Electronic copy available at: http://ssrn.

com/abstract=1651789

Acknowledgement
By the grace of Almighty Allah, I become able to prepare research on Pakistans Textile which will help to rectify some crisis in this sector. I would also indebted to my friends and family, by whom motivation and guidelines, I become able to complete this research. Last but not least, I am especially thankful to Monnoo Group of Industries, Nishat Mills, ICI Textile, APTMA Punjab Zone, Nadia Textile Mills and S. Fazal-Illahi & Sons and all other respondents who provide information for preparing my project. I have prepared my project with full consideration and high efforts. However, To Err is Human, and criticism is necessary for better work. I would appreciate those who identify my mistakes and make comments on my project for betterment.

Thanks!

With Best Regards Zameer Ahmad Author of Project

Electronic copy available at: http://ssrn.com/abstract=1651789

Dedicate to my Grandmother who is not in this world. May! Rest her soul in peace.
Aameen!

ii

EXECUTIVE SUMMARY
The purpose of this research report is to identify and analyze the WTO-related issues for Pakistan at present in the area of textile sector of the economy. The report focuses on the challenges faced by the country in implementing its WTO commitments and the challenges posed by the implementation of the agreements with its major trading partners. Apart from suggesting on how to cope with the internal challenges, the report also takes into account on what kind of strategy and course of action Pakistan should adopt, along with other South Asian countries, in the future multilateral negotiations, to deal with the external challenges posed by a WTO environment. The theme of report is how to grow textile sector as it is contributing 35% to 42% of whole exports of countries.

The Convenience Sampling method of Non-probability technique was used because it provided ease to me gather data form nearby locations in a short period of time. Sample includes 9 respondents from different textile mills executives in Lahore. Data is collected through effective questionnaire by e-mail survey and personal interview. Following are the important facts found during the research study. The respondents of my research consist of 78% male and 22% female executives. So majority of the sample consist of male respondents. Average ages of the respondents fall into 35 - 44 categories. Majority of them are post graduates, position at middle level management and have average experience between 10-19 years.

Almost 90% respondents are in favor of those hypotheses which I have developed for research. Majority of them criticize the Govt. active bodies poor role in textile sector development. They also criticized Govt. due to inefficiency on coping current energy crisis which are causing to destroy the industry.

Research also indicates that Pakistans neighbor countries are enhancing and capturing its markets which are supposed to be loyal from Pakistans point of view for many years.

At the end, in appendices, detailed tables and charts are provided regarding to each questionnaire except descriptive questionnaire. Furthermore hypotheses are tested by using T-Test distribution statistical technique through Minitab statistical software.

iii

TABLE OF CONTENTS

Page No. Ch1. Introduction------------------------------------------------------------------------------1 1.1. Background--------------------------------------------------------------------- 1 1.2. Objectives------------------------------------------------------------------------2 1.3. Significance----------------------------------------------------------------------2 Ch2. Literature Review-----------------------------------------------------------------------3 Ch3. Problem Statement----------------------------------------------------------------------9 Ch4. Theoretical Framework----------------------------------------------------------------10 4.1. Inventory of Variables--------------------------------------------------------10 4.2. Direction of Relation----------------------------------------------------------11 4.3. Established Relation among Variables------------------------------------12 4.4. Inventory of Proposition in Sequential Order---------------------------12 Ch5. Hypotheses-------------------------------------------------------------------------------14 Ch6. Research Design-------------------------------------------------------------------------15 6.1. Classification of Research----------------------------------------------------15 6.2. Data Collection Techniques--------------------------------------------------15 6.3. Population-----------------------------------------------------------------------15 6.4. Sample----------------------------------------------------------------------------15 6.5. Data Collection Tools----------------------------------------------------------15 Ch7. Data Collection, Processing & Analysis---------------------------------------------16 7.1. Data Collection------------------------------------------------------------------16 7.2. Data Processing & Analysis--------------------------------------------------16 Ch8. Findings of Research--------------------------------------------------------------------17 8.1. Feel of Data----------------------------------------------------------------------17 8.2. Goodness of Data---------------------------------------------------------------17 8.3. Hypotheses Testing-------------------------------------------------------------17 Ch9. Conclusion and Recommendations--------------------------------------------------18 Ch10. References---------------------------------------------------------------------------------20 Appendices--------------------------------------------------------------------------------21 Survey Questionnaire----------------------------------------------------------22 Response from Respondents--------------------------------------------------27 A. MCQs Based---------------------------------------------------27 B. Descriptive Based---------------------------------------------29 Feel of Data Frequencies------------------------------------------------------34 Frequencies Tables-------------------------------------------36 Integrity of Data---------------------------------------------------------------- 64 Hypotheses Testing------------------------------------------------------------ 65

iv

LIST OF FIGURES

Page No. Figure1. Theoretical Relationship Model-----------------------------------------------11 Figure2. Schematic Diagram--------------------------------------------------------------13

LIST OF ABBREVIATIONS

MFA WTO APTMA EU SMEDA WB GATT NAFTA CAFTA LDCs

Multi Fiber Arrangements World Trade Organization All Pakistan Textile Mills Association European Union Small & Medium Enterprise Development Authority World Bank General Agreement on Tariffs & Trade North American Free Trade Area Central American Free Trade Area Less Developed Countries

vi

Chapter 1
Introduction of Research 1.1 Background:

extile industry has been the rampart of Pakistan's economy. It contributes more than 60% to the total export earnings of the country, accounts for 46% of the total manufacturing and provides employment to 38% of the manufacturing labor force and 9% of GDP. Indeed, with exports reaching about $8.6 billion in 2004-05, Pakistan is one of the largest textile exporters in the world. Although it has captured our 60% of total merchandize exports which has large share in export but our contribution in whole world exports with regard to textile industry is mere 3%. Textile sector includes variety of products ranges from cotton yarn to knitwear. Garment made-ups and bed wear are the most important export products with an export value of about $1.35 billion each. Knitwear, ready made garments and cotton yarn also have important shares in total exports. Overall, the US and the EU are Pakistans largest trading partners accounting for 25 percent and 20 percent share of Pakistani exports respectively. Other major importers include China, UAE and Saudi Arabia. Textile trade is classified into two broad categories i.e. textile which include yarn, fabric and madeups, and clothing which represents readymade garments. The growth in the textile sector has been impressive during the four decades after independence (with an imbalance in favor of low value added products), stagnation has set in due to certain changes in the global and the domestic factors. With the movement of textile production from developed countries towards less developed countries, Pakistani producers are losing their competitive advantage. During the nineties a combination of factors adversely affected the industry, mainly: Removal of export duty on raw cotton, increasing domestic prices to international levels and beyond. Infestation of the cotton crop by leaf curl virus, reducing supply sharply and increasing prices. Frequent changes in governments creating inconsistency in policies of the Government and Financial Institutions. Rapid expansion of the installed industry in the hands of new entrants who did not have the managerial skills or the liquidity base to succeed. Rapidly changing global markets, especially the shift towards man made fibers. New era of World Trade Organization has also knocked our door and given us a news of real challenge for our all sector in general and particular for the Textile Sector. The Post-WTO regime has heated-up competition, opened new avenues for all the countries to make their all-out efforts and beat their rivals in their respective sectors. Thus, whole scenario of background tells that there is need to take some preventive and innovative actions in order to sustain our textile industry in the global world.

1.2

Objectives: ajor objectives of this research are as follows:

Identify areas which enhance the efficiency and production of textile industry and take its activities at peak level in the economy. Reveals difficulties that it has been faced or facing for attracting investors towards textile industry. Spot out the issues that help the Govt. to make decisions which leads to retain industrialists. Identify and analyze the WTO-related issues for Pakistan at present in the area of textile. Categorize the internal and external challenges which are in the way for exporting and importing raw material. To make an effective corporate level strategy that will guide the industry on long term path. Identify major competitors which are capturing the share of Pakistan with regard to textile sector.

1.3

Significance:

ignificance of this research work is to provide the considered necessary information that will guide the planners, government policy makers to implement policies and make decisions to successfully deal with the current problems that textile sector is counter. The research will also try to add value for business executives, directors and other stakeholders of organizations through which they will reduce uncertainty that perk up the decision making process as well as helpful to control over cost factors and rectification about their export criteria.

Chapter 2
Literature Review extile industry has been the bulwark of Pakistan's economy. It contributes more than 60% to the total export earnings of the country, accounts for 46% of the total manufacturing and provides employment to 38% of the manufacturing labor force. The availability of basic raw material for textile industry, cotton, has played a principal role in the growth of the industry (SMEDA, 2006). A recent study on textile sector analysis (Amir Fayyaz, 2007) shows that Pakistan's economy is confronted with the problem of chronic negative trade balances. The government wants to mobilize all its resources to establish a solid export base. The Textile sector, being the major foreign exchange earner, can serve as a launch pad. The textile sector exports have been stagnant (i.e. stagnant in growth rate) for the past five years. Exports have fluctuated between US $4.5 - 5.5 billion. US $5 billion has been a psychological barrier for the textile industry of Pakistan. The Multi Fiber Arrangement (MFA) phase out in the year 2005 is likely to result in providing level playing field with the removal of quotas and lowering of tariff barriers. It is a threat to textile manufacturers on one-hand and open new landscapes of opportunities for efficient players on the other hand as well. In another study in which emphasis on check the MFA effects on Pakistani textile sector was explored. This study (Chaudhry & Hamid, 1988) tells that Multi-fiber Arrangements (MFA) leads to harmful consequences for the textile industry of Pakistan. For instance, it stalled modernization of the sector, as the government provided incentives for expanding low-cost power loom sector at the cost of an organized mill sector, to reap the advantages of low-cost. The resulting feature was the technological backwardness of Pakistan textiles. Encouragement of the power loom, leads to the decline in mill production and consequently closure of the huge installed capacity. Another study (Khan & Mahmood, 1996) which is in favor of after MFA regime describes Pakistan will have an additional market access of about 62 percent and 67 percent for textile and clothing respectively with the eradication of MFA in 2005. The gain for Pakistan would be more than US$ 500 million with the removal of MFA. Taking account of the tightness with which MFA has bound Pakistan, this gain might be around US$ 1-1.3. As has been estimated (Trela & Whalley, 1990) that Pakistan would gain $0.008 billion with the removal of both tariffs and quotas. However, with the removal of only bilateral quota and not the tariffs, most of the developing countries including Pakistan would be worse off. It indicates the advantageous terms of trade for the developed country as a result of not eliminating the tariffs. Although there is so much issues about textile growth but the federal minister for commerce (Mr. Hummayyun Akhtar Kahn, 2007) tells in his speech that during the first 11 months of 2006-07 fiscal year, the exports of textiles group increased by 6%. It is heartening to note that within the textile group, exports of some products have almost doubled in the first 11 months of 2006-07. Among these, Art Silk & synthetic textiles have grown by 122%, Tents and Canvas by 99%, and Yarn other than cotton yarn by 82.7%. This shows that our product base within textiles is diversifying from the 3

traditional cotton base but unfortunately we are still unable to capture larger share of world market. Exports of other textiles products that have continued to grow, during the same period, are knitwear, and readymade garments, increasing by 12.9% and 5.4% respectively. Current issue is that European Unions drug related GSP incentives to Pakistans textile products ended in 2005. Secondly, some of our competitors especially in textiles enjoy preferential (duty-free) market access due to their status as LDCs especially for the EU and US markets, whereas similar Pakistani products are charged the full duty. The competition spawned by globalization means that traded goods and services must now meet stringent international standards. In Western markets the consumer is extremely environment-conscious, and strict about adherence to international labor, health and safety standards. Thus, compliance with Social, Environment, and Health standards has emerged as a serious test for our exporters. Besides the various challenges that I have highlighted we face the problem of insufficient product diversification, soothe overall growth goes decline when textile takes a hit. During the first 11 months of 200607 growth rates of textile exports decreased to 6.0% from 14% during the corresponding period of 2005-06. Within the textiles group, the export of bed wear declined by 3.1%, Cotton cloth by 4.1% and export of raw cotton decreased by 21.7%. The impact of this decline was partially offset by export growth in certain other textiles and clothing products as I have already indicated. There have been a host of other factors affecting our textile export growth. These include stiff international competition in Textile products from China, India, Vietnam and Bangladesh in our major markets of the US and the EU; regional preferential arrangements such as NAFTA (North American Free Trade Area), CAFTA (Central American Free Trade Area), and the setting up of U.S. sponsored Qualified Industrial Zones (QIZs) in Jordan and Egypt which allow duty free access to their products, have also affected our competitiveness. Among some other factors are, a fall in unit prices in the textile sector, the 5.8% average antidumping duties in the European market on our bed-linen exports, and negative (albeit unfair) travel advisories on Pakistan. This has led to trade diversion from Pakistan to Bangladesh, China and Vietnam who are our product competitors in textiles. In our export destinations, the major reduction was of an approximate US$ 300 million in exports to Afghanistan mostly in POL products. MR. Hummayyun also tells that the end of the textile quotas has opened up vast opportunities for Pakistani textile products which will however require new investments in machinery, better labor skills, and improved product quality. He also emphasis on Research and Development (R&D) to anticipate the challenges to the Garment and Home Textile Sectors in the post-quota period; the Government introduced a special textile garments package on the recommendation of the Ministry of Commerce in the shape of Research and Development (R&D) that support at 6%. This support has helped the textile garments sector to survive and sustain itself, prevent potential export losses of millions of dollars, and retain jobs in the sector. A similar support has now been extended to the Home Textiles sector in 2006-07. This support will continue in 2007-08.

In another research (Muhammad Hussain, 2000) in which some sub areas of textile are evaluated. The researcher tells that weaving, processing and value added sub-sectors are mostly small and medium in size and there is technology gap among them, which is major issue to reluctant in textile growth. The cloth supplied to the garment manufacturers by the power loom sector (which supplies 90% of the domestic cloth requirement) is

considered to be inferior in quality. The sector of power looms is not very recognized and is facing problems like low capital investment, inferior technology and low productivity. As the conventional power loom and processing sectors are the basic source of supply of cloth, it is practically impossible for Pakistan Textile industry to move towards high value added segment with out the up-gradation these sectors. Investment in modern looms, textile dyeing, printing and finishing machinery would enable this sector to be more competitive, as production costs will reduce and product quality will be improved. The main obstacle in carrying out BMR in this sector is the weak credit rating of the smallscale units. Small-scale units in weaving and processing sectors are not able to avail normal credit facilities due to the low level of capital investment. BMR should be linked with the export performance of the unit and loans should be provided on the concessional mark up rate to feed up textile sector. To promote in-house manufacturing of the textile machinery, foreign investors should be invited to set up textile manufacturing units in collaboration with local investors.

In another applied (survey) type of research (Kathuria, Martin, and Bhardwaj, 2001), the study reveals that with the passage of time, all textile stakeholders are becoming increasingly concerned about how a quota-free regime together with the absence of the multi-fiber agreement is going to affect the textile and clothing trade in their respective countries. So far, in Pakistan, there has been a lack of academic discourse on this issue and most of the stakeholders are not clear as to whether WTOs new trade regime would offer benefits or threats to the textile industry in their country. Most experts believe that the implementation of new rules would offer challenges as well as opportunities to Pakistan. Nonetheless, there is no consensus on the expected particular impact of the issue because the prevalent perceptions are mostly based on assumptions and not empirical findings. Keeping in view the state of such uncertainty and lack of agreement, this study is undertaken to analyze the expected ensuing affects of ATC on the textile industry in Pakistan and bring to the fore results grounded in the wider level of knowledge.

The majority of the studies reviewed by international organizations such as the WTO, the World Bank, the Asian Development Bank and the United Nations, presumed that there would be enormous gains for both developed and developing countries such as Pakistan after the removal of quota restrictions. However, some writers (Spinanger, 1998; Martin & Winters, 1996) hold much more cautious views, particularly with regard to developing countries, on this scenario after 2005. Their assertion is that developing countries would experience negative results after the elimination of textile quota restrictions. They hold that opinion with regard to almost all the developing countries. They said, in relation to Pakistan, there are many optimistic and pessimistic opinions that strongly disagree with each other. In common with the general disagreement regarding the impact of the ATC on the developed and developing countries, there is no consensus on its impact on Pakistan. So far, there is a lack of academic investigation on this issue in relation to Pakistan and therefore most of the stakeholders are not clear as to whether the new trade regime stemming from the WTO agreements will benefits or threaten the textile and clothing industry in that country. In relation to this lack of clarity, Asim (2003), while examining the overall impact of WTO on the Pakistani agriculture and textile sectors, indicates that most of the Pakistani exporters are also unclear about the impacts and thus hold mixed feelings about it. He elaborates that, on the one hand, the exporters appreciate that there

would be no limits on exports after elimination of quotas. On the other hand, they are apprehensive of the consequent competition from China and the Asian tigers (Bangladesh). However, he still holds an optimistic view and believes that Pakistani exporters will not face any sudden danger in 2005 due to the possible increased demand for Pakistans yarn and fabric. Even though holding generally optimistic views, Asim emphasizes the uncertain overall position of Pakistan after the quota-free regime and the ambiguity pertaining to the future of Pakistans textile and clothing sector in the face of such WTO development. Other authors have clearly linked the quota-free regime with the positive trends in Pakistans textile trade/export (Textile Vision, 2005). About this positive trend, Mr. Hummayyun Khan, Pakistans Minister for Trade and Commerce (Khan, 2003), has expressed a similarly positive view by referring to the investment friendly environment especially in the textile sector of Pakistan. Due to reform and policies made by the present government, he further explains that the new WTO rules for the textile trade would not create any problem for the textile industry in Pakistan with reference to its exports in the world market. He made it clear that textile sector should not be afraid of WTO, which will not create any danger to domestic industry. With reference to implementation, there is some critical literature. For example, a prediction of negative repercussions for Pakistan is indirectly supported by Khan (2003) who asserted that the elimination of a quota-based regime would prove to be of more gain for the bigger countries, such as China and India, while countries with poor infrastructure (such as Pakistan) would lose. In this context it is argued in this paper that a quota-free regime would not prove to be most beneficial for Pakistan; rather it will pose a number of challenges, which if care is not taken, would cause tremendous disturbance to overall textile sector. The following section presents reasons why these developments may prove challenging to Pakistan (Textile Journal, October 2003). The first and foremost condition that is not conducive to full use by Pakistan of the agreed quota-free regime is due to its poor and vulnerable industrial base. Historically this vulnerability emanated from the promulgation of the Multi-fiber Arrangements (MFA) that carried adverse effects on the textile and clothing sector of Pakistan. However, most writers on this topic have clearly depicted the MFA as quite destructive to the textile sector in Pakistan in particular and other developing countries in general. The promulgation of the MFA left Pakistan with no productive alternative, and for that reason it lost its so-called textile mill sector that was on the way towards modernization during 1974. It also experienced closure of its huge installed capacity in this sector. The adverse effects of the MFA have not so far been rectified and Pakistan at present, unlike other major textile exporting countries, has a weak industrial base in the textile and clothing sector and especially in synthetics and higher-value-added garment products of textile sector. Hence, it (Pakistan) would not be in a position to successfully utilize the quotafree regime and compete with the strong industrial-based countries in terms of quality product, especially in synthetics and higher-value-added garments in the international market. The second factor, which may constrain Pakistan in competing and gain after the quota-free regime is the pattern of structural changes in the textile trade that has been taking place in the last decade or two. It is pertinent to note that after the implementation of MFA, there were tremendous changes in the overall global trade in textile and clothing. However, the trade in clothing increased at a much faster rate as compared to trade in

textiles. On the other hand, Pakistan has been unable to increase its share of both products significantly in the world textile trade.

Thirdly, the challenge that Pakistan faces after the quota regime is the continuation and prevalence of other non-tariff restrictions such as environment, technical labor standards, anti-dumping and countervailing duties. These non-tariff restrictions are expected to assume greater significance. In addition, their use is expected to have an increasing effect due to their reinforcement by the developed countries in the post-MFA regime. This will pose a real threat for countries like Pakistan, who may find numerous difficulties in reaching the required level of compliance with these non-tariffs. In the past many of the textile imports from Pakistan have been subject to non-tariff restrictions including anti-dumping action by Japan in 1994, the USA during 1997/98, and South Korea in 2001 and the EU in 2003. If this trend of non-tariff barriers continues, Pakistan is unlikely to gain significantly in the future, even after the quota restrictions are fully eliminated. Furthermore, such non-tariff barriers of developed countries would provide more advantages to other competitive exporters, despite the fact that Pakistani textile products might be far better in quality as compared to them. Hence, in such circumstances, Pakistan might fall far short of competing with others and lose its strength to compete in the world market. Fourth, Pakistan was not efficient enough to utilize its full quota in yarn, fabric, made ups and clothing as determined by USA, Canada, EU and Japan in the earlier MFA scheme. It was comparatively deficient in utilizing its pre-determined quota in valueadded clothing items. It primarily continued its export in yarn and fibers and was left quite far behind in developing its capability and capacity to excel and compete in valueadded clothing. This inability not only made Pakistan unable to concentrate and utilize the given quota, but Pakistan also lost its vigor to develop and produce these value added products. Thus, Pakistan having such a discouraging record gives little assurance of its ability to compete after the quota-free system. The same has also been reflected and supported by experts (interviewees) who categorically assert that those countries who are/were deficient in utilizing their pre-determined quota might find it difficult to realize a substantial increase in their market share after the quota-free regime. Fifth, almost 70 percent of Pakistan's textile exports go to quota countries such as the USA, EU, Canada and Japan. However, among them, the USA and EU are the major markets for Pakistans textile and clothing products. Nonetheless, a decreasing trend in the overall import of these countries for the last several years has been observed. This reduction in their imports certainly predicts a non-availability of any encouraging space after 2005 for Pakistan and its exporters to increase their exports. The association of this declining trend of these quota countries with the above-mentioned factors would make it very difficult for Pakistan to properly utilize the quota-free regime and boost its exports as is being assumed/ predicted. In addition, with the elimination of quota restriction, the market access for exports of other developing countries to these two major markets of the USA and EU will also increase. This means Pakistans exports will face greater competition after January 2005 especially from China and other countries like Mexico, India and even Bangladesh which, according to international trade statistics 2004, are the major suppliers of textile and clothing in both markets (www.wto.org). The National Council of Textile Organization (NCTO) mentioned in its 2004 report that China is the largest supplier of textile and clothing in the world market and it will

quickly come to dominate textile and clothing trade in United States, once the quotas are removed (See the China Threat to World Textile and Apparel Trade p.1 at www.ncto.org) on this issue. Pakistan, as compared to the aforesaid countries, has a negligible share in these two important markets, particularly for its clothing products. In these circumstances the other countries like China, India etc. are expected to dominate world trade in textile and clothing as the USA, EU and others open their markets. Sixth, the future of the textile sector of developing countries such as Pakistan is likely to suffer at the hands of the lobbyists groups in USA who have strong feelings of protection toward the US textile industry against developing countries. Such protectionist lobbyist groups are particularly visible in the Southern states of North and South Carolina, Georgia, Virginia and Alabama where consequently almost 250 textile plants have been closed down since the agreement on textile and clothing (Textile Journal, October 2003). Similarly, the recent inclusion of ten countries into the EU, who are relatively cheap textile manufacturers, have resulted in the concentration of different EU owned textile producing companies. Besides the above-mentioned structural issues, there are other micro level factors that may seriously damage Pakistans textile sector competitive position in the international market in the post MFA regime. These include: a) Reliance on low-technology power looms for the production of fabric; b) Low productivity of labor both in the public and the private sectors; c) Pakistans failure to join any effective regional trade alliance; d) And, contamination of cotton that badly affects the quality of the final product.

Chapter 3
Problem Statement

he problem statement has defined as:

Is Pakistan able to sustain the textile growth in competitive environment and responding to challenges & opportunities provided by the globalization before and after MFA?

Chapter 4
Theoretical Framework fter assessing the literature review, defining the problem and setting the objectives my research needs to establish theoretical frame work. The theoretical framework comprises on the followings: 4.1 Inventory of Variables:

Dependent Variable: Growth of textile sector Independent Variables: Investment facilities (includes both foreign & domestic) Protectionism to investors Export Technology Core Competencies Quality Processing/Production infrastructure Education Cost of production Pricing Skilled human resource Moderating Variable: Image of Pakistan Intervening Variables: WTO Policies Govt. policies & regulatory system

10

Figure 1 Theoretical Relationship Model

Moderating Variable

Independent Variables Export Intervening Variables Investment Facilities Protectionism to Investors

Education

Quality
Pricing

Competencies Technology
Cost of Production Skilled human resource

Dependent Variable

Production Infrastructure

4.2

Direction of Relation: Investment facilities & protectionism to investment flow have positive influence on textile sector. Exports have positive influence on textile sector. Education, competencies and skilled human resource have positively influence the textile sector productivity. Quality is positively correlated to textile growth. Pricing and cost of production has negative influence on textile growth. Technology has positive pressure on textile sector growth. Processing/Production infrastructure also has positive influence on textile growth.

11

4.3

Established Relationship among Variables: Better investment facilities (includes both foreign & domestic) as well as environment for investment and strong protectionism to investors will increase the flow of investment and create the environment in favor of textile growth. Overall increments in exports will also an indicator to textile growth by creating positive environment for Pakistani products. Highly standardized and quality products fulfilled the buyers expectations about what they want and make them loyal customers. Better education facilities and easily available skilled human resource for textile sector is an indication of motivation. On the other hand, achievements of core competencies mean achievement of competitive edge. High prices and increasing cost of production effect the buyers buying decision as well as reducing the producers margin respectively. Up-to-date technology with efficient machinery is also helpful to make goods that highly appreciated by importers and also helpful to meet demands on time. Better infrastructure for production system also helpful for organization to engage workers in friendly working climate. WTO policies, principles and Govt. regulation in regard of textile sector are intervening variables which tells that our export strength, quality of product, investment policies and educational steps made by Govt. for textile goods and services improvement (i.e. diversify culture from raw form to value addition) dependent on these policies. Our exports, investment inflows and protectionism affected by what image of Pakistan in foreign world and what investors and other stakeholders perceive about Pakistan. So, producers also take into account the perception about Pakistan in global world.

4.4

Inventory of Propositions in a Sequential Order

he sequential order for propositions of textile growth is: Timely Adoption of WTO policies; After that support of Govt (in form of friendly policies & regulations, quick response for resolutions of issues); Positive image of Pakistan; Then proper investment facilities and protectionism to investment; Good overall exports indicators have positive influence on textile sector;. Education, core competencies and skilled human resource have positively influence the textile sector productivity; Up-to-date technology has positive pressure on textile sector growth; Quality is positively correlated to textile growth; Processing/Production infrastructure also has positive influence on textile growth; Pricing and cost of production has negative influence on textile growth;

12

Figure 2 Schematic diagram

1 10 Pricing & Cost of Production WTO Policies 2 Govt. Support & Regulations

9 Processing/ Production Infrastructur e Growth of Textile Sector 8 Quality

3 Image of Pakistan

4 Investment facilities & Protectionis m

7 Up-to-date technology 6 Education, Core competency & skilled

5 Overall exports indicators

13

Chapter 5
Hypotheses

have completed my research by developing and testing these hypotheses:

1. H0 = There is no relationship between WTO policies & textile market growth. HA =Increase (growth) the market share of Pakistans textile industry in global world is highly associated with adoption of WTO policies. 2. H0 = No relationship between investment and textile growth. HA = Growth of textile industry is associated with proper arrangement for investment and facilities by the Govt. that further retain the investors and industrialist in the country as well. 3. H0 = Textile growth is independent from Pakistans image. HA = Growth of textile industry is highly dependent on Pakistans image in global world. 4. H0 =There is no relation between education, core competencies and textile growth. HA=To grow textile industry achievement of core competencies and better education is essential that also enables to face the challenges by competitors in present era. 5. H0= Textile growth is independent from government bodies intervening for issues resolution of textile sector. HA= Growth of textile industry is also dependent on the quick response from the governing textile bodies (i.e. Ministry of Commerce) to resolve the issue of textile industry. 6. H0= There is no association of latest technology, skilled human resource and textile growth. HA= Growth of textile industry is associated with availability of highly technical human resource, latest technology. 7. H0 = Overall economic exports indicators have no impact on textile sector growth. HA = There is strong relationship of overall exports indicators and textile growth. 8. H0 = There is no role of infrastructure in textile sector growth. HA = If better infrastructure provided then textile sector can grow.

14

Chapter 6
Research Design 6.1 Classification of Research:

T
6.2

his research is descriptive in nature because, already many studies have been conducted and large information about situation at hand on when, how this research issues have been solved in the past but some points may need more illustration about how to grow textile sector which has not much advanced as it to be. Data collection techniques:

n the research, the quantitative technique for data collection has been used. The data was collected in a survey by questionnaire from selected respondents. Also, the statistics and figures are obtained by field work and hidden observations. 6.3 Population:

T
6.4

he population of this study is executives of all textile companies & mills of different textile zone and areas of Pakistan as well as government bodies from whom I can easily obtain my required data for research. Sample:

D
6.5

ue to time constraints, the sampling size is consisting of 9 respondents that are known as major groups of textile industry. For this, convenience sampling technique of non- probability method has been used. Data collection tools: hese tools for data collection are used in this research:

Questionnaire Field work Hidden observation

15

Chapter 7
Data Collection, Data processing and Analysis 7.1 Data Collection

F
7.2

or gathering data, I have used personal contact (Face to Face), explore primary and secondary data, interviews of respondents, go to different organizations for collecting statistics, and watch and read electronic and print media news; journals etc. Data Processing & Analysis: he collected data from different sources were put into computer and by using MS Excel and Minitab statistical analysis software following analysis was done:

Those variables which were putting a significant impact in my research were tested through statistical T-Test method. This method was used to insure that our findings should be considered more authentic and reliable for textile sector growth. Pie chart in different forms as well as histogram diagrams, box plot, dot plot are also explaining the particular facts and figures that are revealed during this research. In appendices all the facts & figures have been provided which is considered as necessary ingredients of this research.

16

Chapter 8
Findings of Research

8.1

Feel of the data:

I I I

n this section I have made frequencies distribution according to my respondents to now about my data trend and findings in numerical and indexed form. You can see and evaluate the result of the findings under annexure from table2.1 to table 2.28. Pie charts at some where scatter and at some places in full formats are also used to have clear idea about the data. 8.2 Goodness of the data:

n this section I have focused on data reliability by checking it through cronbach alpha test. The result shows that data is highly acceptable as the value of alpha is 0.9516 which falls between 0-1. You can see the result in table2 of annexure. Hypotheses Testing:

8.1

n this step I tested the relationship between independent and dependent as well as intervening variables. I have used T-Test analysis to show the relation among different variables of hypotheses. You can see result of the findings under each heading of hypotheses.

17

Chapter 9
Conclusions & Recommendations

rom my analysis and findings, my point of view is today the biggest threats to Pakistans textile sector are sustaining its competitive position against its rival position and retain its target market as well as enhance its share in whole world export. But, there are some other issues which directly or indirectly are harmful for textile sector. The other issues are lack of skills, obsolete technology usage, inefficient production and energy problems (in form electricity, fuel) etc. To tackle the above mentioned problems and other issues, the following suggestions are recommended for the revival and development of the whole textile sector: Shift to the production of high quality and give more attention to value addition rather than raw form. Companies should prepare strategic long term plans for setting its objectives & course of action before what they want to do rather than what they are doing? Invest in BMR techniques Supply high quality yarn to the local weavers and knitting units for promoting them because value addition cause to attract more markets and profit as well. Increase overseas presence (through Embassies, Commercial offices & exhibitions). Govt. and banks should enhance flow of financing from big units to cottage and medium sectors because their contribution is more. Periodical training & development (workers, management) programs should be conducted either through public or public-private joint efforts. Production quality and efficiency needs to be raised to meet the international standards and organizations as well as government should pay attention to it because today it nothing without quality. Another factor that I have analyzed which is lack of communication between different stakeholders. Govt. and different textile bodies should arrange meetings either on monthly or quarterly basis to maintain check & power as well as for identifying strong and week points. I think government should also provide exemption on some export income on those products which already have competitiveness such that cotton yarn and abolishing the tax incentives will promote the supply of cotton yarn to high value added sectors. A textile policy-planning unit should be established within the ministry of industries. It should gather data on imports and exports, investment, finance, taxation and industrial locations through conducting surveys and planning for industrial promotion and the formulation of policies. It should also have branches elsewhere in the country. Our more than 50% population consist of women, they can also play a participative role in textile growth. Although, government has taken major steps in this regard but most the women are working in services sector. Govt. as well as other textile bodies also tries to ensure greater access for women to the textile training and educational programs with a focus in areas such as fashion designing, knitting and sewing techniques, etc. and a new Garment Training Center for women should be established.

18

The above mentioned objectives can only be achieved if there is a mutual understanding amongst farmers, ginners, spinning mills, knitting units, weavers processing, garment manufacturers, and government agencies.

19

Chapter 10
References 1. Pakistans position. Available http://www.cid.harvard.edu/cid.trade/ GOV/Pakistan.html 2. Shaukat Ali, M. (2000).Trade and Industrial Policy in Pakistan, World Banks WTO 2000 Regional Workshop, (p.3). New Delhi: Post Uruguay Round Challenges. 3. Ashfaque, H. Khan. (1998). Trade Liberalization in Pakistan. Pakistan Development Review, 37(4), p.680. 4. All Pakistan Textile Mills Association (APTMA) (Various Issues) Annual Report. 5. Anderson, K. (ed.) (1992) New Silk Roads: East Asia and World Textile Markets. Cambridge: Cambridge University Press. 6. Chaudhry, S. A., and J. Hamid (1988) Foreign Trade Barriers to Exports: Pakistan. In Foreign Trade Barriers to Export Growth. Manila: Asian Development Bank. 7. GATT (1984) Textiles and Clothing in the World Economy. Geneva, GATT. 8. Khan, A. H., and Z. Mahmood (1996) Emerging Global Trading Environment: Challenges for Pakistan. Asian Development Review 14:2 73115 9. Mahmood, Zafar (1999) WTO and Pakistan: Opportunities and Policy Challenges, Paper presented at the 14th Annual General Meeting and Conference of Pakistan Society of Development Economists, Islamabad. 10. Pakistan, Government of (1999-2000) Pakistan Economic Survey. Islamabad: Ministry of Finance. 11. Textile Industry Special Report (1995). Economic Review 7, 7172 12. Asim, A, (2003) From Doha to Cancun: WTO impact on Pakistan, Daily Dawn, Karachi, Pakistan, 17 May 2003. 13. IMF and World Bank (2001) Market access for developing countries exports, IMF and World Bank Staff Paper, April 27, www.worldbank.org p.45. 14. Textile Vision (2005) Small and Medium Enterprise Development Authority (SMEDA), Pakistan. 15. Akhtar, Sajjad and Fauzia Malik (2000). Pakistans Trade Performance vis--vis Its Major Trading Partners. Pakistan Development Review, 39: 37-50. 16. Zaidi, S. Akbar (2005). Issues in Pakistans Economy. 2ndEdition. Karachi: Oxford University Press. 20

Appendices

21

Survey Questionnaire How to Grow Textile Sector Q (1). Age of respondent 1) 2) 3) 4) 5) Under 25 25-34 35-44 45-54 Above54 ___________ ___________ ___________ ___________ ___________

Q (2). Gender of respondent 1) 2) Male Female ___________ ___________

Q (3). What is your rank in the organization? 1) 2) 3) Top level executive Middle level Front Line ___________ ___________ ___________

Q (4). How much experience you have? 1) 2) 3) 4) 5) Under 10 years 10-19 years 20-29 years 30-39 years Above 39 years ___________ ___________ ___________ ___________ ___________

Q (5). What is your qualification? 1) 2) 3) 4) Graduation Post Graduation PhD Any Other ___________ ___________ ___________ ___________

Q (6). Is it necessary to have the knowledge about machines to be successful in textile industry at executive level? 1) Yes ___________ 22

2)

No

___________

Q (7). Are you satisfied with the current performance of textile industry? 1) 2) 3) 4) 5) Fully satisfied Satisfied Neither satisfied nor dissatisfied Dissatisfied Extremely dissatisfied ___________ ___________ ___________ ___________ ___________

Q (8). Where you rank the current export rate of textile sector? It is: 1) 2) 3) 4) 5) Excellent Good Satisfactory Poor Worst ___________ ___________ ___________ ___________ ___________

Q (9). At what extent do you think that overall export indicators of economy have positive effects on textile sector growth? 1) 2) 3) 4) 5) 6) Under & equal to 10% ___________ 11%-30% 31%-50% 51%-70% 71%-90% ___________ ___________ ___________ ___________

Above & equal to 91% ___________

Q (10). Was textile export growth rate is more in MFA than post-quota regime? _________________________________________________________ _________________________________________________________

Q (11). What are the effects on textile industry after starting 2005? 1) 2) 3) 4) Bad effects Good effects Neither bad nor good Both good and bad ___________ ___________ ___________ ___________

23

Q (12). What type of environment that textile industry is facing after starting 2005? 1) 2) 3) Full of challenges Full of Opportunities Both opportunities & challenges ___________ ___________ ___________

Q (13). Which is the most growing sector of textile industry after MFA or in postquota regime? _________________________________________________________ _________________________________________________________ Q (14). Do you agree that if textile industry adopt WTO policies & maintain quality standards than its market growth rate can be enhanced? 1) 2) 3) 4) 5) Strongly agree Agree Neutral Disagree Strongly Disagree ___________ ___________ ___________ ___________ ___________

Q (15). What do you think the role of each factor in textile growth?
Very High High Middle Low Very Low

Core competencies Education Skilled human resource Better Infrastructure Production cost Up-to-Date technology Good quality Price Investment facilities & protectionism

1 1 1 1 1 1 1 1 1

2 2 2 2 2 2 2 2 2

3 3 3 3 3 3 3 3 3

4 4 4 4 4 4 4 4 4

5 5 5 5 5 5 5 5 5

Q (16). Do you agree if textile industry maintains low cost per unit then it can fight against its rivals and make better position? 1) 2) 3) Strongly agree Agree Disagree ___________ ___________ ___________

24

4)

Strongly disagree

___________

Q (17). What is the current image of Pakistan in global world? 1) 2) 3) 4) Pleasant Neither pleasant nor bad In some areas pleasant and in some bad Bad ___________ ___________ ___________ ___________

Q (18). How much dependency of textile growth on Pakistans image? 1) 2) 3) 4) 5) High dependency Low dependency Some extent dependent and Independent Independency Highly independency ___________ ___________ ___________ ___________

Q (19). What type of issues today textile sector is facing? _________________________________________________________ _________________________________________________________ Q (20). Do you agree that Govt. is seriously trying to assist textile industry for coping current crisis? 1) 2) 3) 4) 5) Strongly agree Agree Neither agree nor disagree Disagree Strongly disagree ___________ ___________ ___________ ___________ ___________

Q (21). Do you think that Ministry of Commerce and Textile are active bodies for resolution of issues like anti dumping duties, countervailing duties and industrial disputes etc. which are reluctant to textile growth? 1) 2) Yes No ___________ ___________

25

Q (22). Are you satisfied with the contribution of Govt. agencies with regard to tariffs, duties and subsidies on textile sector? 1) Extremely satisfied 2) Satisfied 3) Neutral 4) Dissatisfied 5) Extremely dissatisfied ___________ ___________ ___________ ___________ ___________

Q (23). What is the future of textile in Pakistan? 1) 2) 3) 4) Bright Dark Backward Full of Innovations ___________ ___________ ___________ ___________

Q (24). Do you think that Pakistan will be ranked in first 5 Asian exporters after ten years? _________________________________________________________ _________________________________________________________

Q (25). Do you have any suggestion for the betterment of textile sector? _________________________________________________________ _________________________________________________________

26

1:Response from Respondents

(A) Response of MCQs type questions: Selected No. of Q.No. Option Respondents 1 2 3 5 Total 2 1 2 Total 3 2 3 Total 4 1 2 3 4 Total 5 1 2 4 Total 6 1 2 Total 7 2 4 5 Total 8 3 4 5 Total 9 3 4 6 Total Selected Option 2 3 4 Total 1 3 Total 1 2 4 Total 1 2 3 Total 2 3 4 Total 1 2 Total 2 3 Total 1 2 4 Total 1 2 Total No. of Respondents 1 6 6 9 1 8 9 5 2 2 9 6 1 2 9 3 4 2 9 4 5 9 7 2 9 2 5 2 9 5 4 9

3 5 1 9 7 2 9 4 5 9 3 3 2 1 9 3 4 2 9 3 6 9 2 3 4 9 1 5 3 9 2 3 4 9

Q.No. 11

12

14

15(i)

15(ii)

15(iii)

15(iv)

15(v)

15(vi)

27

Q.No. 15(viii)

Selected Option 1 3 4 5 Total 1 3 4 Total 2 3 4 Total 1 3 4 Total 1 3 4 Total 2 3 5 Total 1 2 Total 2 3 4 5 Total 1 4 Total

No. of Respondents 1 2 2 4 9 4 4 1 9 2 4 3 9 1 5 3 9 6 2 1 9 2 3 4 9 7 2 9 5 1 2 1 9 3 6 9

15(ix)

16

17

18

20

21

22

23

28

(B) Response of descriptive questions: Note: - For simplicity, I have used R1 , R2 , R3 and so on up-to R9 in descriptive questions which means response from respondent 1, 2, 3 and so on. Q (10).

R1: Yes, textile growth rate is more in MFA than post-quota because our concentration is
fully on major target markets.

R2: I think no effect has been made after quota period. In my view, textile growth rate is
same as in MFA.

R3: Yes, textile growth rate is more in MFA than post-quota because. R4: I am in favor of after quota regime because now we can freely explore new markets
and make vital contribution in world share of textile. I am not in favor of both because it depends on your competencies, qualities, technology and perceptions.

R5:

R6: I think MFA period was a shield on Pakistan textile sector in which certain export
already known and on the basis of this you can make better future plans and set the road map for your success.

R7:

I appreciate post-quota regime because it gives the small and medium as well as cottage sector to participate directly in export.

R8: Both are important because both periods give you some benefits as well as losses.
For example in MFA most focus on European Union countries and American States while ignore other countries and markets. In post-quota, freedom of export or dealing with any dealer belongs to any country as well as to tackle major rival forces becoming hard and hardest.

R9: In my view, post-quota regime is more beneficial for increasing textile sector export
of Pakistan.

29

Q (13).

R1: The most growing sector in MFA was cotton in raw form and in post quota are value
addition products.

R2: The most growing sector in MFA was ginning material and in post-quota apparel and
made-ups.

R3: From my point of view in MFA it was filament and cotton both products and in postquota it is weaving and knitwear. R4: In MFA it was cotton off-course, while in post-quota I will make no hesitate to tell
that knitwear at top and cotton in purification form.

R5: I equally rank both cotton and ginning for MFA and in post-quota it is value addition
products and knitwear at the top.

R6: In MFA it was cotton, on the other hand, sports wear and knitwear under garments
both important in post-quota.

R7: Cotton in first and apparel in second. R8:

Cotton is most growing sector in both MFA & post-quota but I never neglect the value addition products which will contribute major share in textile export in near future due to technological development and availability of skilled human resource.

R9: From my point of view cotton in MFA and filament as well as sports wear.

30

Q (19).

R1: Textile sector is facing many crisis such that energy shortfalls (in form of electricity,
fuel and gas etc.), stumpy flow of investment, Govt. restricted policies etc.

R2: The major threat for textile industry is energy shortfall and due to this many mills
have been shut-down. Other factors might be obsolete technology usage in some areas as well as lack of some managerial and employee relationship.

R3: Today, the major issue is fuel and electricity problems that textile sector is facing. R4: Energy pitfall is the most emerging issue not only in textile but so many other sectors of economy as well. R5: Electricity, fuel, less connectivity between education and industrial require skills and
some Govt. hurdles are common these days.

R6: In these days, our economy is working under Surveillance Govt., so, I cant tell the
issues of textile in detail but I will point out the major issue which is energy shortage (in form of gas and electricity).

R7: Energy is the biggest problem today textile sector is facing. High cost of production is another problem. R8: Many issues that are acting as barrier of textile growth rate in which energy at top.
While, secondary issues are some tighten Govt. regulations that are not in favor of this sector.

R9: Shorting of energy, unavailability of raw material in some backward areas, uncontrolled situations of country, inefficient labor, mismatching between education and industry demand and bad view of Pakistan in some EU countries and American States are issues that Pakistan is facing at current period.

31

Q (24).

R1: Insha-Allah, Pakistan will be in top threes rather than top fives after ten years. R2: It depends on environment, culture and government. R3: You know that today what type of crisis that Pakistans whole economy generally and textile especially is facing. And our past was also not very bright. So, on the basis of facts it is harder to say that Pakistan will be in top five after ten years with respect to textile sector. R4: It depends on continuation of policies and fair treatment of Govt. with textile sector
and economic conditions of Pakistan during forthcoming ten years.

R5: In my point of five, it will take long time rather than ten years. R6: I pray for God that it would happen after ten years but current situation is opposite of it because China, Bangladesh and India is capturing our markets whom we are supplying. R7: If sustainability of policies, better law and enforcement situation, highly correlation
between education and demand of industry, use of latest technology and availability of highly skilled labor is achieved then I hope that Pakistan will be in top fives after ten years.

R8: It all depends on our capabilities, skills, knowledge about environment of different
countries, image of Pakistan in Western world and response from our target markets.

R9: In Pakistan, labor shortage is not the problem but there is lack of minds who work for
the betterment and growth of companies. Our labor requirement is satisfactory but managerial requirement might be fall in dumpiness. To achieve of ranked in top fives we must dedicate our skills and knowledge for the betterment of industry.

32

Q (25).

R1: My suggestion for betterment of textile sector is that government agencies and active
bodies take it role seriously and textile organizations must follow WTO policies and standards if they want to acknowledge themselves in whole world.

R2: I will request rather than suggestion to government that please make effective plans
and projections before what they want to do. Further, it should be cooperative and flexible with regard to any policy and rules implementation on textile sector.

R3: My suggestions are that we all must implement of WTO policies and take a birds eye
view on over competitors I we want to come in top five positions after ten years from now. My suggestions are be fair, honest, hardworking and motivator if we want to accomplish our objectives at time.

R4: R5:

For better textile growth rate we must implement WTO policies, used Up-to-Date technology, hired skilled human resource on merit, set short term objectives in order to achieve long term goals and targets effectively. Government role must be supportive rather than only a regulatory body.

In my view, I think we should follow those strategies, course of action and implement those policies which is adopted by our those rivals who are successful in the world with regard to textile sector. Like China and Bangladesh.

R6:

R7: My suggestions are we need to change the organizational culture from centralized to
decentralized because this is the way through which modern organizations and Western world is progressing. I also suggest that make analysis short period basis and take a view on WTO actions and policies.

R8: Hardworking is the key to success, remember this motto and work for the nation if
you want to recognize them and face any problem humbly. This is teaching of our religion.

R9: If you want to give better future to textile sector then follow these guidelines:
Established and follow defined & real goals Actions and duties must defined first before doing Take review on technology changes with regard to textile Be humble and show patience in any type of difficulty. Dont over estimate any thing Control cost of production by maintaining standard rules of working You should not show any irresponsibility while exporting because you are representing not only the textile sector but also your country as well

33

2:Feel of the Data

Frequencies
Position in Organization

Age

Experience Qualification Machine Knowledge Current Performance

Total Respondents 9 9 9 9 Mean 3.33 2.5 2.5 2.33333 SE-Mean 0.8819 0.5 0.6455 0.881917 St-Dev 1.5275 0.707107 1.29099 1.52753 Variance 2.3333 0.5 1.66667 2.33333 Median 3 2.5 2.5 2 Minimum 2 2 1 1 Maximum 5 3 4 4 Range 3 1 3 3

9 1.5 0.5 0.707107 0.5 1.5 1 2 1

9 3.66667 0.881917 1.52753 2.33333 4 2 5 3

Current Export

Overall export contributio n

Effects on Textile after 2005

Environmen t after 2005

WTO policies & quality standards

Core Competencies

Total Respondents Mean SE-Mean St-Dev Variance Median Minimum Maximum Range

9 4 0.57735 1 1 4 3 5 2

9 4.33333 0.881917 1.52753 2.33333 4 3 6 3

9 3 0.57735 1 1 3 2 4 2

9 2 1 1.41421 2 2 1 3 2

9 2.33333 0.881917 1.52753 2.33333 2 1 4 3

9 2 0.57735 1 1 2 1 3 2

34

Education Role

Skilled human Infrastructure Production resource role role cost

Technology role

Product quality

Total Respondents Mean SE-Mean St-Dev Variance Median Minimum Maximum Range

9 3 0.57735 1 1 3 2 4 2

9 1.5 0.5 0.707107 0.5 1.5 1 2 1

9 2.5 0.5 0.707107 0.5 2.5 2 3 1

9 2.33333 0.881917 1.52753 2.33333 2 1 4 3

9 1.5 0.5 0.707107 0.5 1.5 1 2 1

9 2 0.57735 1 1 2 1 3 2

Product price role

Investment facilities & protectionism

Rivalry & per unit cost

Pakistan's image

Dependency of growth on Pakistan's image

Govt. assistance for coping crisis

Total Respondents Mean SE-Mean St-Dev Variance Median Minimum Maximum Range

9 3.25 0.853913 1.70783 2.91667 3.5 1 5 4

9 2.66667 0.881917 1.52753 2.33333 3 1 4 3

9 3 0.57735 1 1 3 2 4 2

9 2.66667 0.881917 1.52753 2.33333 3 1 4 3

9 2.66667 0.881917 1.52753 2.33333 3 1 4 3

9 3.33333 0.881917 1.52753 2.33333 3 2 5 3

Role of Ministry of Commerce in Contribution of Future of Textile issues resolution Govt. agencies in Pakistan

Total Respondents Mean SE-Mean St-Dev Variance Median Minimum Maximum Range

9 1.5 0.5 0.707107 0.5 1.5 1 2 1

9 3.5 0.645497 1.29099 1.66667 3.5 2 5 3

9 2.5 1.5 2.12132 4.5 2.5 1 4 3

35

Frequencies Tables
Table 2.1

Age
Selected Option 2 3 5 Total Frequency 3 5 1 9 Percent 33.33 55.56 11.11 100.00 Cummulative Percent 33.33 88.89 100.00

35-44

25-34

2 3 5

Above 54

36

Table 2.2

Gender
Selected Option 1 2 Total Frequency 7 2 9 Percent 77.78 22.22 100.00 Cummulative Percent 77.78 100.00

Male 1 2 Female

37

Table 2.3

Rank
Selected Option 2 3 Total Frequency 4 5 9 Percent 44.44 55.56 100.00 Cummulative Percent 44.44 100.00

Middle Level 2 3 Front Line

38

Table 2.4

Experience
Selected Option 1 2 3 4 Total Frequency 3 3 2 1 9 Percent 33.33 33.33 22.22 11.11 100.00 Cummulative Percent 33.33 66.67 88.89 100.00

10-19 Under 10

1 2 3 4

30-39

20-29

39

Table 2.5

Qualification
Selected Option 1 2 4 Total Frequency 3 4 2 9 Percent 33.33 44.44 22.22 100.00 Cummulative Percent 33.33 77.78 100.00

Graduation

Post Graduation

1 2 4

Any Other

40

Table 2.6

Machines Knowledge for Success

Selected Option 1 2 Total Frequency 3 6 9 Percent 33.33 66.67 100.00 Cummulative Percent 33.33 100.00

Yes 1 2 No

41

Table 2.7

Satisfaction about Current Performance

Selected Option 2 4 5 Total Frequency 2 3 4 9 Percent 22.22 33.33 44.44 100.00 Cummulative Percent 22.22 55.56 100.00

Dissatisfied 2 4 5 Extremely Dissatisfied

Satisfied

42

Table 2.8

Current Export Rate

Selected Option 3 4 5 Total Frequency 1 5 3 9 Percent 11.11 55.56 33.33 100.00 Cummulative Percent 11.11 66.67 100.00

Poor 3 4 5 Satisfactory Worst

43

Table 2.9

Contribution of Overall Export Indicators

Selected Option 3 4 6 Total Frequency 2 3 4 9 Percent 22.22 33.33 44.44 100.00 Cummulative Percent 22.22 55.56 100.00

51-70% 3 4 6 Abov & Equal 90%

31-50%

44

Table 2.10

Effects on Textile After 2005

Selected Option 2 3 4 Total Frequency 1 6 2 9 Percent 11.11 66.67 22.22 100.00 Cummulative Percent 11.11 77.78 100.00

Neither good nor bad

Good effect Both good & bad

2 3 4

45

Table 2.11

Environment for Textile After 2005

Selected Option 1 3 Total Frequency 1 8 9 Percent 11.11 88.89 100.00 Cummulative Percent 11.11 100.00

Both opportunities & Challenges

1 3

Full of Challenges

46

Table 2.12

Adoption of WTO Policies & Quality Standards

Selected Option 1 2 4 Total Frequency 5 2 2 9 Percent 55.56 22.22 22.22 100.00 Cummulative Percent 55.56 77.78 100.00

Strongly Agree

Agree

1 2 4

Disagree

47

Table 2.13

Core Competencies & Textile Growth

Selected Option 1 2 3 Total Frequency 6 1 2 9 Percent 66.67 11.11 22.22 100.00 Cummulative Percent 66.67 77.78 100.00

Very High

1 2 3
High Middle

48

Table 2.14

Education Role in Textile Growth

Selected Option 2 3 4 Total Frequency 3 4 2 9 Percent 33.33 44.44 22.22 100.00 Cummulative Percent 33.33 77.78 100.00

Middle High

2 3 4
Low

49

Table 2.15

Skilled Human Resource Role

Selected Option 1 2 Total Frequency 4 5 9 Percent 44.44 55.56 100.00 Cummulative Percent 44.44 100.00

Very High

1 2
High

50

Table 2.16

Role of Production Infrastructure

Selected Option 2 3 Total Frequency 7 2 9 Percent 77.78 22.22 100.00 Cummulative Percent 77.78 100.00

High

2 3

Middle

51

Table 2.17

Production Cost
Selected Option 1 2 4 Total Frequency 2 5 2 9 Percent 22.22 55.56 22.22 100.00 Cummulative Percent 22.22 77.78 100.00

High

Very High

1 2 4
Low

52

Table 2.18

Role of Technology
Selected Option 1 2 Total Frequency 5 4 9 Percent 55.56 44.44 100.00 Cummulative Percent 55.56 100.00

Very High

1 2
High

53

Table 2.19

Role of Product Quality in Textile Growth

Selected Option 1 2 3 Total Frequency 3 3 3 9 Percent 33.33 33.33 33.33 100.00 Cummulative Percent 33.33 66.67 100.00

High Very High

1 2 3
Middle

54

Table 2.20

Role of Product Price

Selected Option 1 3 4 5 Total Frequency 1 2 2 4 9 Percent 11.11 22.22 22.22 44.44 100.00 Cummulative Percent 11.11 33.33 55.56 100.00

Low High

Very High Very Low

1 3 4 5

55

Table 2.21

Role of Investment Facilities & Protectionism to Investment

Selected Option 1 3 4 Total Frequency 4 4 1 9 Percent 44.44 44.44 11.11 100.00 Cummulative Percent 44.44 88.89 100.00

Very High

Middle Low

1 3 4

56

Table 2.22

Fight against Rivals by Low per Unit Cost

Selected Option 2 3 4 Total Frequency 2 4 3 9 Percent 22.22 44.44 33.33 100.00 Cummulative Percent 22.22 66.67 100.00

Disagree Agree Strongly Disagree

2 3 4

57

Table 2.23

Image of Pakistan in Global World

Selected Option 1 3 4 Total Frequency 1 5 3 9 Percent 11.11 55.56 33.33 100.00 Cummulative Percent 11.11 66.67 100.00

In some areas pleasant & in some bad

1 3 4
Pleasant Bad

58

Table 2.24

Dependency of Textile Sector Growth on Pakistans Image

Selected Option 1 3 4 Total Frequency 6 2 1 9 Percent 66.67 22.22 11.11 100.00 Cummulative Percent 66.67 88.89 100.00

High Dependency

1 3 4
Some extent dependent and Independent

Independency

59

Table 2.25

Govt. Assistance to Cope Textile Crisis

Selected Option 2 3 5 Total Frequency 2 3 4 9 Percent 22.22 33.33 44.44 100.00 Cummulative Percent 22.22 55.56 100.00

Neither Agree nor Disagree

2 3 5 Strongly Disagree

Agree

60

Table 2.26

Role of Ministry of Commerce & Textile for Issues Resolution

Selected Option 1 2 Total Frequency 7 2 9 Percent 77.78 22.22 100.00 Cummulative Percent 77.78 100.00

Yes

1 2

No

61

Table 2.27

Contribution of Govt. Agencies

Selected Option 2 3 4 5 Total Frequency 5 1 2 1 9 Percent 55.56 11.11 22.22 11.11 100.00 Cummulative Percent 55.56 66.67 88.89 100.00

Statisfied Neutral 2 3 4 5 Dissatisfied Strongly Dissatified

62

Table 2.28

Future of Textile in Pakistan

Selected Option 1 4 Total Frequency 3 6 9 Percent 33.33 66.67 100.00 Cummulative Percent 33.33 100.00

Bright Full of Innovations 1 4

63

3:Integrity of Data
Reliability Table 3: Processing Summary Respondents' Status 9 0 9

Valid Excluded Total

% 100.00 0.00 100

Reliability Statistics Cronbach's alpha N of items 0.9516 26

* The table shows reliability of data our data is more reliable because alpha is 0.9516.

64

4:Hypotheses Testing
Hypothesis 1:
One-Sample T: WTO Policies
Variable WTO Policies N 3 Mean 2.333 StDev 1.528 SE Mean 0.882 95.0% CI (-1.461, 6.128)

D o tp lo t o f W T O P o lic ie s
( with 9 5 % t- c o n fid e n c e in te r v a l fo r th e m e a n )

_ X

W TO P o lic ie s

One-Sample T: Textile Problems post 2005

Variable Textile Problems N 2 Mean 2.00 StDev 1.41 SE Mean 1.00 95.0% CI (-10.71, 14.71)

H is t o g r a m o f T e x t ile P r o b le m s p o s t 2 0 0 5
( w it h 9 5 % t - c o n f id e n c e in t e r v a l f o r t h e m e a n )

1.0

Frequency

0.5

0.0

[
1

_ X

]
3

Te xti le P r o b le m s p o s t 2 0 0 5

65

Hypothesis 2:
One-Sample T: Role of Investment
Variable Role of Investment N 3 Mean 2.667 StDev 1.528 SE Mean 0.882 95.0% CI (-1.128, 6.461)

Histogram of Role of Investment

(with 95% t-confidence interval for the mean)

1.0

Frequency

0.5

0.0

[
1 2

_ X

]
3 4

Role of Investment

66

Hypothesis 3:
One-Sample T: Global image of Pakistan
Variable Role of Pakistans image 6.461) N 3 Mean 2.667 StDev 1.528 SE Mean 0.882 95.0% CI (-1.128,

Boxplot of Global image of Pakistan

(with 95% t-confidence interval for the mean)

_ X

Global image of Pakistan

One-Sample T: Dependency of Growth on Image

Variable CI Dependency of growth on image 6.461) N 3 Mean 2.667 StDev 1.528 SE Mean 0.882 95.0% (-1.128,

D o t p lo t o f D e p e n d e n c y o f G r o w t h o n I m a g e
( w it h 9 5 % t - c o n f id e n c e in t e r v a l f o r t h e m e a n )

_ X

D e p e n d e n c y o f G r o w th o n I m a g e

67

Hypothesis 4:
Two-Sample T-Test and CI: Role of Core competencies, Role of Education

Role of Core Competencies Role of Education

N 3 3

Mean 2.00 3.00

StDev 1.00 1.00

SE Mean 0.58 0.58

Difference = mu Role of Core competencies - mu Role of Education Estimate for difference: -1.000 95% CI for difference: (-3.267, 1.267) T-Test of difference = 0 (vs. not =): T-Value = -1.22 P-Value = 0.288

DF = 4

Boxplots of Role of Core competencies & Education

(means are indicated by solid circles)
4

1 Role of core competencies Role of Education

68

Hypothesis 5:
Two-Sample T-Test and CI: Govt Role for Crisis Handling & MOC as Participative
N 3 Mean 3.33 StDev SE Mean 1.53 0.88 2 1.500 0.707

Govt Role MOC as Participative

0.50

Difference = mu Govt Role for Crisis Handling - mu MOC as Participative Estimate for difference: 1.83 95% CI for difference: (-2.53, 6.20) T-Test of difference = 0 (vs not =): T-Value = 1.81 P-Value = 0.212

DF = 2

Boxplots of Govt Role and MOC as Participative

(means are indicated by solid circles)
5

1 Govt Role MOC as Participative body

69

Hypothesis 6:
Two-Sample T-Test and CI: Technology & Textile Growth and Skilled HR & Textile
N 2 2 Mean 1.500 1.500 StDev 0.707 0.707 SE Mean 0.50 0.50

Technology Skilled HR

Difference = mu Technology & Textile Growth - mu Skilled HR & Textile Growth Estimate for difference: 0.000 95% CI for difference: (-3.042, 3.042) T-Test of difference = 0 (vs not =): T-Value = 0.00 P-Value = 1.000 DF = 2

Boxplots of Up-to-DateTechnology and Skilled HR role in textile sector

(means are indicated by solid circles)
2.0

1.5

1.0 Up-to-Date Technology Skilled HR

70

Hypothesis 7:
One-Sample T: Relationship between overall economic exports & textile sector
Variable Relationship N 3 Mean 4.333 StDev 1.528 SE Mean 0.882 95.0% CI (0.539, 8.128)

Histogram of Relationship between overall economic exports & Textile

(with 95% t-confidence interval for the mean)
1.0

Frequency

0.5

0.0

[
3 4

_ X

]
5 6

Relationship between overall

71

Hyp+othesis 8:
One-Sample T: Better Production infrastructure & Textile growth
Variable Better Production infrastructure N 2 Mean 2.500 StDev 0.707 SE Mean 0.500 95.0% CI (-3.85 3, 8.853)

Dotplot of Better Production infrastructure & Textile growth

(with 95% t-confidence interval for the mean)

_ X

-4

-2

Production infrastructure & Textile growth

72