Your SlideShare is downloading. ×
Policy analysis on Pakistan textile sector
Upcoming SlideShare
Loading in...5
×

Thanks for flagging this SlideShare!

Oops! An error has occurred.

×
Saving this for later? Get the SlideShare app to save on your phone or tablet. Read anywhere, anytime – even offline.
Text the download link to your phone
Standard text messaging rates apply

Policy analysis on Pakistan textile sector

1,232

Published on

Published in: Business, Lifestyle
0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total Views
1,232
On Slideshare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
28
Comments
0
Likes
0
Embeds 0
No embeds

Report content
Flagged as inappropriate Flag as inappropriate
Flag as inappropriate

Select your reason for flagging this presentation as inappropriate.

Cancel
No notes for slide

Transcript

  • 1. Group 3 35th OMG Specialized Training Programme Secretariat Training Institute, Islamabad
  • 2. Group Members  Mr. Hasan Javed Bhatti  Ms. Fatima Burki  Mr. Azeem Sarwar  Mr. Badar Ahsan Ullah  Ms. Aqsa Liaquat
  • 3. Industry and Manufacturing Sector  Industry accounts for 24 % of GDP  Manufacturing accounts for 13% of GDP  Manufacturing employs 13.8 % labor force
  • 4. Sub Sector Textile Industry  Integrated textile industry  Pakistan’s largest industry  Largest production chain  Among top 10 textile exporters in the world  8 % of GDP  66% merchandise export  40% labor force employed  60% of national Exports
  • 5. National Textile Policy 2009-2014 Salient Features  Textile Cities  Garments Cities  Quality Management  Brand Acquisition Support  Industrial Relocation Support  Joint Venture Support  Skill Development Council  Hiring of Consultants from Abroad
  • 6. Sectoral Vision Statement To enhance maintainable growth in Industry and manufacturing sector at 10-15 % annual growth rate for next 1o- 20 years
  • 7. Sub Sector Vision Statement To enhance Textile Industry at 10-15 % annual growth rate by 2018
  • 8. Current & Desired Situation Current State Desired Situation Energy Crisis Increase share in Exports Closure of Textile units Expansion of Textile Sector Shifting of Textile Units to Bangla Dash Maintain Textile Growth Low investment Return of Textile units back to Pakistan Law & order situation More Investment in Textile Sector Downsizing of Labor Development of Textile Zones
  • 9. PESTEL Analysis Worksheet 1/4 PESTEL Factors Own Notes Potential impacts Time Frame Type Impact Relative Importa nce Political •Stable Government + Smooth Democratic transition • law and order High Medium 6-12 months 24 + months Positive Negative Increasing Increasing Critical Important Econom ic •Lack of foreign investment • Flight of local capital • Energy Crisis Increasing Competition from International markets Medium High High High Medium 24+ 24+ 12-24 24+ 0-6 Negative Negative Negative Negative Positive Increasing Increasing Increasing Increasing Increasing Important Critical Critical Critical Important
  • 10. PESTEL Analysis Worksheet 2/4 PESTEL Factors Own Notes Potenti al Impact Time Frame Type Impact Relative Importan ce Social •Provision of employment opportunities •Urbanization •Community service-Social Responsibility High Medium Low 0-6 0-6 12-24 Positive Positive Positive Increasing Increasing Increasing Critical Important Important Technol ogical •Obsolete Technology •Absence of R & D in Pakistan High High 24+ 24+ Negative Negative Increasing Increasing Critical Important
  • 11. PESTEL Analysis Worksheet 3/4 PEST EL facto rs Own notes Potent ial Impact Time Fram e Type Impact Relative Importa nce Envir onme ntal •No proper wastage disposal •Establishment of Industrial zones •Ineffectiveness of Pak. Environmental Protection agency •Production of electricity from waste material High High Mediu m Low 0-6 24+ 24+ 24+ Negative Positive Negative Positive Increasin g Increasin g Increasin g Increasin g Critical Importa nt Importa nt Importa nt
  • 12. PESTEL Analysis Worksheet 4/4 PESTEL Factor Own Notes Potential Impact Time Fram e Type Impact Relativ e Import ance Legal •No Proper Implementati on of Labor laws •No implementati on of min. wage •Corporate governance code of SECP Medium Medium Medium 12-24 12-24 0-12 Negative Negative Positive Unchanged Unchanged Increasing Importa nt Importa nt Importa nt
  • 13. EERI Model application for Textile Industry  Indicators of EERI model  Effectiveness  Efficiency  Responsiveness  Innovation
  • 14. Effectiveness Variable Indicator Scale Effectiveness •Value Addition; $ 1 billion •Out put valuating; $ 36 billion 1 2 3 4 5 1 2 3 4 5
  • 15. Efficiency Variable Indicator Scale Efficiency • Budget- Financial •Manpower/HRM •Vocational Trainings 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
  • 16. Responsiveness Variable Indicator Scale Responsiveness •Producer- Satisfaction •Clients- Satisfaction •Employee- Satisfaction •Government- Satisfaction 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
  • 17. Innovation Variable Indicator Scale Innovation •Exports •Energy Mix •Foreign market •New Technology 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5 1 2 3 4 5
  • 18. Performance Diamond E R I E
  • 19. Stakeholder Analysis Matrix 1/3 Name of Stakeholde r Stakeholde r Descriptio n Potential Role Level of Knowledg e Level of Commitm ent Available Resources Investor/En trepreneur Funding & Giving Direction to the Sector Provides Capital & Determines fate of a Firm High- keep an eye on change in trends in market to keep firm competitive Strongly- support / opposes directly affected by it Capital- the backbone of any industry Human Resource Provision of Skilled/ unskilled manpower; determines efficiency of the firm Carries out work & implements the policies of the firm Skilled- High Unskilled- Low to medium Strongly- their livelihood is based upon prosperity of industry Technical Knowledge – Skilled Manpower/ Labor- unskilled
  • 20. Stakeholder Analysis Matrix 2/3 Name of Stakeholde r Stakeholde r Descriptio n Potential Role Level of Knowledg e Level of Commitm ent Available Resources Governmen t It regulates the sector by formulating policies; determines the business environmen t (tax/ subsidy) Provision of conducive & competitive environmen t High- aims to promote its industry & keep it competitive in internation al market Strong- textile is an imp. Industry & contributes a lot to nation’s economy Taxes or subsidies; industrial zones; information; agreement with foreign countries Community Industries lead to social uplift- employmen t ( direct + Indirect); Safeguard interest of public; protects environmen t Medium- cannot understand the technical aspect of policies Low- Not directly affected by it; involved in their own jobs NGO’s + Pressure Groups
  • 21. Stakeholder Analysis Matrix 3/3 Name of Stakeholde r Stakeholde r Descriptio n Potential Role Level of Knowledge Level of Commitme nt Available Resources Chamber of Commerce Bridge between govt. & industry; protects interests of businessma n Provides a forum of interaction between government & industry High- they advocates change in policy & keep track of changing trends Strong- support or opposition- its very objective is to drive changes in policies Funds- Information
  • 22. Stakeholder Engagement Plan 1/3 Stakeholder Potential Role Engagement Strategy Follow Up Strategy Investor/ Entrepreneur Provides capital & determines fate if a firm Give incentives- tax rebates and concessions, Subsidies, investment friendly environment Organizing business conferences+ regular meeting of minister with investors exhibition Human Resource Carries out work & implement the policies of the firm Invite leaders of textile labor unions- get feedback about the working conditions Feed back from labor union + representatives of associations of technical workers
  • 23. Stakeholder Engagement Plan 2/3 Stakeholder Potential role Engagement Strategy Follow up strategy Government Provision of conducive & competitive environment Minister of industries will represent the govt. in policy making- ensures implementation of incumbent government Revisiting the policy & analyzing results of its implementation Community Safeguard interest of public; protects environment Taking onboard NGO’s+ Civil Society organizations who have a stake in the proposed policy Feedback + interaction with relevant NGO’s + CSO’s+ Surveys
  • 24. Stakeholder Engagement Plan 3/3 Stakeholder Potential Role Engagement Strategy Follow up Strategy Chamber of Commerce Provides a forum of interaction between government & industry Taking input from the presidents of various chambers of commerce across the country Organization of exhibitions in local + international markets Feed back
  • 25. Driving Forces Variable Hasan Badar Azeem Aqsa Fatima SME’s Promotion 5 4 7 5 6 Tax concessions 8 8 9 7 8 Industrial zones 6 8 6 5 6 Cheap labor 5 4 6 5 5 H R development 6 6 5 7 4 Markets around Globe 8 8 8 8 8 Foreign investors are interested to invest 7 7 6 9 5 Potential for more development 4 5 4 6 5 Technological advancement 7 6 5 7 6 Energy supply 8 8 6 7 5
  • 26. Restraining Forces Variable Hasan Badar Azeem Aqsa Fatima Energy Crisis 8 8 8 8 8 Law and order 5 6 7 5 5 Red Tapesm 5 6 3 4 4 Low Economic Growth 6 5 4 4 4 Lack of Investment 6 5 5 4 6 Absence of international markets 8 8 6 5 4 Global Recession 3 5 7 6 5 Inflationary Pressures 4 3 4 5 5 Lack of Textile Research 5 5 6 6 5 Lack of technical know how 5 4 6 6 2
  • 27. Total Score  Driving Forces = 309  Restraining Forces = 274 The difference is 35which is positive, so we should go with the plan
  • 28. Milestones 1. Textile Industry own Generation power plants 2. Creation of R & D Centers 3. Proper Promotion of Textile products for getting share in International markets 4. Development of Textiles zones on the pattern of industrial Estates 5. State of the Art technology for Textile Sectors
  • 29. Solutions and Time FrameMilest ones Solution 2014 2015 2016 2017 2018 Resources Required Limit ation s 1 Installation of Power plants by Industry √ Investment techni cal 2 Spending on Research Centers √ √ √ √ √ Investment 3 Participation in Exhibitions √ √ √ √ √ Pro Active approach & government help Delays 4 Government Policy √ √ √ √ √ Policy implement ation Priorit ies by govt. 5 Importing Machinery √ √ √ √ √ Investment Duties &
  • 30. Recommendations 1/2  Modernization of machinery and technology  Building the required infrastructure  Skills Development  Promoting Standardization throughout the chain  Establishing a zero-rated export Regime  Tariff rationalization  Removing Regulatory bottleneck  Market Access
  • 31. Recommendations 2/2  Market Insurance scheme  Development of Indigenous Power plants in Textile Units  Use of Information technology for better development of sector
  • 32. Conclusion  Textile sector is most important industrial manufacturing sector in Pakistan that it employs 40% industrial labor force , contributes 8 % of GDP and its part in national export is at 60 %. Therefore, the need of the hour is to revamp and upgrade this sector so that Pakistan can get maximum out of this sector

×