Pakistan Textile City should not be abandoned
Pakistan Textile City, located in Karachi, Sindh, is an
industrial zone dedicated to the textile processing and related
industry. Established in 2004, with a total area of 1250 acres,
the estate is located in the Eastern Industrial Zone of Port
Qasim Karachi, about 6 km from the National Highway.
The Federal Government of Pakistan has a 40% share in the
textile city whereas the Sindh Government has 16% shareholding.
Whereas 28% of the shares are with Export Processing Zone
Authority (4%) and financial institutions including National
Bank of Pakistan (NBP), Saudi Pak Insurance Company, National
Investment Bank, Pak Kuwait Investment Company, Pak Qatar
Investment Company and Pakistan Industrial Development
The concept of the Textile City has been based on designing
an exclusive production area specializing in the large-scale
production of value-added textile products. The free trade zone
was to created with the objective of strengthening the textile
processing sector by providing necessary infrastructure
facilities such as sufficient water, gas, stable voltage power,
and treatment of wastewater.
It was envisaged to make available all support activities to
ensure a high level of productivity and quick delivery response
to export orders.
In this export processing zone, priority was to be given to
large-scale factories with a minimum capacity of the knitted
fabric dyeing of 20 MT/day and/or 50,000 meters/day for woven
fabrics. Guaranteed supply of sufficient water (18 million
gallons/day or 80,000MT/day), as well as stable voltage power
and gas, was to be insured as well common waste-water treatment
To support the value-added units in the project, ancillary
industry for textile accessories e.g. sewing thread interlining,
padding, buttons, zipper, tags, embroidery, labels would have
also been established.
This was supposed to be the model project for the rest of the
country that would have been the catalyst for the much-needed
momentum in the growth of exports from Pakistan.
Unfortunately, despite all good intentions at the inception,
the project was never able to reach its fruitful completion,
losing out on the crucial opportunities to develop a strong base
of the value-added export sector.
Currently, the Pakistan Textile City project is on the verge
of collapse, incurring a huge loss to the national exchequer as
the government is paying about Rs.400 million as interest on
bank loans per year. Due to mismanagement and apathy, the debt
of textile city is exceeding Rs.2.4 billion.
It was recently announced that due to the woes facing the
project finally the project shall be wound up by the Federal
government being the majority shareholder. The strong objection
from the Sindh government against this measure has bought some
time for the project. This is a project that should be given a
chance in view of the sluggish exports and increasing global
competition. Our value-added sector is the hope of the country
and Pakistan Textile City is a project although late in
commissioning can still give it the much-needed boost.