Textile industry's performance

Cotton, an important Corp for textile industry, plays significant role in Pakistan as it is our basic component of economy. The market of Pakistan cotton is not only serving the locals, but also the international sector that has a matching demand. Theoretically we have the infrastructure which could be beneficial to both the textile competitors of the world as well as the local market. Having the complete infrastructure proper planning and education can make Pakistan one of the main leaders of the Textile World.
Pakistan Silk & Rayon Mills Association is like a back bone of the entire Textile Industry since the members not only being exporters themselves, but are the key suppliers of Grey Cloth to the exporters of high value added sector of processing and garments manufacturers.
Most of the members of this Association are small weaving units and are 100% equity based (self financed) and, therefore, have never been burden on the Financial Sector (No Bad Loans) and do not get any direct subsidy from the Government Pakistan, but contrary are contributing heavily in earning the precious foreign exchange for the country as well as employing hundred of the thousands of skilled and unskilled labour.
The members of this Association produce "Woven Fabrics" manufactured on various types of looms, such as power looms, Automatic looms, Shuttle less looms, as well as the back processors of weavers such as warping sizing, doubling and twisting units.
This Industry (Weaving Sector) is going through worst crisis both internationally and locally and while fighting the global competition & crises cannot afford any further internal competition in the present situation. We at this Stage do not ask for any subsidies but are only looking for an EVEN PLAYING FIELD and a Government interference's for which we address some of the following issues which directly effects the basic existence of the Weaving Sector and propose some practical solution for its early redress.
Power looms need utmost attention of the Government for replacement of old power looms with that of shuttle-less automatic looms. At Presents over 250000 power looms are operating in the unorganised sector in the country out of which 125000 are installed in Faisalabad alone.
Textile Ministry would try its best to arrange soft-terms loans by banks and financial institutions for modernisation of power looms and try to boost the textile exports by giving lucrative incentives to the exporters and cheaper availability of the inputs to make the exports more competitive.
Textile Industry of Pakistan. Textile industry will established in Pakistan for a considerably long period, possesses significant capability and a competitive edge in traditional areas of Spinning, Weaving, Knitting, Wet Processing, Garment Manufacture and other made-ups.
However it is present lagging behind other regional countries viz South Korea, Hong Kong, India and China in the manufacture and export of value added textiles. This is mainly due to increase in the input cost, labour, custom tariff and on the lack of product innovation technologically and aesthetically.
Government should give relief to the Textile Industry on the following areas.
-- Government should bring an industrial and economic revolution in the country to stop the smuggling of fabrics.
-- It is evident that due to high rate of duty on yarn, which is the raw material of fabric. It is not possible for the local manufacturers to compete with the imported fabric.
-- It is recommended that Sales Tax on small weaving units should be in single digit as they are not enjoying the facility of Sales Tax Refund.
-- Duty free import of 2nd hand Textile Machinery's and its spare parts, Boilers and all type of Generators should be allowed.
(The Writer is Zonal Chairman, Pakistan Silk & Rayon Mills Association).