Statistical Correlation on Internal Issues of Garment Textile industry in Pakistan

This research investigates the Statistical Correlation on Internal Issues of Spinning Textile industry in Pakistan. Data were collected from various primary as well as secondary sources. It was revealed that after performing Pareto analysis the output shows total counts equivalent to 1853. As it is suggested to take about 80% to solve the overall issues but here the 80% is between 7 th and 8 th issue. Therefore it is decided to take about 75% through which 7 issues may be selected as shown in the Pareto chart 6-8. However 8 issues are equal to 1482 which is about 84%. Government of Pakistan should formulate the policy that above issues can be resolve.


February, 06, 2015
Introduction: The garment industry of Pakistan was started in 70's. With the passage of time and industrialization, this industry expanded very rapidly. Majority of units making cotton fashion garments are medium and small-size in terms of machines, workers and output, with a few notable exceptions and scattered throughout Pakistan 1 .
Garment industry has emerged as one of the important small scale industries in Pakistan. Its products have large demand both at home and abroad. The local requirements of readymade garments are almost wholly met by this industry. Its exports in 1999-2000 stood at US $ 772 million or 8.5% of the total exports. Garment industry is also a good source of providing employment opportunities to a large number of people at a very low capital investment. It mainly uses locally produced raw materials. Most of the machines used by this industry are imported or locally made and assembled 2 .
All sorts of readymade garments are made from cotton fabric and synthetic fiber. The production of garments and madeups in Pakistan is concentrated mainly in Lahore, Faisalabad, and Karachi. These three clusters have their own specialties as Faisalabad caters more to Home textile, Lahore is the home of Knitwear, Karachi lives up to its reputation of being the mini Pakistan. The bulk of these garments are mainly exported to developed countries, like U.S.A., Europe, Japan and Australia. However, our country's exported readymade garments are inferior in quality in comparison with garments from India, Korea, Hong Kong, Taiwan, Philippines and Sri-Lanka 3 .
Pakistan's export of ready-made garment and apparel came up 5th position during 1999-2000. Current position of this industry is not spirited especially the trade liberalization has directed it to a point where it is extremely hard to stay alive because of numerous national & international problems 4 .

World Trade Organization
The World Trade Organization (WTO) deals with the rules of trade between nations at international level. It is termed as an organization for liberalizing trade, a forum for governments to negotiate trade agreements and a place for them to settle trade disputes. It operates a system of trade rules and is a system that helps the member governments in sorting out their trade problems 5 .
The major purpose of WTO is to assist free flow of trade by removing obstacles. Furthermore, the WTO's work is dispute settlement. Trade relations often involve conflicting interests. Agreements, including those painstakingly negotiated in the WTO system, often need interpreting. The most harmonious way to settle these differences is through some neutral procedure based on an agreed legal foundation. That is the purpose behind the dispute settlement process written into the WTO agreements 6 .
The most important and fundamental principle of WTO is non-discriminatory treatment that is known as Most Favoured Nation Treatment (MFN). Any advantage, favor, privilege or immunity granted by one WTO member to another (such as lower customs duty to one) has to be granted immediately and unconditionally to all other members 7 . WTO rules oblige member countries to ensure transparency in their foreign trade regimes by requiring them to publish all laws, regulations, measures and administrative decisions affecting trade. The publication of laws has to be done in a manner that allows importers, exporters, consumers and investors to be aware of them. Transparency is also ensured by requiring member countries to submit periodic notification to the WTO secretariat on different aspects of the trade regime.

Internal Issues of the Garments Sector
Initially there were about 10 issues of Garments Sector that are also presented in figure 6-9 below:

6.2.4-2 Pareto Analysis on the issues of Garments Sector
Pareto Analysis was performed on the issues of Garments sector by using SPSS and the output is shown in Pareto chart 6-7 below: February, 06, 2015

Result of Pareto Analysis on the issues of Garments Sector
Initially as the issues of Garments Sector were about 10, after performing Pareto analysis the output shows total counts equivalent to 1853. As it is suggested to take about 80% to solve the overall issues but here the 80% is between 7 th and 8 th issue. Therefore it is decided to take about 75% through which 7 issues may be selected as shown in the Pareto chart 6-8. However 8 issues are equal to 1482 which is about 84%.that may more.

National Issues
Initially there were about 13 issues of Garments Sector that are also presented in figure 6-11 below:

6.3-1 Pareto Analysis on National Issues
Pareto Analysis was performed on the National Issues by using SPSS and the output is shown in Pareto chart 6-9 below: Pareto Chart 6-9: Output of Pareto Analysis on Issues of Garments Sector Conclusion: The production of garments and made-ups in Pakistan is concentrated mainly in Lahore, Faisalabad, and Karachi. These three clusters have their own specialties as Faisalabad caters more to Home textile, Lahore is the home of Knitwear, Karachi lives up to its reputation of being the mini Pakistan. The bulk of these garments are mainly exported to developed countries, like U.S.A., Europe, Japan and Australia. However, our country's exported readymade February, 06, 2015 garments are inferior in quality in comparison with garments from India, Korea, Hong Kong, Taiwan, Philippines and Sri-Lanka 8 .