In order to achieve the goal to sustain industrialisation, a growth rate of 10.9 percent has been targeted for the manufacturing sector including 12.5 percent for large-scale manufacturing and 7.5 percent for small scale manufacturing for next year 2007-08.
According to planning commission sources, an allocation of Rs 18.75 billions has been earmarked for the industry, textile and commerce sectors which is the highest one ever made in these sectors.
MAJOR PROJECTS TO BE CARRIED OUT IN INDUSTRY SECTOR DURING 2007-08 INCLUDE: agro-food processing facilities at Multan (Rs 69.86 million), Aik Hunar Aik Nagar (Ahan) (Rs 60.369 million), Gujranwala Business Centre, Gujranwala, (Rs 13 million), sports industries development centre Sialkot (Rs 168.74 million), technical up-gradation of garment industry all over Pakistan (Rs 100 million), five advanced CAD/CAM training centres (Rs 139.4 million), Gujranwala tools, dies and moulds centre (Rs 295.000 million), 2MGD water desalination project Gawadar, Balochistan (Rs 178.86 million).
Major projects in the textile sector include three garment cities at Lahore, Faisalabad and Karachi, implementation of export plan and establishment of two fibre testing laboratories.
Major projects to be carried out in commerce sector include SA-8000, Pakistan School of Fashion Design, Lahore, Trade and Facilitation Project and Expo Centre, Lahore.
In view of anticipated competition with countries like China and India in the global market, particularly in the backdrop of opening of Chinese export of textile and clothing in European Union and USA in 2008, efforts are being made to make the textile and clothing sector to be more dynamic and competitive. To achieve this objective, a separate textile industry ministry was created and a number of projects including Lahore, Faisalabad, Karachi cities and Karachi textile city projects have been planned in the public sector with an investment of over Rs 3.5 billions, of which two projects Lahore Garment and Faisalabad Garment Cities have been initiated during 2006-07 with an investment of Rs 997 million, said official sources.
In order to accelerate export, planning commission sources mentioned, an investment of around Rs 3 billion was planned in the commerce sector. A number of projects including social accountability SA-8000, Expo Centre Lahore, Pakistan School of Fashion Design, Lahore and Trade and Transport Facilitation projects were initiated during the year under review.
An investment of Rs 1,986 million is estimated for these projects during FY 2006-07. Two major projects of Pakistan School of Fashion Design Lahore and Expo Centre, Lahore are expected to be completed by June 2008.
Commenting over the reforms in the textile sector, ministry of textile industry said that that ministry is currently in the process of implementing and finalising various initiatives in the following areas; contamination-free cotton to cater to the demand of quality raw material for the finished products; technological up-gradation at the ginning, weaving, processing and garment production level; product diversification and value-addition through better materials, accessories and design inputs; up gradation of the weaving sector with air jet and water jet looms along with zero rated duties; encouragement of integrated as well as horizontal garment industries on the basis of R&D and technological support for the garments sector; introduction of cotton hedge trading to promote marketing of cotton; testing facilities for increasing compliance and conformity assessment; and augmenting the institutional capacity in the field of research by setting up of R&D cell within the ministry.
In order to accelerate the growth of textile sector and to resolve issues of supply chain management and value addition, textile ministry has taken a number of proactive measures since its inspection.
THESE INCLUDE: Pakistan Textile City Project; The principal objective of the textile city is to develop and manage a state-of-the-art industrial zone on 1,250 acres dedicated to value added textile units in order to avail the opportunities arising out of the decision to remove of quota's applicable in the WTO agreement on textile and clothing from January 2005. For this project 700 acres were acquired in the start of 2006 while remaining 550 acres were made available in January 2007.
The government also announced the setting up of three garment cities at Karachi, Lahore and Faisalabad under the Trade Policy. The purpose of these projects is to provide facilities and necessary infrastructure to the textile sector with a view to promoting value added garments (woven and knitted), home textiles, made ups and accessories to the international markets. The EDF board approved a sum of Rs 1.425 billion for three garment cities.
This project is expected to attract foreign investors who would be willing to rent state-of-the art manufacturing factory space rather than commit their capital in land, utilities and construction. It will also increase the proportion of value added products in textile exports, generate employment and lead to higher per capita productivity and reduced wastage because of in house training and laboratory testing facilities provided by the project.
The Textile Garments Skill Development Board; was set up in October, 2005 and is primarily charged with carrying out skill development of workers for the garments industry within the garment units including the objectives of production of contamination-free cotton, project financing for small and medium entrepreneurs in high value added textile sectors, review of domestic and international prices of cotton to ensure a fair return to growers, maintaining stability in domestic prices and establishing liaison with all stakeholders from cotton growers to textile exporters for removing any bottlenecks in implementation of the recommendations. It is expected to train 10,000-12,000 stitching machine operators in these units in the span of just one year to build a critical mass of skilled workers.
The scope of these training programmes is to be widened to terry towel and bed linen sectors during the current financial year. Presently, the training programme is continuing in 30 units, which are enrolling candidates in consecutive batches.
Textile industry sources mentioned that contamination of cotton is a very serious problem affecting the local spinning industry and the export of textile relatively. In order to tackle this problem, it was decided by the government to launch the Clean Cotton Programme in collaboration with Trading Corporation of Pakistan and provincial agriculture departments, which included payment of premium at Rs 50 per mound to growers directly. The government had sanctioned an amount of Rs 35 million for this purpose.
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