Presentation By Textile Commissioner’S Organization

Chairman Conference May - 2004

Presentation by Textile Commissioner’s Organization

ROLE OFTEXTILE COMMISSIONER’S

ORGANISATION (TCO)

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 &

otherSurvey’s – capacity – cost productivity.

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.

MAJOR FUNCTIONS OF TEXTILE COMMISSIONER’S 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….

• 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 BoardExport parity cost analysis on principle export

item.

TEXTILE INDUSTRYSPREAD AND INTERACTION

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

TEXTILE COMMISSIONER’S ORGANISATIONINTERACTION ON TEXTILE POLICY

Export CompetitivenessExport PromotionExport Regulation

Local MarketPrice Stabilisation

Competitiveness against Import

Tariff Protection

MARKETINGLabour Policy

QualityProductivityStandardisation

Investment PolicyAppropriate Technology

T.C.O.

TrainingR & D

ProductionCotton Policy

Man Made FibresOther Raw Materials

Machinery Imports

Financing Policy

Tax Reliefs& Incentives

Investment Schemes

Taxation/ExemptionImport + Excise +

Sales Tax + Income Tax + Others

Sub Sectoral ConflictsLocal Demand

Export DemandThreats from Cheap

Supplies

Infra-structureDispersiont

TEXTILE POLICY FORMULATION

DECISION MAKING PROCESS

TECHNO-ECONOMIC RECC AS POLICY TOOL WITHIN OVER ALL EXONOMIC

POLICY FRAME WORK

T.C.O

Supports Activities

•Standardization•Sectoral conflicts•Financial & Fiscal Matter

INPUTSCONCEPTBUILDING

•TRADE ASPECTS.

•QUALITY \ PRODUCTIVITY

•SKILLS DEV

•Capacity Surveys.

•Cost Surveys

•Statistics

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

VISIONARIESINDICIDUALSTRADE ASSNS.

TEXTILE COMMISSIONER’S ORGANISATION

TEXTILE COMMIISSIONER

DIRECTOR (TEXTILES)

DY DIRECTOR-I DY DIRECTOR-II ASSTT DIRECTOR(FSB R.O)

ASSTT DIRECTOR DY ASSTT DIR DY ASSTT DIR DY ASSTT DIR

DY ASSTT DIR

Head Office Strength: 48 Head Office Budget: Rs.5.239 Million.Regional Office Strength: 04. Regional Office Budget: Rs.0.478 Million

(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 PerformanceTextiles Cess Performance

• 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.

Work Done July - 03 to April - 04

TEXTILE CITY KARACHI

EXECUTIVE 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

SYNOPSIS OF TEXTILE CITY Exclusive Production Area with Excellent infrastructure. 35 large scale units ( 15 unit of woven Textile – 10 units

of knitwear and 10 units of Towels/specialized Textile). 1250 Acres of land. Industrial water –25 MGD per day. Natural Gas 1.5 Million Cubic meters per day. 100 Megawatts Power Project. Effluent Treatment Plant. Compliant to social – health and environment standards.


Expectations of Enterpreneures Land with infrastructure ( Water + Gas + Sewerage + Effluent

Treatment + Compliance to WTO rules) Investment in Pak Rupees. Custom duty exemption on import of:

Machinery + spare parts. Raw material.

No labour levies and No howling by labour Deptt. No taxes at production stage No duty - No draw back. Refund claim of local Taxes ( S. taxes + excise + others) on

raw cotton + yarn –fabrics (grey) procured from Non Zone area.


ECONOMIC BENIFITS (10 UNITS – FIRST PHASE)

Private Investments : Rs. 12.5 Billions Production : 400 Tons / day Exports : US$ 2.188 billion /annum. Value Additions : US$ 2.00 billion /annum. New Jobs ( direct ) : 80,000 Spiral Impact :

Additional Demand for yarn / cloth / cotton. Demand for additional capacity. Enhanced Trade Activity . Movement of good and transport activities.


PROGRESS OFTEXTILE BOARD

• FEDERAL TEXTILE BOARDResponsibilities 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 2005Textile Vision 2005

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.

Implementation StatusCotton Policy


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


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

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.

INVESTMENT IN TEXTILE

Total investment = 4.0Billion $

(Last 4 Years)

Spinning 47.0 %

Weaving 26.3 %

Textile Processing 10.5 %

Knitwear +Garments 4.8 %

Made Ups 7.7%

Synthetic Textiles 5.2%

SHIFT TOWARDS VALUE ADDITION ( % in textile exports)

23%

48%

17%

12%

7%

56%

14%

23%

1%

49%

22%

28%

2%

46%

23%

29%

2%

45%

24%

29%

0.32%

43%

27%

30%

0.32%

42%

28%

30%

1982-83 1992-93 1998-99 1999-00 2000-01 2001-02 2002-03

Raw Material Primary Textiles Textile Made-ups Garments

Export Performance Comparison ($ million)

BACK

1999-2000 2000-01 2001-02 2002-03 2003-04-Pro

Actual Exports

5,741 5,943 5973 7,409 7,903

Growth Rate 12.48% 3.34% 0.5% 23% 6.67%

Target Low Road

5,402 5,720 6,059 6,423 6,811

Target Doable

5,702 6,369 7,117 7,955 9,501

Target High Road

5,909 6,852 7,956 9,254 10,782

% low Road Realized

106% 104% 99% 115% 116%

%Doable Realized

101% 93% 84% 93% 83%

% High Road Realized

97% 87% 75% 80% 73%

Highlights of the last three years of textile exports:

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.

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 R&D need to be encouraged through tax incentive for up-gradation of product quality and productivity.

• Integrated Human Resources Development.

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.

CAPITAL

HUMAN

RESOUCES

RAW

MATERIALS

MACHINERY

QUOTA

UNDER UTILIZATION

High investment & low profit yields.

Lack of Training No Skills

Development.

Low Labour production

Too Cheap & hence under Selling.

Low Machinery Productivity

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

Presentation By Textile Commissioner’S Organization

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Transcript of Presentation By Textile Commissioner’S Organization