KARACHI, Sept 29: The government will set up three ‘textile cities’ at Karachi, Lahore and Faislabad to meet the challenge of WTO regime when textile quotas will come to an end and an era of free market will start from January 1, 2005.

The first textile city will be set up at Karachi. To be established in the Port Qasim area, the textile city will have full infrastructure facilities like water, power, gas and other requirements. It is expected to start functioning by the end of next year.

A decision to this effect was taken at a high-level meeting held on Monday under the chairmanship of federal secretary, Ministry of Industries and Production, Muhammad Javed Ashraf Hussain.

The decision has been taken in light with the federal cabinet decision taken in July this year to set up textile city at Karachi and other cities to face the challenge of free market era when China and India are expected to come in a big way to capture global markets.

A textile city at Karachi is being taken up first because the city is housing two ports and it would be more appropriate to provide basic infrastructure here as transportation and shipments can easily be made from here.

For ensuring uninterrupted supply of utilities, the heads of KESC, SSGC and KWSB were also present in the meeting to give their point of view and commitment.

It was transpired in the meeting that KWSB will ensure

18 mgd water to the textile city out of a total supply being enhanced through K-III project of 100 mgd. Similarly, KESC will set up a grid station at the city.

However, Javed Ashraf asked representatives of the textile industry to give details about their requirements with regard to number and size of plots within a period of one month and also give other necessary information to ensure full good planning for the city.

A feasibility report of the proposal has been prepared by JETRO and Pakistan-Japan Business Forum. The proposed city would focus on textile sector, particularly in areas of dying, processing and finishing and would have modern infrastructure like water supply, sewerage, self-power generation and efficient water treatment plants.

The textile city is proposed to be set up by the Export Processing Zones Authority.

The objective for setting up of a textile city is to provide a comprehensive policy package as well as sufficient amount of quality industrial water for dyeing units of textile industry to survive and win the free market competition by making available the necessary facilities and infrastructure.

The country’s textile exports in 2002-03 fetched $7.17 billion and the government is eyeing to achieve a target of around $10.121 billion by 2005, for all the four textile categories.

The textile city will be governed by the EPZA legislation. The future structure of the ‘Textile Export Processing Zone’ has been identified to draw a broad parameter for the industrial setups: — The knitted fabric dying unit to be set up in the zone must have capacity of approximately 40 mt per day and minimum capacity of 50,000 sq meter per day. — Units heavily consuming abundant water supply for their works and further expansion. As water supply condition is currently very bad in Karachi, it would be necessary to provide enough water for dying industry in Karachi. Provision of an effective sewerage system in textile zone would also be essential. — Estimated total investment by each unit is roughly $1 million to $4 million, exclusive of land and building costs depending on the size of the machinery and equipment.

The meeting was attended by EPZA chairman Lt-Col (retd) Syed Akbar Hussain, PIDC chairman Zahid Hussain, textile commissioner M Idress Ahmed, KWSB managing director, representatives of JETRO, Pakistan-Japan Business Forum and KESC, and chief executives of all major textile and garments units.