The Government of Japan has extended grant assistance of JPY 500 million (approximately Rs. 700 million) for enhancing the educational functions of the National Textile University (NTU) in Faisalabad under the Economic and Social Development Programme.
This aid framework, the Economic and Social Development Program, is for procuring sophisticated equipment and machinery from Japan.
Notes to this effect were signed and exchanged between Mr. Matsuda Kuninori Ambassador of Japan to Pakistan and Dr. Syed Pervaiz Abbas Secretary of the Economic Affairs Division.
In the signing ceremony, Secretary EAD said that Pakistan values close and friendly relations with Japan and cherishes shared views on a whole range of regional and international issues that exist between the two partners. Japanese economic cooperation is greatly valued and welcomed as it has played and continues to play a vital role in the socio-economic uplift of Pakistan.
Federal Secretary also highlighted that grant assistance in the form of equipment for the National Textile University is well-timed keeping in view the needs of the textile industry of Pakistan.
The textile sector in Pakistan has an overwhelming impact on the economy, contributing 55% to the country’s exports. In today’s highly competitive global environment, the textile sector needs to upgrade its supply chain, improve productivity, and maximize value-addition to be able to survive.
Thus, the government of Pakistan is committed to sustaining the growth of the textile sector in an increasingly competitive environment while effectively responding to the challenges and opportunities provided by the globalization of trade and providing a forum to the domestic textile industry for a mutually beneficial interface.
Dr. Syed Pervaiz appreciated the government and people of Japan for their support with the assurance of extending all necessary facilitation for more meaningful cooperation between the two sides in the future.
Talking to the occasion, Ambassador Matsuda said that Japan continues to support Pakistan in its efforts to maximize its potential in the areas with comparative advantages such as the textile industry.
National Textile University (NTU) is the only national university of Pakistan specialized in textile education in Faisalabad, the center of cotton production, producing thousands of quality graduates in the textile industry.
In this program, ring spinning machines, electronic flat knitting machines, carbon fiber rapier looms, and other equipment will be provided to the NTU. Textile is a key industry of Pakistan, occupying 50-60% of its total exports.
According to a recent press report, textile exports have recorded a growth of 3.94% in the first six months of the ongoing fiscal year. Particularly in the value-added sector, knitwear recorded growth of 7.59% and ready-made garments recorded growth of 12.08%.
Equipment provided in this program will upgrade the educational environment of the NTU and thus will help strengthen the foundation of the textile industry in Pakistan, boost its exports of value-added products and improve its economy.
In 2019, the government of Japan provided $82.12 million in total to Pakistan under twelve new grant aid projects in different sectors including health, disaster management, agriculture, and water supply. In recent years, Pakistan has been the largest recipient of Japan’s Grant Aid among the seven South Asian nations, Pakistan, India, Bangladesh, Sri Lanka, Nepal, Bhutan, and the Maldives.