Govt to set up 1,000 garment stitching units

Approves Rs46.2m for the project that will provide jobs to the youth

ISLAMABAD: In an effort to boost value addition in the garment sector, the Pakistan Tehreek-e-Insaf (PTI) government has revived the project of establishing 1,000 industrial stitching units, which will provide employment and business opportunities to youth of the country.

Though the project was approved by the previous Pakistan Muslim League-Nawaz (PML-N) government, it came to a halt as the previous administration could not earmark funds for the project from the Public Sector Development Programme (PSDP) for the ongoing financial year 2018-19.

However, the present government has endorsed the transfer of funds from the “Research/Holding of Workshops and Technical and Feasibility Studies” programme for the “Establishment of 1,000 Industrial Stitching Units” project to give it a fresh lease of life.

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According to officials, the government will set up 1,000 industrial stitching units across the country in a bid to encourage young entrepreneurs and boost value addition in the garment sector. The Economic Coordination Committee (ECC) of the cabinet was informed in a meeting that the Textile Division had envisaged a project titled “Establishment of 1,000 Industrial Stitching Units” in order to promote public-private partnership and boost value addition in the field of textile garments. The stitching units would be set up through strengthening small and medium enterprises (SMEs), the ECC was told.

Some 60% of the funding for purchase of machinery for the stitching units will be provided from the PSDP whereas 40% of the cost will be borne by the owners of stitching units. The purpose of the project is to provide job and business opportunities to the youth at their doorsteps.

The Central Development Working Party (CDWP) approved first phase of the project for setting up 150 industrial stitching units on January 15, 2018 during the tenure of previous PML-N government at a cost of Rs350.54 million without any foreign exchange component with 40% equity share. However, no allocation was made from the PSDP during the current financial year.

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Consequently, the Textile Division approached the Planning Commission for the allocation of funds out of the savings of PSDP 2018-19.

The Planning Commission approved Rs46 million for the project out of the blocked allocation for the “Research/Holding of Workshops and Technical and Feasibility Studies” project, which was available in the development grant of the Ministry of Planning and Development. The Finance Division has endorsed the proposal.

The Textile Division proposed that allocation of Rs46.2 million may be approved for the project through the transfer for funds from the development grant during the current financial year.

The ECC considered the Textile Division’s summary and approved allocation of Rs46.2 million in favour of the project by transferring funds through the technical supplementary grant.