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JUNAID NAWAB

 

By AMANULLAH BASHAR
Jan 13 - 19, 2003
 

JUNAID NAWAB

 

 

is the Chairman of All Pakistan Textile Mills Association (APTMA) for Sindh and Balochistan region. He is also the Vice-Chairman of APTMA on Pakistan basis. Junaid is a senior industrialist and is the director Sanaulla Group of Companies. It is one of the oldest groups of trade and industry doing well especially in value added from cotton to yarn and quality products. Among the prominent units of the group include Sanaulla Woolen Mills, Sana Industries, Taqees (Pvt.) Ltd, Sanaulla Woolen Industries, Sanaulla Textile Mills, Sana Tex Industries, Sanaulla Corporation, Naqi Poultry Farm, Quick Food, VIP Garments and Bismillah Taqee Foundation which runs Bismillah Taqee Hospital on humanity grounds on non-profit basis. This group comprises of one public limited and six private limited companies with the annual turnover of over Rupees one billion employing over 1000 persons.

PAGE: Since your active involvement in various segments of the textile sector what are your estimates about the role of the textile sector in growth of the national economy.

JUNAID: Despite worldwide economic recession, the nature is so kind to the people of Pakistan that all economic fundamentals are strongly developing and reassuring a positive economic growth in all directions in future. As far as the performance of the textile sector was concern, it is in the process of posting a remarkable performance during the current financial year by registering a 16.7 per cent growth compared to the same period last year. This increase is due to rise in unit values as well as higher quantum of exports. Also, the growth in the high value added textile exports surpassed that for low value added textiles. The current financial year is experiencing an increase in unit value of most textile categories, if this trend continues, the textile exports will gain through the rest of the year.

However, highly sensitive political and economic situation around the world calls for extra care while dealing with external trade. Any move or decision which may annoy our trade partners especially the European Union, which has provided all out support to Pakistan's exports deserves, reciprocate response. Although Junaid did not own this idea, however, some concerns are prevailing in the export oriented manufacturing sector in particular over the decision to shift the aviation purchases from Airbus to Boeing for PIA, which might annoy the EU.

 

 

PAGE: As generally said that Pakistan being the front line ally of the international forces fighting against terrorism, the behaviour of the developed world has become friendly and many incentives have been given to Pakistan as compensation to offset the adverse impact on its economy. What incentives the United States has given to Pakistan especially to the textile industry.

JUNAID: As far as the textile sector was concerned, the textile exports are still waiting for a favourable package from the United States. Unlike the EU, which has given outstanding support to textile exports from Pakistan, the United States has not given any noticeable support to the textile industry. Although the US is coming out of the textile business and may provide export opportunities in future. However, at present the US textile industry is also passing through the depressed economic conditions they are not willing to offer enhanced accessibility to Pakistan's textile products.

PAGE: what steps you would suggest for improving the export surplus situation in Pakistan and overall growth of the manufacturing sector.

JUNAID: As a result of untiring efforts both on the part of the private sector as well as the government over the years, the basic fundamentals of the economy are on the way of gaining strength. The manufacturing sector is concentrating on value-added quality products. However, the onslaught of the smuggled goods flooded in the local market is impairing the efforts of the local industry. There is a need for immediate remedial measures to protect the home industry being infected with the smuggled goods. The situation calls for steps to plug the loopholes from where the smuggled goods are sneaking into the country. He said although the taxation side of the country is also on the higher side yet the real cause of concern is the unchecked and unabated smuggled goods impeding the growth of the manufacturing sector in Pakistan.

 

 

PAGE: Since the newly elected government has taken over the charge do you think any modification is required in the economic policies of the previous set up especially the trade policy.

JUNAID: Consistency in the policies is of vital importance for building the confidence of the private sector especially on the investment side. As far as the current trade policy was concern broadly speaking it is reasonable and requires no major changes, however, if there were some corners in the policy, there is no harm in making amendments after consultation with the trade and industry. However, no major changes are needed in the policy.