Pakistan’s Minister of Parliamentary Affairs told Congress that the government is taking measures to restore ailing textile units and promote the development of the textile industry.
From time to time, the government has paid attention to the issue of rehabilitating ailing textile units. The Companies Act, 1984 provides for the liquidation and rehabilitation of bankrupt companies. The government established the Industrial Reorganization Corporation. The firm has been involved in all ailing corporate cases since its inception.
The Central Bank of Pakistan introduced an amnesty mechanism twice, in 1997 and 2002. The central bank provides relief to rehabilitate units in poor condition.
The Ministry of Textile Industry was established in September 2004 and has adopted a series of proactive and interventional measures since its establishment. In 2006, the Ministry of Textile Industry established the Textile Technology Development Bureau and launched a sewing machine operator training program. So far, 3,700 workers have been trained. Under this scheme the government pays a bursary of Rs 5,000 to each trained employee.
The Minister of Textile Industry told Parliament that three garment cities will be established in Karachi, Rasher and Faisanabad. The garment cities in Faisanabad and Rasher are under construction with an investment of Rs 498 million and Rs 497 million respectively. Land for Garment City in Karachi has been acquired and development work will begin soon.
