KARACHI, July 9: Federal Textile Minister Mushtaq Ali Cheema has advised textile manufacturers-cum-exporters to check wastage of inputs at different production lines to become cost efficient and competitive in the world market.
Presently there is high rate of wastage of energy, water and other inputs along with poor maintenance of plant and machinery, which raises cost of production and make the end-product uncompetitive, he added.
The minister said that such problems could not be resolved through injection of money or by the government support and the industry has to act on its own and check high rate of wastage to be more productive and efficient.
Speaking at the inaugural ceremony of M A Lari Auditorium built by Towel Manufacturers’ Association of Pakistan (TMA) Mr Cheema said the government could only become the facilitator but the industry had to survive on its own strength and parameters.
Citing an example the minister said that the study carried by foreign consultant disclosed there was a big variation in productivity of workforce in Pakistan and said that “if one worker gets two points the other will score eight points”. This indicates that some thing is lacking in productivity skills where a worker is gets only two points.
The present government, he said, has taken a number of measures to facilitate and support textile, which is the largest sector of our economy, but subsidies and support are not the permanent solution and the industry has to find a way out to stay viable.
Undoubtedly, Mushtaq Cheema said that all businesses faced good and bad days but each time the textile industry confronted with some problem the government took appropriate steps and bailed it out. He said in 2001 the government revived a large number of sick spinning units through SBP’s circular 29 under which loans and accumulative mark-up were rescheduled and also waived.
Similarly, he said about three years ago the knitting sector was having difficult time and the government came out with Research and Development (R&D) support. Presently, the home textile is confronted with problems and so is the spinning industry.
The government has taken a number of measures in the budget by reducing income tax rate from 1.25 per cent to one per cent on spinning and given 3.5 per cent R&D to the polyester staple fibre on local sales.
However, the crux of the solution lies in checking wastages at different production lines and only then the industry could become efficient and more productive.
The minister appreciated the working of S M A Rizvi Towel Institute set up by the TMA at Korangi for imparting skills and technical education in towel manufacturing.
Though the government, the minister said, has established a number of technical institutions from funds given from the Export Development Fund
(EDF) but most of them are not properly functioning. This is a great loss to the country, which needs skill manpower to keep its industry more efficient and productive, he added.
Earlier in his address of welcome Chairman TMA M Muzzammil Husain briefly highlighted the association’s journey from a small group in 1965 maturing into a full-fledged trade body in 1976. He also raised some of the problems confronted by the towel industry.