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Presentation by The Pakistan Permanent Mission to the WTO. Workshop on the role of International Standards in Economic Development. Use of Standards in the Textile Sector and the Challenges for the SMEs. Pakistan textile industry. HOW DOES THE SYSTEM WORK?. HOW THE SYSTEM WORKS?.

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Presentation by The Pakistan Permanent Mission to the WTO

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Presentation by the pakistan permanent mission to the wto l.jpg

Presentation by

The Pakistan Permanent Mission to the WTO

Workshop on the role of International Standards

in Economic Development

Use of Standards in the Textile Sector and the Challenges for the SMEs


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Pakistan textile industry

HOW DOES THE SYSTEM WORK?

HOW THE SYSTEM WORKS?


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Pakistan textile industry

  • Textiles is the premier industry of Pakistan.

  • Major Agrarian industrial sector.

  • Generates about 60 % of exports

  • Constitutes 46 % of Manufacturing Industry

  • Employs 38 % of country’s work force

  • Contributes 8.5% to the total GDP

  • Major products are cotton yarn, fabrics, bed wear, towels, woven & knit garments.

  • Drives Banking, Shipping ,Transport ,Insurance, Machinery, Dyes/Chemicals ,Printing/Packaging & allied sectors.


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Composition of Pakistan textile exports

Textile exports (2007-08) US$10.777 Blns


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SMEs the backbone of economy

  • Role in the Textile Industry:

  • SMEs are involved at various stages of value chain i.e, gining, spining, weaving, processing, stitching, packing etc.

  • Labour intensive work therefore trained manpower and quality control mechanisms are extremely important

  • Case study of a Company and two clusters of SMEs


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Buyers’ Standards

IndustryspecificStandards

International Standards

Only possible with full compliance

SME

Desire to connect with Int. market

National Regulatory Framework


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Evolution of quality control regime in Pakistan

Quality control and standardization institutional framework exists since early 50s, few year after independence in 1947.

The various components of this institutional arrangement were:

  • Pakistan Standards Institution (PSI)

  • Central Testing Laboratory (CTL)

  • Metalurgical and Industrial Research Development Centre (MIRDC)


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Evolution of quality control regime in PakistanCurrent structure established in 1996

M/o Science and Technology

Standards Development Centre (SDC) [former PSI]

PNAC

Technical Services Centre (TSC) [former MIRDC]

Quality Control Centre (QCC) [former CTL]


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Pakistan’s global affiliation

Signatory of MOU’s & MRA’s in the fields of Science & Technology, Standardization, Quality Assurance/Management, Product Certification and exchange of technical information, human resource development and capacity building to achieve the objectives of TBT Agreement:

A)Between governments

Pakistan and the sovereign Governments of Saudi Arabia, Morocco, Algeria, Sri Lanka

B) PSQCA and another standardization bodies:

  • PSQCA and Turkish Standards Institution (TSE).

  • PSQCA and Yemen Authority for Specification, Standardization and Quality Control (YASSC).

  • MRA signed with SASO, ASTM International USA, DIN Germany, ANSI


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Pakistan’s global affiliation (Continued)

C) Affiliation in progress between :

  • Pakistan and the sovereign Governments of Asia Cooperation Dialogue (ACD) Countries, Brunei Darussalam, Sultanate of Oman, Republic of South Africa, Kingdom of Jordan, India, Malaysia, Russian Federation, Norway, Peoples Republic of China

  • PSQCA and SIRIM QAS International, Malaysia.

  • PSQCA and Bangladesh Standards Testing Institution (BSTI).


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Institutional and regulatory support by the Government to protect environment

  • National Conservation Strategy (NCS) adopted in 1992

  • The Environmental Protection Ordinance of 1983 was replaced by a new Act of Parliament in 1997 i.e. Pakistan Environmental Protection Act 1997

  • The federal government offered incentives of reduction in customs duties on import of anti pollution equipment


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Pakistan National Accreditation Council

Mission Statement

PNAC strives for improvement, competence and integrity of conformity assessment bodies by providing them an internationally recognized accreditation service and also promote quality culture, which ultimately benefit the consumers, producers, regulators and other stakeholders.

International Linkages

PNAC represents Pakistan in the following regional and international forum:

  • International Laboratory Accreditation Cooperation (ILAC)

  • International Accreditation Forum (IAF)

  • Asia Pacific Laboratory Accreditation Cooperation (APLAC)

  • Pacific Accreditation Cooperation (PAC)


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There is cooperation between accreditation bodies in international organisations

Pakistan

PNAC


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How does the system work?


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  • A case study of a Company looked at the following aspects of quality which can be achieved through ISO 9000 certification

  • Increase in productivity

    • Trained manpower

    • Quality of raw material

    • Calibration of machines

    • Maintenance of machines

  • Quality productivity

    • Minimum hard waste

    • Minimum wastage in weaving

    • Minimum wastage in processing

    • Minimum wastage in cutting

    • Minimum wastage in stitching & packing

    • Minimum time for tea break

    • Minimum time for lunch break

    • Minimum time waste during prayer

    • Energy saving

    • Water wastages

    • Leakage in pipe & joint

    • Tap remain open

    • Collection of condensed water

    • Use of last treated water for 1st treatment

    • Re-cycling of water


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Management requirements


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Technical requirements


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A company before and after ISO9000 certification

Wastages

BeforeAfter

Raw material to furnishing 25% 6%

Water 30% 5%

Energy 20% Nil

Man hour loss due to

machinery breakage 15% Nil

Result:Increase in exports

2004-05 US$ 110,539,3842005-06 US$ 125,360,0942006-07 US$ 126,068,016


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Survey of 2 clusters in Lahore and Faisalabad

  • Conformity assessment checked for testing, certification, calibration, accreditation.

  • Positive co-relation found between percentage share of exports and deployment of qualified staff for in-house testing and quality control.

Testing

  • 28 tests carried on textile products: quality of colour fastness, Azoyd stuff, shrinking, yarn test, crocking, abri etc.

  • High level of awareness almost 80%; in house testing facility available to 37%.

  • Foreign laboratories used on the demand of buyer only .

  • The level of satisfaction from local laboratories was quite high in terms of infrastructure, affordability, acceptability and service delivery.

  • Testing cost and time was a major concern for smaller firms due to non availability of chemical testing facilities(investment opportunity)

  • Testing lab in Pakistan: SGS, ATS, PCSIR, Intertek, Microtech, Tech Dyeing, T.T.I, I.T.S .


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Survey of 2 clusters in Lahore and Faisalabad (Continued)

Certification

ISO 9000, ISO14000, ISO22000, WRAP, BSCI, OEKO-TEX, EALO, SA8000

ISO 9000 was identified as the most important, ISO 14000 as the second most important and SA8000 has also been acquired by several

Calibration

Awareness level 88.6 %, time taken was 1.94 however time was around 8-9 days for using facilities outside the city

Joint Branding

50% already involved in joint branding, 43% interested in joint branding- It brings premium price therefore an incentive for ensuring compliance


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Fields of determinations requested

  • A. Care Label Instructions:

  • Many countries have mandatory or voluntary standards for care label instructions that apply to either apparel or soft home furnishing products.

  • Colourfastness to bleaching

  • Dimensional stability

  • Appearance retention

  • Ironing

  • (EU & US joint proposal on textile labelling in NAMA negotiation is supported by Pakistan)


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Fields of determinations requested (continued)

  • B. Performance Testing:

  • To meet specific performance standards that affect end use consumer of textile products, a variety of tests are required. Some of these tests includes:

  • Dimensional Stability to Washing and/or Dry-cleaning

  • Colourfastness to Light, Crocking (Rubbing), Washing, Bleaching, etc

  • Physical tests – Strength, Abrasion, Pilling Resistance, etc

  • Chemical Tests – Finish Analysis, pH, etc


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Fields of determinations requested (continued)

  • C. Eco – Textile Testing

  • The trend of green consumerism has been extended to textile and apparel products. Major European and USA textile product buyers have responded to this public awareness by viewing their textile products from an ecological viewpoint and are establishing relevant requirements. Chemical analysis for Eco-Testing includes:

  • Banned Azo Colorants

  • Formaldehyde Content

  • Heavy Metal Residues

  • Dye testing to carcinogenic compounds

  • Pesticide Residue


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Fields of determinations requested (continued)

D. FLAMMABILITY TESTING

For apparel, it is especially important that the material used are in compliance with the flammability regulations. In particular, adult apparel and children’s sleeper.


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Importance of SMEs in Pakistan

  • About 3.2 million business establishments exist in Pakistan.

  • Out of which 99% are SMEs.

  • They contribute 30% to GDP and 25% to export.


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Recommendations

  • Harmonization of all private standards

  • Harmonization of private standards with international standards where ever possible

  • Cluster development of SMEs through 3 C approach Competitive cluster  conformity connectivity with the market

  • Incentives from the national governments to promote compliance, i.e. duty free import of equipment, tax breaks, exemption from sales tax, national reward system and SME of the year etc.

  • Institutional support-SMEDA in Pakistan


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Recommendations (Continued)

  • Best use of Aid for Trade(skill development, mobile vans with training equipment, strengthening of testing labs-chemical)

  • Effective participation of SME sector in the standard setting process

  • Effective implementation of special and differential treatment provisions (article 12 of TBT) for developing countries

  • See things in a context, ban on trade is not a solution . Country specific solution is another option(TA under Article 11 of TBT)

  • Promote public-private investment for establishing testing laboratories


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WTO Agreement On TBT

Buyers standardsIndustry specific standards

International standards

SME

Technical

Assistance to achieve

compliance

(Aid for Trade)

National Regulatory Framework

Only possible with full compliance

Connected with Int. Market getti-ng premium price


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THANK YOU


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