Pakistan Textile City: another story of failed SEZs

Last month, the ECC approved the winding up of Pakistan Textile City – a 1,250 acre project in Karachi that never took off. However, the Sindh government has recently retorted that the project will go forward with the help of Port Qasim Authority.

Formed in 2004, Pakistan Textile City Limited is a public‐private joint venture company that sought to develop a state‐of‐the‐art industrial zone at Port Qasim, Karachi, dedicated solely to the value-added textile sector.

According to a presentation available with the Ministry of Textile Industry’s website, the goal of the Textile City was to “enhance productivity, quality, cost effectiveness and compliance in the post WTO era; create synergistic environment to encourage vertical integration and achieve economies of scale; attract local and foreign direct investment into textile industry; boost export potential of value added textile products; and create 80,000 jobs.”

The promises of the Textile City also included uninterrupted gas, electricity, and a dedicated water supply line. However, as is always the case with such undertakings, it has been dead in the water due to bureaucratic ineptitude and half-heartedness. Reportedly, the project had been inaugurated twice in the past, but has been since pending and incurring losses to the national kitty.

BR Research spoke to former Chairman of Pak Textile City, Dr. Mirza Ikhtiar Baig, who said that the moratorium on new gas connections has been the final nail in the undertaking’s coffin. He mentioned issues regarding the availability of water, saying that all efforts from the involved parties had been half-hearted. There have been instances of nepotistic appointments as well – a hallmark of public office.

The goal, Dr. Baig said, was to eventually make Pakistan Textile City into a Special Economic Zone. However, the project’s future is now uncertain; the Sindh government has a 16 percent share, while the centre has 56 percent. The land is with the Port Qasim Authority, which is a federal body. Although the Sindh Chief Minister has said that Pakistan Textile City will go forward despite the odds, there is little to provide credence to his words.