ISLAMABAD, March 8: The government has directed the National Productivity Organisation (NPO) to upgrade about 0.25 million power looms in the country, starting from Hyderabad where 500 looms reportedly require immediate replacement.

A decision to this effect was taken here on Monday at a meeting presided over by Industries Minister Liaqat Ali Jatoi. The meeting decided to immediately launch up-gradation of power looms sector in six cities of the country to produce quality textile products.

The project will be implemented in Hyderabad, Lahore, Faisalabad, Multan, Hafizabad and Dadu in two phases. In the first phase, 500 looms would be upgraded or replaced with new ones in Hyderabad. The meeting emphasized the need for the elimination of the productivity wastage and to reinvigorate the industrial sector.

The minister told the meeting that the sector suffered losses of more than Rs450 billion every year due to wastage, poor quality of products and productivity and the NPO should play a pivotal role to minimize these losses.

The meeting was informed that NPO in collaboration with the financial institutions has arranged financing at 8 per cent without collateral for the upgradation of power loom sector and the lending will be based on cash-flows.

The upgradation of power looms in Hyderabad will later be replicated in other parts of the country. The Hyderabad project would save about Rs7 million per year.

The meeting was informed that NPO had already started implementing bench-marking of cotton spinning. There will be saving of Rs2.7 billion in the pinning sector in terms of wastage and reworks. There are 0.25 million power looms in the country and more than 200 mills.

Liaqat Jatoi said that improvement in the quality of Pakistani products and services was crucial to becoming competitive in the world market.