Pakistan is a country of diverse
economy. The textile industry of the country is a major contributor to the
national economy in terms of exports and employment. It holds the credit of
being the world's 4th largest producer of cotton, and 3rd
largest consumer of the same.
Currently, textile exports of the
country are witnessing a declining trend. 90% of the textile sector is facing
losses, and closures. The garment industry is not able to maintain pace with
the processing and weaving industry, which is topping the global fabric market.
Export figures of the country grew at a rate of 2.5% during the past 16 years,
whereas China saw an increase of 12%, Sri Lanka 8%, and Bangladesh 15% comparatively.
Rough Patches in the Apparel
Industry:
Pakistan is passing through a
phase of worst power crisis in its history. Electricity is becoming a rare
luxury in the country. With the increasing hours of power failure, apparel
manufacturing is tipping at an exhausting end, deeply affecting the
manufacturers. A survey report states that more than two months of production
has been lost due to power cuts. Power charges, which were once costing 2 cents
has now, increased to 19 cents. The non-availability of electricity, and
increase in power tariff are likely to force the countrys apparel industry
into unprecedented crisis. The spell of rain makes the problem worse, with
longs periods for even up to 48 hours without power supply.
It is also believed that the
focus of the workers was largely affected due to some social issues prevalent
in the country. A survey report states that in Pakistan it takes 133 minutes to
complete one piece of garment, whereas, it takes only 75 minutes for its
competitors to complete the same apparel. Furthermore, 30% of the industrys
productivity is wasted in finishing, and 12% in washing.
Potential Remedies:
Now, the question is what is the
solution for this? Industry analysts propose that electricity charges should
remain the same for at least 2 years from now. To increase the export figures, sophisticated
machinery along with high technology products and services are essential.
Training centers must be established all over the country to educate the current
and coming generation about the potential of textile trade. Proper marketing
strategies should be formulated, and implemented. Adequate number of trade
houses should be set up in various countries to support the textile and garment
exports of the country. Export oriented textile, and apparel industries should
be given preferences in accessing raw materials, finance and energy.
Infrastructure should be given more focus to aid the garment exporters of the
country.
Load shedding must be
standardized for specific hours every day, even if it is unavoidable. Despite
the unlikable consequences, energy crisis does not have any rescue. However,
remedial actions can be taken to minimize the losses.
References:
- http://www.pakspectator.com/
- http://southasiainvestor.blogspot.com
- http://www.chowrangi.com/
- http://www.pakspectator.com/