Dr Baig envisions revival of textile industry
Textile industry, one of the major pillars of the Pakistan economy, is now crumbling under the pressure of erroneous policies of the Government.
In order to revive and strengthen textile industry's position, Dr Mirza Ikhtiar Baig, Advisor to Government of Pakistan, Ministry of Textile Industries, has recently revealed his vision.
According to Dr Baig there is a need to improve the supply chain, availability of clean raw cotton at competitive rates. The industry also requires proper infrastructure review, consistent supply of water, power and gas to the textile industry at affordable rates are also there.
There is a dire need of value addition in textile sector by converting raw material to value added products; cost reduction for doing business in textile sector by enhancing productivity, human resources and skill development.
He emphasized on broadening the export base to non traditional new markets, and to make export of textile products at zero rated in true sense. More market access to sign Free Trade Agreements (FTA), Preferential Trade Agreements (PTA), Regional Trade Agreements (RTA) and ROZs including textile products.
Dr Mirza Ikhtiar Baig, who is also Chairman of Baig Group of Companies has also outlined the Course of Action to achieve the desirable results.
* Data to be obtained of all the textile units closed during 2008 with their specific reason of closure to ascertain the common problem being faced by the textile industry and to take remedial measure for their revival.
* To pursue the demand of the textile sector for the reduction of mark ups by the banks as well as export Re-finance by SBP.
* Review of the tight monetary and increasing mark up policies which is hurting the growth of the industrialization in the country from 18 to 5 percent of GDP.
* To meet the per acre yield of cotton. Manseldo has already in contact with government for supply of BT cotton higher yield seeds to increase the cotton production in the country.
* To ensure the implementation for the supply of contamination free cotton to textile industry.
* Up-gradation of plant & machinery of ginning industry.
* Textile sector to be treated as priority sector in terms with utility rates. Cross subsidy in gas prices given to other sectors at the cost of textile industry is hurting the cost of production and to be borne by the government as their subsidy rather than burdening the textile sector.
* To establish internationally accredited testing laboratories in major cities including Okotex certification. Presently local textile products are sent to Hong Kong and other countries for testing to meet buyer's requirements. Pakistan don't have any Okotex certifying laboratory and sending fabrics to UK and other European countries for Okotex certification take longer time and cost substantially.
* The Advisor to Textile industry said, that there is a great potential to increase pakistani textile exports to Turkey and Iran. Iran is buying Pakistani textile products (fabric) from Turkey because of the concessional tariff. There is huge prospective to directly supply country's textile product to Iran market if some preferential tariff is allowed.
* R&D facility to be allowed to textile sector to support exports.
* To increase man made fiber used in our textile industry from 23 to 50 percent for less reliance on cotton as our regional competitors are using 50:50% cotton and man-made fiber.
* To expedite establishment of Textile and Garment cities in Karachi, Faisalabad and Lahore.
* To expedite establishment of Textile Garment cities in the cities of Karachi, Lahore and Faisalabad.
Fibre2fashion News Desk - India