MUMBAI (Commoditiescontrol) – Former President of Karachi Chamber of Commerce and Industry (KCCI) Majyd Aziz in an interview with a national daily recently said that Pakistani government should invite China to invest in its textile industry, particularly in weaving sector. However, he said that Pakistan will have to overcome gas shortage, water shortage, and electricity shortage.
Pakistan produces the best cotton yarn and quality fabric which can be exported to China, and then China can do its own processing, dyeing, and garments. In the longer run, when there are SEZs, it will be in China's interest to set up such units here.
At the upcoming export-based SEZ in Gwadar, Chinese will set up all kinds of industries there because China wants to control its own processing and own garments. In Gwadar, if they set up a textile made-ups industry, it will be cheaper proximity-wise.
However, on the labour front Majyd was a upbeat. Pakistan's textile labour productivity and skills was deplorable earlier and lot of garment manufacturers brought production managers and quality assurance managers from Sri Lanka to. Now, labour productivity has increased by 30 to 40 percent, he said.
Pakistan's textile industry is basically cotton-based. However, non-cotton fabrics and dresses are hugely popular. Polyester-viscose fabrics are widely used in uniforms. So much so, a large quantity of polyester fabrics come from China, India, etc. Thus, domestic textile industry is continuously suffering. Further, high energy costs, taxes, energy shortages impedes growth of the industry.
Pakistan's spinning sector has made massive investments to upgrade their units. Even the ancillary industries have under gone modernization. This has been an evolutionary process because low production machinery and equipment increase the unit-cost price. The government had announced an upgradation fund and the new Textile Package would have a more pragmatic allocation under this head.
Improving productivity, cutting non-essential costs, shedding deadwood workers, enhancing skills, efficient working environment, is the need of the hour for the textile industry in Pakistan. At the same time, the government must make a paradigm shift and make exports a priority otherwise the US$35 billion export target under the Policy Framework 2015-18 will remain elusive, Majyd said.
(By Commoditiescontrol Bureau; +91-22-40015522)