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Pakistan announces textile technology upgradation scheme
May '11
A technology upgradation scheme to support SMEs as well as big players in the textile sector is being introduced in Pakistan from July 1.

The announcement was made by Shahid Rashid, Federal Secretary for Textiles, Govt. of Pakistan, while addressing a meeting at Multan Chamber of Commerce and Industry.

Under the scheme, SMEs would be eligible for grants up to Rs. 10 million per unit. Bigger industries, on the other hand, would be eligible for five per cent relief in mark up.

The government has also planned garment city projects in Karachi, Lahore and Faisalabad, besides a Pakistan textile city.

Of these, the Faisalabad garment city has already started functioning. Lahore garment city being built at the Sundar Industrial Estate is in the final stage of completion while the work on Karachi garment city is yet to begin on the 300 acre land acquired for the purpose.

In these garment cities, besides constructing the buildings, the government provides such additional support that may enable the private sector to get the facilities on lease to operate business with low investment.

The Pakistan textile city project would be spread over 12.5 acres and will also have all the facilities that are provided to the garment cities.

The Federal Secretary also announced that a draft of the proposed Textile Industry (Development, Promotion and Standards) law is ready. He further added that a feedback is being sought from the chambers of commerce and industry on the draft proposal before it goes to the Parliament.

Once the law is passed, standards would be fixed for textile products and any violation would invite penalties.

The government is also considering setting up a board to address problems related to the textile sector. The board having equal representation from public and private sectors would also deliberate on issues relating to incentives to the textile sector.

There is also a proposal to appoint a textile commissioner. However, the Secretary for Textiles would have the power to hear appeals against the decisions of the textile commissioner.

In spite of the textile sector facing problems due to energy crisis, high mark up rates, lack of infrastructure facilities and unavailability of trained work force, the fiscal 2010-11 target of US$ 12 billion is expected to be achieved.

Fibre2fashion News Desk - India

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