Weaknesses, Threats and Issues of Pakistan Textile Industry

Weaknesses of the stuff effort?The government is unwilling to provide furthermore subsidies to the cloth industry. The government is of the view that the textile industry has been ?pampered? enough and that they check provided the desired amount of incentives and concessions. They think that it is nearly(predicate) beat the industry resolve its own issues and bring about evidentiary changes to curb the sustenance and progress of the industry. ?High be of production. The cost of doing air is the highest in the south Asian region which comprises of: resuscitate certificate of indebtedness imposed on bank servicesExcise duty increase on insurance premiumsIncreased electricity and gas tariff gradeMinimum bribe of workers pass water increased by 33%Rising of liaison ratesPakistan fails to prompt in the cost comparisons with the regional competitors. In Bangladesh a 42000 pergola mill has a total gas billhook per calendar month of Rs 20 lakhs while in Pakistan it is of Rs 60 lakhs. The stripped hire in Bangladesh is Rs 800 compared to Rs. 4000 in Pakistan which has just been recently announced. Likewise, the practice wage that a garment worker demands is Rs. 1500 in Bangladesh compared to Rs. 7500 of Pakistan respectively. The wage acclivity interest rates which accommodate increased by about 150 % have proved very detrimental to the industry.

It has disheartened the firms from taking loans from major financial institutions and gave birth to loan defaults which have become very prominent in the badly resuscitate knitting sector. Costs of inputParticularsChinaIndiaBangladeshPakis tanPower rates per unit (in cents)00.93.48.3! Water cost per Kilogram0-3.04.7Gas responsibility per MMBTU in dollars0-1.834.42The previous comparisons were made with Bangladesh with whom the costs of production of Pakistan textile industry earn a hint of respectability. Compared to India and China, the gravity of the show of affairs is realized. China is exempted from electricity and gas tariffs while these rates are... If you need to get a full essay, order it on our website: OrderCustomPaper.com

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