Pakistan: Blueprint to develop textile sector: Industrial vision
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Purvaja [2011-05-20]
ISLAMABAD, Aug 1: The Cabinet on Wednesday approved the much-delayed Technology-based Industrial Vision and Strategy for socio-economic development,?which sought to provide appropriate incentives by the government to transform the textiles sector into a strong, dynamic and internationally competitive industry led by the private sector.
The vision finalised an action plan, the details of which were made available to Dawn, for achieving the major industrial goals, which cannot be realised without an efficient energy sector.
The plan also stressed 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 conducive environment, including the required technology, financial and physical infrastructure and creating a seamless integration with emerging trends of global production systems.
�he prime minister will head a special committee to achieve the objectives of industrial vision. Also, a Working Group has also been set under the chairmanship of the deputy chairman Planning Commission to ensure implementation on various recommendations given by the authors of the vision,?a source, who was present in the cabinet meeting, told this correspondent.
Chairman of the Higher Education Commission Dr Atta ur Rehman and the economists of Pakistan Institute of Development Economics (PIDE), including Dr. A.R. Kamal were 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, included 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 up-gradation, rewarding value addition, ensuring quality standards and establishing common facility centres in the areas of garments, knitwear and samples development.
The action plan also sought to establish �ully integrated chemical industry in Pakistan?to achieve higher economic growth and lessen foreign dependence on imports of vast range 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 also help achieve self-sufficiency and the development of the agriculture sector.
�here are many proposals currently being looked into to set up a fully integrated chemical industry? a concerned 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 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 export. The government was asked to help increase the export of leather products through quality and 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 export to the United States, the main market for leather apparel, has declined by over 9 per cent.
Pakistan being a developing country, its leather products have to face barriers to export i.e. the use of sanitary and phyto-sanitary standards from the developed countries. EU countries are demanding that leather goods should carry the certification marks of international Standard Organisation (ISO) regarding pollution-free environment at the factory premises where the products are manufactured.
According to the vision, in leather and leather garments industries, only 15 per cent are qualified and experienced workers while 85 per cent are employed without proper experience.
Exported leather goods during the storage and transportation develop problems like spew because of the chemical reaction.
The leather industry is facing the problems of non availability of raw materials for their finished goods. At present lot of companies are exporting the leather in the form of wet blue semi-tanned leather to avoid the effluent treatment problems, which is a tremendous waste.