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Pakistan cabinet clears action plan to revamp textile industry

The federal cabinet on Wednesday approved the much delayed 'Technology-Based Industrial Vision and Strategy for Pakistan's Socio Economic Development' which seeks to provide appropriate incentives particularly to the textiles sector.

The plan also stressess the need to diversify engineering and electronics industry. The main focus on the engineering sector is on bridging the widening technology gap with the developed countries by providing a conducive environment including the required technology, financial and physical infrastructure and creating a seamless integration with emerging trends of global production systems.

The prime minister will head a special committee to achieve the objectives of the industrial vision. Also, a working group has also been set under the chairmanship of the deputy chairman of planning commission to ensure implementation of various recommendations given by the authors of the vision, a source who was present in the cabinet meeting said.

The Chairman of Higher Education Commission Dr Atta ur Rehman and the economists at Pakistan Institute of Development Economic

(PIDE) including Dr AR Kamal are the main authors of the new industrial vision.

The government was advised to address the challenges being faced by the textiles sector which included lack of trained manpower, low quality standards and low technological base, lack of research and development and too much reliance on cotton.

The key elements of the action plan for the textiles sector include improving the regulatory and policy framework, human resource development through improving the research institutions and encouraging the private sector to invest in skill enhancement and developing technology upgrdation, rewarding value addition, ensuring quality standards and establishing common facility centres in the areas of garments, knitwear and sample development.

The action plan also seeks to establish a "fully integrated chemical industry in Pakistan" to achieve higher economic growth and lessen foreign dependence on the imports of chemical products.

The ministry of petroleum and natural resources in partnership with the private sector has been proposed to undertake an action plan which would cost Rs72 billion to help achieve self-sufficiency and the development of the agriculture sector.

"There are many proposals currently being looked into to set up a fully integrated chemical industry", a source said.

However, he said that the centre will have to consult all the stakeholders including the provinces before finally arriving at any consensus about the setting of a fully integrated chemical industry in the country.

The action plan also called for reducing the cost of production of leather products by lowering the prices of utilities with a view to considerably enhance their exports. The government was asked to help increase the export of leather products through improved productivity and by rationalising tariffs and import of chemicals.

Pakistan's exports of leather to European countries were declining due to shifting of tanning industries to China, South Korea and other Asian countries, The exports to the United States, the main market for leather apparel have declined by over 9 per cent.

The cost of production is very high in Pakistan compared to its competitors like China and India. The high cost of various inputs especially utilities and taxes make the country's productive uncompetitive in the international market.

According to the vision, in leather and leather garments industries, only 15 per cent of the workers are qualified and experienced. Finishing recipes are prepared by uneducated technicians. Exported leather goods during the storage and transportation develop problems like spew because of the chemical reaction.