IMPORTANCE OF TEXTILE INDUSTRY IN PAKISTAN’S ECONOMY 2002-03 $ 2.0 Bln. INVESTMENT IN TEXTILE (Import) (Last4 Years) 38% SHARE IN EMPLOYMENT $ 7.17 Bln. TEXTILE EXPORTS (2002-2003) 46% SHARE IN MANUFACTURING 65% SHARE IN TOTAL EXPORTS U.S.A - E.U , JAPAN, CHINA (HONGKONG), TURKEY MAJOR BUYERS 8.5% SHARE IN GDP
World Textile & Cloting Trade (US$.billion) Clothing to become more than 65% in 2005 Recession Asian Crisis 105 213 311 331 334 356.42 500
Pakistan’s Textile Industry has potentials to increase volumes of textile exports and enhance earnings by shifting more & more to high value added products. A comprehensive policy package is desired to support the Textile Industry to survive & win the post MFA competition by making available the necessary facilities & infrastructure in a timely manner.
It is critically necessary for Pakistan to provide infrastructure for Textile Industry to expand in size and volume to compete with China in the international market after the elimination of MFA quota by 1st January, 2005.
Further it is easier for the foreign buyers to visit and place orders for particular products with the units of their choice, economizing their time-traveling and ease in contacts with local manufacturers.
The proposal is to create the Textile City as a broad and integrated Free Trade Zone specializing in Textile Industry, particularly dyeing factories in order to gather the scattered textile companies together in the Textile City as much as possible .
The proposal is to locate the Textile City somewhere physically near or having good access to a sea-port. In Karachi, vast land area for industrial use is available at Port Qasim , which seems to be an ideal place for the Textile City.
(NB) The Textile City needs to be kept at 3-4 kilometers distance from the Pakistan Steel Mill at Port Qasim because its dust can harm the textile dyeing process. Additionally the water used at the Textile City can be re-utilized by the Pakistan Steel Mill.
Priority will be given to large-scale factories with minimum capacity of the knitted fabric dyeing of 20 MT/day and/or 50,000 meter/day for woven fabrics possibly with knitting/stitching facilities.
Guaranteed supply of sufficient water (18 million gallon/day or 80,000MT/day) (details explained later), as well as stable voltage power and gas
Common facilities for waste-water treatment to be used collectively at reasonable fee will be provided to allow participating companies to meet ISO -14000 certificate as a requirement from their buyers in Europe and the US that is envisaged to be escalated after the elimination of the MFA quota at the end of 2004.
FACILITIES OF THE TEXTILE CITY (continued )
HIGHLIGHTS OF THE TEXTILE CITY 10 units Minimum No. of dyeing units in the Zone 1.8 Million gallons/day per unit Water requirement per unit Average 40 MT/day (Min. 20 MT/day) 50,000 meters/day Capacity of one dying (knitting) Unit Capacity of one dying (woven) Unit Port Qasim, Karachi Preferable Location 150 – 200 Acres Total Land Requirement (10 Acres / Unit) 18.0 Million gallons/day (80,000MT/day) Total water requirements
Averagely, one kg of Pakistani dyed knitted fabric fetches US$4.00 higher price. So the supply of sufficient water can add the value of US$1.6 million/day (Average capacity:40MT/day, 10units). If each unit works 365 days a year, total increased value becomes about US$580 million . If dyed fabrics are stitched before shipment, there will be 50% further increase in value, which is equivalent to about US$870 million . Supply of 18.0 Million gallons water per day means that the export earnings increase to US$870 million per year.
As water supply condition is currently extremely inadequate at Karachi, it is necessary to provide enough water for the dyeing industry in Karachi. These units heavily seek abundant water supply for their works and further expansion.