To provide stimulus to exports, particularly textile exports, the Ministry of Textile Industry (Mintex) has developed the concept of "target destinations" from where participants would be invited to the "Textile Pakistan - International Conference and Exhibition" being planned by the Ministry.
It aims at inviting participants from various countries/markets of the world, which will give Pakistan exporters an opportunity to show their products, according to the concept paper prepared by Mintex. The target destinations, for inviting participants are divided into two categories: firstly, countries/markets where Pakistani producers already have sizeable share but still a lot of potential for selling is available which could be tapped with more aggressive and concentrated efforts. United States of America and United Kingdom fall in this category.
Secondly, there are countries/markets, where Pakistani products do not have sizeable share but these markets offer huge opportunities for selling Pakistani textile products. This potential has not been realised so far. Countries in this category include: Australia, Japan, Russia and Central Asian States, South Africa, and African countries (East Africa).
Pakistan is the fourth largest producer and third largest consumer of cotton. Pakistani cotton is known for its quality and staple strength. Cotton being the basic raw material for textile products gives Pakistan a natural advantage for achieving higher level of quality in textile products.
Over the last six decades, Pakistan has earned a name for itself which stands for excellence in textile goods. Owing to easy availability of raw material and expertise acquired over several decades, textile sector is contributing around 60 percent of our exports, is also providing 40 percent of the industrial employment, contributes nearly eight percent to country's GDP, produces 24 percent of industrial value-added and consumes 40 percent of bank credit to manufacturing.
Importantly this sector is also providing livelihood to more than 10 million farming family members by consuming more than 90 percent of domestic cotton production of the country. The concept paper acknowledges that foreign investment has been engine of growth for most of the developing economies over the years. There has always been a competition among developing economies as to who attracts more foreign investment. Higher volumes of foreign investment refer to stability and strength of the economy which wins confidence of the foreign investor.
Pakistan received substantial foreign investment which translated into higher growth of GDP. However, during the last three/four years, inflow of foreign investment has dried up considerably. Reasons for this reduction in foreign investment are many including adverse law and order situation, and energy crisis, etc. This downward slide in foreign investment has also affected the rate at which national economy is growing.
Joint venture is the most stable and long-term form of foreign investment. Usually foreign investment made in the form of portfolio investment is fragile and can fly out easily owing to any short-term fluctuation in the economy, whereas joint ventures are long-term decisions and create direct employment as well.
Textile sector is the most developed sector of our economy in terms of efficiency and has the ability to compete at the international level. We have a history of craftsmanship, we have had investment in this sector in the past, we have skilled labour, we have business professionals in this field with proven skills, we have manufacturers who have achieved economies of scale, we have reasonably well developed infra-structure and our technology/machinery is reasonably up-to date.
Since all these factors, Mintex believes, could be helpful in attracting any foreign investor who wishes to invest in the textile business, it has planned a seminar on joint ventures in textile business. Plans are also at hand for the promotion of local clothing brands through the exhibition.