Challenges of Textile ind in Pakistan

7/30/2019 Challenges of Textile ind in Pakistan

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Business English Program

Institute of Business Administration (IBA)

Su b mit t ed B y : M. Ta u q eer

S u b m i t t i n g D a t e : 2 0 1 2

Challenges of Textile Industry

in Pakistan


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Introduction

Textile industry is backbone of the Pakistan economy. It contributes more than 60% to the total export earnings

of the country and provides employment to more then38% of the manufacturing labor force.

Although the growth in the textile & apparel sector hasbeen declining after WTO and currently some otherfactors, which well discuss in detail subsequently

The current scenario posses challenges, Sustain its global positioning

Increase its market share by volume & unit values, But its depend upon, Peaceful & economical environment Institution support


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Finding

Textile sector facing a lot of challenges and it has badly suffered due tothe poor policies of the Government & global barriers. Exporters are demanding that government should give them facilities to

cope with the existing challenges. This sector facing the brunt of high energy prices is now faced with

soaring prices of cotton which have 75% share in total cost of textile

products. The regression is mainly attributed to power shortages, the soaring

cost of production and political turmoil, besides a stiff competitionin the world market.

Some other factors involved i.e. Increase cost of production,

Low productivity, Poor quality, Week management, Labor management,

Hence the industry is facing serious threats of losing its share in theinternational market.


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Analyses

Major weaknesses of Pakistans textile industry enlisted some of them, Low-price image, Political & peacefully environmental, Power/energy Crisis, Gas & Water Crisis,

Inadequate infrastructure, HR Development, E-Commerce, Social Compliances, Effective Marketing, Insufficient technical institutions,

Similarly, very expensive power, low grade technology leading to lowproductivity and poor quality, outdated machinery, lack of considerable upgradation of human resource skills and confusion in political, religious andsocial situation, including terrorism.


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Suggestion

After detailed study and research, need to be realized the factors ofdeclining and fast track implementation of effective strategy by both govt.as well as industry.

Some recommendations stated below, The Government has to ensure: Adequate finance for capital investments, Implementation of the existing textile policyfor long term project and

business planning without economic shocks. Fast track implementation and arrange a strategy to reduce the shortage

of Gas, Water and Power energy crisis quickly. Apeaceful environment is main responsibility of the government;

political instability & terrorism culture will discourage to the foreigninvestors so require a concrete action for peaceful state.

Consolidation of Federal/Provincial/Local Government Taxes andcollection at one source.


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Suggestion (Continued)

The industry has to:

Redevelop competitiveness by improving productivity,cost of production and reduce wastages.

Focus on the potential customers/markets,

Develop marketing strength by adopting aggressivemarketing strategies.

Human resource management, an area where localindustry has been lacking with severity.

Shift to man made fibers from continuously producingcotton.

Effective approach to research & development (R&D).


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Conclusion

The Industry has potential to perform better but,appropriate & sincere approach has to be made by

both Government & Industry to meet thechallenges of,

Present competitive environment

Future scenario.

Investment in knowledge of markets, training of

workers, improvement in labor productivity andproduct development would be immediate areas foreach to concentrate.

Documents

Challenges of Textile ind in Pakistan