TOKYO: Japanese development agencies are working to increase the level of textile imports sourced from Pakistan. The Japan International Cooperation Agency (JICA), in Yokohama, is presently in discussions with the government of Pakistan about ways in which Japanese overseas development aid might be best put to use to assist this sector – of critical importance to the overall Pakistani economy.
JICA works closely with the Trade Development Authority of Pakistan (TDAP), which has sent a request for assistance, according to Daisuke Fukumori, deputy director of JICA’s South Asia division.
“We are presently in the negotiations stage, and information regarding the projects that Japan can undertake has not yet been confirmed,” he says. “Details of the final package will be designed to meet the needs of the Pakistani government, and the agreement should be completed within this year.”
Fukumori was unable to disclose details of the agreement, but it is likely to include the provision of equipment and hardware, the dispatch of experts and financial assistance.
In 2015, JICA supported a delegation of Japanese business people to Expo Pakistan, the country’s largest trade fair, and arranged a delegation of executives from Pakistan’s leading textile companies to Thailand, where they visited three Japanese textile factories to experience quality control in the production process.
A Pakistan-Japan Textile Day, held in October 2015, brought Japanese companies to Lahore and Faisalabad, and served to introduce manufacturers and buyers, while a workshop for Pakistani companies was held in Karachi the same month.
Hideaki Shimizu served as an adviser in the textile sector to JICA for two years until 2015 and believes the potential for Pakistani exports to Japan is good. “Pakistan is traditionally a cotton-producing country, and has done well in recent years to integrate production and improve both upstream and downstream operations,” he says.
“The quality of yarn produced in Pakistan is very good, and ideal for products such as bed linen, towels and other home textiles,” continues Shimizu, who is working for Asia Engineering Consultant Co.
“Pakistani companies are weak, however, in finished and high value-added products, and my team encouraged firms there to strengthen their operations in these areas and improve the quality and designs of their products.”
JICA took experts to Pakistan to deliver seminars on the latest technical developments in the textiles sector, as well as to advise on improving production control, quality control and reducing costs.
Some issues remain beyond the control of Pakistani manufacturers, however, such as the frequent power black-outs that hamper production, a common complaint that they relayed to their Japanese visitors.
JICA is also committed to investing in broader infrastructure projects – such as ensuring a stable supply of power – that will assist the textile sector. “The potential of Pakistan’s textile sector is huge, but they do need to ensure quality, improve their marketing skills and make improvements in other areas,” Shimizu said.
For Japanese companies contemplating doing business overseas, Pakistan’s security situation is a serious concern, while Pakistani companies seeking to strike a deal with a Japanese partner are significantly hampered by imports levied on imports of textiles by the Japanese government.
“Most other Asian countries are not subject to those duties and have signed bilateral exemption deals with Tokyo, so we would very much like to see a similar arrangement agreed between Japan and Pakistan,” Shimizu added.
Annual imports of Pakistani textiles to Japan are valued at Japanese Yen JPY9.3bn (US$80.5m), with yarns accounting for JPY3.7bn (US$32m) of the total and fabrics a further JPY2.2bn (US$19m).
