showcases because of extreme
challenge towards its rivals like India, Bangladesh and China (SPINANGER 1995).
Material fares of China worth is around 55 billion US dollars while Pakistan
Exports worth 13.8 billion US dollars. In 2004 Ministry of material industry has
built up the multi year material strategy 2009-2014 and the point was to expand
the objective of fares of material products from worth US $ 13.8 billion to worth
US $ 25 billion toward the finish of the arrangement time frame the earth
shattering updates on that approach was to give reserves to be specific Material
Investment Support Fund just as Technology Up degree Fund. The primary subject
behind giving these assets was to improve mechanical lacking and to improve the
framework by giving new speculations openings however tragically this strategy
couldn't emerged yet (PACRA 2011).
Because of wasteful accounts for material industry Ministry of Textile Industry
neglected to execute techniques and execution of the strategies (multiyear
approach 2009-2014) the industry at present have tremendous up and coming
liabilities under plans for the operational procedure yet it has difficulties to
execution just as auspicious fulfillment of the fundamental needs of industry
(Amin 2012). The aggregate sum of Rs. 24.75 billion was dispensed which was
against the allowed financing plan of Rs. 123 billion for 2009-12. Then again the
value of tasks more than Rs. 6 billion are pending at arranging commission for
most recent two years, thinking that the material business of Pakistan faces major
issues because of lack of utilities like gas which is a significant factor for the
material business.
In March 2012, a large number of material industry work holders or every day
wage specialists turned out onto streets of Faisalabad city they consumed tires,
yelled mottos contradicting government because of lack of power and gas
deficiency to material part causing this 10% little estimated and medium
measured material plants shut. Due to every one of these conditions material
industry is unfit to satisfy the local interest at any rate, the industry is unfit to
devour its local cotton to pursue send out requests on schedule.
With respect to as Pakistani material contenders are concern they are
appreciating appropriations and accessibility of fundamental requirements for the
business like power and gas and so forth from government which is likewise a
reason that putts Pakistani material fares at burden position in the worldwide
markets (Lall and Wignaraja 1995). It was additionally a significant point in the
rundown of material approach 2009 to 2014, that the material business of
Pakistan should make free from burden shedding and furthermore exempted
structure gas deficit it will be given the need like compost industry (Amin 2012).
The material area of Pakistan has solid obstructions on the economy. This division
assumes an imperative job for the age of occupations to the workforce of the
nation. This part is confronted the lack of intensity furthermore, gas it has lost $ 1
billion worth fares in the primary a large portion of the financial year 2012 and it
might lose $ 2 billion in the second 50% of the flow year because of the deficiency
of the gas and power numerous enterprises shut brought down its generation
units structure Faisalabad and Karachi and moved to remote nations it caused to
increment the joblessness rate in the nation. As per Muzimmil Sultan, President
Faisalabad Assembly of Commerce and Industry "at any rate 200,000 specialists
lost their Jobs since a year ago". Concurring to APTMA's director Mohsin Aziz the
droop in material fares estimate worth $ 305 Million in dec-2011 was stunning
the primary reason of the drop of fares was the vitality deficiency.
Bangladesh is recipient of the LDC (least created nations) having unique access to
European Association Markets the material merchandise from Bangladesh have
free obligation access to European Union Markets under EBA (Everything except
Arms) Scheme. This entrance is accessible for just least created nations
(LDS). This plan makes the Bangladeshi material items increasingly focused as
contrast with those nations which are not getting the advantages of Everything
but rather Arms Scheme including Pakistan (Sarwar 2012).

Challenges faced by the Textile industry of Pakistan:

Power and Energy Crisis

Power and energy are basic factor for the creation procedure, for further
sustentation of textile area, energy sector should be improved. It is hard to
proceed with generation process without energy. With respect to as Pakistani
textile sector is concern it is confronted 8 to 10 hours load shading every day also,
2 to 4 days Gas load shading every week.

Energy Crisis
The power supply completely disengaged in Punjab and different spots of the
modern zones of Pakistan. Due to that the generation procedure has been ceased
on an expansive scale industrial unit that outside the modern domains specifically
region as power setback hole crossed 5000 Mega Watts.
The industrialists of Punjab were protesting and close down their creation in
fomentation, the textile laborer went ahead the streets to challenge power load
shading in all key textile centers over the Punjab. Mr. Shahzad Ali Khan Chairman
All Pakistan Textile Mills Association Punjab and focal director Mr. Ahsan Bashir
taught that the textile business of Punjab progressed toward becoming in
overwhelming weight due to vitality emergency and industry is coordinated
towards constrained conclusion, they told that the load shedding of enhanced has
enhanced to 8 hours of the day. The power appropriation to textile industry has
touched base at a disturbing level and it is irritating unequivocally to the industrial
capability of earning which is about $ one billion each month and furthermore
giving opportunities to a great many laborers in Punjab.
As per executive All Pakistan Textile Mills Association Punjab Shahzad Ali Khan
tended to that complete interest of electric power in Pakistan is under
11000Maga Watts, it isn't much hard to meet the objective of the interest, and
the objective can be met by warm age yet at the same time textile industry is
confronted long term load shedding, began from May 2012 and it is expanding on
regular schedule. Today the conditions turned out to be most exceedingly terrible
and it wound up hard to proceed with the creation procedure for textile
industries of Pakistan.

Gas Shortage
There is likewise gas shortening to the textile industry. The supply of Gas for
limited ages as of now chop down to 6 hours per day in seven days for the local
domestic client. In the first place the textile industry has been exempted from gas
load shading yet sadly as of late that office isn't much accessible, in winter the
interest of gas increments from household clients of gas because of that it makes
the lack of gas the material units (MOT 2009-10). In the event that all CNG
stations of the nation redirected to LPG and the gas is changed over to the
substantial scale businesses like textile industry of Pakistan and the Fertilizer
business, a industrial discussion to demonstrate the significance of gas supply to
businesses for the development of nation has advanced a proposition yet because
of the social and political circumstances it couldn't appeared. Any way
administration of Pakistan should take remedial and preventive activities to
comprehend the vitality emergency looked by the textile industry of Pakistan
(PACRA2011).

Increasing Raw Material Prices

Expanding yarn and crude material costs is additionally a gigantic test for the
textile industry of Pakistan. The fundamental driver of expanding crude material
costs is that the cultivator of cotton or ranchers of crude material, like cotton are
unfit to get of their material and center man appreciates advantages and they are
not given the sensible costs for the crude material may times in Sindh and Punjab
farmers consumed there cotton to record a strike and the center man is getting a
charge out of the advantages because of that the business is bearing the
expensive crude material that is the reason they begun to develop the substitute
of cotton like sugarcane and so on. In this reason the government and the
concerning organizations of government should consider the case to tackle the
issues like this so the Pakistani textile industry could contend in the worldwide
market as a noteworthy player since the expense of item is trustworthy on the
costs of crude material (Chaudhry and Hamid 1988).

Law and Order Situations in the Country

Since 2007, around 2118 individuals of the state have slaughtered in partisan
brutality, and 4025 have been harmed. Government has reliably neglected to
ensure the lives just as property of individuals of Pakistan. In Karachi on overage
at any rate six individuals were killed every day as per a nearby paper amid the
terminating and cause target executing. Road wrongdoings, grabbing from
individuals, hijacking for payoffs all these issues bother the business condition
particularly to contend in the worldwide market with Pakistani contenders. The
administration should take huge activities to ensure the state and economy of
Pakistan. Numerous industrialists shut their units and moved to neighborhood
nations to spare their selves from ransoms and numerous other such sort of
issues.

Lack of R&D Institutions

There is tough competition in worldwide markets. The market needs brilliant item
on sensible cost. To improve the nature of Pakistani textile items the industry
should be consider on the nature of crude material by the assistance of innovative
work establishment. Any discussion (like APTMA or some other concerning
organization) should to do work with the assistance of R&D Institutions to
improve the nature of Pakistani cotton by belligerence or by giving plans to the
cultivators of cotton to improve the fiber quality (FAINI 1995). When the quality
improved the item can without much of a stretch contend in universal markets.

Lack of Modern Equipment and Machinery

It is likewise vital that Pakistani textile industry should be outfitted with the
modernized hardware to create quality item and for the advancement of existing
items to bust the deal in existing markets furthermore, to discover new markets
everywhere throughout the globe (MOT 2009-10).

Expanding Cost of Production

Generation cost of textile industry has expanded because of rising financing costs
and rising swelling just as declining estimation of Pakistani money (Anderson
1992). It turned into a huge test for the textile industry of Pakistan to contend and
get by in the global markets (MOT 2009-10).

Lack of New Investments

The textile industry of Pakistan is confronted faced difficulties of short generation
brought about by its supplanted material gear and machines. To assume control
over this issue the industry needs new speculations. There is not any new
substantial interest in this division for quite a while. Because of current conditions
of Pakistan no one is intrigued to put resources into Pakistan. Thinking to that it
appears to be hard for Pakistani textile to contend in the global markets (MOT
2009-10).

Conclusion and Recommendations

After point by point audit of the writing, individual perception and casual
meetings is reasoned that the government should take corrective and preventive
activities to take care of previously mentioned issues particularly electricity crisis
looked by Punjab textile industry just as Sindh textile industry. Additionally, do
great practices to handle the difficult circumstance in a proficient way. It is
likewise suggested that legislature should concentrate on the advancement of
textile sector through giving relief on tax and import or export duty. Moreover,
give the power to textile association at low rate for explicit timeframe which
builds up the business. On the off chance that administration neglected to do
than a huge number of textile workers would end up jobless and it might be an
extraordinary cause to expand the joblessness proportion of Pakistan.
Government should be consider this genuinely on all referenced issues and tackle
the issues at the earliest opportunity to ensure the textile industry of Pakistan.