Chairman Conference May 2004

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• Chairman Conference May - 2004
• Presentation by Textile Commissioners
  Organization

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ROLE OFTEXTILE COMMISSIONERS ORGANISATION (TCO)

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ROLE OF TCO

• HISTORICAL
• Existed prior to Independence as an Attached
  Department
• Raised to level of Textile Advisor(1961)
• Sanctioning of Textile Projects (CIPC)
• Identification of Policy Issues and Textile
  Policy Formulation
• Data base
• Present
• Textile Policy Input to Govt.
• Facilitation to Textile Industry
• Co-ordination with National International
  Bodies
• Source of Textile Statistics
• Secretariat of Textile Board
• Textile Cess Collection
• Liaising with State Bank DFIs CIRC CBR
  EPB PCCC PCSI other
• Surveys capacity cost productivity.

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ROLE OF TEXTILE COMMISSIONER ORGANIASATION

• MONITORS THE MOVES IN THE TEXTILE INDUSTRY
  LOCALLY AND INTERNATIONALLY.
• GATHERS STATISTICAL DATA.
• ACCURATELY GRASP THE PROBLEMS AND DIFFICULTIES
  OF THE INDUSTRY AND DRAW UP APPROPRIATE POLICY
  MEASURES TO SOLVE THEM.
• DRAFTS NEW LAWS AND REGULATIONS FOLLOWS THE
  PROGRESS OF THEIR ENFORCEMENT AND EXECUTION..
• MONITORS THE PROCESS OF PERMEATION OF POLICIES
  AND APPRAISES THE EFFECTS OF POLICIES.
• DETERMINES THE INTERACTION WITHIN DIFFERENT
  SUB-SECTORS OF TEXTILE INDUSTRY EVALUATES THE
  PROPOSALS MADE BY DIFFERENT SUB-SECTORS TO EVOLVE
  A CONSENSUS IN LINE WITH NATIONAL PRIORITIES.

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MAJOR FUNCTIONS OF TEXTILE COMMISSIONERS
ORGANISATION

• Implementation of Industrial Development
  Policies,laid by Government for Textile Sector.
• Monitoring of Investment / Development of all
  sub-sectors of Textile Industry through D.F.I.s
  Joint Ventures Foreign Private Investment
  Suppliers Credit P.A.Y.E and N.R.I. Scheme.
• To review the production and export performance
  of the Textile Industry and suggest Policy
  Measures to improve competitiveness of the
  industry.
• Contd.

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• Functions Contd
• Identification of the areas of Government
  assistance/policies support for smooth
  functioning of industry and suggest changes in
  import status tariff and taxation incentives.
• Collection and compilation of statistical Data,
  analysis and reports regarding specific sub
  sector on Textile Industry.
• Collection of Textile Cess for National
  University of Textile Engineering, Faisalabad.
• Surveys (Capacity Cost - Productivity).
• Secretariat of Federal Textile Board
• Export parity cost analysis on principle export
  item.

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TEXTILE INDUSTRYSPREAD AND INTERACTION

• SUB SECTORS
  25
• TRADE ASSNS
  30
• GOVT SUPPORT INSTITUTIONS 13
• BANKS/DFIs/LEASING COMPANIES 30
• LABS
  06
• TRAINING INSTITUTIONS 20
  

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TEXTILE COMMISSIONERS ORGANISATION INTERACTION
ON TEXTILE POLICY
Export Competitiveness Export Promotion Export
Regulation
Local Market Price Stabilisation Competitiveness
against Import Tariff Protection
MARKETING
Labour Policy
Quality Productivity Standardisation
Training R D Production Cotton Policy Man Made
Fibres Other Raw Materials
Investment Policy Appropriate Technology
T.C.O.
Machinery Imports
Financing Policy
Taxation/Exemption Import Excise Sales Tax
Income Tax Others
Tax Reliefs Incentives
Investment Schemes
Sub Sectoral Conflicts Local Demand Export
Demand Threats from Cheap Supplies
Infra-structure Dispersiont
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TEXTILE POLICY FORMULATION
DECISION MAKING PROCESS
TECHNO-ECONOMIC RECC AS POLICY TOOL WITHIN OVER
ALL EXONOMIC POLICY FRAME WORK

• IINTERNATIONAL BODIES
• RRELATED GOVT.DEPTS.
• IINTERNATINAL CONSULTANTS

T.C.O
VISIONARIES INDICIDUALS TRADE ASSNS.
INPUTS
CONCEPT BUILDING

• TRADE ASPECTS.
• QUALITY \ PRODUCTIVITY
• SKILLS DEV

• Capacity Surveys.
• Cost Surveys
• Statistics

Supports Activities

• Standardization
• Sectoral conflicts
• Financial Fiscal Matter

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TEXTILE COMMISSIONERS ORGANISATION
Head Office Strength 48 Head Office
Budget Rs.5.239 Million. Regional Office
Strength 04. Regional Office Budget
Rs.0.478 Million
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(Rs. Million)Total Collection
95.06 Disbursement to College 88.78
Collection Charges 3.97 Miscellaneous
Exp. 0.45 Recovery Percentage about 90
Textiles Cess Performance
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Work Done July - 03 to April - 04

• Meetings of Task Force on compliance issues.
• Meetings of Task Force on Textile Engineering.
• Meetings of Working Committees on Financial
  Facilitation.
• Visit to Shangaitex 03.
• Meetings with Stakeholders utility Companies
  Shareholders of Govt.Deptts. For setting up of
  Textile City.
• Conducted delegation from China National Textile
  Council.
• Meetings on-
• Polyester Chain
• Yarn crisis
• Export Targets
• Cotton Policy
• Cotton Assessment Committee
• Co-ordination Meeting on Cost Survey
• Textile Cess collection Rs.4.35 Million
• To review meetings on recovery from cess
  defaulters with APTMA/ woolen Mills/Jute Mills
  Association.
• Textile statistics up to December -03
• Projected requirement of Textile Engineering by
  2010
• Development of Higher Education.

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TEXTILE CITY KARACHIEXECUTIVE SUMMERY

• Recommendation of Textile Vision 2005.
• Cabinet decision in Trade Policy 2003 04.
• Consultations with stake holders since September
  onwards.
• Public/Private Joint Stock Company formed.
• Commitments from PQA,KWSB,SSGC,PTCL,ADB, Fauji
  Foundation received.
• PQA, EPZA, PIDC, Steel Mills, NBP,PAK OMAN, PAK
  KUWAIT,SAUDI PAK PAK LIBYA Investment Companies
  have consented to become share holders.
• Share Holders Agreement, Articles Memorandum of
  Association for Joint Stock Company Completed.
• Draft Incentive Package amendments in EPZA
  Regulations circulated.
• NESPAK PAK OMAN have firmed up Project Cost.
• Financial/Business Models developed by PAK OMAN
  for share holders consent.
• Profile for the CEO of the Textile City Project
  proposed.
• First meeting of Board of Directors convened on
  17th April

PROJCT ON TEXTILE CITY MINISTRY OF
INDUSTRIES
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PROJCT ON TEXTILE CITY MINISTRY OF
INDUSTRIES
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PROJCT ON TEXTILE CITY MINISTRY OF
INDUSTRIES
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PROJCT ON TEXTILE CITY MINISTRY OF
INDUSTRIES
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(No Transcript)
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FEDERAL TEXTILE BOARD Responsibilities of
F.T.B. Implementation Monitoring of Textile
Policy Co-ordination Between Public / Private
Sector Technology up-gradation Need
Analysis Training Need Analysis Marketing
of Textile Products Promotion of Foreign
Investment Formulating Textile Quality
Standards Compilation Analysis of Textile
Statistics Business Advisory Services
Textile Vision 2005
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Textile Vision 2005
Implementation StatusCotton Policy

• Free import Export policy
• M. E. P for Phutti Lint fixed in consultation
  with stakeholders
• Measures initiated for control on cotton
  contamination
• Quality standards adopted rates quoted on P C S
  I Standards
• Amendments made in Cotton Standardization Act.

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Textile Vision 2005
Implementation status

• Pakistan Cotton Standards Ordinance 2002
  Promulgated
• PCSI being Reorganized
• Modernization of Ginning Units Initiated by
  SMEDA / French consultant.
• Ginning Standards
• Work on Ginning Standards in Progress
• Sept 2004 set as deadline for modernizing
  application of Ginning Standards. No
  License will be issued thereafter

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Textile Vision 2005Fiscal and Finance Policy

• Repayments of rebates under SRO 417/611 made on
  faster track.
• Duty concessions on textile machinery under SRO
  369 resolved.
• Tariff on textile products being rationalized.
• Duty on synthetic fibers not produced locally
  reduced
• Compensatory Rebates on synthetic textiles
  allowed wef March 1, 2002.
• Export Refinance markup rate reduced to 3.5
• Bank Financing for Textile Sectors available as
  per annual targets fixed under Textile Vision 2005

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Trade Policy and Market Access

• Textile Quota Policy announced for three years
• Enhanced market access in EU USA negotiated.
• Free Import/Export Policy Maintained.
• For resolving the compliance issues a Task Force
  has been constituted. The draft amendment bill
  has been prepared by Ministry of Labor
  Manpower.
• A Task Force on Textile Engg. Industry has been
  constituted to promote local machinery
  manufacturing.
• Two Textile Cities Three Garment Cities are
  being established to give boost to production
  export of Textile Products.

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INVESTMENT IN TEXTILE
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SHIFT TOWARDS VALUE ADDITION ( in textile
exports)
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Export Performance Comparison ( million)
BACK
Highlights of the last three years of textile
exports
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FUTURE COURSE

• Textile Board to resume
• Co-ordinate all Govt. related affairs of the
  Textile Sector.
• Monitor the Policy implementation.
• Implement Recommendations on skill-development ,
  quality and productivity improvement.
• Initiating of cost survey to determine
  competitiveness of Textile Industry vrs its
  regional competitors.
• Facilitations For Technology Upgradation Of
  Weaving-Processing and Made-up sectors.
• Strengthen Skill Development Programmes.
• Introduction of Cleaner Production concepts.

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PAKISTAN TEXTILE INDUSTRY FUTURE PROGRAMMES

• Technological up-gradation.
• Strengthening raw material base (Cotton
  Synthetic wool).
• Policy focus to be product specific and
  achievement specific.
• Incentives need to be linked with value addition
  market expansion improvement in Quality
  Productivity levels.
• Priority Investment in Dyes/ Chemicals Textile
  Machinery to reduce capital cost and improve
  competitiveness.
• Increased share of synthetic Textile in
  production exports.
• Domestic resource sourcing with Textile Machinery
  chemical Industries will further enhance
  multiplier effect of Textile Sector growth.
• Firm level RD need to be encouraged through tax
  incentive for up-gradation of product quality and
  productivity.
• Integrated Human Resources Development.

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NEEDED SUPPORTS

• Strengthen T.C.O through induction of
  professionals in Engineering - Marketing
  Finance and Information Technology.
• Provide Legal framework to Federal Textile Board
  (FTB) for its defined role.
• Provide of Adequate Funds for FTB Secretariate.

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Thank you
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CAPITAL
High investment low profit yields.
Lack of Training No Skills Development. Low
Labour production
HUMAN RESOUCES
UNDER UTILIZATION
RAW MATERIALS
Too Cheap hence under Selling.
MACHINERY
Low Machinery Productivity
QUOTA
Low Unit price realization.

• Low Value Addition.
• Always under threat of catching up
• Low Export Earnings.
• Bad Name( Cheap Merchandiser.)

RESULTS

• Up grade the Products Quality (Value Addition).
• Up grade Skill Levels.
• Up grade Marketing Techniques
• Up grade Productivity.

STRATEBY