Decline of textile industry

A sufficient cotton reserve is necessary to save small, labour-intensive textile units from intense competition by cotton exporters and large textile mills. Most of the mills are too small to stock up without loans. In the absence of cheaper and adequate funds, mills lose out most when raw material prices go up.
To promote value addition in textile sector, the government would have to eliminate export of yarn and fabrics, in phases. The incentives that are being given to yarn and fabric manufacturers and exporters should be diverted towards those who are exporting high value-added textile products. Value addition in textile would enhance exports, generate more foreign exchange, increase employment opportunities and enable Pakistan to get rid of the World Bank and the IMF.
Most of the economic ministers and commercial counsellors are appointed in the foreign missions on favouritism and show the least interest in working for the cause of the country and remain busy in pursuing their personal or vested interests. It is essential that the government should disengage the Pakistani economic ministers and commercial counsellors from these foreign missions and instead appoint their local experts with strong connections in their business community.
The persistent problem of contamination and trash content must be addressed through enforcement of the standards laid down in the Cotton Control Act and Cotton Standardisation Ordinance. A capacity-building programme and comprehensive training must be developed to establish a system in the private sector for grading and classifying cotton. Incentives must be provided to ensure that proper premiums are paid for increased production of contaminated-free cotton.
Appropriate measures need to be introduced for production of long staple cotton for value-added products and to meet domestic demand for high quality fabrics. Simultaneously, measures must be introduced for cultivation of organic cotton in new areas to increase value and production.
Due to compliance standards imposed by major importing countries, it is mandatory to develop a legal framework to specify standards and testing requirements, prescribe disclosure requirements and other matters relating to the practices and methods relevant to the sector.
An insurance scheme to protect our exporters against unforeseen losses should be developed, which may arise due to failure of the buyer, bank or problems faced by the buyer country. A working group must be set up by the government to develop a feasible scheme. This will help remove uncertainties currently faced by the exporters.
Last but not least the most pressing issue faced by textile industry which hinders the economic growth is the current energy crisis. Pakistan can transform itself from being a stagnant economy to a fast-paced emergent economy if government can rescue the textile industry through a revival package including uninterrupted energy supply to save the industry from a total collapse.