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Textile City project to boost entire textile value-chain
Aug '11
The sale of plots at Pakistan's Textile City coming up at Port Qasim near Karachi has begun with the country's Prime Minister Yousaf Raza Gilani officially announcing the same at a ceremony.

The Government's initiative for the launch of Pakistan Textile City at Karachi has been welcomed by the entire textile community in the country including Karachi Cotton Association (KCA), Pakistan Yarn Merchant Association (PYMA), and the All Pakistan Textile Mills Association (APTMA).

The Government's initiative to provide world-class infrastructural facilities has been praised even by international investors.

Mr. Shakeel Ahmad, member KCA, Mr. Ghulam Rabbani, executive member PYMA, and Mr. Yasin Siddik, President of Sindh Balochistan chapter of APTMA have issued a joint statement along with Mr. Fazal Ahmed, an international investor who is also currently the Director at the Texas, US-based Drachenberg Trading Company.

The joint statement says that the entire value chain of the Pakistan's textile sector from cotton and yarn to clothing would be greatly benefited once the mega project is complete.

Mr. Ahmad said the project would provide several direct and indirect benefits to the industrial sector and added that the cotton cultivators can look forward to get better price for their produce.

He said that the price of cotton would become more stable as the lint output would increase. The setting up of the mega project would generate several jobs, besides increasing the income from activities like movement of goods and transport, he added.

Mr. Rabbani was of the opinion that the yarn sector of the country would be able to easily compete in the global markets, once the project is completed.

He elaborated that the establishment of Textile mills and garment manufacturing facilities will increase the domestic demand for yarn. He further said that the rise in exports after the completion of the Textile City would also result in an increase in the demand for quality yarn.

The mega project aims to attract an investment of around US$ 250 million in the country's value-added textile sector, and will support the balance of payment situation as it would lead to exports of more than US$ 3 billion, he added.

Mr. Siddik said Pakistan's textile sector would be in a better position to compete with other textiles exporting countries like Bangladesh, China and India, once the WTO quota system comes to an end.

The facilities at Pakistan Textile City would attract joint ventures, and thus enhance the market share of the country's textile goods, he said.

Mr. Ahmed said that international investors have shown interest in joint ventures with textile sector in Pakistan as they feel comfortable of secure industrial activities in the nearly 270 new spinning and textile units that are expected to be set up at the Textile City.

Pakistan Textile City is expected to generate direct employment to more than 80,000 people, once the mega project starts functioning at full capacity.

Fibre2fashion News Desk - India

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