There’s need for repeat of TERF

In a two-part series of an article carried by this newspaper under the title of “Cotton crisis’: challenges, opportunities, and way forward” the writers, Shahid Sattar and Amna Urooj have presented a strong case of country’s textile sector in particular.

It is important to note that cotton production in Pakistan has focused on textiles since the country’s inception, generating massive employment for both skilled and unskilled labour. That cotton production helps strengthen country’s economy is a fact.

It is also important to note that unlike India, Pakistan did not inherit any network of small, medium or large textile units after the Partition of sub-continent. What is also important to note is the fact that undivided India had witnessed the arrival of cotton mills from 19th century onwards with the setting up of first cotton mill in 1818 near Kolkata, followed by the establishment of a mill in 1854 in Mumbai (Bombay Spinning and Weaving Company).

The expansion of the cotton textile industry took place about 16 years later with the number of textile units rising to 47.

What is important to note about this number is the fact that 60 percent of 47 textile units were in Mumbai. Many of the remaining units were based in Ahmedabad of Gujarat. The point that I am trying to make is that unlike Mumbai and Ahmedabad, neither Lahore nor Karachi inherited any textile production base.

This was perhaps one of the reasons behind our failure to successfully effect the process of change from an agrarian and handicraft economy to one dominated by industry after Independence. Be that as it may, there is a dire need for delineating our own path of industrialization in view of the fact that the country is witnessing massive de-industrialization on account of some very well-known reasons.

One of the steps could be the repeat of TERF (temporary economic refinance facility) by our government through State Bank of Pakistan. But lending must be restricted to import of machinery, nothing else.

Ehsan Qureshi (Karachi)

Copyright Business Recorder, 2023