Data Collection Methodology A cross sectional Data were collected from 30 textile industries by using simple random technique and data were analysis by using E-Views software. A structural questionnaire was developed as basic tool of measurement of textile industry in Pakistan. Cluster Analysis 4. Moreover, it is the biggest source of employment in the country providing employment to more than 1.
The Production of textiles continued flourishing during different historic regimes such as Sultanate 10 period, Mughals dynasty and the British colonial times Ali During the British colonial Regime, India was a primary supplier of raw cotton for textile mills based in Manchester and other parts of the United Kingdom.
Textile Export: Overall exports are increasing with increase in the value-added exports. However, it also shows that value added exports as proportion of overall textiles Exports has largely remained same. The next stage is spinning where the fiber is spun into yarn. The next stage of processing includes knitting and weaving depending on the type of fabric to be produced. The knitted or woven fabric then goes through dyeing and further processing such as bleaching.
Once the fabric is processed, the last stage is stitching through which various made-ups are produced. Additional steps in the value chain include branding and retailing. These core activities of the value chain are facilitated by a network of supporting activities that include transport and logistics as well as export support. Some of the supporting include suppliers of machinery and tools; financial service providers, agriculture, transport and logistics.
Whereas the textiles finished goods side, exporters, distributors and the leather clusters are important one. Textile Diamonds The textile cluster has generally shown a good performance in terms of overall growth. Nonetheless, the cluster has largely remained engaged in low-end of the value chain with heavy dependence on basic exports. The Diamond analysis identifies in appendix various strengths and weaknesses that have led to the current outlook of the textile cluster 5. In addition to increasing global demand, Pakistan is also enjoys a huge domestic demand owing to its huge population size i.
China has the highest market share in global textile market, followed by India and Pakistan in the region see table in appendix In terms of export destination, Pakistan is heavily dependent on European countries, USA and the Middle East. In addition to clothes Pakistan also exports cotton yarn and basic textiles to East Asian countries. There are examples of organic clustering but a conscious effort on the part of industry players or government to promote a cluster based approach have always lacked.
Generally, the capacity of related and supporting industries is often weak. Though, the linkage between various actors is also a cause of concern but there are some examples where the norms of reciprocity and interaction are very high. Faisalabad, one of the largest textile producing cities in Pakistan gives a good example of organic clustering and interconnection amongst the members.
Table in appendix gives the list of variety of players that are involved in the textiles sector. Figure 1 summarizes the factor conditions faced by the cluster. Across the value chain, low cost of labor emerges as the major strength. The estimated cost of labor was 43 cents for Pakistan followed by 47 cents in India, 57 cents in China, 52 cents in Indonesia and 60 cents in Egypt while Bangladesh and Vietnam outweighed this advantage with even lower costs 27 and 29 cents respectively BR However, gaps in skill set of labor and poor technology—two major constraints faced by the cluster largely offset advantage of cheap labor.
However, the cotton sub-sector faces serious productivity and quality gaps. Moreover, most of the commercial varieties of cotton were of small to medium length 22mmmm with coarse texture SMEDA At the ginning, spinning and weaving stages, dependence on outdated and less efficient technology is seriously hampering the productivity rates. For instance, the processing rate at the ginning stage is 8. Similarly, the spinning sector is largely dependent on less efficient technology e.
Similarly, weaving sector is dominated by conventional looms. The ratio of conventional power looms to shuttle-less looms is estimated to be 1 to 92 Gaps in skill set of labor force only add to the problem of low productivity. Informal apprenticeship mechanism such as Shagirdi is the dominant form of skill transfer which eventually leads to inconsistencies in product quality.
Ultimately, these inhibiting factor conditions, such as low quality of raw material, poor technology and insufficient skills, lead to low value addition and high defect rates.
It is pertinent to mention here that the overall factor conditions of the country particularly those related to road infrastructure and energy also play significant role shaping the productivity of textile sector.
This fragmentation and emergence of small-scale operators is partly due to government policies of the past which declared unit size 40 looms and below as cottage industry and hence provided exemption from tax and stringent labor policies Another important feature of the textile industry in Pakistan is that it is largely dominated by family owned businesses. For instance, in Faisalabad, largest textiles producing city in Pakistan, three families dominated the business and trade groups.
Some policies of the government with regards to taxes as well as incentives have been listed in the Figur Lack of access of finances constitutes another important constraint for large number of small businesses in the cluster as the banking system is more aligned to serving large scale firms Recommendation After all above data we recommend that we need to be done.
A Survey of owner managed business Department of Employee, September Bari, K. Malik Cotton Counts Economist Intelligence Unit's. Government of Pakistan. Textile Vision Islamabad, Pakistan. Khan, S. Oxford University Press, Karachi, Pakistan. Sheikh, H. Trade Development Authority of Pakistan. World Development Indicators various issues [Online] Available: www.
Export of textile Year Textile Apparel Total 4. Global market share Table 5. Textile Sub-Sector No. Spinning b. Composite Units MT Approx b. Independent Mills b. Power Loom Sector c. All these favorable factors led the power loom sector to develop in small villages in the hands of small entrepreneurs and in scattered and far off areas. But this development is entirely unplanned. Today the power loom sector has developed a controversial subject.
At one end. Secondly handloom s cannot compete with the power looms because of their speedy production. The decentralized power loom sector is the lifeline of the Indian Textile Industry. India is having approximately The industry now produces a wide range of fabrics ranging from grey, printed fabric, dyed fabric, cotton fabric, a various mix of.
The country exports Rs. Although the growth of the power loom industry was slow initially; it has started gearing up now. The number of shuttleless looms has augmented to almost 50, and from this about 35, looms are working in the decentralized sector. Most of the Power loom units are concentrated in semi-urban, or rural areas.
Among all; Maharashtra has the highest number of power looms amounting to approximately 8 lakhs of the power loom, Tamilnadu is second with 5 lakh units, and Gujarat ranks third with 4to4. There are no authentic records to indicate the first introduction of the power loom in the country. The First power loom unit started in Ichalkranji town in Maharashtra in was also the first to start in the decentralized sector in India. Currently, modernization in looms is not satisfactory and the Indian industry still lags significantly behind the US, China, Europe, and Taiwan, etc.
Most of the looms currently in the country are shuttle-less. There are less than 15, modern looms, whereas traditional looms are in large numbers. In the light of the above background, various challenges and adversities being faced by the Power loom Sector.
Unlike the spinning industry weaving loom sector is mostly concentrated in small areas of nations, where power fluctuations are a matter of routine. Productivity also gets affected from time to time by fluctuating in power in such areas. Their focus is absolutely short-term and they are more worried about surviving the current season rather than building up a competitive business. These shortcuts may include evasion of taxes and electricity tariffs, insufficient or improper selection and maintenance of machinery, exploitation of the labor pool, etc.
A few are aware of options such as technical textiles and specialty fabrics, which may offer them an avenue to earn better margins. Another good avenue for spending the funds would be in training manpower but there is no coordinated effort in manpower training as the Indian loom industry is small scale unlike industry of China and Taiwan and therefore incurs high co-ordination cost.
This may create redundancy of jobs. Some effort also needs to be taken to ensure that those displaced are retrained and absorbed in the industry. Manpower training and organized placement services may address this issue.
For the purpose of promotion and development of various segments of the textile sector, particularly the power loom and handloom segments and also for the welfare of workers, weavers in this sector, the Government has initiated the following various schemes.
The Scheme has various components Marketing Development Programme has a vital role in the power loom sector. The power loom weavers in the clusters using technology below par are not exposed to other areas using a higher level of technology to produce diversified textile products or value-added fabrics owing to limited technical knowledge and financial constraints, etc. With a view to overcoming such difficulties, the power loom weavers in different clusters, are encouraged to visit other developed clusters to get familiarized with the benefit of upgraded technology, diversified products, and the marketing techniques adopted in those clusters.
The Regional Offices concerned to assist the power loom weavers during the exposure visits and facilitate effective and meaningful interaction. CFC provides infrastructure support to the Power loom weavers associated in a group and is willing to set up the Common Facility Centre.
The Scheme aims at setting up Power loom Parks with modern weaving machinery to enhance their competitiveness in the Global Market and the same was subsequently modified. Under the Scheme, projects have been approved up to November , providing Government subsidy on an eligible construction area of A total subsidy of Rs. Its aim is to create world-class infrastructure and to integrate the production chain in a manner that caters to the business needs of the local Small and Medium Enterprises SMEs to boost production and export.
The broad objective of the Mega cluster approach Scheme is to enhance the competitiveness of the clusters in terms of increased market share and to ensure increased productivity by higher unit value realization of the products. It aims at covering 99, looms during 12th Five Year Plan. Under the Scheme, the hirer SPV would procure the machines and then provide them on hire purchase basis to the weavers.
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