MMK weaving cluster: SMEDA helps mobilise Rs 457.75 million investment

The continuous support and facilitation extended by Small and Medium Enterprises Development Authority (SMEDA) to the weaving cluster of Matta Mughal Khel (MMK), Charsadda has resulted in the mobilization of an investment of Rs 457.75 million and creation of 3640 direct jobs and a total of 8,650 indirect jobs, said an Impact Assessment Study on the cluster.
SMEDA is working for the development of SMEs across Pakistan providing array of services including cluster development being the major program area. SMEDA KP has invested significant efforts and resources towards economic uplift and growth of various business clusters in Khyber Pakhtunkhwa. In result of such efforts, these clusters has grown into well-established cottage industries comprised of hundreds of enterprises, providing income generation and employment opportunities to a vast majority of locals.
Matta Mughal Khel is located in tehsil Shabqadar of district Charsadda, at a distance of about 30 kilometres from Peshawar. MMK is known for its traditional woven fabric, shawls and Chitrali Patti. The weaving skill was introduced in this area by people who migrated from Bajaur Agency and Malakand Division. In early phases of the cluster all the products were produced by handlooms. However, with the passage of time and increasing demand for the products, power looms were introduced. Presently, most of the weaving units are comprised of power looms and few are still using hand looms.
Currently, over hundreds of weaving units are operational at the cluster along with multiple support businesses such as washing, dying and pressing units, raw material supply and retail outlets. Collectively, these business enterprises are providing livelihood and job opportunities to thousands of people directly and indirectly.
The cluster has expanded greatly where lot of more new enterprises are set up along with expansion of existing units. The product base has also enhanced and new improved products are introduced such as fabric for suiting and designed shawls. Products of the Matta Mughal Khel weaving cluster are famous for its quality and weaving patterns and widely demanded all across Khyber Pakhtunkhwa. Currently, these products are also available and sold in almost all major cities of Pakistan.
The major markets besides Khyber Pakhtunkhwa were products of this cluster are traded include Islamabad, Rawalpindi, Lahore, Faisalabad, Multan, Gujranwala, Hyderabad, Karachi and Quetta. SMEDA KP identified the weaving cluster of Matta Mughal Khel in the early 2000 as the most potential cluster for economic development. However, formal and focused work on the cluster was initiated in the year 2003.
Major activities implemented and facilitated by the authority during the span of year 2003-2017 are introduction of efficient mechanized weaving, washing, dying and pressing of the products at the Matta Mughal Khel cluster. Stakeholders were facilitated in acquiring technology that can help them compete in the national market. The rapid technological advancement has also occurred as a result of its kind common facility centre ie washing, dying and pressing unit established at the cluster by SMEDA.
The authority also carried out various activities for the strengthening of the association, which include restructuring of association, revising bylaws, capacity building of the key members of the association through training/orientation, linkages development and exposure to business platforms.
The members of the association were facilitated and linked to different commercial and micro finance banks for micro credit facilities and they were enabled to obtained loans for business from Bank of Khyber, SME Bank, ZTBL and etc. A number of training programmes were also held to enhance the capacity of the weavers, both in terms of skill-building to develop better products and in terms of improving business skills to play managerial roles.
The authority also adopted market led approach together with technical capacity initiatives to develop new innovative products and improved existing products as well while a number of interventions have been taken up to develop linkages of the cluster stakeholders with all concerned public and private sector institutions. Business matchmaking and linkages with private sector wholesale dealers were also facilitated.
The association was also extended support and facilitation for participation in number of exhibitions, trade shows and business fairs. Cluster stakeholders have participated in all such events across Pakistan.
Assessment of the SMEDA activities impact on Matta Mughal Khel weaving cluster is not easy as there are several indirect benefits associated with the support provided. Similarly, exactly quantifying the expected economic impact and benefits of the support is not possible due to the absence of such baseline information on the supported weaving enterprises across the Matta Mughal Khel cluster.
As a result of the SMEDA efforts there has been rapid advancement in technology and private sector investments. After successful operation of SMEDA CFC at the cluster three similar nature facilities have been established by private sector business people from Punjab province. Total number of mechanized weaving enterprises has increased to 1,380 units, which before the intervention of SMEDA was 280 units in 2003.The total investment generated by the cluster stakeholders in shape of new enterprises, expansion, technology advancement and business diversification amounts to a sum of Rs 457.75 million.
Similarly, the product capacity of the cluster has increased by 75.59% in the time duration under consideration as a result of technology advancement ie mechanized weaving.