USAID assists Pakistan’s small and medium-sized textile enterprises in upgrading project

In order to meet the needs of EU and international buyers and promote the increase of export orders, the United States Agency for International Development (USAID) recently announced that it will promote the upgrading project of small and medium-sized textile enterprises in Pakistan. The specific content includes helping them directly contact buyers and cultivate skills. , focus on system compliance and textile machinery upgrades.
The implementation scope of this project focuses on 20 small and medium-sized enterprises, with the purpose of helping them achieve sustainability in quality and quantity at a price advantage. Since January 1 this year, after Pakistan obtained the EU’s Generalized System of Preferences Plus status, expectations for the recovery of Pakistan’s textile industry have increased. Industry insiders in the country hope that the textile industry can make full use of cotton’s raw material advantages to greatly enhance the competitiveness of small and medium-sized enterprises.
According to statistics from the Pakistan Small and Medium Enterprises Development Authority (SMEDA), there are currently approximately 2,500 textile factories in Pakistan, employing 75,000 people. The textile and apparel industry plays an important role in Pakistan’s national economy. Its contribution to the country’s GDP is 8.5%. Industrial exports account for more than half of the country’s total exports, creating 38% of employment opportunities in the manufacturing industry. It is understood that currently, about three-quarters of Pakistani garment companies, including small businesses, are facing challenges. The specific manifestations are low production efficiency, high fabric loss and backward sewing technology. This in turn leads to higher production costs and delivery delays.
​In order to improve production efficiency and improve product quality. USAID will provide training for middle- and senior-level managers of Pakistani textile and apparel companies, with specific content including helping them improve their management skills and production efficiency, and focusing on promoting their business quality in the export market. In terms of hardware, the project will help Pakistani companies upgrade production systems and software, such as typesetting software CAD, and enterprise resource planning software (ERP), with a view to improving the company’s production efficiency and product quality, and becoming familiar with advanced management tools.
Another major component of the project is assisting manufacturers in obtaining Worldwide Responsible Production Certification (WRAP). The certification will help Pakistani companies gain the trust of US and other socially responsible buyers.
USAID’s Pakistan Textile Enterprises Upgrading Plan will run from now until December 2014. The goal of the project is to help Pakistan’s textile industry create export revenue of US$500,000, as well as 80 direct industry employment opportunities and 100 auxiliary sector employment opportunities.