The Small & Medium Entrepreneur Development Authority (Smeda) is working on revival of the textile sector in NWFP. The province produces traditional fabric 'Khaddar' in Matta Mughal Khail, Rajjar of district Charsadda and Islampur in Swat and Khawari district Nowshera. Talking to Business Recorder, Smeda Manager Javaid Khattak said the product with a century long history had big demands in foreign markets and possessed huge export potential. The skill was introduced by the people migrated from other parts of NWFP mostly from Malakand division.
They started this weaving business in various locations of NWFP and with passage of time were emerged in the form of clusters. These units were usually operated inside the houses and most of the labour working in that sector was uneducated and mostly family members. Women were also involved side by side in cone winding and finishing process.
The product is a completely seasonal product used in winter and its production is started in the month of May and supplied to the markets in September. Previously, these clusters were producing only men wear, but now they started production of women cloth in various colours.
Regarding the potential of the sector, he said that Khaddar, a warm traditional fabric, was gaining fast recognition and prestige not only at national level but also at the international level. The sector also had potential of generating employment opportunities.
There are around 1,600 units in the province with more than 13,000 employees. One loom or unit employee 4 people. However, the entrepreneurs involved in this business are still stuck to the old technology and designs. The number of units in Matta Mughal Khail is 580, Rajjar 180, Khawrai 40 and Islampur 800.
Before starting work on the sector, the authority had identified the problems confronting the people involved in the business, which were including the lack of an organised trade association, technology, skilled labour force, quality awareness and no knowledge of designing and colour combination facilities. The important one among the problem was the lack of financial resources.
In Matta Mughal Khail, Smeda started work with the cluster in 2001 and facilitated them in various activities like formation of their local association, catering to their working capital requirement, and up gradation of technology. For meeting their working capital requirement, they were linked with the Bank of Khyber and SME Bank.
"Till date the Bank of Khyber has financed 232 units with total amount of Rs 30.5 million whereas SME Bank has financed 158 units for Rs 20.1 million, which shows that both banks have financed more than Rs 50 million with an unbelievable recovery rate of more than 97 per cent," Javaid Khattak added. He further said the financial assistance with collaboration of Smeda had greatly improved productivity and socio-economic conditions of those small rural entrepreneurs.
For further facilitation of the sector, he said the authority was also working on the establishment of a common facility centre having facilities of dying, designing and pressing. A programme lending package to meet their working capital requirement and declaring Matta Mughal Khail and Islampur as small industrial zones.
Moreover, Smeda had also stressed for further input like linking the sector with Export Promotion Bureau (EPB) for looking international market outlets for this traditional product of the province. The bureau can exhibit this hand made product in the international market of Iran, Afghanistan, Russia, Turkmenistan and Uzbekistan for exports.