The Federal Minister for Industries and Production, Liaqat Ali Khan Jatai, according to a report, discussed the issue at a meeting with the officials of the National Productivity Organisation the other day.
The initiative is undoubtedly a timely one from the National Productivity Organisation which would be, perhaps for the first time, associating itself with a programme to improve the productivity of a vital export industry in the country.
The minister is reported to have given top priority to replacement and modernisation of 500 power looms in Hyderabad city. Similar programme is proposed to be launched in other power loom centres, namely Lahore, Faisalabad, Multan, Hafizabad in Punjab and Dadu in Sindh.
According to a study conducted by the NPO, the loss of productivity resulting from the poor shape of the machinery in operation in the power loom sector, has been estimated at Rs 450 billion annually.
There can be no two opinions that persistent use of old and outmoded machinery, particularly by an export industry, leads to serious loss of image for Pakistani products in terms of quality and design in the international market.
Not only the unit value of the products suffers a drastic decline but also the overall reputation of the country suffers and it is ranked as a producer of cheaper quality textile products, for the last several years.
Although the problem was fully recognised by the government as could be noted from the repeated emphasis to gear up production of value added textile products for exports, the process of upgradation has remained too slow to produce the desired results.
The task of timely implementation of modernisation, upgradation and replacement programme, it may be pointed out, rests completely with private owners of power looms operating as fragmented, medium size units which are usually beset with the acute problem of financial resources.
The Federal Minister of Industries took the right step in instructing the NPO officials to co-ordinate with the power loom owners with a view to getting them long-term loan financing from banks and DFIs for purchasing or importing upgraded versions of power looms to replace the old ones.
These loans would be arranged at 8 percent interest while no collateral would be demanded by banks.
This is indeed a significant move from the Ministry of Industries to provide practical support to power loom owners in carrying out modernisation in their facilities.
It is for the first time that a programme of this kind has been launched by the government which deserves compliments.
It is well known that the power loom sector constitutes almost 95 percent of fabrics/cloth manufacturing facilities in Pakistan and such makes a major contribution to export earnings besides meeting the home demand of various types of cloth and fabrics including towels.
The country's organised textile industry is yet to come up with plans, on a large scale, for the installation of integrated and modern weaving machines besides the necessary mercerising, dyeing, bleaching and printing machines.
A programme has now been launched by the government through establishment of textile cities in Karachi and other textile manufacturing centres in the country, which is expected to spur the textile industry in general into action.
It has been noted by the NPO that the entire power loom sector consisting of 250,000 power looms, spread out throughout the country, is in need of extensive modernisation, upgradation and replacement with a view to enabling it to achieve the desired level of productivity and export growth.
The task is undoubtedly a stupendous one but it must be pursued as a matter of high priority.