Minister for Textile Industry Mushtaq Ali Cheema has informed the business community that the ministry has prepared a comparative study of cost of doing business in Pakistan and other competitors in the textile sector in various countries.
Talking to the business community before inaugurating the stitching machine operators training (SMOT) scheme at Rajby Industry, Korangi Industrial area, he advised the business community to prepare a report on factors hitting textile industry after making this sector zero rated. He also advised the business community to provide him a comprehensive report wherever the textile sector exports and taxes paid.
Zubair Motiwal informed the minister that India is providing three to five percent cost incentives but due to ever increasing prices of fuel in Pakistan the textile sector should be provided the same incentives.
The business community also pointed out that the increase in minimum wages would adversely hit the textile sector. The minister refused to look into the matter and said that this increase had to be given to the workers.
Speaking at the inaugural function, the minister advised the business community to improve the quality of their products so as to remain in the international market.
Cheema said that after abolition of quota and imposition of World Trade Order (WTO) rules and regulations, the Pakistan textile sector is facing tough competition in the international market.
He said Mutifiber agreement had remained in-force for around 40 years under which Pakistan textile sector enjoyed a quota facility. But now under WHO regime Pakistan has lost its competitive edge and are facing tough competition from various countries producing textile goods.
Regarding cost of doing business, the minister said that both the government and the private sector should look at this problem and how it should be tackled.
About the skill development scheme, he said that the objective of this scheme is to produce large number of highly skilled workers to produce quality goods.
He said that garment sector is one of the largest which produces a large number of jobs and trained manpower can easily be absorbed in the garment units.
Secretary Minister of Textile, Masood Ali Rizvi said that under trade policy 2005-06 Textile Sector Skill Development Board was set up under the ministry of textile to improve skill of the workforce and new comers.
He said that the board has decided to establish 35 stitching machine operating and quality control training centers in Karachi, Lahore, Sialkot and Faisalabad on an allocation of Rs 9.6 crores.
He said under the scheme the government will bear up to Rs 25,000 of remuneration of 25 trainees whereas the company will provide space, raw material and other facilities.
He added that this week the Karachi Garment City Board would meet with Governor Sindh for allotment of land for the project. Chairman, Pakistan Readymade Garment Manufacturers and Exporters Association (PRGMEA) Bilal Mulla has urged the government to introduce Travel Relief Support (TRS) for the readymade garment sector. This sector desperately needs the government's support for survival, he added.
He said that due to unfavourable conditions for the textile and garment sector, the factories are now being relocated to Bangladesh and Sri Lanka and some of the incentives, which at the moment are given to this sector, are being shifted to our main competitors. This is really an alarming situation not only to textile sector but also for the whole economy.
Welcoming the guests, Managing Director Rajby Industries Nafees Sultan said sewing machine operating training programme was initiated to train ladies and gentleman to produce better quality of goods and improve the capability of the trainees. He said that there is a huge shortage of trained manpower in the country and establishing more and more training institutes in the country can fill this gap.
He stated that by installing 40,000 stitching machines it could provide jobs to 150,000 peoples.
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