Pakistan being an agricultural country with Cotton being the Cash crop and backbone of the economy shall be placed upon immense importance. Textile Industry is the principal Industrial Sector earning about 68% of the total exports of Pakistan, and is bound to grow and serve the nation with its strategic importance for the country.
With the quota restrictions phasing out in 2005, WTO poses serious challenges to Textile producers and exporters around the globe.
Pakistan is likely to suffer from its ramifications if the government does not ensure proper and timely measures.
Value-addition becomes the key in this scenario, for which the government shall devise a policy whereby the local industry is protected and its growth is not hampered through competitors like China and India.
Raw Cotton and Yarn is exported from Pakistan vis a vis imports to fulfill the demand of the local consumers and value added item exporters. Pakistan's long staple Cotton fibre has its own advantages, which still is the primary edge for quality-oriented buyers despite fairly high prices against the competitors.
By exporting Cotton, and then importing deficit is a set back for the economy in terms of deteriorated quality and loss of foreign exchange which can otherwise be earned much more through exports of value-added items.
This therefore also goes as a message from my side to the Textile Policy makers to stop exports of Cotton resulting in an automatic increase in value added items.
Arrangements can be made by the Private sector itself for Swap of Cotton imports against exports of finished goods.
This way, boost to Foreign exchange earnings can be made with an incentive for both the importers and the exporters. Simultaneously, decline in exports of yarn would also bring a positive impact on the industry with a focus towards value addition and capitalising on the otherwise Opportunity cost.
The recent reduction in import duty on Textile Machinery is a positive step by the Policy makers, which should eventually be brought to Zero as an incentive to the existing and new comers to the industry.
As the investment boosts in the country in this sector, it would generate more employment opportunities, which would help in consuming the local personnel otherwise exported. Thus, reduction in duties of the machinery can bring the ailing Textile industry into the phase of modernisation.
In an interview, he laid stress on professional Human Resource Management - the most important aspect and commonly overlooked by Business units especially in the Textile sector.
He has formulated and implemented a complete Human Resource Management plan on modern lines, which has greatly enhanced the efficiency of the organisation.
Human Resource Management can play a vital role in providing competitive intelligence within an organisation. This may be used in the planning process of the company and to sort out the company's internal strengths and weaknesses.
The understanding and knowledge of measuring monetary impact on a business through Human Resource Management helps businesses assess their functional strength.
Motivating staff to work hard and increasing their effectiveness and efficiency, concept of Human Resource Management, plays an important role in designing and delivering the overall strategy of the organisation.
Another important aspect is to develop quality manpower for this important sector, as it is the need of the day, highly inevitable for the nation's economic progress. It is high time to realise the importance of producing and marketing quality products, which is the key factor for survival of Pakistani Textile firms against cut-throat competition from the international market.
With increasing demand of Value-added items, our focal point shall be towards value-addition which brings greater prospects in terms of employment and increased foreign exchange.
The higher efficiency can be achieved through better use of the workforce, eventually increasing productivity and improved price-quality equation in the international market. Now the Textile Industry is posed with challenges in shape of WTO regulations, which makes barrier-free trade around the globe in the year 2005.
We need to prepare ourselves to face this new challenge which brings with it removal of quota protection, likelihood of imposition of anti-dumping duties, up gradation of the machinery for survival and resulting quality production etc to compete with countries like China and India.
China, India and Pakistan are likely to rule global Textile market. The removal of trade barriers and quota restrictions as expected, will provide tremendous opportunities to these countries in terms of exports. China is expected to get a strong share due to its cost advantages in manufacturing sector, and Pakistan can only get an edge through increased cost competitiveness.
Government of Pakistan shall develop a balanced and well co-ordinated plan to cope up with the requirements of the industry. Government policies play a vital role in industry development, and Textile industry in Pakistan, after implementation of WTO regime would heavily be depending on Government positive policy framework.
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