http://www.pakobserver.net/news/business03.asp


Faisalabad-a hub of economic activities

Faisalabad—Industry, trade, business and exports have made rapid progress in Faisalabad in recent years owing to the progressive, forward looking and pragmatic policies of the government.

Revolutionary steps and reforms process in different areas helped develop the industrial sector, earn foreign exchange and generate more employment opportunities.

Named Manchester of Pakistan by Father of the Nation, Quaid-e- Azam Muhammad Ali, Faisalabad always contributed valuably to the booming industrial sector of the country and exports.

Linking it to other major cities through roads network, setting up educational and health facilities and lining of water courses are the major steps taken towards development of the city.

“Fifty major industrial units have been established in the industrial belt, creating new job opportunities and exploring exports potential,” said City District Nazim Rana Zahid Tauseef.

“These new as well as old industrial units imported latest machinery worth US$ 2 billion within last 3-4 years to increase production and improving quality to compete in the international market,” he added.

Zahid Tauseef gives credit of the economic turn around to viable economic policies of the present government saying, “Faisalabad is now exporting textile products worth US$ 3 billion annually.”

The country was on the brink of bankruptcy when President General Pervez Musharraf took over in 1999 and initiated series of action and reforms in a number of areas.

His visionary, pragmatic and progressive polices put Pakistan on road to progress and prosperity and encouraged local businessmen.

Floundering industrial sector was revived and infrastructure facilities were enhanced after President Musharraf introduced new planned, systematic, integrated and comprehensive socio-economic approach to transform Pakistan into a modern, progressive and enlightened country.

These conscious efforts provided a favorable climate for the value-addition particularly of textile products. The project of a Value Addition City (VAC) was conceived over 215 acres near Khurrianwala Chowk to provided better opportunities to value addition sector.

“VAC has been divided into different zones including foreign, Made Ups, Knitted Garments, Woven Garments, Engineering and Packaging zones etc to cater to the specific needs of each zone,” said Mian Muhammad Latif Chairman FIEDMC.

He elaborated One Windows Operation, State of the Art Communication Network, Potable Water Supply System, Utility Services, Electrification, Solids Waste Management, Dual Carriage Roads, Utility and Community Buildings, Sewerage and Storm water drainage system and Natural Gas as major facilities at this settlement.

President Pervez Mushrraf will perform the ground-breaking ceremony of M-3 Industrial City within couple of days - the first scientifically designed industrial estate with international infrastructure.

Stretching over more than 17.7 million square meters - this largest industrial estate of Pakistan will convert Faisalabad into land of opportunities by creating millions of new jobs for the skilled workforce.

The government was also establishing a Garment City and strengthening Faisalabad’s links to other cities through reliable road network.

Inaugurated by President Pervez Musharraf in recent past, the M-3 has not only reduced Faisalabad-Islamabad travelling distance but also opened vistas of progress and prosperity by gearing up socio economic activities in the region.

Faisalabad-Lahore Expressway is another example of the government endeavors to ensure safe and speedy travel between the important cities.—APP

We always mention Lahore and Karachi because these are big cities and political power houses...

In 1980 and before Faisalabad was a major industrail city in Pakistan and espacially after unrest in Karachi all textile industry moved there, there were hundreds of thousand "power looms" units producing bed sheets and gray cloth.

In Nawaz time, the APTMA was able to manipulate the cotton market and these small units suffered a lot and many of them went out of business because they were not able to compete the modern textile industry. Buy in recent years the cotton crops have seen a boom and indusrty was also protected, so these guys were able to reveive and upgrade their industry.

Now they are connected by motorway M 3 and also another motorway M-5 or M 4 (Faislababad Khanewal) is under development, which would connect fasialabad to Karachi Highway directly, and government have announced a major industrial estate there, it would be a new life for textile business.

One more thing, our major exporters are never mentioned here, Gujranwala is exporting the best quality Fans and electronics around the world, Wazirabad and Sialkot are exporting Cutlery and Footballs and have their recognation in world market.

Sameway, Multan and Chiniot are exclusive for leather and carpets, MianChannu for Agri Implements and Bahawal Pur and Sukkar for hand embriodery.

There are a lot more famous markets for export products which I can not recall.

If anyother Bro here have some specility in their town, please add it.

yea sure.. but roads are #### there.. i had visited faisalbad so many times..
but one thing .. .that city is denied its termendous development potential...
It is very much important to have multiple highly developed cities for the progessive, dynamice and huge economic base....
different ethenic groups have different traits arts, and skilfulls...
utilizing of these multi colored fabric of our society we can make an impact in international economics

bro i'm originally from faisalabad. i've visited family there many, many times over the past 15 yrs and i know that over time there has been immense development in faisalabad. it was once voted the worst city in south asia but i doubt it would even come under that catagory now. faisalabad and its surrounding areas hold the key to pakistan's textile development strategy.

regards.

Pakistan's exports this year will be around $18 billion.

Faislabad exports $3 billion, Sialkots exports are over $1 billion and Gujranwala's exports are in the region of around $500 million. so thats almost 1/4 of the total exports of Pakistan.

Does anyone have the figures for Karachi, Lahore and Islamabad/Rawalpindi?

I think there is a bit of confusion on exports calculations.

Major producers are based outside Karachi and Lahore, espacilly SME's and even mega industrial units, while most of them have their offices in Karachi and Lahore because of access and being major cities.

When it comes to exports, major exporters companiese are based in Karachi and Lahore, who play a role of middle man for small producers and purchase and export these products under their company name, which is registerd in Karachi or Lahore.

i see your point bro.

Karachi and Lahore serve as a major supply chain point rather than manufacturing the goods themselves for export?

http://www.dailytimes.com.pk/default.asp?p...8-2-2007_pg13_2


CM inaugurates Industrial City in Faisalabad

LAHORE: Chief Minister Chaudhry Pervaiz Elahi addressed a stone laying ceremony for the M-III Industrial City at Sahianwala, Faisalabad on Saturday.

He said that $10 billion from various industries are expected to develop the city, which is being built over 4,500 acres in Faisalabad.

He said the industrial city will generate four million jobs and will be completed in one and a half years. The minister said a Chinese Industrial Zone is being established over 500 acres of the estate, in which $200 million will be invested.

He said that President Pervez Musharraf gave directions to pay the owners of the land more than what it was worth in the market.

A labor colony and hospital are going to be built on the park, he added. Other facilities that are being provided in the M-III Industrial City include a power plant, a treatment plant, a hotel, and a golf course. staff report

so the figure of 4 million jobs is true which mean almost 2.5% of Pakistan total population on top of that 10 billion $ investment

you provide an article telling us that faislabad is getting the biggest industrial estate in the country and $10 billion investment and say we never mention it,

dude, have you even been to faislabad latly, its getting many developments, especially industrial estates and real estate projects, kohinoor city being made by saigols is a massive project and has many towers and malls in it. then there are lots of residential compounds being made all over the suburbs and malls and plazas coming up here and there. the city is fast developing.

Impressive.

There are quite a few folks from Karachi who have head offices in Karachi and manufacturing units in Faisalabad and Hyderabad.

I am glad that Faisalabad finally gets some attention in this forum, i miss focus on Faisalabad in Pakistani media and politics, always Lahore, Karachi, Quetta, Islamabad and Peshawar in mentioned. In a country of 160 mil inhabitants 3 largest city should be mentioned.

Else i feel that poltician only develope, Lahore, Karachi and Islamabad, they dont focus that musch om countries 3 largets and 2 largets industrial city.

Its for instance very few park in Faisalabad, bad roads, unclean city, pollution, bad sevarage system, faisalabad airport should have more international routes or more routes to Islamabad, Lahore and other cities. Else the city needs complet uplift.

I am orignally from Jehlum in Punjab, Pakistan but have family and a "kothi" in Faisalabad, so i often visist the city when i am in Pakistan.

thats good to hear.
last time i went to Faislabad was about 18 years ago and it wasnt a very nice place. hopefully things have improved since then.

its true even for western cities,atleast from what ive seen.the actual manufacturing plants are usually outside the cities while the financial centres and corporate offices are in major cities.

Its the sheer size of these cities that gives them the spot light.

Why Karachi

Because Its Population is greater than 100 Countries and budget of city Govt. is more than 75 countries as well.

aur yeh fridge apka hoa.

Salam Dude

I am stay always in Faisalabad when i am in Pakistan. I can assure you that this city lack most basic facilities as clean water, working sevarage system, almost no parks, except Gatwala, Funland and maybe two more parks. This is a big city, compare it with Lahore. If you visit both cities, you will quick see the difference. It shouldn't be so big difference, even if Lahore is provincial capital, in my oppinion poltician also should focus on lifting standard in Faisalabad and think more stratetigicaly, and should not focus one sided on building only Lahore, remember that Lahore is a border city, here indian troops can enter the city faster then in Faisalabad. Like our capital was shifted from Karachi to Islamabad due to bad experience in the 1971 war when Indian navy gave this city heavy dose of bombs , Pakistan should construct more in Faisalabad and have more balanse between these two cities, and have war plan in the mind constructing cities like European countries and USA.

Faisalabad need clean drinking water, sevarage system, dust bins everywhere, properly trafic system, city plan with standards for everything, housing, roads, business etc tec. Broadband, Faisalabad airport should also recive international flights, and more air trafic between faisalaabd and Islamabad, Peshavar and other parts of the country.

Else its needs badly upgrading its transport system, and other problem inhabitons of this city face, specially electricity problems.

So it means "U've to survive with water cooler again".

Source: Former Chairman of SITE and also the former-past president KCCI
http://www.site-association.org

Pakistan currently ranks fourth among world cotton producers and third among world cotton consumers — having produced 9.9 million 480-pound bales and consumed 11.8 million 480-pound bales in the 2005/2006 marketing season.

Karachi has 5 industrial estates, S.I.T.E (Sindh Industrial Trading Estate), Korangi, F.B Area and Landhi. The 5th being the famous EPZ;

Karachi Export Processing Zone (KEPZ) comprises an area of 300 acres, out of which 200 acres have been fully developed in the first phase at an estimated cost of Rs365 million. All infrastructure facilities have been provided to the investors under "one window " facility.

By July 31, 1998, 161 industrial ventures stood approved for setting up various types of industries in the zone, out of which 115 are in production and 46 units are at various stages of implementation. Again inspite of the best possible incentives are available, the pace of development in KEPZ is not upto the mark and a vast land is still awaiting investors.

SITE contributes 40% to the total national exchequer.
2006 macromedia indicator figures % for SITE(Source SBP):
Factor cost real GDP 6.6,
Medium scale manufacturing 8.6 and large scale 9.0
Exports (fob) 14.4 and imports 38.8
domestic credit 17.1

As percentage of GDP:
Total investments 20
tax revenue 10.5, total revenue 14
budgetary deficit 4.2
domestic debt 29.7
foreign debt 0.0 and explicit liabilities 0.0

Pakistan's economy continued the growth momentum achieved and the GDP grew by 6.6%, which is consonance with the emmerging economies in our region. Exports touched a peak of $ 16.6 Billion, and so did the trade deficit, which reached $ 12 B, which is an all time high.

Current year's situation is more alarming. Trade gap in the July to December 2006 period was $ 6.55 B compared to $ 5.6 B in the corresponding six months of the previous year. If this trend continues we will end up with a trade deficit of over $ 13 B, and very soon we'll be only a "Trading Nation" if this trend remains unchecked. We are in an urgent need to set up 'Import sustitution Industries'.

Going forward, Inflation still seems to be a problem. Having touched double digits, it is still hovering at over 8%. This has obviously affected bank mark-up and the cost of doing business.

As we can see that the industrial growth for fiscal year ending 2006 was only 8.6% compared to previous 2 years growth of 15% and 18% respectively.

An amount of Rs. 500 Million has been sanctioned by the Sindh Govt. for SITE Karachi, out of which Rs. 300 M alone will be used to revamp the infrastructure, and has been sanctioned not to the city govt. but SITE Limited, which is an intelligent move. The remainder, Rs. 200 M is for futher developments.

In April 2006 a cleanliness campaign started for SITE, and waste management contract was awarded to AL-Khalid agencies for a probationary period of 2 months, and SITE was cleaner than Singapore, then mysteriously the governor of Sindh did not renew the contract, and god knows what happened.

Water supply doubled from 3-4 MGD to 6-7 MGD, and that's 25% of SITE's requirements, hence the industrialists rely on water takers. An Islamabad based company, Nordicom International, in association with a US corporation, Provital is setting up a desalination plant in Karachi, near Hawkesbay-SITE to provide SITE within 1 year with 20 MGD. SITE is in a buy back contract with them for a period of 30 years to purchase 20 MGD at a price of Rs. 111 / 1000 imperial gallons.

At the same time the govt. increased the natural gas commercial rate from Rs. 240.91 to Rs. 264.87/ mmbtu, an increase of Rs. 56.31, i.e. 27%% (in a period of 1year). The govt. was considering to give a relief of 7% on 01-01-07, but still awaiting notification.

2006 was the year when the economy showed a robust growth consecutively for 2 years. In my view tax revenues collected by the CBR, durring the next 5 years, are projected to increase at the rate of 0.3% of GDP every year, as a result of initiating of second generation reforms and enhancing confidence of the taxpayers in tax collection machinery by adopting more facilitation meassures, bringing changes in duty drawback system, refund procedures, good governance and introduction of automated taxation, which would help in minimizing unnecesary physical interaction between the taxpayers and the tax machinery.

The manufacturing sector is the biggest employment generator in the country.

According to the World Bank, which cited Pakistan’s Federal Bureau of Statistics, exported textile products were worth $2.5 billion in the first quarter (Q1) of fiscal year (FY) 2007, which began July 2006. That figure represents a drop of 10.3 percent from Q1 FY06, but an increase of 22.2 percent over Q1 FY05. The top three exports of the textile industry in Q1 FY07 were cotton yarn, knitwear and bedding. Cotton yarn exports, which were worth $303 million in Q1 FY06, grew by 19.5 percent in Q1 FY07 to $362 million. On the other hand, exports of knitwear — worth $526 million in Q1 FY06 — and bedding — worth $555 million in Q1 FY06 —decreased in Q1 FY07 by 10.1 percent and 19.1 percent, respectively.

The textile and apparel industry as a whole employed approximately 40 percent of total industrial workers and accounted for 46 percent of total manufacturing. There were 1,221 ginning units, featuring an installed capacity of 20 million bales of cotton. The spinning sector comprised 408 spinning units, with an installed capacity of 157,143 rotors; and 50 composite units, with an installed capacity of 10.1 million spindles. The country’s 10 man-made fiber units had an installed capacity of 660,000 tons.

On the other hand, the Karachi-based All Pakistan Textile Mills Association (APTMA), a national trade association promoting 360 textile spinning, weaving and composite mills in the organized sector, reported the total installed capacity for its member mills numbered 8.8 million spindles, 65,580 rotors and approximately 10,000 looms. There were 292 APTMA spinning mills, 40 weaving mills and 28 composite mills, which featured facilities that can handle a variety of processes under one roof. Among the products produced in APTMA mills were open-end and spun yarn; greige, printed and dyed fabrics; and bed linens.

According to the UNDP report of 2006, Pakistan exported 1 Billion textile clothing to The EU and US and fetched $ 5.38 / Kg, as compared to India at $ 8.60 and Bangladesh at $ 8.67 / Kg.

Work on Karachi Textile City Project will commence next month.

Contribution of the textile sector: http://www.pakboi.gov.pk/Policies/textile_...r_profile_.html
EPZ presentation to prospective investors: http://www.fias.net/ifcext/fias.nsf/Attach...ia_PSankhla.pdf
Textile Industry's economic contribution (2005) http://www.aptma.org.pk/Pak_Textile_Statistics/tec.ASP
Provincial-Wide growth of textile industry http://www.aptma.org.pk/Pak_Textile_Statistics/Gctipw.asp