A question that is often asked is that why the practices of institutions do not match with the agreed policies. Disparity between the policies and practice is the cause of sub-standard performance in institutions.

The current standards and norms recognize the mission and policy and its impacts on all organizational practices. The performance and achievements should conform to the mission and policy. The ultimate result is the progress of an organization towards the achievement of aims, this is something the organization is created for.

The significance of competitiveness in science and technology is evident from the lifestyle to national solidarity and the economic strength. However, the overall structure and global changes emphasize any particular area to be chosen as the priority for the accelerated technological development.

The significant position of textile and clothing sector in Pakistan can be described by facts shown in Table 1. Since 1996- 97 to 2001-02, the total textile and clothing export, on an average, is 68 per cent of total export. The textile and clothing export earning of Pakistan is shown in Figure 1.

The current pattern of international textile trade is governed by the WTO’s Agreement on Textile and Clothing (ATC). This is in practice since January 1, 1995 and deals with exports from the developing countries on the basis of quota. The ATC will phase out from January 1, 2005, and the WTO members shall be governed by the GATT rules. This would have serious impact on developing countries, including Pakistan and calls for strategic changes, both in the technological competitiveness of the developing countries and the protectionist measures for the developed economies to protect local industries.

Table 1. Facts of textile and clothing industries in Pakistan 2001-2002

There have been several studies focusing on the consequences and implications of WTO regime to global, regional and national economics. Asia, the leading producer and supplier of textile and clothing products would experience greatest changes in the distribution of production capacities. The elimination of quota system will be replaced by the market-driven system, and the competitive advantage of product quality, technology, delivery etc., will introduce the winners and the runners. The rising position of China, in quality and quantity is already dominating other textile traders of Asia, including Pakistan and India.

The liberalization of textile and clothing trade would offer equal opportunities to developing countries. The technological advantage, product competitiveness, consumer satisfaction, domestic policies, marketing, principles and disciplines of multilateral trading system would lead the textile and clothing trade in future (Figure - 2).

Technological competitiveness is not merely a timely gain, and its perception should not be limited to the elimination of quota system and its impact on the trade. It is a source of economic supremacy achieved by strategic measures and its implementation. The European Union’s Lisbon Strategy has chosen the achievement of increased competitiveness of the EU textile producers than the protectionist measures, to turn Europe, by 2010, into the most competitive and dynamic knowledge-based economy in the world. This is what is described by the President of the Euro Commerce, Brussels.

New ways of doing business, technological changes, specialization in niche products and market diversity can provide a leading edge to any country. For example there is ample room in the development of technical textile, product innovation, product and process quality, but the situation of our textile industry is disappointing. Since 1986 to 2001, the international trade fair for technical textile and non-woven Techtextil Frankfurt, is showing continuous rise in the number of producers and trade visitors.

Research, innovations and development in technical textiles, yarn quality, clothing products, process performance, fabric finishing, clothing technology, colouration technology, strategic management and marketing can bring significant advancement in this sector and market supremacy. Drastic measures through strategic management both in public and private level can strengthen the position of Pakistan in post-2004 era of textile world.

Exploring consumer demands, investing in product development coupled with the application of latest marketing tools can effectively pave way for the growth of textile industries. The management should exhibit its willingness to move along these lines.

Product development via investment in research and innovation can produce quality and performance. The textile industry management should not be stagnant to respond, particularly those determined to set performance name and brands in the changing market and liberalized economy. The known places for such research work are the universities and institution.

The independent collaborative projects have shown tremendous potential in the industrialized countries for improving product competitiveness and in inventing materials and machines. Belgium, a country in the heart of Western Europe, with the population less than that in Karachi, is rated among the 10th biggest exporters (US$ 213.2 b) of goods, by a 2002 report of the WTO. The textile machinery and related product and services are an important part of Belgium export. France, Italy, The Netherlands, Sweden, Switzerland and Britain have strongly rooted their textile machine export in research, and innovation, and are the leaders in the manufacture and export of textile machines. The 14th International Textile Machinery Exhibition (October 2003) will show a large number of exhibitors from these countries.

However, the textile sector export of Pakistan is based on cotton fibres and finished products, and there is already much room for improvement in these areas. The competitiveness is, therefore, emphasised in the production of quality fibres, yarn and fabric, clothing, processing, finishing and colouration.

The role of public sector encouragement in establishing research link between the industry and the institutions may accelerate the process of driving the industry towards higher standards of product quality.

Facts of Textile & Clothing Industries in Pakistan 2001-2002

Area Nature % of total

1. Employment Largest in Pakistan 38%

2. Export Largest in Pakistan 68%

3. Manufacturing Largest in Pakistan 46%

4. Investment Outstanding 31%

5. Market Capitalisation Significant 12%

6. Share in GDP Significant 8.5%

7. World Market share Outstanding 31% in yarn.

8. World market share Significant 8% in Cloth Trade.