critique focuses on the impact of the reforms on the textile industry in
Pakistan and Bangladesh. It summarized by analyzing three articles ‘Impacts of
economic crises and reform on the informal textile industry in Karachi’, ‘Challenges
Faced by Textile Industry of Pakistan: Suggested Solutions’ and ‘Textile
Industries in Bangladesh and Challenges of Growth’.
article ‘Impacts of economic crises and reform on the informal textile industry
in Karachi’ by Arif Hasan and Mansoor Raza looks at the impact that financial
emergencies and changes have on the textile industry in Karachi by
concentrating on the informal power loom sector. Traditional development theory
viewed the at first saw the casual segment as a minor and brief circumstance
that would over the long haul be fused with the urban industrial sector. However,
in fact the opposite has taken place, changes have prompted
rising joblessness in the formal part, whereas around 73% of the country’s
non-agriculture employment is now in the informal sector.
research was carried out in Dibba. Essential information was gathered by
various meetings with power loom unit owners and workers, brokers, wholesaler,
shopkeepers and government officials. Secondary data was gathered from
journals, press reports, and government reports and statistics.
articles states that Pakistan textile industry has confronted a noteworthy
decline transforming the formal sector into informal sector. The decrease has
been credited to expanding competition from less expensive Chinese and Indian
providers because of evacuation of import taxes and rising power cost and power
deficiencies. Also declining law and order and regional conflicts has reduced
trade and led to the extortion of local business and traders.
article additionally explains that because of the variables said before around
40,000 power looms were changed over to scrap while 10,000 were closed down
thus 100,000 laborers lost their employments. Another reason for decrease in
employment was to lower production cost to compete in the market.
article gives solution such as zoning byelaws and regulations to permit mixed
uses of land, exempting the zone from control blackouts and prohibiting banning
cheap Chinese and Indian textile imports. However these arrangements additionally
have constraints and can’t be proficient effectively, to advise such strategies
additionally examine is required.
article ‘Challenges Faced by Textile Industry of Pakistan: Suggested Solutions’
by Walayat Shah, Usman Ali Warraich and Kazi Kabeer investigates the challenges
and issues faced by the textile industry of Pakistan. It utilizes quantitative
method to get some answers concerning the losing upper hand of the exporters in
worldwide market. The exploration features a portion of the reasons why
Pakistan’s material industry has been declining, these include: energy crises, deficiency
of gas supply, fluctuating yarn costs, devaluation of Pakistan’s currency,
absence of R&D and modern equipment. The article finishes up by expressing
that the administration should take compelling measures to enhance the state of
the Pakistan material industry as it is the fourth biggest maker of material
products and furthermore it contributes 52% of the aggregate fares.
Compensations on tax and import or export duty should be provided, also
electricity to textile organization at low rate should be given to help
establish the industry.
paper ‘Textile Industries in Bangladesh and Challenges of Growth’ by Md.
Mazedul Islam, Adnan Maroof Khan and Md. Monirul Islam investigates into the issues
faced by the textile industry of Bangladesh. The fundamental reasons that were
expressed for these troubles looked by the Bangladesh material industry were: recession,
internal conflicts, unfavorable trade policies, energy crises, deterioration of
Bangladeshi Taka, security issues and inflation. Subsequently exporters are not
ready to set out of Bangladesh to successfully showcase their items, neither
the purchasers can visit Bangladesh. In conclusion the article proposed that
Bangladesh’s industry can re-develop if the administration gives benefits,
limit the inside clashes, and give new machines while keeping down the taxes.
is clear from the article that the textile industry in Karachi has been facing
a number of issues (Hasan & Raza, 2015), these issues are
not just limited to Karachi, but have been seen by the country as a whole as
well (Shah, Warraich, & Kabeer, 2012). Not only Pakistan
has been a victim but similar issues can also be seen in Bangladesh (Islam, Khan, & Islam, 2013).
Pakistan and Bangladesh’s textile industry have enjoyed fairly good status in
the past and contribute to a large amount of the country’s exports and GDP.
Pakistan’s textile industry being the fourth largest manufacturer (Shah,
Warraich, & Kabeer, 2012) and accounting for
more than 60% of the total exports (Hasan & Raza, 2015) whereas Bangladesh
being the second biggest exporter and readymade garments accounting for 80% of
the total exports. (Islam, Khan, & Islam, 2013).
the textile industry have been declining due to a number of reasons, most
important being energy crisis in both Pakistan and Bangladesh. The power
outages causes the production to come to a complete halt resulting in a reduced
production and as a result some factories have been directed towards force
closure. This has caused the Pakistan and the Bangladesh textile industry to
unable to compete with the cheaper Chinese and Indian suppliers (Hasan & Raza, 2015).
than that trade liberalization and inflation is also seen as a major
contributor to the decline in Pakistan as it has increased competition making
it further difficult to compete in the international market (Hasan & Raza, 2015). Then again in
Bangladesh’s tight money related approach has brought about high loan costs
thus increasing the cost of production.
Bangladesh article and Pakistan textile industry article both talk about lack
of research and development resulting in low quality production hence low
profit. They also talk about lack of modernized equipment and machinery which
hinders in cost effective production. The obsolete machines causes the cost of
production to be higher as compared to the competitors.
In order to overcome the
problems faced by the textile industry solutions such as zooning byelaws to
permit mixed uses and decreasing power outages in residential areas have been
offered (Hasan & Raza, 2015). Other than that
help on expense and import or fare obligation and giving power at low rates
have been recommended (Shah, Warraich, & Kabeer,
For Bangladesh subsidies are suggested to be provided to the textile industry,
removal of energy crises and rationalization of tariffs have been recommended (Islam, Khan, & Islam, 2013).
conclusion, every one of the three articles discuss the crises faced by the
textile industry, one concentrating on Karachi, one on Pakistan and one on
Bangladesh. It can be seen that every one of the three articles clarify
practically comparable issues looked by the material business and the proposals
to beat the issues are to some degree likewise. Therefore it can be concluded
that the textile industry of Pakistan and Bangladesh are similar and should
both be worked upon so that they can reemerge.