Will China'S Textile Enterprises Invest In Pakistan? Listen To What The Experts Say?
A few days ago, China and Pakistan agreed to define 2019 as the "Bazhong industrial cooperation year" and signed a memorandum of understanding on industrial cooperation, which provided a framework for promoting the development of key industries such as Pakistan textiles. It is reported that Pakistan will continue to facilitate the promotion of China's textile enterprises in the Sino Pakistani economic corridor, and hopes to produce a "pull effect".
Then, what concessions will Chinese textile enterprises get in Bazhong's industrial cooperation this year? What opportunities are they facing and what should we pay attention to? To this end, our reporter interviewed Pakistan textile and clothing industry research expert, textile industry "along the way" International Cooperation Development Research Center Research Fellow Wang Hua.
Preferential policies are more targeted.
At the beginning of this year, Bakhtiar, Minister of planning and development of Pakistan Met with Yao Jing, Chinese ambassador to Pakistan 。 China and Pakistan agreed to take the special economic zone of Lassa Kay Special Economic Zone in Cape Province of Pakistan, the M3 special economic zone of Punjab province and the special economic zone of Tabeji in Sindh as the priority target in 2019, and to speed up the construction of special economic zones. These industrial economic active areas are precisely the important gathering place of Pakistan's textile and garment industry.
Wang Hua said that more than 60% of textile enterprises in Pakistan were concentrated in Punjab Province, and 30% in Sindh province. Punjab Province, Pakistan, is a famous textile industrial city in China. It has large textile factories and small and medium sized textile mills, and its textile exports account for 58% of the total annual export volume of textiles. Pakistan's major textile technology institutions and facilities are also concentrated in the city, including Kasetsart University in Pakistan , Pakistan National Textile University , Pakistan Cotton Research Institute and Pakistan Agricultural Research Institute And so on.
Wang Hua believed that In 2019, the "Bazhong industrial cooperation year" will take these areas as priority development objects, and will provide strong bookings for the development of Pakistan's textile industry. 。 If Pakistan's local government can fulfill its commitments, then the Pakistan textile and garment industry will increase its export volume by 20% in the next 6 months.
It is understood that the APTMA is urging the Pakistani government to intervene in state power pmission and distribution companies providing uninterrupted power supply to Palestinian export enterprises in these areas. The head of the association mentioned that the textile factories in Punjab province had suffered serious blackouts, leading to the termination of production activities. Wang Hua believes that as a priority area for industrial development, the basic guarantee of power supply is an important support for industrial development.
In addition, in order to cope with the construction of special economic zones this year, the Pakistan Economic Coordination Committee decided to exempt imported cotton from tariffs, surcharges and sales tax from February 1, 2019 to June 30th. Wang Hua explained that Pakistan's textile industry needs 16 million cotton bags per year, and imports 4 million bales of cotton annually from abroad. It is the third largest cotton consuming country in the world.
Wang Hua said Due to the limitations of planting technology, Pakistan's domestic cotton is mainly short to medium length and short fiber. In order to pform high value-added products, local textile manufacturers need to import long and super long staple fibers to obtain finer yarn counts. 。 Before that, Pakistan's cotton imports need to levy 3% tariffs, 2% surcharges and 5% sales tax. Wang Hua believes that Pakistan's tariff exemption for imported cotton will help local textile enterprises in China to reduce the cost pressure of raw materials, improve product quality and gain greater profits.
Gradually expand the exchange of textile and clothing talents
In the 2019 "Bazhong industrial cooperation year", China agreed to provide support to Pakistan in the field of technology and vocational training, including upgrading of vocational training institutions, exchange of vocational training personnel and capacity-building of vocational education personnel, so as to train skilled labor for the construction of China Brazil economic corridor.
In recent years, Shanghai Jialin Jie textile Limited by Share Ltd The purchase of 24.36% stake in Pakistan Masood garment factory is the largest integrated knitting supplier and garment export enterprise in Pakistan. To support the high-end garment production, Jialin Jie, a new factory in the city of Punjab, is planning to solve 5000 direct jobs locally.
It is understood that Jialin Jie has brought an advanced and mature production process for the textile industry in Pakistan. Dozens of Chinese technicians have trained the local staff hand in hand, especially focusing on skills training for unskilled female workers, which has greatly promoted the improvement of their family economic status.
Wang Hua talked about this. Pakistan is rich in domestic labor resources, attracting investment to solve its employment problem. 。 According to the statistics of the Ministry of finance of Pakistan, there are 60 million 500 thousand working age workforce in Pakistan, and the age structure is very young. This is an advantageous resource condition for the labor-intensive textile industry. At present, the level of basic education in Pakistan is insufficient, so the labor market is mainly composed of low skilled labor force. However, the local labor force is more intelligent and easy to manage, so long as we give proper incentive mechanism and respect for its religious customs, we can achieve the standard of production through training. Moreover, the labor force of the textile and garment enterprises in this country is mostly dominated by male workers, and the efficiency of single jobs is higher than that of many Asian countries. Compared with other countries in the world, the labor force of the country has a competitive advantage.
It is worth mentioning that, The governments of China and Pakistan strongly emphasize the importance of cultural exchanges between the two countries and provide more visa convenience for them. 。 Wang Hua, for example, said that China is an important destination destination for Pakistan students. About 25000 students from Pakistan study in China. Recently, the International Joint Laboratory of advanced fibers and low dimensional materials, Donghua University, has made important progress in the field of fiber materials and devices. The laboratory has established an international teaching and research team with "one belt and one road" as its main body. Its main members include teachers and students from various countries such as Pakistan.
Last year, the first Sino Pakistani economic corridor educational cooperation project was located in Lahore, capital of Punjab Province, Pakistan. Punjab Tianjin Technical University Formal school starts. This school is Tianjin Polytechnic University And so on Lahore University of engineering technology, Punjab, Pakistan An institution of higher learning jointly built. Tianjin University of Technology mainly supports the construction of textile and clothing college. Prior to the formal signing of the cooperation agreement, Tianjin University of Technology and other universities conducted short-term training for the relevant professional teachers in Pakistan. At the same time, senior teaching administrators, including the dean and department heads, were selected to teach in Pakistan.
Capacity cooperation risks and opportunities coexist
Wang Hua also pointed out that opportunities often coexist with risks. Although the "Bazhong industrial cooperation year" has brought many preferential measures for Chinese textile enterprises to invest in Pakistan, the risk of China Pakistan's capacity cooperation still exists mainly in the political risk, debt risk and social stability. In addition, the increasingly urgent power supply problem is still a key factor to block the development of Pakistan's textile industry, and there is a growing gap in cotton raw materials. A more critical problem is that Pakistan's low value-added textile exports are too large, making little progress in export diversification.
According to the analysis of Pakistan's Ministry of finance, over the past decade or so, Pakistan's economy has faced enormous challenges due to its long-term structural problems, especially in the field of energy, problems related to security, difficulties in investment environment and continuous fiscal imbalance hindered Pakistan's economic growth.
Wang Hua said that in the past few years, due to the mismanagement of Pakistan's power sector, rising debt, loss of pmission and distribution, and difficulties in charging electricity bills, the challenges in the power sector are not small and the situation is pressing. At present, the distribution system in Pakistan is relatively sound only in the provinces of Punjab, Goudge Lan Vala, and Lahore, and the distribution system in other areas is still not perfect.
Besides, Wang Hua said, The textile industry has always been the main source of foreign exchange earnings in Pakistan. 。 Many governments try to meet the development of textile industry by means of grants, tax relief and other concessionary measures, hoping to continuously revitalize exports. However, these concession measures did not achieve the desired results. This is because it fails to match the technical characteristics required by the industry, for example, by equipping advanced machinery and equipment and supporting manufacturing technology to increase production capacity. Despite the opportunity for good development of the 2019 "Bazhong industrial cooperation year", some large local textile enterprises in Pakistan have invested their main businesses in investing in real estate and stocks, and have not been used to support the modernization of plant and equipment.
Wang Hua also mentioned that In recent years, Pakistan's textile and clothing market share has been squeezed by Bangladesh and Vietnam as a result of high energy prices, insufficient supply of electricity and natural gas and high exchange rate. At present, the textile industry in Pakistan is at the low end of the international industrial chain, mainly in the relatively low value added links of primary products, processed products, low-grade textile consumer goods and other low value-added products such as cotton yarn, cotton cloth, towels, bedding and knitted garments account for nearly 8 of the export volume of textile and clothing.
Wang Huaqiang tune, The security situation in Pakistan has been unsettled for a long time. Foreign buyers have shifted their orders to other countries for fear that the Palestinian enterprises can not stabilize their supply on schedule. 。 He said that to invest in a country, the country must first provide a fair and orderly business environment with reasonable competition, and investors will not go to a country with rapidly changing policies. At present, for the local government of Pakistan, it is necessary to ensure that any policy being implemented is long-term, so that investment enterprises can effectively plan the future orders from Pakistan.
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