Magazine article Economic Review

Trend in Textile Engineering Industry of Pakistan

Magazine article Economic Review

Trend in Textile Engineering Industry of Pakistan

Article excerpt

Importance of textile Industry

According to the "ECONOMIST" intelligence report of August 2003 for Pakistan the following observations have been made: Despite Government efforts to diversify exports and widen the industrial base, the industrial sector remains dominated by the Textile sector. Textile sector still represents 46% of total manufacturing and provides 68% of Pakistan's Export receipts.

The strong performance stemmed from two factors:

a Increase in import quotas especially by U.S.A, EU and TURKEY

b Textile industry has invested over US$1.5 billions in new technologies and modernization in the last 3 years. Efficiency and the innovation in textile is the only hope to get the country out of economic problems.

Present Status of Pakistan

Textile engineering sector

The Pakistan Textile Engineering Sector is underdeveloped and under utilized. Mostly it caters in the form of spares, components for modernization and machines used in cottage or small scale industries.

A cursory look at them are cottage industry, small/medium industrial units and few large integrated state of art units. The number of units which fall under each category varies from sub-sector. Similarly the Textile Engineering Units also vary from small, medium and large in size. The Textile Engineering Industry comprise approximately 80% small work shops, 15% medium engineering Units and 5% large Engineering Units. It will not be out place to mention that the large engineering units are in Public Sector. The small and medium Engineering Units work on reverse Engineering principles, only few work according to Engineering Drawings and still fewer have Testing or Quality Control facilities.

On the basis of initial survey of Textile Engineering Units (Not complete yet), approximately 500 units are engaged all over Pakistan, employing approximately 50000 work force which is mostly skilled. Even under the present conditions and without any support, Pakistan Textile Engineering Industry is providing import substitution worth around one billion US dollars. This sector also exports to small and medium Textile Units in Bangladesh, Iran, Sri Lanka, etc. The Textile Engineering Sector is throttled through taxes on raw material, import of components, electronic and electrical parts.

Competition

The present Textile Engineering Industry is up against competition from smuggled, under invoiced, and misdeclared components, parts and accossories. For example, in case of second hand machinery, there is little or no check and the competition mainly rests on lower price. Machines smuggled especially from China, India, Taiwan are not better in quality but are selling cheaper. A bold initiative is needed which can boost the production as capacity and markets are there, only change in environment is need.

Finishing look and control components

The products manufactured locally, when displayed against foreign goods--offer a poor look--primarily because of the unsightly finishing of welding seams, electroplating, painting and other surface treatments. …

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