year book woven fabrics; vi) up gradation of the weaving sector with air jet and water jet looms...

YEAR BOOK (2005-06)

GOVERNMENT OF PAKISTAN MINISTRY OF TEXTILE INDUSTRY

ISLAMABAD

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Ministry of Textile Industry ii

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MESSAGE

It is a pleasure for me to present the Second Year Book of the Ministry of Textile Industry which was created on 2nd September 2004, to boost up the textile sector. The Ministry is new yet it has achieved good results, which would certainly help the objective of sustainable growth through improving the whole value added chain of the textile sector in collaboration with all the stakeholders. There is no denying the fact that Textile Industry is the engine of economic growth in the country and is a major employment provider. At present this industry is facing new pressures due to high cost of doing business and the challenges ushered in by the post-quota era. The government is fully alive to this situation and is taking steps to maintain its inherent strengths and to provide level playing field to the industry as compared to the regional competitors. The Year Book comprehensively covers the entire range of the achievements as well as plans for bolstering efficiency and productivity of the entire value chain right from clean cotton/ ginning to the garment sector, and it is hoped that it presents a fresh perspective of the textile sector in the context of issues, measures, response strategy and upcoming challenges. In the end, I would like to express my appreciation for the Officers / Officials of the Ministry for their contribution in enabling this Ministry to play an effective role in serving the textile industry.

(Mushtaq Ali Cheema)

Minister for Textile Industry

Ministry of Textile Industry iii

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Ministry of Textile Industry iv

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MESSAGE

The Year Book 2004-05 encompasses the achievements of the Ministry of Textile Industry during its second year of operation as well as progress made on various steps to strengthen the performance of the textile sector.

The reform agenda of the present government reached its culmination during the last financial year when a GDP growth rate of 8.4% was recorded, reflecting the fact that the economy had made a turnaround and was on its course to rapid progress and prosperity. Needless to say that as the textile sector is the economy’s largest sector, it continued to play its dominant role as an engine of growth, main driver of exports, and the major provider of employment. However, it also needs to be noted that of late, this sector has come under considerable internal and external pressures affecting its productivity and competitiveness in the international market. The set of endogenous factors includes the rising cost of production, slow down in investment and efficiency issues. The main exogenous challenge has been the pressure unleashed by the phase-out of the quota regime which has led to a major realignment of production, consumption and marketing patterns and thus exposing our textile sector to cut-throat international competition. Many major competitors in the region are providing a high level of subsidization and support to their industry which has a bearing on our textile exports. However, Pakistan has a well established and robust textile industry which possesses the requisite resilience to respond to any challenge.

Within this framework, this new Ministry has made wholesome efforts to respond to the challenges in unison with all the stakeholders throughout the textile value chain to maintain its competitive posture and to resolve the various issues besetting the performance of the industry. This Ministry was established at the end of 2004 and its activities have now begun to gain impetus, leading to a consolidation of the activities of the textile sector. As the description of various interventions in this Year Book reveals, it has been possible to achieve a reasonable amount of success for which all concerned deserve appreciation.

Syed Masood Alam Rizvi

Secretary Ministry of Textile Industry

Ministry of Textile Industry v

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Ministry of Textile Industry vi

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TABLE OF CONTENTS

Subject Page No.

Chapter-I OVERVIEW 1

Chapter-II INTRODUCTION/FUNCTIONS 7

Chapter-III ORGANIZATIONAL STRUCTURE 11

Chapter-IV ACTIVITIES

i) Production of standardized and Clean Cotton Campaign 2005-06 and 2006-07

ii) Collection of cotton standardization fee iii) Establishment of Cotton Ginning

Research and Training Institute at Multan iv) Establishment of cotton fiber testing

Laboratories. v) Federal Textile Board

vi) Textile Garments Skill Development Board

vii) Procurement and Supply of 300,000 Tents for Earthquake Victims

viii) Report to prime minister about knitwear Industry’s Problems

ix) Gas Supply to Captive Power Producers (CPPs) BY SNGPL.

x) Pakistan Textile City Karachi xi) Garment City Projects xii) Collaboration with E- government

xiii) Goals and Targets

17

19

19 19

20

20 21

22

22

22

22 23 24 24

Ministry of Textile Industry vii

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Chapter-V PROFILES OF THE ORGANIZATIONS FUNCTIONING UNDER THE MINISTRY

a) Textile Commissioner’s Organization, Karachi.

b) Pakistan Cotton Standards Institute,

Karachi. c) National Textile University, Faisalabad. d) Synthetic Fibre Development &

Application Centre, Karachi.

25

27

28

33

38

Chapter-VI ANNEXURES

a) ANNEXURE-A-Factory-Wise Summary Of Premium Paid On Clean Phutti As On 08-04-2006 (2005-06 Season)

b) ANNEXURE-B-Composition Of The Federal

Textile Board c) ANNEXURE C-Structure Of Textile

Industry d) ANNEXURE-D-Goals and Targets July

2005-June 2006

41

43

44

45

46

Ministry of Textile Industry viii

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Ministry of Textile Industry ix

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CHAPTER-I

OVERVIEW

Ministry of Textile Industry 1

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OVERVIEW

Pakistan has a vibrant, robust and indigenous textile industry that ranks amongst the top in the world. Pakistan is world's fourth biggest producer of cotton and the third biggest consumer of the same. The cotton crop is the most important cash crop and cotton based textiles contribute over 60% to the total exports. The Industry serves the domestic market and, increasingly, the global export market. Pakistan's textile industry has an overall integrated structure with an important indigenous cotton crop, increasing Man-Made Fiber production; large spinning, weaving, knitting, dyeing/printing and finishing capacities as well as expanding garment and home textile industries. Due to this intrinsic importance, the Government of Pakistan created a separate Ministry of Textile Industry in 2004 that could exclusively focus on the formulation of long-term policies for the development of a strong and vibrant textile sector in the country. Since the assumption of office in October 1999, the government of President General Parvez Musharraf embarked upon economic revival and initiated a forward-looking Reform Agenda, leading to a sustained period of stability culminating in record high growth of 8.4% last year (2004-05). At the same time new approaches for improvement of our key sectors have also been initiated. Within the broader framework of a knowledge-driven, technologically-advanced and value-added productivity in core textile sectors where we have a comparative advantage, the Ministry is striving hard to achieve the objectives of availability of high quality cotton, developing the entire textile chain at par with the best practices followed by the rest of the world, expanding the textile sector to produce value-added garments and new products, developing a state of the art infrastructure, augmenting investment in human resource management, and enlarging our textile and clothing exports. However, it may also be added that achieving all these objectives is by no means an easy task as our textile sector is very large and has numerous linkages with many other internal and external sectors of the economy. The challenge has been further accentuated by unleashing of further competitive pressures in the wake of the end of the quota era.

The Industry's market competitiveness is dependent to a considerable degree on the operating environment in Pakistan as shaped by factor costs, gas, human resources development (academic/vocational); marketing support; taxation and investment policies; development of the infra-structure; and others. The Industry's market competitiveness is a function of the individual companies' performance. A relatively small number of companies match international levels for excellence while most companies are aiming to improve their competitiveness in the changing market environment in the quota free world. The Ministry is aiming at a thrust in the following areas:-

i) Contamination-free cotton to cater to the demand of quality raw material for the finished products;

ii) Technological up-gradation at the ginning, weaving, processing and garment production level; iii) Product diversification; iv) Value-addition through better materials, accessories and design inputs; v) Cluster development - initiating new clusters for development of SMEs in handloom, silk

and woven fabrics; vi) Up gradation of the weaving sector with Air Jet and Water Jet looms along with zero rated

duties; vii) Encouragement of integrated as well as horizontal garment industries on the basis of R&D and

technological support for the garments sector; viii) Introduction of cotton hedge trading to promote marketing of cotton;

ix) Testing facilities for increasing compliance and conformity assessment; and, x) Augmenting the institutional capacity in the field of research by setting up of an R&D

Cell within the Ministry.

The end of quota-free trade era from 2005 calls for structural and operational adjustments in the textile sector to enable industry and exports to be globally competitive. The new era will give a fillip to our exports in categories that have a potential for greater exports but were limited by the quota constraints. The operating environment in Pakistan needs to be on a similar level playing field as in the competing major countries, i.e. Bangladesh, China, India and Turkey, etc. We need to keep in mind the selected cost factors,


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competitors practices, policy aspects and market access/shares/trends of these competing countries with those of Pakistan's overall supply chain, including the technologies employed in all sectors and sub-sectors; the human skills currently available; labour productivity levels, the ease of doing business; logistics/infra-structure; environmental compliance, intellectual property rights; foreign direct investment (FDI); transfer of technology, etc. Pakistan's textile industry has been investing for the last five years in modernization and the improvement of the production base. During this period the sector has invested over US$ 5.0 billion in modernization and higher value addition. Break up of investment is given as under.

Sectoral Shares in Total Investment in the Sector1. Spinning 46%

2. Weaving 24 %

3. Textile Processing 12%

4. Knitwear & Garments 5%

5. Made-Ups 8%

6. Synthetic Textile 5%

This investment has resulted in the following capacity improvements:-

Unit 1999-2000 2004-05 % Change Capacity (Spindles) 000 8,477 11,300 33% Consumption of Raw Material

000 Kg 1,970,356 3171,123 61%

Cotton 000 Kg 1,566,348 2,680,900 71% MMF 000 Kg 404,008 490,223 21% Production of Cotton Bales 9,745,447 14,339,852 47% Production of Yarn 000 Kg 1,678,536 2,063,565 23% Production of Cloth Mill sq

Meter 4,987 6,833 37%

Textile Exports 000 US$ 5,156,572 9,030,153 75%

Within the context of technological improvements, the production of textiles has been steadily increasing, as reflected below:-

Production of Cotton TextilesYear Spindles

(000 Nos.) [Working Spindles]

Looms (000 Nos.)[Working

Looms]

Cotton Consumption

(000 tons)

Total yarn produced

Total Cloth production

(000 m2)

Reporting Mills (Nos)

1990-1 5493[4754] 15[8] 1197 1041 1041 247

1991-2 6141[5260] 15[8] 1343 1171 1171 271

1992-3 6768[5433] 14[6] 1427 1210 1219 284

1993-4 8182[5886] 14[6] 1483 1310 1310 320

1994-5 8307[5991] 14[5] 1559 1369 1370 344

1995-6 8493[6356] 13[5] 1662 1465 1465 340

1996-7 8137[6485] 10[5] 1670 1521 1521 357

1997-8 8274[6556] 10[4] 1751 1532 1532 353

1998-9 8298[6594] 10[5] 1840 1540 1540 348

1999-0 8383[6750] 10[4] 1962 1670 1670 351


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2000-1 8507[7105] 10[4] 2070 1721 1721 353

2001-2 8967[7078] 10[5] 2155 1809 1809 354

2002-3 9216[7623] 10[5] 2383 1915 1915 363

2003-4 9592[8009] 10[4] 2392 1935 1934 358

2004-5 9815[8531] 10[5] 1967 1718 - 426

In order to accelerate the growth of this sector, the Ministry of Textile Industry has been set up specifically to address issues of supply chain management and value addition. Since its creation, the Ministry has taken a number of proactive measures for the promotion of the textile industry. These include: -

i. Reactivation of the Federal Textile Board to take decisions involving strategy for the development of textile industry.

ii. Policy support in shifting towards value addition. iii. Establishment of Textile City and Garments Cities in the main industrial hubs of the country

i.e. Karachi, Lahore & Faisalabad. At present one Textile City at Karachi and three Garment Cities (at Karachi, Lahore and Faisalabad) are being established.

iv. Technology up-gradation by encouraging further investment in B&R, and gradual reduction of import duty on textile machinery and parts.

v. Sales tax on the import and local supply of major inputs/raw materials utilized in the entire manufacturing regime of textile Industry, has been zero-rated.

vi. Import duty on raw material, sub-components and components used in the local manufacturing of textile plants and machinery for export sector, has been reduced to zero% (SRO565/2005).

vii. Import duty, on ginning presses has been reduced to 5%. viii. Customs duty, sales tax and withholding income tax on raw materials for the manufacture of

textile has been zero rated at the import stage to do away with the duty drawback/refund claims under the revised and simplified DTRE Scheme.

ix. 6% of FoB value as R&D support is being given to the garments exporters. Moreover, R&D Support has been expanded to include dyed/printed fabrics (3%) and home textiles (5%) from 1st July 2006.

x. Amendments in labour laws & Factories Act to make them ILO & ATC compliant. xi. Development of standardized and classified cotton as well as launching of campaign for the

production of clean and standardized cotton for the production of high quality textiles and clothing.

xii. The Program was started in 2005-06 and will be continued during 2006-07 season also. For this purpose total Rs.70 million shall be paid as premium to the growers for production of 100,000 clean cotton bales. Federal and Provincial Governments (Punjab & Sindh) each will pay 50% share of the premium. Federal Govt.'s share is Rs.35 ml and Punjab Govt. will pay Rs 24.5 ml and Sindh Rs.10.5 ml (Total Rs.35 ml) for this year. The Prime Minister has approved the continuation of this program up to 2008-09 with production of 300,000 clean cotton bales in 2007-08 and 600,000 bales in 2008-09.

xiii. High Volume Instrumentation is another component towards achieving better international quality. For high quality testing, 05 HVIs have been installed, with another 06 HVIs as 2nd Phase in the pipeline.

xiv. Yet another intervention is the installation of Shirley Analyzers. To implement the cotton standardization and to up-grade the Cotton Fiber Testing Laboratories 10 Shirley Analyzers costing Rs.28.659 ml are being installed in the Labs for identifying trash content in the bales.

xv. Turn over tax has been reduced to 1 % on retailers of specified textile fabrics and articles of apparel including readymade garments or fashion wear. The 15% Sales Tax levied earlier on retailers has been reduced to 2%. Both these taxes will be their final tax liability.

xvi. To improve the human resource base and to improve labour productivity, provision of Rs. 96 million from EDF has been made for skill development of the work force in the garment sector. Accordingly, Stitching Machines Operators Training (SMOT) Scheme was initiated which is successfully running in a number of industrial establishments.

xvii. An initiative of launching of first ever business to business (B2B) web/based portal for providing market access to Pakistani textile products.

xviii. A Cotton Ginning Research & Training Institute is being set up at Multan. Funds to the tune of Rs.28 million have been approved by the EDF Board of Administrators.

xix. Continuous supply of natural gas to the textile units during the winter months to ensure


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uninterrupted supply of power to the industrial units. xx. Research & development activity is being augmented by engaging expatriate consultants to

benchmark our industrial practices vis-a-vis major international competitors. Two foreign consultants M/S Werner and Gherzi will be conducting studies for the improvement of the textile sector.

These and many other measures constitute a series of interventions to boost textile production and subsequent exports which will go a long way in ensuring our time tested strength in this cardinal sector of our economy.


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CHAPTER-II

INTRODUCTION/ FUNCTIONS


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INTRODUCTION Ministry of Textile Industry was established on 2nd September, 2004 with an objective to create an enabling environment for sustainable growth, to boost the textile sector; to revive this important sector in order to raise the production capability to its optimum capacity; and to provide a forum to all stakeholders in the textile sector to articulate their concerns for a quick and effective response. FUNCTIONS Following are functions in terms of Rule 3(3) of Rules of Business 1973 allocated to this Ministry as mentioned below:-

i) formulation of Textile Industrial Policy; ii) coordination and liaison with federal agencies/institutions, provincial governments and local

governments for facilitation andpromotion of the textile sector; iii) liaison, dialogues, negotiations, except trade negotiations, and cooperation with international

donor agencies and multilateral regulatory and development organizations with regard to textile sector;

iv) setting of standards and monitoring and maintaining vigilance for strict compliance of the standards throughout production and value chain;

v) textile related statistics, surveys, commercial intelligence, analysis and dissemination of information and reports on international demand patterns, market access etc;

vi) linkages with cotton and textile producing countries; vii) training, skill development, research for quality improvement and productivity enhancement

throughout the production/value chain; viii) management of textile quotas; and,

ix) administrative control of::-

a) Federal Textile Board; b) Textile Commissioner's Organization; c) Synthetic Fiber Development and Application Centre, Karachi; d) Textile City (Projects) , Karachi/Faisalabad; e) National Textile University, Faisalabad; f) Directorate General of Textiles & Quota Supervisory Council; g) All textiles related EPB/EDF funded institutes concerned with skill h) development in various sub-sectors of textile industry; i) Textile Testing Laboratory, Faisalabad; j) Garment City Projects at Lahore, Faisalabad and Karachi; and, k) Pakistan Cotton Standards Institute, Karachi.

The Rules of Business also provide that:-

a) Ministry of Commerce will consult Ministry of Textile Industry on textile trade negotiations

and also associate it with textile sector trade promotion. b) Ministry of Food, Agriculture & Livestock will have the administrative control of Pakistan

Central Cotton Committee with participation and inputs of Ministry of Textile Industry.


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CHAPTER III

ORGANIZATIONAL STRUCTURE


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ORGANIZATIONAL STRUCTURE

The Ministry mainly comprises the following two wings while another wing named as Research & Development and Advisory Cell is in the process of being established.

(i) Administration Wing (ii) Policy Wing

A) ADMINISTRATION WING

This wing deals with personnel administration, general administration, accounts & budget, Council affairs, Public Sector Development Programmes (PSDP) and the audit matters relating to the Ministry as well as its attached departments mentioned under the sub-head of administrative control of the functions allocated to this Ministry in terms of the Rule of Business. Organizational Chart of the Ministry is at Appendix-I while the sanctioned strength of the ministry is shown at Appendix-II. A budget of Rs.20.9 million was provided to this ministry for the Financial Year 2005-06.

B) POLICY WING

Policy Wing of the Ministry has been entrusted with the following broad tasks.

1. Formulation of textile policy; 2. Coordination and liaison with federal agencies/institutions, Provincial Governments

and Local Government entities for facilitation and promotion of the textile sector; 3. Oversight and management of Clean Cotton Program. 4. Affairs related to resumption of Cotton Hedge Trading; 5. Liaison, dialogue, negotiations (except trade negotiations), and cooperation with

international donor agencies and multilateral regulatory and development organizations with regard to textile sector;

6. Coordination and management of the Textile Garment Skills Development Board; 7. Changes in labour laws whenever required; 8. Setting of standards and monitoring and maintaining vigilance for strict compliance

of the standards throughout production and value chain; 9. Textile related statistics, surveys, commercial intelligence, analysis and dissemination

of information and reports on international demand patterns, market access etc; 10. Linkages with cotton and textile producing countries; 11. Training, skill development, research for quality improvement and productivity

enhancement throughout the production/value chain; and, 12. Management of textile quotas of the residual matters in the post-quota scenario. 13. Implementation of Pakistan Textile City and three Garment cities projects. 14. Undertake research proposals and Studies. Two studies by M/s Werner International

and M/s Gherzi International are underway presently.


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C) ORGANIZATIONAL CHART

Minister

Parliamentary Secretary

Secretary

D) SANCTIONED STRENGTH Sanctioned Strength: 71 Officers/Officials.

On ground Strength: 54 Rank wise Figures:

Name of Post Sanctioned

Strength Filled Posts Vacant Posts

Secretary 1 1 - Joint Secretary 2 1 1 Deputy Secretary 2 1 1 Section Officer 6 3 3 Private Secretary 3 3 - Accounts Officer 1 - 1 Drawing & Disbursement Officer 1 1 - Stenographer 6 5 1 Stenotypist 10 8 2 Assistant 8 5 3 Receptionist 1 - 1 UDC 2 2 - LDC 2 2 - Driver 6 5 1 Despatch Rider 1 1 - Naib Qasid 16 13 3

Deputy Secretary (Policy)

Section Officer (P-I)

Section Officer

(P-II)

Deputy Secretary (Admn)

Section Officer

(Admn)

Section Officer (G)

Accounts Officer

Joint Secretary (Policy)

D.D.O

Joint Secretary (Admn)

Section Officer(P-III) Section Officer


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Chowkidar 1 1 - Frash 1 1 - Sweeper 1 1 - Total 71 54 17

E) RESEARCH & DEVELOPMENT CELL (R&D) Ministry of Textile Industry is establishing a Research & Development and Advisory Cell which would focus on devising policy guidelines for the government to boost the textile sector. The Ministry is in the process of hiring of talented, motivated and well experienced professionals on contract basis for a period of two years against the under-mentioned positions. The Finance Division has been approached to provide a budget of Rs 23.79 Million. In order to accommodate them, a house has been hired in sector I-8/4, with the approval of the Prime Minister. The cell would comprise:-

i. DG/Head of Research Cell ii. Director (R&D)

iii. Director (Textile Technology/ Productivity/Skill Development) iv. Manager (R&D) v. Manager (Financial Analysis)

vi. Manager Information Technology vii. Information Technology Officer.

The R&D Cell would be an important addition to the managerial and technical resources of this hitherto skeletal Ministry. This Cell will provide research-based inputs in the fields of academic and empirical research and information management.

F) PARLIAMENTARY STANDING COMMITTEES (i) Senate Standing Committee On Ministry Of Textile Industry

1. Senator Waqar Ahmed Khan Chairman

2. Senator Sardar Mehmud Khan Member

3. Senator Muhammad Ali Durrani Member

4. Senator Asif Jatoi Member

5. Senator Ahmed Ali Member

6. Senator Muhammad Akram Member

7. Senator Hafiz Abdul Malik Qadri Member

8. Senator Prof. Sajid Mir Member

9. Senator Farooq Hamid Naek Member

10. Senator Muhammad Azam Khan Swati Member

11. Senator Dr. Muhammad Ismail Buledi Member

(ii) Standing Committee Of National Assembly On Ministry Of Textile Industry

Standing Committee of the National Assembly on Ministry of Textile Industry (MINTEX) has been constituted and Ch. Nazir Ahmad Jatt, MNA was elected chairman. The Standing Committee comprises the following:-

1. Ch. Nazir Ahmed Jatt Chairman

2. Mr. Haroon Ihsan Piracha Member

3. Mr. Ahmed Raza Maneka Member


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4. Sahibzada Muhammad Mehboob Sultan Member

5. Mr. Ghalib Hussain Domki Member

6. Syed Ayaz Ali Shah Sherazi Member

7. Mr. Liaquat Ali Marri Member

8. Mr. Liaquat Ali Marri Member

9. Mr. Muhammad Farhan Latif Member

10. Maulana Rehmat Ullah Khalil Member

11. Mr. Iqbal Muhammad Ali Khan Member

12. Maulana Rehmat Ullah Khalil Member

13. Dr. Farid Ahmad Piracha Member

14. Mrs. Asiya Nasir; Member

15. Mrs. Nayyer Sultana Member

16. Ch. Manzoor Ahmed Member

17. Mrs. Yasmeen Rehman Member

18. Syed Amir Ali Shah; Member

19. Mr. Muhammad Pervaiz Malik Member

20. Mr. Mushtaq Ali Cheema,

Minister for Textile Industry

Ex-officio

Member


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CHAPTER IV

ACTIVITIES


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ACTIVITIES I) PRODUCTION OF STANDARDIZED AND CLEAN COTTON

CAMPAIGN 2005-06 AND 2006-07 The present Government is aware of the fact that cotton contamination is the most serious problem affecting the local textile industry in Pakistan. The Government is making constant efforts to overcome the problem and has launched special campaigns to eliminate contamination from the cotton. In 2001, a special campaign was launched at District Rahimyar Khan in collaboration with the Provincial Government and very positive results were achieved. However, it was noticed that the benefit of premium was not properly passed on to the growers. Keeping the above situation in view and in the light of the Prime Minister’s directive, Ministry of Textile Industry launched a campaign in 2005-06 for the production of Standardized and Clean Cotton in 31 selected ginning factories, (Punjab 22, Sindh 07, and Balochistan 02) in collaboration with TCP and Provincial Agriculture Departments with emphasis to pass on the premium to growers directly. Though this Campaign was launched on a limited scale, it paved the way for a gradual increase on sustainable basis in future. Rs. 35/- million were allocated for payment as premium to growers/supplier’s of clean phutti. During the campaign 85,440.55 mds of clean cotton was produced and Rs. 4, 272,027/- was paid to the growers and suppliers and 6500 bales were produced. Feed back from the exporters and spinners urged continuation of the same during the next year too. The Prime Minister during a meeting held on 17th April 2006, appreciated the Campaign and directed that this programme should be carried forward particularly in the areas where high level of contamination is reported. The Prime Minister also directed to continue the programme in a limited number of ginning factories for ensuring smooth implementation. Moreover, the Prime Minister observed that for instilling a sense of ownership of the project, the role of Provincial Governments in the implementation of the Programme is of prime importance. He directed that Provincial Governments of Punjab and Sindh should be asked to share the payment of premium to growers and also involve APTMA to buy said bales at premium. Therefore, continuing the same in 2006-07, MINTEX will launch the same program in collaboration with the Provincial Governments, TCP, PCGA and also involve APTMA to achieve the goal of production of quality cotton in the county. For the purpose 23 ginning factories (Punjab 17 and Sindh 6) have been selected at which the PCSI with the monitoring of Provincial Agriculture Departments and TCP will run the program. For cotton season 2005-06, Federal Government had sanctioned and released Rs. 35.00 Million to procure 50,000 bales of clean cotton. In the ensuing cotton season, it is expected that 100,000 bales of clean lint will be produced from 1,400,000 mds of clean grade 2 seed cotton (Phutti). The amount required on this account would be Rs. 70.000 Million. The Federal Government would share 50% i.e. Rs. 35.000 Million and the Provincial Governments of Punjab and Sindh would share the rest of the 50% in the ratio of 70:30 respectively (Annexure-A).

II) COLLECTION OF COTTON STANDARDIZATION FEE As per provision of Section 15 of Cotton Standardization Ordinance 2002, the Institute may charge standardization fee as charges of standardization of the cotton at such rate the Federal Government from time to time may fix by notification in the official gazette. The purpose of the fee is to utilize the same for devising measures for application of standards, seed cotton grading and lint cotton classification, specifying nature and levels of contamination further to produce contamination free cotton. Side by side the fee shall be used for technology up-gradation and opting for the latest lab equipments to facilitate the cotton growers, ginners and exporters. MINTEX has proposed to levy a cotton standardization Fee (@ Rs. 5/- (per pressed bale) on the production of the cotton bales to support PCSI.

III) ESTABLISHMENT OF COTTON GINNING RESEARCH AND

TRAINING INSTITUTE AT MULTAN Cotton Ginning Sector is the weakest link in cotton processing chain and to cope with this problem, the government has approved the establishment of Cotton Ginning and Research Institute at Multan and allocated Rs.28 million for the purpose. The Institute was a long


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outstanding demand for the up-gradation and modernization of the Ginning Sector in Pakistan. There is no skilled manpower available in Ginning Sector due to which the ginning industry is suffering as a result despite the fact that Pakistan is the third largest cotton producer and fourth biggest cotton consumer in the world, it is contributing only a meager share in world exports. The Institute shall prepare qualified technicians, develop methodology and techniques for handling of phutti and cotton seed for safe storage, standardization of machinery and conduct comprehensive research in ginning technology to produce contamination free cotton so as to improve the value of cotton and maximize the profit to the growers, exporters and textile owners.

IV) ESTABLISHMENT OF COTTON FIBER TESTING LABORATORIES

The post quota regime and international competition has placed premium on doing things properly and the modern day marketing era is based on the quality layout and composition of the product. Cotton is the major cash crop of the country and the national economy heavily relies on cotton and its made-ups. Accessing the current national scenario, hectic efforts are urgently required for survival in the quality based international market. The volume of losses in the international market is because of poor cotton quality and results in a loss of approximate $500-600 million per annum. Realizing this direct impact on the value addition of the textile sector, MINTEX has approached the problem through a methodological approach by applying instrumental techniques i.e, shifting over to cotton classing, grading system, highlighting staple length and other fiber properties. MINTEX has established 5 Cotton Fiber Testing Laboratories with High Volume Instruments (HVIs) at Karachi & Sanghar (Sindh) and Rahim Yar Khan, Vehari & Multan (Punjab). This project shall facilitate the cotton growers and ginners in pricing cotton in terms of its true textile value and quality as well as improving fiber processing and yarn manufacturing. In the second phase 5 more HVIs will be installed at Hyderabad (Sindh) and Faisalabad, Bahawalpur, Sahiwal, DG Khan in Punjab.

V) FEDERAL TEXTILE BOARD A Federal Textile Board (FTB) is functioning under the Ministry of Textile Industry with the following terms of reference:-

i. The Board would facilitate the implementation of the recommendations contained in Textile

Vision for :-

a) production of contamination-free cotton; b) project financing for small and medium entrepreneurs in high value added textile

sectors; c) review of domestic and international prices of cotton to ensure a fair return to growers

and maintaining stability in domestic prices; and, d) liasion with all stakeholders from cotton growers to textile exporters for removing any

bottlenecks/problems in implementation of the recommendations.

ii. The Board would meet at least once in a month to review progress and take decisions to remove, if any, difficulties in implementation of the recommendations.

iii. The Board would take such steps as necessary to provide inputs, for example certified seed , fertilizer, machine tools (ginning saws) and other raw materials etc to ensure movement of the textile sector towards value addition.

iv. The Board would liase with the Provincial Government approach to achieve the objective of value addition in the textile sector, from production of contamination-free cotton and onwards.

v. Human Resource Development for Textile Industry. vi. Measures to make the textile products internationally more competitive in respect of prices and

quality. vii. Any other task that the Board may decide for itself to attain the overall objectives.


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Composition of the Board

The composition of the Board was notified on dated 19.11.2002 with the following members from both Public and Private sectors. The composition is given at Annex-B.

Secretariat of the Board

Textile Commissioner's Organization, Karachi is the Secretariat of the Board. The Board in its last meeting (14th Meeting) held on Thursday 27th April, 2006 at Karachi, constituted a Committee comprising the following:-

i. Mr. Zubair Motiwala Chairman ii. Mr. Nasim Sattar Member iii. Mian Muhammad Latif Member iv. Mr. Aziz Memon Member v. Dr. Ikhtiar Baig Member vi. Mr. Ateeq Kotchra Member vii. Mr. Junaid Nawab Member viii. Mr. Javed Bilwani Member

The Committee was assigned the task to develop its recommendations related to the textile sector on reducing the cost of doing business and to suggest long term measures including capacity building; market access; BIT/FTA and human resource development by 8th May, 2006, for consideration in the next meeting to be presided over by the Prime Minister with decisions of that meeting forming part of the National Textile Policy. Zubair Motiwala Committee prepared its report and the same was presented to the Prime Minister during a presentation on 30th May, 2006 in the Prime Minister’s Secretariat.

VI) TEXTILE GARMENTS SKILL DEVELOPMENT BOARD

Textile Garment Skill Development Board has been set up in the Ministry of Textile Industry in pursuance of the Trade Policy 2005-06 initiative for support to the textile garment sector wherein garment manufacturing units were to be declared as skill development training institutes. The Board, among other tasks, chalked out modalities for selection of such units to be declared as training institutes and to determine the fees/expenses of students/trainees, approval of curriculum, syllabus of training institutes and examinations, teaching, monitoring and certification activities, seeking affiliation from international organizations specialized in this field and element of subsidy to be provided by the Government.

In its first meeting held on 26th October 2005 the Board had asked the member garments associations to furnish to the Board with lists of units, which would be willing to offer their units as training institutes on cost sharing basis.

In a meeting presided over by the Prime Minister on 1st February 2006, the Prime Minister was pleased to direct the Ministry of Textile Industry that the skill development programme for workers should start in the garment units within 8-10 weeks duration, funding for which will be made through the EDF. In pursuance of the Prime Minister's decision, several meetings were held with the garments sector on 7th, 15th and 16th of February 2006 in Karachi and Lahore followed by a meeting of Textile Garments Skill Development Board on 21st February 2006 to put the scheme on ground.

The Board in its meeting held on 21st February 2006 decided that the training programme of workers (machine operators) should be started immediately with the aim to train a critical mass of 20,000 to 22,500 workers in one year, averaging 7500 each from Karachi, Lahore and Faisalabad to create an impact and bring about a visible change. It was also decided that Government would bear the cost of stipend of each trainee (Rs. 2500/per month) and the cost


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of trainer to the extent of Rs. 1000/- per trainee/per month i.e. a total of Rs. 3500/- per trainee per month.

For imparting training to a maximum of 150 trainees in 05 batches in each of 60 units over a period of 12 months i.e. a total of 9000 trainees, the cost worked out to Rs. 95.5 million. A further 1.5 million was required for advertising the scheme in the print media. The EDF Board in its meeting held on 22-03-2006 sanctioned an amount of Rs. 96 million and out of which amount of Rs. 19.4 million was released to the Skill Development Board for the Scheme.

The Textile Garment Skill Development Board in its meeting held on 25th May 2006 finalized administrative and other details relating to curriculum, duration of training and number of machines to be dedicated by each participating unit for training program (@ one machine per trainee). 44 Units, which had conveyed their willingness to join the programme through their associations, were asked by the Board to communicate their willingness on a prescribed format so that the scheme could be advertised. 31 Units expressed their willingness.

The Textile Garments Skill Development Board advertised the scheme in the print media, inviting candidates to apply for training. Each unit is required to carry out a training of a minimum of 15 to a maximum of 40 candidates in one batch in such a way that each trainee will be assigned a separate machine for training. The programme is in progress from 1st week of July 2006.

One of the main features of the scheme is that female candidates who fulfill eligibility requirement will be given preference and 75% of the seats in each unit will be reserved for them. Secondly, the scheme is targeting fresh trained hands instead of those who are already working as machine operators.

VII) PROCUREMENT AND SUPPLY OF 300,000 TENTS FOR EARTHQUAKE

VICTIMS

The Ministry pioneered the effort of procuring and supplying of 300,000 tents for the earthquake victims through the provincial governments of Punjab and Sindh. The tents were supplied to the Federal Relief Commission within a short span of 40 days before the start of adverse cold weather.

VIII) REPORT TO PRIME MINISTER ABOUT KNITWEAR INDUSTRY’S PROBLEMS The Prime Minister constituted a committee under the Textile Industry Minister to submit recommendations to keep the knitwear industry out of crisis. The Committee submitted its report on 10th March, 2006 within the stipulated time.

IX) GAS SUPPLY TO CAPTIVE POWER PRODUCERS (CPPs) BY SNGPL. The Economic Coordination Committee (ECC) of the Cabinet considered the summary dated 31st December, 2005, submitted by Ministry of Textile Industry on “Disconnection of Gas supply to Captive Power Producers (CPPs) by SNGPL” and the Prime Minister observed that the issue needed to be looked into for amicable resolution. Ministry of Petroleum and Natural Resources moved a summary for the Prime Minister on the above subject on 5th January, 2006, which was approved by the Prime Minister on 16th January, 2006. Ministry of Petroleum and Natural Resources advised that all fertilizer plants getting gas supply from SNGPL’s network should perform annual maintenance shut down during winter season i.e. December to February every year.

X) PAKISTAN TEXTILE CITY KARACHI

Pakistan Textile City project will be located on 1250 acres. 700 acres have already been handed over to the Company and all necessary formalities have been completed. However, go-ahead is


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stalled as Ministry of Ports & Shipping/PQA has not handed over the balance of 550 acres of land in spite of clear directives of the Prime Minister of Pakistan on 14th February 2006.

The principal activity of the Company is to develop and manage a state of the art industrial zone on 1,250 acres dedicated to value added textile units in order to avail the opportunities arising out of the decision to remove of quota’s applicable in the WTO Agreement on Textile & Clothing effective January 2005. The Company has completed the Master Layout Plan depicting plot sizing, amenities etc. and continued to address and negotiate with utility Companies for its future requirements. The Company has obtained a dedicated 23 kilometer 48 inches water pipeline will be shared by the Federal and Provincial governments.

To facilitate the workers and meet their residential needs a workers colony / residential complex will be developed for the industrial area of not only PQA but also for Textile City and Garment City project. For this purpose the Land Revenue department of Sindh Government would identify about 500 acres of land in close proximity to these areas.

A PC-I for laying a dedicated 23 km 48” dia MS. Karachi Water pipeline worth Rs. 636.5 million has been prepared for approval by CDWP/ECNEC. Karachi Water & Sewerage Board will execute the pipeline project. The Federal and Provincial governments will share the cost of the pipeline project @ 50:50 each.

XI) GARMENT CITY PROJECTS The Government announced the setting up of three garment cities at Karachi, Lahore and Faisalabad under the Trade Policy 2003-04. The purpose of the projects is to provide facilities and necessary infrastructure to the textile sector with a view to promote value added garments (woven and knitted), home textiles, made ups and accessories to the international markets.

Ministry of Commerce placed the proposal before the Export Development Fund Board in its meeting held on 07-05-2004 for the approval of the funds. The EDF Board approved a sum of Rs.1.425 billion for the three garment cities. Notwithstanding the initial decisions, after release of small preliminary amounts the Board of Administrators declined to provide additional funding for the projects and decided that Ministry of Textile Industry may take up the matter with Planning Division for further funding through Public Sector Development Program.

The following benefits will accrue from the projects:-

a) It will attract foreign investors who would be willing to rent state of the art manufacturing factory space rather than commit their capital in land, utilities and construction;

b) It will increase the proportion of value added products in textile exports; the value of Pakistan’s cotton resource; generate employment; and lead to higher per capita productivity and reduced wastage because of the in house training and laboratory testing facilities provided by the project.

In view of the recent elimination of textile quotas and subsequent opening up of international markets, many supplier countries are investing in physical infrastructure to facilitate increased exports. Similar cities are successfully operating in many other countries. Keeping in view the objectives of the Trade Policy and Textile Vision, it is felt that we too need to increase our production capacity of value added textile products in the shortest possible time.

The factory units would be leased out to foreign and domestic manufactures of both garments (woven and knitted) and home textiles. The objective is to reduce the capital outlay of investors and provide fully compliant state of the art manufacturing facilities at prevalent markets rates.

Karachi Garment City

Karachi Garment City Company has been incorporated with SECP under the Companies Ordinance 1984 on 15th November 2005. Sindh Government has been


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approached by the Company for allotment of 300 acres for the Karachi Garment City project in Port Qasim area adjacent to Pakistan Textile City Limited.

The Board of Directors of the said Company consists of 15 members, i.e. 12 from the private sector and 3 from the public sector. A grant of Rs.5.00 million has been received from E.D.F. for meeting the valid expenditure for setting up Karachi Garment City Company Ltd.

Faisalabad Garment City

The EDF Board released Rs. 89 million for 36.3 acres land and Rs. 4 million for meeting expenditure on setting up the company and office requirements. The rest of the project costs have now to be met out of PSDP allocation.

The Garment city would be a cluster of manufacturing units served by a centralized administrative block, providing common facilities in the shape of a training center, testing laboratory, exhibition and conference halls. The factory units are of two different sizes, each building constructed on five floors plus a basement. The units are to be designed and constructed according to international requirements of social compliance, industrial and environmental standards, and state of the art facilities.

The Faisalabad Garment City Project will have 1.4 m square feet of factory space, with a capacity of over 12,000 stitching machines. Women will benefit, as a large number of workers employed in these factories would be women. It is planned to increase factory space out of generated funds of the Company and this will further enhance the profitability of the Project.

Lahore Garment City

The Board of Administrators of Export Development Fund released Rs. 103 million for acquiring 19.34 acres of land in the Sunder Industrial Estate Lahore which has been done. The Central Development Working Party (CDWP) approved Rs. 497 million as loan for phase-I of the project. Rs. 150 million have been approved for release during the current financial year. On completion the project will have 1.2 M. Sq. Ft. of factory space available for installation of machines etc.

XII) COLLABORATION WITH E- GOVERMENT Ministry of Textile Industry in collaboration with e-Government Directorate, is actively implementing e-Government strategy and a five year plan approved by the National E-Government Council. E-Government Directorate has completed the work of networking in the Ministry. A server room has been established and EGD has provided computers. E-Government has also appointed a Network Administrator in the Ministry for technical assistance. Web-site of the Ministry has also been launched and it can be accessed at www.textile.gov.pk. It has been rated as “excellent” by the EGD since its launching. Training of officers/officials is being carried out in collaboration with Pakistan Computer Bureau. A DSL internet connection has also been arranged for the Officers / Officials of the Ministry to keep themselves abreast of the new developments in the world.

XIII) GOALS & TARGETS

Ministry of Textile Industry is working for the attainment of the Goals and Targets set by it. The detailed sheet of the Goals and Targets is placed at Annexure –D.


http://www.textile.gov.pk/

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CHAPTER V

PROFILES OF THE ORGANIZATIONS

FUNCTIONING UNDER THE MINISTRY


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PROFILES OF THE ORGANIZATIONS FUNCTIONING UNDER THE MINISTRY

A) TEXTILE COMMISSIONER’S ORGANIZATION, KARACHI

Introduction

Textile Commissioner’s Organization existed even prior to independence as an attached department. After independence the Organization was first set up as a subordinate office of the Ministry of Industries, then merged with the Department of Supplies and Development in 1959. It was again made an independent Organization headed by a Textile Advisor in 1961 but abolished in 1962 and the organizational setup was merged with the Investment Promotion Bureau, under the title of Directorate of Textile. This arrangement continued till the year 1973.

In November 1973, the Textile Commissioner’s Organization with the status of an attached department under the Ministry of Industries, and headed by a Textile Commissioner was created and separate budget was allocated in September 2004, its administrative control was transferred to this Ministry.

Role

Textile Commissioner’s Organization is the professional body to advise Government on technical matters relating to the textile industry. It is a specialist body maintaining close contact with the Textile Industry. It is manned with technically qualified people and enjoys the unique position of interpreting the industry’s present problems and future requirements, and hence converting it into techno-economic recommendations for developing an appropriate policy for the smooth performance of the industry.

Functions

The organization had been entrusted with multifarious functions in the textile field dealing with the biggest and the most important and sensitive industry of Pakistan. It provides database and technical information and serves as technical Advisory Body to Government for development of Textile Industry. It is responsible for assisting the Ministry of Textile Industry in the formulation of policies. It also renders advice to the Government financing institutions, State Bank of Pakistan and continuous liaison with various textile trade associations etc. It is also entrusted to review the production and export performance of textile industry and suggest measures to improve competitiveness of textile industry. It also periodically evaluates the technological status of textile industry to make recommendations for it upgradation. Textile Commissioner Organization is also working as a Secretariat of the Federal Textile Board and Textile Skill Development Board.

The Textile Commissioner’s Organization monitors the performance of textile industry in terms of both production performance and export performance. Textile Commissioner’s Organization collects and compiles data on cotton consumption, yarn production, cloth production and export of textile products. The T. C. O issues such performance reports every month.

The analysis of the production and exports shows that the performance of the Textile Industry during the last 5 years had been satisfactory. The textile industry made an investment of approximately $ 6 billion during the period 1999-2006 Approximately 5 lacs new jobs have been created in the textile industry. This has resulted in increases in yarn production by 11.61% and cloth production 12.33% during 2005-06 as compared to corresponding period last year. Exports show positive improvement and exports of textiles grew to $10.37 Billion as compared to $9.2 Billion last year showing and increase 12.65%.

The textile industry is experiencing highly competitive pressure after quota phase out and the industry is complaining about higher cost of production as compared to competing countries


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in the region. The Federal Textile Board in its meeting held on 27th April, 2006 reviewed the situation and constituted a Committee with the following terms of reference.

i) Developing recommendations on reducing cost of doing business in Textile & Clothing Sector of Pakistan.

ii) Any long term measures including capacity building, market access, BITs/FTAs, Human Resource Development.

Based on the recommendations the Government took steps and granted the following relief measures to facilitate the textile industry to compete in the quota free competitive environment.

i) State Bank of Pakistan has provided long term financing /E.O.P at 7.5% mark up and procedure simplified with no separate reservations of SME and Non SME.

ii) The re-financing rate has been reduced by 1.5% from the existing level. R&D support

shall be continued to Ready Made Garments & Knitwear Export. In addition, R&D support shall be provided to:- a) Dyed Printed Fabrics and white Home Textile @ 3%

b) Dyed Printed Home Textiles. @ 5%

Textile Garments Skill Development Board Textile Garment Skill Development Board was set up in October, 2005, with its Secretariat in Textile Commissioner’s Organization. In pursuance of Trade Policy initiative of 2005-06. It is primarily charged with carrying out skill development of workers for the garments industry within the garment units. The EDF Board has allocated a sum of Rs.96 million for the program and has released Rs.19.4 million to the Skill Development Board in the first tranche.

Textile Cess

The Organization is also responsible for cess collection from the Textile Mills for the National Textile University, Faisalabad. During 2005 an amount of Rs.94, 77,514 has been collected as Textile Cess and remitted Rs.48.037 million to National Textile University.

Textile Commissioner is also represented on the following textile related concerns:

i. Karachi Cotton Association ii. Pakistan Central Cotton Committee

iii. National Textile University, Faisalabad iv. Textile Machinery Company v. Representation on Sub-Committees of Export Promotion Bureau in relation to various

sub-sector of Textile Industry vi. Pakistan Standards and Quality Control Authority

vii. Textile City/Garment City

B) PAKISTAN COTTON STANDARDS INSTITUTE

Introduction

Pakistan’s cotton is inherently of good quality. But absence of quality control measures, improper handling and ginning practices, non existence of a pricing system based on premia and discounts and non-implementation of any recognized grading system leads to depreciation of the value of raw cotton and the resulting textile products due to which the country is not getting real value of its white fibre in the international market. Being cognizant of these problems, the Government decided to introduce standardization of


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cotton to bring it at par with the internationally accepted standards for improving the competitiveness of Pakistan's cotton as well as ensuring better returns to the cotton growers, ginners, spinners, exporters and the national economy. The Cotton Standardization Ordinance 2002 was promulgated to establish Pakistan Cotton Standards Institute and to promote the quality control of cotton.

Framework

Textile sector of the country on which the national economy heavily relies is demanding to control costs, reducing wastages and improving productivity levels. For attaining a sustainable position in the global cotton market. Pakistan’s textile sector urgently needs standardized and clean cotton to complete successfully in the wake of quota phase-out.

Henceforth, in order to address the problem, Government framed a policy to upgrade cotton quality to bring it at par with international standards and in the light of government policy, Ministry of Textile Industry prepared a framework to achieve result oriented goals through the implementation of cotton standardization system through PCSI.

Goal Missions and Objectives

I. Goal Missions:

Enhancement of cotton quality through the implementation of Cotton Standardization System to meet the upcoming challenges and requirements of quality conscious international market. For the production of high quality standardized and clean cotton the goal sets are as under: -

(i) Improvement of Picking/Handling/Ginning practices.

(ii) Human Resource Development. (iii) Incentive Based Marketing System.

II. Objectives:

i) Setting up grades and standards of seed cotton and lint.

ii) Establishing and promoting cotton standardization program based on internationally accepted grading and classification system.

iii) Training new generations of cotton graders, classers, arbitrators and instructors.

Programme & Projects I. (a) Production of High Quality Standardized and Clean Cotton

Programme 2005-06. In pursuance of the decisions of Ministerial Committee, Ministry of Textile Industry publicly advertised the scheme to launch the said programme in 31 selected ginning factories in collaboration with TCP and Provincial Agriculture Departments during 2005-06.

(b) Production of High Quality Standardized and Clean Cotton

Programme 2006-07.

Considering the success of Clean Cotton Programme 2005-06, Ministry of Textile Industry is going to launch another Campaign which would cover cotton growing areas. This programme would result around 100,000 bales of Standardized & Clean Cotton.

Following are the salient features of the said programme.


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(i) Limited number of ginning factories would be selected for effective program monitoring and ensuring positive outcomes.

(ii) For installing ownership of the program the government of Punjab and Sindh and APTMA should share with Federal Government the payment of premium to the growers.

(iii) Ministry of Textile is to co-ordinate with Provinces and APTMA and workout the cost sharing formula.

(iv) Provincial Agriculture Department to carry out extensive publicity and extension program for educating formers and ginners for Production of Clean and Standardized Cotton.

(v) Re-cost the program to cover two districts in Punjab and one in Sindh it should be a targeted programme be undertaken only in districts where contaminated cotton is ap problem. The district should be rotated so that the benefit could be spread.

(vi) Ministry of Textile Industry to revise the program in consultion with government of Sindh, Punjab and PATMA and submit a summary to the Prime Minister.

II. Human Resource Development:

One of the main objectives of the Institute is to produce new generation fully trained in the skills of coitton classing and grading. For the purpose PCSI is conducting cotton selectors training courses regularly at its offices i.e. Karachi (June), Sukkur (May)( and Multan (April). This training programme has shown positive results and every year a good number of personnel from Private and Public Sector are being trained through these Courses.

III. Establishment of Cotton Fibre Testing Laboratories Project

PCSI since its establishment has focused its attention on the modern and sophisticated electronic instruments for the classification and determination of Fibre properties in view to change the present marketing system to a quality based marketing system. Recently PCSI has imported 4 latest High Volume Instruments (HVI 1000 Classing) from a Swiss Firm ‘USTER’ through a Project “Establishment of Cotton Fibre Testing Laboratories” These HVIS are being installed in the selected districts of Sindh (Sanghar, Sukkur) & Punjuab (Rahim Yaar Khan, Multan & Vehari). CDWP approved the said project with the totral cost of Rs. 71.00 Million and allocated Rs.51.00 M illion in the first phase and 20 Million in second Phase in PSDP 2005-06 for the project. Porposed sites for the establishment of Cotton Fibre testing Laboratories in the selected districts have renovated & furnished to house the HVIs. The import of one more HVI 1000 Classing for PCSI Head Office, Karachi is in pipeline.

Targets and Achievements During the Year 2005-06.

Target set and the achievements made during the year 2005-06 are as follows:- I. Production of Standardized and Clean Cotton

Production of Standardized and Clean Cotton Porgramme was launched on a limited scale on sustainable basis which would ultimately paved the way for enhancement of Pak Cotton quality in the coming years. The production of Standardized and Clean Cotton completed successfully. Under this programmer 106539 maunds of seed cotton and rupees 4272027 (4.272 Million) has been paid as premium directly to growers first time ever in the history. The buyers of clean lint cotton have shown their complete satisfaction on the quality of lint have demanded such cotton in bulk.


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Number of Ginning Factories Selected

Selected Registered Contract Made with TCP

Punjab 22 17 10 Sindh 07 06 02

Balochistan 02 NIL NIL Total 31 23 12

Arrival of Seed Cotton/Phutti In Selected Ginning Factories

Certified as (in mds) Province Total Arrival of

S/c (in mds) Clean Un-Clean

Rate of Premium (in mds)

Seed Cotton

Eligible for Premium (

in mds)

Premium Paid Till 12.05.06

Punjab 156042 98080 57962 Rs.50/- 98080 Sindh 11086 8459 2627 Rs.50/- 8459 Total 167128 106539 60589 106539

Rs.4,272,027/- (1.272

Million)

Production of Clean Lint Cotton In the Selected Factories

Bales Pressed and Certified as Clean

Sold to (In Bales) Un-Sold (In Bales)

Textile Exporter TCP 6810 6312 - - 498

II. Development of Prototype Gin Stand

Task Force on improved ginning practices succeeded in developing a prototype gin stand. The working efficiency of machine was jointly testified by ARMI and PCSI. The initial results are encouraging. Further modification in design and mechanism is underway.

III. Education and Awareness Campaigns

During 2005-06 the education and awareness campaign was mainly focused in the areas where campaign for the production of Standardized and Clean Cotton has been launched, following material was distributed for growers & ginners in Urdu and Sindhi.

(a) Publication and Distribution of Informative Brochures for the Production

of Standardized and Clean Cotton.

Distributed Target Published Growers Ginners Public Sector

Organization 800 800 400 300 100

(b) Printing and Distribution of Letters To Growers For Better Picking

Procedures.

URDU Target Printed Distributed

500 500 500 SINDHI

300 300 300


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(c) Printing and Distribution of Letters To Ginners For Better Ginning

Procedures

URDU Target Printed Distributed

800 800 800 SINDHI

300 300 300

(d) Imparting Training In The Skills Of Cotton Classing And Grading By Conducting Cotton Selector Course

Session 2005-06

Karachi Sukkur Multan Total Up-Dated - 23 94 117 Over 1700

(e) A Two Years Cotton Classer Training Program

On successful completion of Two Years Cotton Classer Training Programme, 25 Cotton Trainees were awarded Cotton Classers Certificates. The certificate distribution ceremony was held at PCSI Head Office Karachi, presided by the Secretary, Ministry of Textile Industry. The Ceremony was also attended by respected dignitaries of public and private sector.

(f) Instrumental Classification and Preparation of Standards

Cotton Fibre Testing facilities provided to public and private sector and about 8,000 samples were tested at the Fibre testing Laboratories of CPSI Head Office, Karachi, Regional offices Sukkur and Multan during 2005-06.

(g) Seed Cotton and Lint Boxes

30 Sets of Seed Cotton Grade Boxes and 30 Sets of Lint Standard Boxes prepared during the period.

(h) Technical Services to Public and Private Organization

(i) Technical services were provided to TCP by deputing 08 cotton Classers to Cotton Procurement Centers of TCP.

(ii) Services of CPSI Classers were also provided to 31 Selected Ginning Factories for the production of Standardization and Clean Cotton.

(iii) 03 Cotton Classers were also deputed to associate AMRI for conducting experiments on newly developed prototype gin stand.

Organizational Resources

As per provision of Cotton Standardization Ordinance 2002 PCSI shall acquire self financing status through levying Cotton Standardization Fee. Presently PCSI is being supported through annual lump sum Govt. Grant. However, the Institute is generating income of about Rupees I Million Per Annum from the following resources:- (i) Cotton Fibre Testing Fee. (ii) Sale of Seed Cotton and Lint Cotton Standard Boxes. (iii) Sale of Seed Cotton and Lint Standard Boxes.


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Budget

S# Object 2005-06 Actual Expenditure

2006-07 Budget Estimate

1 Establishment Charges 164 Existing Post 26170000 29956000 2 Operational Expenditure 17408000 10607000 3 Pension Contribution - 6640000 4 Capital/Fixed Assets Expenditure

(i) Purchase of Transport (ii) Purchase of Equipments

-

280000

1650000

1500000 150000

5 Grand Total (1+2+3+4) 43858000 48853000 6 Total Allocation for financial year 2005-06 43000000 - 7 Excessive Amount out of Income of

Institute (5-6) 858000 -

C) NATIONAL TEXTILE UNIVERSITY, FAISALABAD

National Textile University is an educational institution. All the activities are related with Human Resource Development for Textile Industry of the country. The major aim of the Institute is imparting quality education to boost up the standard of textile products of the country to compete in the international market

Academics

(a) Summer Semester 2005

The first ever Summer Semester commenced as per schedule from June 20, 2005. The Summer Semester is offered to the students of all the classes who want to improve “F” and “D” grades. In the Summer Semester 315 students were registered for different courses and final examinations were conducted from 15-19 August 2005.

On the same pattern Summer Semester is also offered to One Year Diploma Course (2004-05) to the failing students .The examinations were conducted from11-13 July 2005 (for 1st Semester Subjects) and 8-11 August 2005(for 2nd Semester Subjects).

(b) Supplementary Examinations 2005

Before the introduction of Semester System, the Institute was under annual and term system from UET, Lahore to which this Institute was affiliated with. University Supplementary Examinations for the students under annual and term system (2nd year, 3rd year and final year) were conducted from July 18 to August 19, 2005.

(c) Fall Semester 2005

The Fall Semester 2005 commenced as per schedule from August 29, 2005. In this Semester eleven students of 4th Semester were relegated to 2nd Semester due to consistent poor academic performance. Two students of 6th semester were relegated for 6 months to 5th Semester on disciplinary grounds. The Lahore High Court also upheld this decision of the University. Both the decisions were implemented because these decisions were inevitable for marinating discipline and achieving a competitive academic environment in the University.

(d) Admissions

(i) 4-Year Degree Programme of BSc. Textile Engineering 2005 Advertisement for the Admission 2005 appeared in reputed newspapers in July 2005. The last date for the submission of applications was fixed as


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August 27, 2005. Total 2542 prospectus were sold out and 1843 applications were received for the Admission 2005. The Entry Test was conducted on September 04, 2005(Sunday) simultaneously at six centers (Faisalabad, Lahore, Multan, Islamabad, Karachi and Peshawar) all over the country. Admission process was completed by the end of December 2005 and resultantly 173 were admitted. The last year highest and lowest merit for degree program in different quotas is given below.

S# Name of Quota Seats Highest Lowest 1 All Pakistan 23 78.64 69.69 2 Punjab 50 69.32 63.83 3 Sindh (Urban) 08 71.11 58.74 4 Sindh (Rural) 14 65.04 49.09 5 NWFP 14 69.23 60.66 6 Balochistan 08 62.89 48.57 7 Federal Territory 02 68.75 60.19 8 FATA 08 62.83 55.83 9 Trabal Area of Punjab 01 60.78 60.78 10 AJK 04 61.25 51.03 11 Northern Areas 02 69.05 63.61

The overall merit of Admission 2005 has increased as compared to last year’s merit in different quotas.

(ii) One Year Diploma Course (2005-06).

Advertisement for the admission to One Year Diploma Course (2005-06)

appeared on July 18, 2005 in the Dailies (Nawa-e-Waqt, Express, Khabrain) with last date for submission of applications August 05, 2005. In response to this 145 candidates applied for the admission. The detail of which is given below:-

S# Technology Candidates Applied Admitted 1 Spinning 39 30 2 Weaving 19 19 3 Processing 87 44

Total 145 102 In August 2005, 102 students were enrolled in the One Year Diploma Course

for the session of (2005-06). Only 39 students were declared passed after the completion of two semesters by May 2006. The breakup of the passed out students is as under:-

Sr. No. Technology Passed 1 Spinning 18 2 Weaving 06 3 Processing 15

Thirty failed students attended the Summer Semester, while 28 students have been struck off from the roll of the Diploma Course and non-payment of 2nd Semester dues/fees.

(e) Final Examinations of Fall Semester 2005

The final examinations of Fall Semester 2005 of all classes (2nd Semester, 4th Semester, 6th Semester and 7th Semester were conducted smoothly without any problem, as per planned schedule in the first week of January (from 02-07 January 2006). A total of 38 students from all the classes were not allowed to appear in the examinations due to a


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failure to meet the minimum requirement of attendance (75 % attendance in each subject) in the University rules, i.e. the minimum accepted requirement of PEC too.

(f) Spring Semester 2006

The Orientation / Welcome Ceremony for new first semester students before the commencement of spring semester 2006 was held on January 23, 2006 in which parents were also invited. After the address of the Vice Chancellor, an information brochure comprising a copy of Rules and Regulations (Time Table, Syllabus, Registration Form and Hostel Rules) was distributed to each student. After the ceremony all the students were divided into different groups under the supervision of a faculty member and were given a tour of each department to familiarize with the University.

Mid semester examinations of all the classes of Spring Semester 2006 were conducted from March 20-28, 2006. It is worth mentioning hare that the mid semester results of the students on probation were intimated to the parents. Consequently a few parents visited the University and the office of the Student Affairs provided them first hand information regarding academic performance of their wards and also discussed short comings of their academic performance to secure the future of their wards.

Final examinations of Spring Semester 2006 of all the classes were conducted smoothly without any problem as per planned schedule in the last week of May 2006 (from 22-27) and 20 out of 844 students from all the classes were not allowed to appear in the examination who failed to meet the University requirement of minimum attendance which as compared to the last semester is significantly low. In the last semester 38 out of 673 students were not allowed to take the final examinations due to shortage of attendance. This shows that with the passage of time students are realizing the importance of the attending the classes.

(g) The Summer Semester 2006

The Summer Semester 2006 commenced as per schedule from June 12, 2006 all the classes were offered various courses to improve their “F” and “D” grades up to 12 credit hours. In this Summer Semester 180 students were registered for different courses.

(h) Merit Scholarships.

In compliance the Board’s decision regarding award of University Merit Scholarships to the first three position holders, 50 students were granted 100 % to 50 % exemptions in their tuition fee for first to third position holders of each section of all the sessions on February 03, 2006.

(i) Verification Of Original Documents

To keep the admission process fair, credible and transparent all the testimonials are verified from the agencies concerned. The pending verification of Higher Secondary School / F.Sc. certificates from the concerned educational boards for the session 2004 was successfully completed. Verification of domiciles for the session 2004 and 2005 were also successfully completed along with the verification of Higher Secondary school / F.Sc. certificates from the concerned educational boards for the session 2005.

(j) Recovery Of Outstanding Tuition Fee

It had been our experience that quite a few students do not pay the tuition fee in time, which creates problems at the time of final examinations. To avoid this scenario, a letter to all the defaulter students with a copy to their parents / guardians was sent well before the start of Final Examinations, advising them to pay the fee by May 17, 2006. The consistent and persistent efforts bore fruit and all the students cleared their outstanding dues.


Year Book 2005-06

Departmental Activities:

a. Textile Chemistry Department:

The Department has started working on the formation of “Society of Colourists and Finishers”. The objectives of this program is to bring all the technical persons working in this area at a platform so that the members of the Society could get benefits from one another’s experiences through discussion forum and net connectivity. The society also intends to start a Research Journal as “Journal of Textile Chemistry”. Initially its publication will be biannual. Later on once it gets enough a number of research articles, the number of issues will be increased to quarterly.

Development of a new instruction/ discussion room in the department has been created.

A lab scale padder has been donated by Kuster Germany; Kuster manufactures some of the latest padders in the world, which are installed in most of the recently commissioned textile processing mills in the country. This is a good addition in the Textile Chemistry Lab, which will make it possible for the students to better understand the padding principle patented by Kuster.

b. Yarn Manufacturing Department:

Eight pieces of modern yarn clearer from Rauf Electronic Equipment Services

has been received on May 30, 2006 as per their commitment at Textile Asia 2006 at Karachi. These will replace Old Model D-4 of 1990. Rauf Electronics is also providing technical support for installation.

The Deptt. has developed an automatic program on computer for generation of commercial testing reports in Textile Physical Lab.

Upgraded the standards of commercial testing services to meet the requirements of ISO 17025.

Three new offices have been added for the faculty members. Previously 2 to 3 teachers were sharing a single office, which was more interruptive and less productive.

c. Department of Applied Sciences:

Comprehensive repair work has been completed in the allied laboratories of Applied Sciences Department as mentioned below:

Repair of working tables and fixation of stainless steel sheets on the tabletops. Removal of wooden cupboards (completely eaten up by termite) and

preparation of new cupboards with concrete shelves. Upgradation of the chemical store, preparation of glassware and lab

apparatus. Fixation of new tube lights/removal of old wiring of electricity, water and gas

with new one. White washing/paint of complete lab and chemical store. Purchase of new equipments for mechanics, light & optics and

electromagnetism experiments were installed. New equipments were purchased (AC/DC Motor/Generator Trainer, Analog

and Digital meters, Dual Trace Oscilloscopes) Physics Labs were overall upgraded (False Ceiling, Exhaust Fans, Tube Lights

and Paint/White Washing). Drawing hall was renovated with new lights, false ceiling, tables and new

boards. Lab staff was inducted in the Physics, Chemistry and Mechanical labs


Year Book 2005-06

d. Fabric & Garment Manufacturing Departments

Twenty Seven new sewing machines and one vacuum table were bought and commissioned in the Garments Laboratory. This was in addition to the previously acquired 8 sewing machines. The cost of these machines was around Rs.1.3 million.

Twenty five new mannequins were added to the Garments Laboratory. This will facilitate the training of students for draping.

After going through clearance the air jet loom (omni plus), donated by Picanol of Belgium, for the Department. M/S Be Be Jan Fibers donated one beam of sized warp, which was loaded and drawn in. Nishat Chunian Textile Mills donated a profile reed for the Picanol. The arrival of this air jet loom is a good addition to the existing collection of machines in the Department. The students would benefit a great deal

Staubli of France donated another three pieces of equipment. These include; (i) Electronic Jacquard LX-1600,(ii) Knotting Machine with frame-TPMATIC TMP-20, (iii) Cam Motion 1781 for high speed weaving. The addition of this equipment will further enhance the training facilities for the students and technicians from the industry. The total value of the new equipment is around 4-5 million rupees.

New books/material were added to the resource center in the Fabric Manufacturing Department.

General

On the invitation of the City District Government, Faisalabad, the Vice Chancellor attended the meeting on Feb 22, 2006 under the chairmanship of the District Nazim, Faisalabad. The meeting was to select Project proposals for the Master Plan of Faisalabad. As discussed in the meeting, hard as well as soft copy of the presentation of the University along with Capital Development Projects, which was already been prepared for the University, were submitted to the City District Government, to be included in the Master Plan of Faisalabad. A copy of presentation and briefing on the University was also mailed to the President of Pakistan, the Chancellor of the University.

After a series of meetings, the cost estimates of 422.070 million rupees regarding Development Projects of the National Textile University were included in the Strategic Planning of the City District Government, Faisalabad.

The Vice-Chancellor attended the meeting of Federal Textile Board held on April 27, 20006 at Karachi Under the Chairmanship of Minister of Textile Industry. The agenda of the meeting was “Formulation of the Textile Policy”. The Board constituted a committee to develop recommendations related to the Textile Sector. On the request of the committee, he forwarded suggestions to develop recommendations for Human Resource Development.

The University participated in Textile Asia 2006 and IGATEX 2006 at Karachi. Miss E.H. Yeowart, Professional Affairs Director Textile Institute, Manchester,

UK visited the University on March 27th, 32006. She was shown the resources available that relate directly to the B.Sc. Textile Engineering Programmes of the University. The University submitted the required documents for the re –accreditation of our courses by the Textile Institute, Manchester, UK.

The launching ceremony of annual University Journal “Textech” was held on April 20th, 20006. A large number of ex-graduates from the industry and retired faculty also attended the function.

Research/Training Activities

A week long training Program(May 29th to June 2nd 2006) was conducted to train the Garments Faculty & Laboratory Staff on V-Stiticher and Accumark CAD software. The expert was bought in from Karachi.

A Symposium was organized by Spinning Society on February 2, 2006. Mr. Silvano Auciello from Loepfe, delivered lecture on their modern day yarn


Year Book 2005-06

clearers including functioning of yarn master” Zent”. Faculty Members as well as ex- graduates from industry attended the Seminar.

Another seminar was organized (Sponsored by Atlantic Business Enterprise, Karachi) by Spinning Society at National Textile University on May 05, 2006. Foreign representatives( Mr. Perceral De Lobet from Pinter Spain, Mr. Metheo Pozzi from italy and Mr. Micheal P. Viniconics from Argus Fire Control, USA), delivered lectures on their products such as yarn dying machine, yarn conditioning machines, yarn compacting machines, Iycra yarn attachment, slub formation and fire control systems.

Spinning Society organized an Uster Fiber Symposium (Sponsored by Rauf Electronic Equipments Services, Karachi) on June 05, 2006 at National Textile University. Mr. David Mcaliter from USA also delivered lecture on Uster AFIS and HVI.

The third session of Staubli training program commenced on November 16, 2005 for 41 technicians in multiple sessions. The course material and machine parts have arrived from France. Twenty-five technicians attended the course. This is the only program of its kind in the country and it has proved very successful.

Development Activities

An architect was hired for designing the new Garments laboratory and initial drawing/building designs were completed. Tenders were called.

High Speed 512 KB Internet link through wireless bridge is available to faculty and students since March 2006. With this high speed Internet link the HEC Digital Library can be hocked for 12000 scientific journals.

The Civil Works of the ground floor of new Computer Center completed by June 2006. Tenders for the procurement of HVAC system, Servers, Computers, Network Hardware and Software were floated in the Newspapers nationwide, interested parties submitted their technical and financial proposals.

A three members team of Pakistan National Accreditation Council visited the University on May 18-19, 2006 in connection with the final assessment of Textile Physical and Chemical laboratories for ISO 17025 accreditation,. The assessors submitted their report.

PEC accreditation for the Textile Engineering Programme. The reaccredidation of NTU with the PEC is under progress. A two members team from Pakistan Engineering Council visited the University on December 21, 2005 to verify the action taken by the University regarding the up gradation of labs and hiring of qualified faculty.

D) SYNTHETIC FIBRE DEVELOPMENT & APPLICATION CENTRE

Synthetic Fibre Development & Application Centre (SFDAC) was established in March 1994 by Federal Chemical & Ceramics Corporation Ltd. in collaboration with UNDP/UNIDO at Korangi Industrial Area Karachi, to help the industry especially in the promotion of export of value added textiles. Later in order to meet ECO and environmental parameters imposed by Germany and European Union on textile goods imported in these countries, an eco-textile laboratory was set-up at SFDAC thus broadening the scope of the Centre. The Centre provides services to industry in areas such as product and human resources development, quality control/testing of materials, evaluation and certification of textile products meant for export. Textile industry in Pakistan is one of the most important sectors of economic activity and has great socio-economic significance.

SFDAC is transferring latest technology to industry by updating technical know-how of personnel from industry by conducting training courses, workshops, seminars and conferences, as well as training courses for different durations are being conducted for students from colleges and universities on synthetic fibre and textile technology.

SFDAC has a total covered area of about 70,000 sq.ft and comprises ground, first and second floor. Total plot size area is about 4.0 acres. The building is equipped with necessary resources to carry out the needs of textile engineering courses and other practical demonstrations. The


Year Book 2005-06

building comprises of lecture rooms, conference room and industrial size textile spinning plant, polyester plant, eco-laboratories, textile physical laboratories, textile chemical laboratories, library, computer labs and recreation areas.

Major Departments of SFDAC

SFDAC has following major departments to run its operation.

1. Synthetic Fibre Department. 2. Textile Department. 3. Eco-Textile Laboratories. 4. Customer Services Department. 5. Utilities Department.

Synthetic Fibre Department

The department consists of Polyester Fibre Spinning Plant and Fibre, After Treatment/Stretching Plant. Polyester Fibre Spinning Plant consists of melt spinning equipment, which includes Crystallizer, Dryer, Extruder, Quench Chamber, and Take up Machine. The plant is semi-automatic configuration and can be used for different types of polyester fibres manufacturing. Fibre after Treatment/Stretching Plant consists of yarn stretching and staple fibre processing equipment.

Textile Department

Machinery installed in textile department is industrial size, state of art and manufacturing of yarn from synthetic fibres, cotton and their blends is possible along with weaving of fabric on latest shuttle-less loom.

Spinning department consists of two blow room lines, one line processes cotton fibre. The machine installed with blow room are similar to the machines installed in modern Pakistan textile spinning industry and consist of following industrial size machinery.

• Blending Openers • WRZ Cleaner • EL Cleaner • Vertical Opener • Sweep Jet Cleaner • Vertical Weighing Chute • Single Beater Blending Roller • Flock Feed

Second blow room line is capable of processing synthetic fibres. Special features of blow room are the unique blending system for blending natural and man made fibre through vertical weighing chute system. Open–end machine along with the Ring Frame is also available and the ring yarn produced is transformed in shape of cones on automatic winder. These cones are fed to the shuttle-less loom, which uses warp prepared by local mills.

Eco-Textile Laboratory

Eco-Textile Laboratories are the first of its kind in Pakistan at SFDAC. The labs are equipped with the state of the art equipment to make it compatible with the most prestigious labs of Europe. No other lab in the country besides Eco-Textile Laboratories at SFDAC has such a comprehensive range of testing facility under one roof. The labs are available for testing of not only azodyes but also many other hazardous chemicals used in textile and finishing processes.

Few of the most sophisticated equipment are Gas Chromatograph with Electron capture Flame Ionization & Mass Detector, HPLC System, Atomic Absorption Spectrophotometer, FT-IR, TLC


Year Book 2005-06

System and Laboratory Size Dyeing Printing & Finishing Equipment for the tests like Ary1 Amines.

SFDAC have general testing laboratories to fulfill the needs for quality evaluation of raw materials, intermediates and finished products.

Utilities Department

Utilities department of SFDAC consists of following sections:-

1. HVAC. 2. De-mineralized Water Plant. 3. Compressed Air & Boiler Room. 4. Stand-by Power Generation Station. 5. Fire Fighting Hydrants.


Year Book 2005-06

CHAPTER VII

ANNEXURES


Year Book 2005-06


Year Book 2005-06

ANNEXURE-A

FACTORY-WISE SUMMARY OF PREMIUM PAID ON CLEAN PHUTTI AS ON

08-04-2006 (2005-06 SEASON) An amount of Rs.3,029,503/- has been paid as premium to growers/suppliers against 60,590 maunds of certified clean phutti to the selected ginning factories and the detail of which is mentioned below:-

A SINDH

PAYMENT MADE

S# NAME OF FACTORY STATION WEIGHT (IN

MAUNDS) AMOUNT (RS.)

1 M/S SHAHANSHAH C/G KHP 2,631 131,550 B

PUNJAB 1 M/S BISMILLAH C/G FTY BWP 12,580 629,013 2 M/S.MIAN & CO. C/G,/FTY VHR 22,580 1,128,996

3 MIS. ROOMI C/G/MILL NO.2 MXC 2,632 131,600

4 MIS. LOOHI C/G/INO SJB 1,017.87 50,894

5 MIS. TAREEN C/FTY LON 15,126 756,300

6 MIS. ZAIN C/FTY LON 4,023 201,150

TOTAL:- 57,959.15 2,897,953

TOTAL A+B 60,590 3,029,503


Year Book 2005-06

ANNEXURE-B

COMPOSITION OF THE FEDERAL TEXTILE BOARD:

GOVERNMENT NOMINEES

1. Minister for Textile Industry Chairman 2. Secretary, Ministry of Textile Industry Member 3. Secretary, M/o Industries, Production & Special Initiatives Member 4. Secretary, Ministry of Food, Agriculture & Livestock Member 5 Secretary/Addl. Secretary, Ministry of Finance Member 6. Secretary/Addl.Secretary, Ministry of Commerce Member 7. Representative of Chairman, Central Board of Revenue Member 8. Chairman, Export Promotion Bureau, Karachi Member 9. Representative of Governor, State Bank of Pakistan Member 10. Textile Commissioner, TCO, Karachi Member/Secretary

PRIVATE SECTOR NOMINEES

11. Mr.Siddique Akbar Bokhari, Representative of Growers Member 12. Mr.Mian Muhammad Latif,CEO,M/s Chenab Fabric,Faisalabad

(Representative of Textile Mills) Member

13. Mr.Iqbal Ibrahim,Director,M/s Al Karam Textile Mills,Khi (Representative of Textile Mills)

Member

14. Mr.Anjum Saleem,CE,M/s Crescent Ujala Mills,Faislabad (Representative of Textile Mills)

Member

15 Mr.Gohar Ejaz,CEO,M/s Ejaz Spiining Mills,Lahore (Representative of Textile Mills)

Member

16. Mr.Shafquat Elahi,CE,Ellcot Spinning Mills Ltd,Lahore (Representative of Textile Mills)

Member

17. Mr.Javed Siddiqui,CE,M/s ICC Textile Mills Ltd,Lahore (Representative of Textile Mills)

Member

18. Mr.Abdul Razak Teli,Chairman,M/s Nakhsbandi Industries Ltd,Khi (Representative of Home Textile Manufacturers)

Member

19 Mr.Muhammad Ismail Khurram,CEO,M/s Comforts Knitwear Ltd, Lhr (Representative of Hosiery & Knitwear Manufacturers)

Member

20. Mr.Aziz Memon,Chairman,M/s Kings Apparel Ltd, Karachi (Representative of Garments Manufacturers)

Member

21. Mr.G.R.Arshad,Chairman,M/s Rauf Textile Printing Mills,Khi (Representative of Textile Processing Mills)

Member

22. Mr.A.Majeed,Chairman,M/s Associated Textile Consultants,Khi (Representative of Textile Machinery Manufacturers)

Member

23. Kh.Azam Roomi,CE, M/s Roomi Cotton Factory (Representative of Ginners)

Member

24. Rana Ikhlaq Ahmed,CE, M/s Mubark Textile, Faisalabad (Representative of Power Loomers)

Member

25. Mr.Qasim Shah, CE, M/s Rainbow Industries, Multan (Representative of Bedwear & Upholstery)

Member


Year Book 2005-06

ANNEXURE-C

STRUCTURE OF TEXTILE INDUSTRY

TEXTILE COMMISSIONER ORGANIZATION (JULY 2006)

LARGE MILL SECTOR S# SUB SECTOR NO. OF UNITS SIZE PRODUCTION 1 Spinning Units 458 a) 10.906 M Spindles

b) 202356 (Rotors) 2290 Million Kgs.

2 Composite Units 50 10416 Looms 925 Million Sq. Ft. 3 Independent Weaving

Units 150 27500 Shuttle Less

Looms -Do-

4 Finishing Units 115 - - 5 Garments Units 800 - -

SMALL & MEDIUM-SCALE SECTOR 1 Independents Weaving

Units 425 50000 Looms -

Power Looms (Conventional)

- 245442 Looms 6192 (Million Sq. Meters)

2

Total:- - 295442 Looms

7117

3 Finishing 635 - 4600 Million Sq. Meters

* Include Large/small scale independent weaving units & Power Loom sector. ** Include Large/small scale sector.

S# SUB SECTOR NO. OF UNITS SIZE PRODUCTION 4 Terry Towels 800 10000 Looms (700

Shuttle less) 160.00 Million Kgs.

5 Canvas - 2000

300000 (industrial) 35 Million Kgs.

6 Garments 5000 450000(Domestic) (Sewing Machine)

56 Million Dozen

7 Knitwear 1200 18000 (Knitting Machine)

80.0 Million Dozen


Year Book 2005-06

Q4 .

Q3 .

Q2 . 20

06-0

7

Q1 .

Rem

arks

Mee

tings

w

ith

stak

ehol

ders

ar

e be

ing

held

re

gula

rly

and

feed

back

bei

ng c

ompi

led

for f

orm

ulat

ion

of th

e Te

xtile

Pol

icy.

In

ord

er to

mee

t the

non

-ava

ilabi

lity

of te

chni

cal e

xper

tise

in

the

Min

istry

, th

e Pr

ime

Min

iste

r ha

s on

18th

Feb

ruar

y, 2

006

orde

red

that

an

R&

D c

ell b

e cr

eate

d in

the

Min

istry

man

ned

by

MB

As.

Prop

osal

has

bee

n se

nt t

o M

inis

try o

f Fi

nanc

e on

6th

Febr

uary

200

6 in

thi

s re

gard

. A

n in

tern

atio

nal

cons

ulta

nt i

s al

so b

eing

eng

aged

, w

ith t

he c

olla

bora

tion

of U

ND

P. H

is

tech

nica

l exp

ertis

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ill b

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p in

form

ulat

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the

polic

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All

the

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ets

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non

-res

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of th

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of h

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ver

of r

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550

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as

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G

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Sind

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2nd

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brua

ry 2

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in w

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as b

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that

the

Text

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City

will

be

mad

e on

125

0 ac

res

of la

nd a

s al

read

y ap

prov

ed

by th

e Fe

dera

l Gov

ernm

ent.

Pres

enta

tion

to th

e Pr

ime

Min

iste

r w

as g

iven

on

14th F

ebru

ary

2006

whe

re t

he P

rime

Min

iste

r di

rect

ed (c

opy

of m

inut

es a

ttach

ed) t

hat P

QA

shou

ld h

and

over

th

e po

sses

sion

of

bala

nce

550

acre

s of

land

to P

TCL

and

the

PTC

L sh

ould

star

t the

dev

elop

men

t wor

k im

med

iate

ly.

Com

p.

Stat

us

No

No

No

No

Yes

No

No

No

No

Q4 .

.

Q3 .

.

Q2 .

.

2005

-06

Q1 .

.

Goa

ls/T

arge

ts

Form

ulat

ion

of T

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e Po

licy

Fina

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of d

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pro

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ls

Com

plet

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of In

ter-

Min

iste

rial

C

onsu

ltatio

ns o

n dr

aft p

ropo

sals

Subm

issi

on o

f Pol

icy

for

appr

oval

of

Cab

inet

. Im

plem

enta

tion

of P

olic

y

Sett

ing

up o

f Pak

ista

n T

extil

e C

ity

Kar

achi

.

Fina

lizat

ion

of M

aste

r Pl

an

Gro

und

brea

king

& st

art o

f de

velo

pmen

t wor

k

Invi

tatio

n of

app

licat

ions

for

allo

tmen

t of p

lots

.

Fina

lizat

ion

of A

llotm

ent o

f plo

ts

Com

men

cem

ent o

f Dev

elop

men

t k

AN

NE

XU

RE

D

M

INIS

TR

Y O

F T

EX

TIL

E IN

DU

STR

Y

GO

AL

S A

ND

TA

RG

ET

S JU

LY

200

5-JU

NE

200

6

S#

G-I

T-I

T-2

T-3

T-4

G-II

T-I

T-2

T-3

T-4

T-5


Year Book 2005-06

Q4 .

Q3

.

Q2

.

2006

-07

Q1

.

Rem

arks

Com

pany

in

corp

orat

ed

with

SE

CP

on

15th

Nov

embe

r 200

5. It

has

bee

n de

cide

d by

the

Prim

e M

inis

ter

in t

he 1

4th F

ebru

ary

2006

mee

ting

that

th

e ci

ty w

ill b

e lo

cate

d on

300

acr

es o

f Si

ndh

Gov

ernm

ent

land

co

ntig

uous

to

th

e Pa

kist

an

Text

ile

City

be

ing

built

on

PQ

A

land

. A

chie

vem

ent

of t

he t

arge

ts i

s co

nseq

uent

upo

n av

aila

bilit

y of

lan

d to

the

pro

ject

. R

eque

st h

as

been

m

ade

to

the

EDF

Boa

rd

for

appr

ovin

g R

s.300

mill

ion

fro

cost

of

land

to

be p

aid

to th

e Si

ndh

Gov

ernm

ent.

Sinc

e ED

F is

not

fund

ing

this

pr

ojec

t an

y m

ore,

PC

-I

is

bein

g m

ade

for

obta

inin

g ba

lanc

e fu

nds t

hrou

gh P

SDP.

Con

sulta

nt a

ppoi

nted

. G

roun

dbre

akin

g ce

rem

ony

will

be

held

sho

rtly.

ED

F af

ter

givi

ng R

s.103

m

illio

n fo

r th

is p

roje

ct h

as s

topp

ed a

ny m

ore

fund

ing.

PC

-I w

as s

ubm

itted

to th

e Pl

anni

ng a

nd

Dev

elop

men

t D

ivis

ion

for

obta

inin

g fu

nds

thro

ugh

PSD

P. T

he C

DW

P ha

s ap

prov

ed th

e PC

-I

of R

s.497

mill

ion

for t

his

proj

ect o

n 25

th F

ebru

ary

2006

.

Rs.

150

mill

ion

allo

cate

d as

loa

n un

der

PSD

P fo

r th

e co

nstru

ctio

n of

bui

ldin

g du

ring

the

curr

ent y

ear.

Com

pany

in

corp

orat

ed

with

SE

CP

on

27-0

1-20

06. 3

6.4

acre

s of

lan

d id

entif

ied

in F

aisa

laba

d In

dust

rial

Esta

te

Dev

elop

men

t &

M

anag

emen

t C

ompa

ny (

FIED

MC

). R

s.86

mill

ion

has

been

ap

prov

ed b

y ED

F B

oard

for d

evel

opm

ent t

owar

ds

cost

of l

and.

Bal

ance

fund

ing

for d

evel

opm

ent e

tc.

will

hav

e to

be

obta

ined

thro

ugh

PSD

P. P

C-I

has

be

en s

ubm

itted

to P

&D

Div

isio

n fo

r ap

prov

al b

y C

DW

P. B

ank

acco

unt

in t

he n

ame

of C

ompa

ny

open

ed.

Com

p.

Stat

us

Yes

No

Q4

.

Q3

Q2

2005

-06

Q1

.

Goa

ls/T

arge

ts

Sett

ing

up o

f Kar

achi

Gar

men

t City

Com

pany

Acq

uisi

tion

of la

nd, a

ppoi

ntm

ent o

f con

sulta

nt,

prep

arat

ion

of p

lan

and

com

men

cem

ent o

f de

velo

pmen

t wor

k Su

bjec

t to

fund

ing

by E

DF.

Sett

ing

up o

f Lah

ore

Gar

men

t City

Com

pany

Sett

ing

up o

f Lah

ore

Gar

men

t City

Com

pany

Sett

ing

up o

f Fai

sala

bad

Gar

men

t City

Com

pany

Sett

ing

up o

f Fai

sala

bad

Gar

men

t City

Com

pany

AN

NE

XU

RE

D

M

INIS

TR

Y O

F T

EX

TIL

E IN

DU

STR

Y

GO

AL

S A

ND

TA

RG

ET

S JU

LY

200

5-JU

NE

200

6

S#

G-I

II

T-I

G-I

V

T-1

T-2

G-V


Year Book 2005-06

Q4

.

. .

Q3

.

.

.

Q2

.

.

.

2006

-07

Q1

.

.

Rem

arks

Com

pany

inc

orpo

rate

d w

ith S

ECP

on 2

7-01

-06.

36

.4

acre

s of

la

nd

iden

tifie

d I

Fais

alab

ad

Indu

stria

l Es

tate

, D

evel

opm

ent

and

Man

agem

ent

Com

pany

(FI

EDM

C).

Rs.8

9 m

illio

n ha

s be

en

appr

oved

by

EDF

Boa

rd fo

r pay

men

t tow

ards

cos

t of

land

. Bal

ance

fund

ing

for d

evel

opm

ent e

tc. w

ill

have

to b

e ob

tain

ed th

roug

h PS

DP

on s

ubm

issi

on

of P

C-I

, whi

ch is

und

er p

repa

ratio

n.

The

cam

paig

n w

as la

unch

ed in

Dec

embe

r of

last

ye

ar a

fter

appr

oval

of

Rs.3

5 m

illio

n by

the

Prim

e M

inis

ter

for

paym

ent

as p

rem

ium

to

grow

ers.

117,

018

mds

of p

hutti

was

bro

ught

to th

e se

lect

ed

ginn

ing

fact

orie

s ou

t of

whi

ch 7

4,43

4 m

ds w

as

foun

d to

be

of g

rade

II

and

clea

n.A

n am

ount

of

Rs.2

.58

mill

ion

@ R

s. 50

per

mau

nd a

s pr

emiu

m

to g

row

ers

has

been

pai

d up

to 2

8th F

ebru

ary,

20

06.A

lmos

t 5,

000

bale

s of

gin

ned

cotto

n w

ere

prod

uced

fro

m s

uch

phut

ti ha

ving

con

tam

inat

ion

less

tha

n 2.

5 gm

s pe

r ba

le a

nd g

rade

II.

The

ginn

ers

have

rec

eive

d, o

n an

ave

rage

Rs.6

0 pe

r m

d m

ore

than

the

mar

ket

pric

e on

the

se b

ales

. Fe

edba

ck

from

th

e fo

ur

text

ile

mill

s w

ho

purc

hase

d th

ese

bale

s is a

lso

very

pos

itive

.

A m

ajor

exh

ibiti

on “

Text

ile A

sia

2006

” sp

onso

red

by M

inis

try o

f Te

xtile

Ind

ustry

was

hel

d at

Exp

o C

entre

Kar

achi

fro

m 1

8th t

o 21

st M

arch

200

6.

Inte

rnat

iona

l te

xtile

m

achi

nery

m

anuf

actu

rers

pa

rtici

pate

d.

Man

y bu

sine

ss d

eals

wer

e fin

aliz

ed

stra

tegi

c pa

rtner

ship

s de

velo

ped

betw

een

loca

l bu

sine

ssm

en a

nd t

heir

inte

rnat

iona

l co

unte

rpar

ts.

It w

ill a

lso

show

cas

e Pa

kist

an a

s a

prim

e pl

ace

for i

nves

ting

in te

xtile

sect

or.

Com

p.

Stat

us

Yes

Yes

Yes

Yes

Yes

Yes

Q4

.

Q3

. . .

Q2

. . .

2005

-06

Q1 . . .

Goa

ls/T

arge

ts

Inco

rpor

atio

n w

ith S

EC

P

Acq

uisi

tion

of la

nd

App

oint

men

t of

con

sulta

nt a

nd p

repa

ratio

n of

pl

an,

com

men

cem

ent

of

appl

icat

ions

fo

r al

lotm

ent o

f plo

t sub

ject

to fu

ndin

g by

ED

F.

Cam

paig

n fo

r pr

oduc

tion

of c

lean

cot

ton

Fina

lizat

ion

of r

ecom

men

datio

n

App

rova

l of h

e sc

hem

e by

EC

C

Aw

aren

ess

cam

paig

n th

roug

h m

edia

an

d im

plem

enta

tion

of th

e sc

hem

e

Mon

itori

ng/a

djus

tmen

ts in

sche

me.

Ava

ilabi

lity

of T

extil

e M

achi

nery

Fina

lizat

ion

of r

ecom

men

datio

n

Con

tact

ing

the

supp

liers

for

join

t ven

ture

s

Fina

lizat

ion

of jo

int v

entu

re p

ropo

sals

AN

NE

XU

RE

D

M

INIS

TR

Y O

F T

EX

TIL

E IN

DU

STR

Y

GO

AL

S A

ND

TA

RG

ET

S JU

LY

200

5-JU

NE

200

6

S#

T-1

T-2

T-3

G-V

I

T-1

T-2

T-3

T-4

G-V

II

T-1

T-2

T-3


Year Book 2005-06


Q4

Q3

Q2

2006

-07

Q1

.

Rem

arks

Net

wor

king

in

th

e M

inis

try

done

. EG

D

has

prov

ided

co

mpu

ters

. Se

ver

Roo

m

esta

blis

hed.

N

etw

ork

Adm

inis

trato

r ap

poin

ted

by

EGD

. W

ebsi

te o

f the

Min

istry

has

bee

n la

unch

ed.

Trai

ning

of o

ffic

ers/

staf

f of t

he M

inis

try h

as b

een

plan

ned

in c

olla

bora

tion

with

Pak

ista

n C

ompu

ter

Bur

eau

and

will

be

star

ting

soon

. Min

istry

will

be

intra

link

ed a

fter t

he e

stab

lishm

ent o

f cen

tral d

ata

cent

re b

y N

TC a

nd ly

ing

of fi

ber o

ptic

wire

.

Com

p.

Stat

us

Q4

Q3

.

Q2

.

2005

-06

Q1 .

Goa

ls/T

arge

ts

E G

over

nanc

e

Impl

emen

tatio

n of

E-G

ovt

stra

tegy

and

5 y

ear

plan

for

the

Fe

dera

l Gov

ernm

ent i

n co

llabo

ratio

n w

ith E

-Gov

t Dir

ecto

rate

Prep

arat

ion

of W

eb-s

ite

Tra

inin

g of

sta

ff i

n co

llabo

ratio

n w

ith P

akis

tan

Com

pute

r B

urea

u

AN

NE

XU

RE

D

M

INIS

TR

Y O

F T

EX

TIL

E IN

DU

STR

Y

GO

AL

S A

ND

TA

RG

ET

S JU

LY

200

5-JU

NE

200

6

S#

G-V

III

T-1

T-2

T-3

Year Book 2005-06

Ministry of Textile Industry