Prime Minister Yousuf Raza Gilani on Saturday said that the Pakistan Textile City is expected to attract investment of $250 million in the value-added textile sector which will help increase to country''s textile exports by over $3 billion per annum.
Speaking at the launching ceremony of sale of plots at the Pakistan Textile City held at Governor''s House here, he said that the project, once fully operational, would provide 80,000 new job opportunities to the local people. Sindh Governor Dr Ishratul Ebad Khan, Chief Minister Qaim Ali Shah, Minister for Local Government Siraj Durrani and Secretary Textile Shahid Rashid were also present on this occasion.
The Prime Minister said that the Pakistan Textile City is being established as a benchmark industrial zone providing state-of-the-art infrastructure to the value-added textile sector. Once fully operational, it would help increase the country''s exports significantly, as more than 277 new units would be established in the 1250-acre Textile City.
Moreover, the Pakistan Textile City would provide an ideal synergistic environment to local players in the industry to join hands with international partners for establishing joint ventures and benefit from the strategically located facilities at Port Qasim, he added.
He said that the indirect benefits would include generation of additional demand for cotton, yarn and cloth; increased demand for cement, steel and construction material; increased revenue from movement of goods and transport activities and creation of a large number of indirect jobs during the construction stage. "We realise that we need to create an investor-friendly environment to encourage economic development, with special focus on skill development, productivity, quality assurance and compliance needs", he said, adding that today, the market shares depend greatly on price and quality advantages driven by efficiency.
Pakistan Textile City will allow entrepreneurs to focus on developing skills in manufacturing and marketing of their quality products. They will not have to worry about matters such as water supply, power outages and security, he said. The Prime Minister said that the government recognises the pivotal role of the textile sector plays in Pakistan''s economy. As the largest industry, it constitutes about 60 percent of the country''s exports and provides jobs to more than 40 percent of the workforce.
He said that the removal of quota system by WTO opened business opportunities for the global textile sector. Regional textile exporting countries like China, India and Bangladesh increased their market shares significantly, while Pakistan has yet to capitalise on these opportunities.
"We are blessed with natural resources, cotton crop, unique geo-political location, a rich history of quality textile products and a large labour force to place ourselves as a global leader, in this sector", he said. "Problems facing our industry include supply of cheap contamination-free cotton, low skill levels of labour force, power shortages and above all inadequate infrastructure", he said and added that the infrastructure development, therefore, is critical for growth and acts as a catalyst for generating economic activity. The absence of reliable infrastructure offering uninterrupted utilities has been one of the major causes of decline in textile exports, especially value-added items in the post-WTO era. It is imperative to offer the textile sector modern reliable infrastructure at par with international standards.
"It is heartening to note that the Chinese, Turkish and Korean businesses have shown initial interest in investing in Textile City", Gilani said. Pakistan must take full advantage of the opportunities that are available. "We have ample labour force. What we need is investment in developing our marketing abilities and enhancement of skills of our labour force", he said.
"In the today''s competitive world, great emphasis is placed on human resource development and we need to improve the quality of products, business practices and corporate governance", he said. While the government is responding to the demands of the textile industry by providing relief packages, the industry, in turn, must respond by assuring the implementation of quality standards and good business practices so that the benefits are not short but long term, Gilani said.
He invited the textile community of Pakistani businessmen and investors to come forward and avail the world class infrastructure facilities which the Textile City is offering. "It is our combined duty to be part of Pakistan''s march towards becoming a hub of quality textile products. I assure you that your patronage will encourage the government to build more of such internationally compliant textile cities", he said.
Federal Textile Minister Shahbuddin said Pakistan Textile City is one of the several initiatives taken by the present government to develop textile sector and to boost country''s exports. He said the present government gave first ever textile policy and garments cities are being established in Karachi, Lahore and Faisalabad which shows its commitment to boost country''s exports. Zaheer A. Hussain, CEO of Pakistan Textile City, also spoke on this occasion and gave a detailed presentation over this project.
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