A very prompt and effective multi dimensional strategy is need of the hour to stop and reverse the declining trend in our exports. I have been reading various news articles, where the private sector is being blamed for not making good use of the R & D funds and not being efficient enough.
Almost all the textile industry is in the private sector; majority are family owned businesses. Who in their right mind will not want his/her business to flourish. The fact is that we as a nation lack the skills and knowledge required to be efficient producers.
This shortcoming was being covered by our low labour cost, low interest financing and average conversion cost in the past. However recently with the upsurge in utilities complemented by interrupted power supply, our Industry has lost a fair deal of competitiveness in comparison to other textile producing nations. This is resulting in loss of sales and market share resulting in Pakistan missing targets for exports.
Variables like the oil prices and less water to produce energy are more or less external factors and are not in control of our Government. However they need to focus on inputs where they can play a vital role in making our manufacturer's more efficient.
A multi dimensional approach is required here; starting from imparting training and development to improve the skills of our work force and management. This is one of the area where government needs to invest heavily and have short term as well as a long term plans. In the short term the government can hire foreign consultants to work in our industry.
In textiles they will not find this task difficult because textiles has become an unviable Industry for the developed nations. It is very important for the Government to intervene through the State Bank of Pakistan. Steps for saving the industry are not only crucial for earning higher revenue but is equally important in providing the much needed employment in the country and poverty elevation.
Then the government needs to give import reliefs like less or zero duties on the import of the accessories / raw material which are not manufactured locally at the required standards for export purposes.
This is for the short term, in the long term they should study and make encouraging atmosphere, conducive for the growth of the local manufacturer of accessories and raw material inputs to bring their produce at a level that is fit to be utilised for export manufacturing purposes.
The government also needs to keep a strong curb on raw material export and should have laws to restrict it from being exported to our competitors like Bangladesh and China. Our textile ministry should have plans with yearly targets for converting our maximum cotton produce to value added merchandise. Henceforth increasing our earned revenue from this natural resource.
Then finally the marketing and promotional assistance should be provided like helping the manufacturer in finding new markets, making foreign market information more easily accessible to exporters and using our trade attaches in various countries as a stepping stone for exporters to enter and service the respective markets. We are blessed by nature with cotton, being the fourth largest producer in the world after USA, China and India.
This is phenomenal, if you look at the size of these countries and us.
We have a hard working labour force; this fact is duly validated by the demand for our labour force throughout the gulf nations. I have full faith that with the right planning and assistance we can easily come out of the current low trend, infact exceed our targets.