2. Group 3
35th OMG Specialized Training Programme
Secretariat Training Institute, Islamabad

3. Group Members
 Mr. Hasan Javed Bhatti
 Ms. Fatima Burki
 Mr. Azeem Sarwar
 Mr. Badar Ahsan Ullah
 Ms. Aqsa Liaquat

4. Industry and Manufacturing Sector
 Industry accounts for 24 % of GDP
 Manufacturing accounts for 13% of GDP
 Manufacturing employs 13.8 % labor force

5. Sub Sector
Textile Industry
 Integrated textile industry
 Pakistan’s largest industry
 Largest production chain
 Among top 10 textile exporters in the world
 8 % of GDP
 66% merchandise export
 40% labor force employed
 60% of national Exports

6. National Textile Policy 2009-2014
Salient Features
 Textile Cities
 Garments Cities
 Quality Management
 Brand Acquisition Support
 Industrial Relocation Support
 Joint Venture Support
 Skill Development Council
 Hiring of Consultants from Abroad

7. Sectoral Vision Statement
To enhance maintainable growth in
Industry and manufacturing sector at
10-15 % annual growth rate for next 1o-
20 years

8. Sub Sector Vision Statement
To enhance Textile Industry at 10-15 %
annual growth rate by 2018

9. Current & Desired Situation
Current State Desired Situation
Energy Crisis Increase share in Exports
Closure of Textile units Expansion of Textile Sector
Shifting of Textile Units to Bangla Dash Maintain Textile Growth
Low investment Return of Textile units back to Pakistan
Law & order situation More Investment in Textile Sector
Downsizing of Labor Development of Textile Zones

10. PESTEL Analysis Worksheet 1/4
PESTEL
Factors
Own Notes Potential
impacts
Time
Frame
Type Impact Relative
Importa
nce
Political •Stable
Government +
Smooth
Democratic
transition
• law and
order
High
Medium
6-12
months
24 +
months
Positive
Negative
Increasing
Increasing
Critical
Important
Econom
ic
•Lack of
foreign
investment
• Flight of
local capital
• Energy Crisis
Increasing
Competition
from
International
markets
Medium
High
High
High
Medium
24+
24+
12-24
24+
0-6
Negative
Negative
Negative
Negative
Positive
Increasing
Increasing
Increasing
Increasing
Increasing
Important
Critical
Critical
Critical
Important

11. PESTEL Analysis Worksheet 2/4
PESTEL
Factors
Own Notes Potenti
al
Impact
Time
Frame
Type Impact Relative
Importan
ce
Social •Provision of
employment
opportunities
•Urbanization
•Community
service-Social
Responsibility
High
Medium
Low
0-6
0-6
12-24
Positive
Positive
Positive
Increasing
Increasing
Increasing
Critical
Important
Important
Technol
ogical
•Obsolete
Technology
•Absence of R &
D in Pakistan
High
High
24+
24+
Negative
Negative
Increasing
Increasing
Critical
Important

12. PESTEL Analysis Worksheet 3/4
PEST
EL
facto
rs
Own notes Potent
ial
Impact
Time
Fram
e
Type Impact Relative
Importa
nce
Envir
onme
ntal
•No proper
wastage disposal
•Establishment
of Industrial
zones
•Ineffectiveness
of Pak.
Environmental
Protection
agency
•Production of
electricity from
waste material
High
High
Mediu
m
Low
0-6
24+
24+
24+
Negative
Positive
Negative
Positive
Increasin
g
Increasin
g
Increasin
g
Increasin
g
Critical
Importa
nt
Importa
nt
Importa
nt

13. PESTEL Analysis Worksheet 4/4
PESTEL
Factor
Own Notes Potential
Impact
Time
Fram
e
Type Impact Relativ
e
Import
ance
Legal •No Proper
Implementati
on of Labor
laws
•No
implementati
on of min.
wage
•Corporate
governance
code of SECP
Medium
Medium
Medium
12-24
12-24
0-12
Negative
Negative
Positive
Unchanged
Unchanged
Increasing
Importa
nt
Importa
nt
Importa
nt

14. EERI Model application for Textile
Industry
 Indicators of EERI model
 Effectiveness
 Efficiency
 Responsiveness
 Innovation

15. Effectiveness
Variable Indicator Scale
Effectiveness •Value Addition; $ 1
billion
•Out put valuating; $ 36
billion
1 2 3 4 5
1 2 3 4 5

16. Efficiency
Variable Indicator Scale
Efficiency • Budget- Financial
•Manpower/HRM
•Vocational Trainings
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5

17. Responsiveness
Variable Indicator Scale
Responsiveness •Producer- Satisfaction
•Clients- Satisfaction
•Employee- Satisfaction
•Government-
Satisfaction
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5

18. Innovation
Variable Indicator Scale
Innovation •Exports
•Energy Mix
•Foreign market
•New Technology
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5
1 2 3 4 5

19. Performance Diamond
E
R I
E

20. Stakeholder Analysis Matrix 1/3
Name of
Stakeholde
r
Stakeholde
r
Descriptio
n
Potential
Role
Level of
Knowledg
e
Level of
Commitm
ent
Available
Resources
Investor/En
trepreneur
Funding &
Giving
Direction to
the Sector
Provides
Capital &
Determines
fate of a
Firm
High- keep
an eye on
change in
trends in
market to
keep firm
competitive
Strongly-
support /
opposes
directly
affected by
it
Capital- the
backbone of
any industry
Human
Resource
Provision of
Skilled/
unskilled
manpower;
determines
efficiency of
the firm
Carries out
work &
implements
the policies
of the firm
Skilled-
High
Unskilled-
Low to
medium
Strongly-
their
livelihood is
based upon
prosperity
of industry
Technical
Knowledge –
Skilled
Manpower/
Labor-
unskilled

21. Stakeholder Analysis Matrix 2/3
Name of
Stakeholde
r
Stakeholde
r
Descriptio
n
Potential
Role
Level of
Knowledg
e
Level of
Commitm
ent
Available
Resources
Governmen
t
It regulates
the sector
by
formulating
policies;
determines
the business
environmen
t (tax/
subsidy)
Provision of
conducive &
competitive
environmen
t
High- aims
to promote
its industry
& keep it
competitive
in
internation
al market
Strong-
textile is an
imp.
Industry &
contributes
a lot to
nation’s
economy
Taxes or
subsidies;
industrial
zones;
information;
agreement
with foreign
countries
Community Industries
lead to
social
uplift-
employmen
t ( direct +
Indirect);
Safeguard
interest of
public;
protects
environmen
t
Medium-
cannot
understand
the
technical
aspect of
policies
Low- Not
directly
affected by
it; involved
in their own
jobs
NGO’s +
Pressure
Groups

22. Stakeholder Analysis Matrix 3/3
Name of
Stakeholde
r
Stakeholde
r
Descriptio
n
Potential
Role
Level of
Knowledge
Level of
Commitme
nt
Available
Resources
Chamber of
Commerce
Bridge
between
govt. &
industry;
protects
interests of
businessma
n
Provides a
forum of
interaction
between
government
& industry
High- they
advocates
change in
policy &
keep track
of changing
trends
Strong-
support or
opposition-
its very
objective is
to drive
changes in
policies
Funds-
Information

23. Stakeholder Engagement Plan 1/3
Stakeholder Potential Role Engagement
Strategy
Follow Up
Strategy
Investor/
Entrepreneur
Provides capital &
determines fate if
a firm
Give incentives-
tax rebates and
concessions,
Subsidies,
investment
friendly
environment
Organizing
business
conferences+
regular meeting of
minister with
investors
exhibition
Human Resource Carries out work &
implement the
policies of the firm
Invite leaders of
textile labor
unions- get
feedback about the
working
conditions
Feed back from
labor union +
representatives of
associations of
technical workers

24. Stakeholder Engagement Plan 2/3
Stakeholder Potential role Engagement
Strategy
Follow up
strategy
Government Provision of
conducive &
competitive
environment
Minister of
industries will
represent the govt.
in policy making-
ensures
implementation of
incumbent
government
Revisiting the
policy & analyzing
results of its
implementation
Community Safeguard interest
of public; protects
environment
Taking onboard
NGO’s+ Civil
Society
organizations who
have a stake in the
proposed policy
Feedback +
interaction with
relevant NGO’s +
CSO’s+ Surveys

25. Stakeholder Engagement Plan 3/3
Stakeholder Potential Role Engagement
Strategy
Follow up
Strategy
Chamber of
Commerce
Provides a forum
of interaction
between
government &
industry
Taking input from
the presidents of
various chambers
of commerce
across the country
Organization of
exhibitions in
local +
international
markets
Feed back

26. Driving Forces
Variable Hasan Badar Azeem Aqsa Fatima
SME’s Promotion 5 4 7 5 6
Tax concessions 8 8 9 7 8
Industrial zones 6 8 6 5 6
Cheap labor 5 4 6 5 5
H R development 6 6 5 7 4
Markets around Globe 8 8 8 8 8
Foreign investors are
interested to invest
7 7 6 9 5
Potential for more
development
4 5 4 6 5
Technological
advancement
7 6 5 7 6
Energy supply 8 8 6 7 5

27. Restraining Forces
Variable Hasan Badar Azeem Aqsa Fatima
Energy Crisis 8 8 8 8 8
Law and order 5 6 7 5 5
Red Tapesm 5 6 3 4 4
Low Economic Growth 6 5 4 4 4
Lack of Investment 6 5 5 4 6
Absence of
international markets
8 8 6 5 4
Global Recession 3 5 7 6 5
Inflationary Pressures 4 3 4 5 5
Lack of Textile Research 5 5 6 6 5
Lack of technical know
how
5 4 6 6 2

28. Total Score
 Driving Forces = 309
 Restraining Forces = 274
The difference is 35which is positive, so we should go
with the plan

29. Milestones
1. Textile Industry own Generation power plants
2. Creation of R & D Centers
3. Proper Promotion of Textile products for getting
share in International markets
4. Development of Textiles zones on the pattern of
industrial Estates
5. State of the Art technology for Textile Sectors

30. Solutions and Time FrameMilest
ones
Solution 2014 2015 2016 2017 2018 Resources
Required
Limit
ation
s
1 Installation of
Power plants
by Industry
√ Investment techni
cal
2 Spending on
Research
Centers
√ √ √ √ √ Investment
3 Participation
in Exhibitions
√ √ √ √ √ Pro Active
approach &
government
help
Delays
4 Government
Policy
√ √ √ √ √ Policy
implement
ation
Priorit
ies by
govt.
5 Importing
Machinery
√ √ √ √ √ Investment Duties
&

31. Recommendations 1/2
 Modernization of machinery and technology
 Building the required infrastructure
 Skills Development
 Promoting Standardization throughout the chain
 Establishing a zero-rated export Regime
 Tariff rationalization
 Removing Regulatory bottleneck
 Market Access

32. Recommendations 2/2
 Market Insurance scheme
 Development of Indigenous Power plants in Textile
Units
 Use of Information technology for better development
of sector

33. Conclusion
 Textile sector is most important industrial
manufacturing sector in Pakistan that it employs 40%
industrial labor force , contributes 8 % of GDP and its
part in national export is at 60 %. Therefore, the need
of the hour is to revamp and upgrade this sector so
that Pakistan can get maximum out of this sector