The Finance Ministry has withheld release of funds allocated for four textile projects. The projects include Up-gradation of EDF (Export Development Fund) Institutes, Clean Cotton Program, Projects' Implementation Cell and the organisation of seminars and workshops in order to train and educate the unskilled labour.

These four projects are the part of the 'export development plan' approved by the Planning Commission and the funds for these projects had to be released in October-November 2007, but still their funding is in doldrums. An official of the Textile Ministry said that the total amount of funds required for these projects is Rs122 million, while the funds allocated to the Textile Ministry are Rs500 million for the current fiscal year.

The textile industry is already in crisis. Statistics indicate that out of 13 textile products, the export of five textile products, including cotton yarn, towels, cotton cloth, bedwear and cotton carded exports have recorded a decline in December, 2007.

The Government has allocated Rs18.75 billion for textile and commerce sectors to achieve 10.9% manufacturing sector growth for export surplus during fiscal 2007-08. The Government has set a target according to which by 2013, the country has to achieve exports worth $45 billion.

Almost $5.5 billion has already been spent on modernizing the textile sector, but the industry is still feeling the crunch of the competition in international market.