TEXTILE INDUSTRY FAISALABADInternational business

Shafiq MBE133005

MAJU, Islamabad

Pakistan

LYALLPUR/FAISALABAD

City is also referred to as the "Manchester of Pakistan’’.

Third largest city in Pakistan after Karachi and Lahore.

second largest city in the province of Punjab after Lahore.

according to the World Bank's Doing Business Report of 2010, Faisalabad was ranked as the best place do to business in Pakistan.

PEOPLE FROM FAISALABAD

Nusrat Fateh Ali Khan

Ibrar ul haq

Zia muhaai ud din

Ch iftikhar m chauhdary

Rameez raja

Saeed ajmal

INDUSTRY HISTORY

1947 three composite textile units were operative They were Lyallpur Cotton Mills which was an offshoot of Delhi Cloth Mills, Sutlej Cotton Mill, Okara and Mohini Textile Mills Dacca.

1947, just after independence, we had only 1,77,418 spindles and 4824 looms.

initially this district was producing only raw cotton.

The chairman of All-Pakistan cloth Exporters Association (Apcea) demanded that “Faisalabad should be declared as Textile City.

CONTINUE…

Japanese switch for agricultural and textile exports from Beijing to Faisalabad.

30,000 upper looms and 2,25,000 power looms operating in Faisalabad.

11.5m meters cloth made by weaving daily using 55% yarn spinning industry.

Local companies include Sitara group, Manno group (Rafhan foods), Crescent group, and Ibrahim group (owner of Allied Bank).

PROBLEMS

It has poor governance overall business environment and foreign investment is not attracted.

Limited use of modern technology.

Low levels of managerial capabilities.

Poor physical infrastructure.

textile industry has been registering a huge annual loss of Rs200 billion for the last four years due to the energy crisis.

Lack of information on improved operations and bio technology.

Lack of trust in local skilled labor.

PROBLEMS CONTINUE

It has financial problems.

There is gaps in quality of local suppliers.

There is increase in global competition.

There is low ratio of foreign direct investment.

It faces high tax rates.

It suffers from poor state of technology and production process.

It lack of specialized workers.

RECOMMENDATIONS

Awareness of global trends.

Regional integration with India china and Bangladeshi counter parts to increase professionalism.

search new markets for its textile industry.

New small business entrepreneurs should be boosted to upgrade and invest in this sector.

Long term policies should be made rather than short term.

Better supply chain management.

RECOMMENDATIONS

Focus value addition.

Awareness of international quality standards.

A tax benefit should be given to the sector for a test period to improve local investors interest and FDI.

Import taxes on high standard manufacturing machines of textile, cotton, weaving, etc. should be removed or given subsidy to improve quality.

Build trust in local skilled labor and industry.

Teach people to be resourceful!