Risk Management:-8875600

Study of risk management in point of fact started after World War-II. According to (Crockford,
1982; William and Heins, 1995; Harrington and Neihaus, 2003) actual foundation of Modern
Risk Management was laid during 1955-1964. At that time no books were available on risk
management nor any courses offered by academic institutes. Initially two books that cover pure
risk management was published by Mehr and Hedges (1963) and Williams and Hens (1964).
During those time engineers on the other side developed the technological risk management
model. This was the time when it was considered as pure risk management that excludes
financial risk. With the passage of time, advancement in working styles of operating bodies
needs pertaining to risk management improvised as well. Risk which was initially started as pure
risk management became a vast field including financial, operational, capital, credit, currency,
commodity, bank, technology, enterprise and project risk management under its umbrella.
Sometimes it happens that uncertainties, risk for which there is no classical probability
distribution available cannot fulfill risk management process (Holt, 2004; March and Shapria
1987: Pender ,2001; Pich et al, 2002). Likewise, Gemmer (1997) states that effective risk
management requires functional behavior of the stakeholders, which means that they may not
necessarily comply with the risk management procedure.
The ultimate goal of any risk management practice is to minimize the risk in some area to
the opportunities being sought. According to Douglas.W Hubard
Risk Management includes analysis and mitigation of risk related to a physical
security, product liability, information security, various forms of insurance, investment
volatility, regulatory compliance, action of competitors, workplace safety, getting vendors
of customer to share risks, political risks in foreign investment, business recovery from
natural catastrophe or any other uncertainty that could result in significant loss.
The above comprehensive definition of risk management gave us the concept of where to apply
risk management. The question arise here is: What is Risk Management and how its done? From
this we can assume that Risk management is a situation based process and every process has its
own risk management technique depending upon the parameter which particularly define that
process. In general the risk management process is

Textile exports post meagre growth

Mubarak Zeb Khan Updated Nov 26, 2016 09:38am

WHATSAPP
2 Comments
Email

Email
Your Name:
jscheck

Recipient Email:

Email

Print
ISLAMABAD: Pakistans textile exports, especially those of value-added products, grew 0.59 per cent to
$1.053 billion in October from $1.047bn in the same month of the last year, the Pakistan Bureau of Statistics
said on Friday.
Though paltry, the growth was much needed as the sectors exports had been in decline for the last couple of
years due to falling commodity prices on the international market. The rise in proceeds, particularly because of
better prices, has also revived hopes that the sector may now regain its share in the global market.
However, Apparel Forum Chairman Jawed Bilwani told Dawn that exports rose despite the fact that there was
no support from the government. In fact, the cost of Pakistani products has increased manifold, he lamented.
He also criticised the government for announcing a package for the textile sector only on paper, and said the
government has created problems for exporters instead of resolving them.
Boosting exports was not on the governments list of priorities, Mr Bilwani said, adding that its focus was only
on building roads and announcing projects like Metrobus in Punjab.
Product-wise details show that exports of readymade garments grew 1.4pc and of knitwear 4.9pc in October on
an annual basis. Exports of bedwear went up by 7.7pc and towels 9.7pc.
While carded cotton witnessed a substantial year-on-year growth of 222pc, exports of all other primary
commodities raw cotton, cotton yarn and cotton cloth declined during the month under review.
One reason behind the rise in exports of value-added textile products is preferential access to the 28-nation
European Union under the GSP+ scheme.
In the four months to October, the value of overall textile and clothing products fell 4.4pc to $4.082bn from
$4.268bn a year ago.

President of the Federation of Chambers of Commerce and Industry (FPCCI) Rauf Alam appreciated the
government for reducing gas prices for the industrial sector by Rs200 per million British thermal units.
In a meeting with Finance Minister Ishaq Dar on Friday, he said the cut would provide relief to the sector
which was becoming non-competitive in the international market.
The relief will go a long way in solving the problems of the industrial sector and will improve its productive
capacity.
According to an official statement issued after the meeting, Mr Dar said the government was committed to
address the problems of the industry and was making all efforts possible to make the countrys products
competitive in the international market once again.
Now it is obligation of the businesses to increase exports and earn the much-needed foreign exchange for the
country, he said.
Published in Dawn, November 26th, 2016

Value-added textile sector wants level playing field

Parvaiz Ishfaq Rana Updated Nov 27, 2016 10:06am

WHATSAPP
1 Comment
Email

Email
Your Name:
jscheck

Recipient Email:

Email

Print
KARACHI: The 12 representative bodies of the value-added textile sector have
unanimously urged the government not to give customs rebate or cash subsidy and
instead should bring the input cost on a par with regional competing countries.
In a meeting with Commerce Minister Khurram Dastgir, the umbrella organisation of
these trade bodies the Pakistan Apparel Forum (PAF) sought a level playing field for
local exporters in world markets as the countrys exports are in constant decline.
The PAF has cautioned that a customs rebate of six per cent to exporters, as was being
considered at the highest level, should not be given in any case because this would give
birth to fake exporters and lead to over-invoicing and promote paper shipments.

It added that any relief package should be based on indirect relief by bringing the cost
of inputs on a par with regional countries and this would be the best way out for
reviving the industry and boosting genuine exports.
It has also warned that any direct relief would only help unscrupulous elements and
would not prove to be sustainable and will not have a positive long-term effect.
Beside, promoting corruption in the Federal Board of revenue as had been witnessed
in the past when customs rebate and other cash subsidies were given direct relief or
incentives will also encourage foreign buyers for asking similar discount from our
exporters, it added.
The textile sector contributes up to 60pc towards export earnings and generates most
jobs.
The PAF demanded that tariff of gas and power as well as wages should be brought
down on a par with regional competitors to make exporters competitive in the world
market. This measure would benefit the entire manufacturing chain and declare the
export sector as a separate head of account in tariff structure of gas and power.
The forum stated that Pakistans industrial gas tariff was 173pc higher than Bangladesh,
44pc higher than India and 12pc higher than Vietnam. Similarly, industrial electricity
tariff was 19pc higher than Bangladesh and India and 41pc than Vietnam.
Moreover, wages in Pakistan were 98pc higher than Bangladesh, 17pc than India and
19pc than Vietnam, it added.
The PAF also drew the policymakers attention towards high water tariff and demanded
that since water was another most essential requirement of the export sector, its tariff
should be uniform all over the country.
It demanded that the export development surcharge of 0.25pc deducted from export
proceeds should be abolished and instead be imposed on imports of luxury goods such
as cars, soap, shampoo, cosmetics, etc. The forum also wanted the Workers Welfare
Fund to be cut by half to 1pc.
Published in Dawn, November 27th, 2016

Textile industry protest on Dec 6

The Newspaper's Staff Reporter Updated Nov 29, 2016 07:18am

WHATSAPP
4 Comments
Email

Email

Your Name:
jscheck

Recipient Email:

Email

Print
LAHORE: Textile associations on Monday announced that December 6 will be observed
as black day against the gas price disparity that has been affecting the entire industrial
chain in Punjab.
The announcement came at a joint press conference of office-bearers representing
Pakistan Textile Exporters Association (PTEA), Faisalabad Chamber of Commerce and
Industry (FCCI), All Pakistan Textile Mills Association (Aptma), All Pakistan Textile
Processing Mills Association (APTPMA), Pakistan Hosiery Manufacturers and Exporters
Association, All Pakistan Bedsheet and Upholstery Manufacturers Association, All
Pakistan Textile Sizing Industries Association, All Pakistan Cotton Power Looms
Association (APCPLA) and Council of Loom Owners.
The representatives said industries in Sindh are using low priced gas for their needs
whereas Punjab-based industries are compelled to use costly Regasified Liquefied
Natural Gas (RLNG) for their production process.
The textile industry leaders said after the recent announcement of reduction in
industrial gas tariff, gas price for Sindh industries have become Rs 400 per mmBtu;
whereas Punjab-based industries are charged over Rs 900 per mmBtu of RLNG.
They questioned the huge difference of 120 per cent in gas prices.
The leaders urged Prime Minister Mian Nawaz Sharif to take notice of the discrimination
with Punjab industries on gas pricing. They further demanded that gas supply to
industries must be ensured at equal price across the board.
Immediate announcement of the long awaited Prime Ministers package for ailing textile
industry and supply of electricity to industries at Rs7 per unit to compete well in the
international market were the other demands presented by textile industry leaders.
PTEA Chairman Ajmal Farooq, Aptma Chairman Naveed Gulzar, APTPMA Chief
Muhammad Saeed APCPLA Chairman Chaudhry Abdul Haq, FCCI President Sheikh
Muhammad Saeed and Haji Talib Hussain of All Pakistan Textile Sizing Industries
Association spoke on the occasion.
Published in Dawn November 29th, 2016

Aptma sees massive imports to meet lint demand

The Newspaper's Staff Reporter Published Dec 06, 2016 06:43am

WHATSAPP
0 Comments
Email

Email
Your Name:
jscheck

Recipient Email:

Email

Print
KARACHI: The country will have to import around four million cotton bales this fiscal
year to meet textile industrys demand of around 15m bales, said Zahid Mazhar, senior
vice-chairman of All Pakistan Textile Mills Association (Aptma) on Monday.
Referring to reports that the Director General of Department of Plant Protection (DPP)
has suspended cotton imports from India for failing to meet phytosanitary certification,
he said this was a huge blow for the textile industry which is facing cotton shortage on
account of short crop.
The installed capacity of textile industry is based on consumption of more than 15m
bales of cotton every year but due to successive crop failure, the industry has to import
about 4m bales each year to meet the demand.
Mr Mazhar was critical of the government policy and said that instead of taking
supportive measures by removing 4 per cent duty on cotton import and 1pc income tax,
the government has placed an unannounced ban on cotton imports from India. He said
that no country has placed any restriction on import of cotton from India whereas DPP
has stopped issuing import permits.
He suggested that cotton imported from India could be fumigated before being released
in the market.
The textile industry has been facing many issues including the high cost of doing
business and shortage of gas and power, he said. The sector is desperately waiting for
a textile relief package from the government.
Aptma has approached the Director General of DPP with a request to immediately clear
the consignments of Indian cotton which are piling up at the port, he informed.
Published in Dawn, December 6th, 2016

Sell land to clear debt of Textile City project

Mubarak Zeb Khan Updated Dec 07, 2016 08:33am

WHATSAPP
2 Comments
Email
ISLAMABAD: Expressing reservations over the proposed closure of Pakistan Textile City
Project in Karachi, the National Assembly Standing Committee on Textile on Tuesday
directed the Ministry of Textile Industry to sell 250 acres acquired for the project to clear
its debt.
The issue cropped up in the wake of a report compiled by a sub-committee constituted
on the order of Prime Minister Nawaz Sharif to ascertain the reasons for over 10-year
delay in the textile city project.
The committee came up with a single recommendation to wind up the company which
runs the project and return the land to Port Qasim Authority (PQA).
The major stakeholders in the company are the federal government with 40 per cent,
Sindh government 16pc and the National Bank of Pakistan (NBP) and PQA holding 8pc
each.
At a cost of around Rs1.2 billion, an area of 1,250 acres was purchased from PQA for the
project. To develop the area by constructing a three-kilometre road, water tanks, etc, an
amount of Rs2.5bn was also taken as loan from the NBP.
The debt of textile city stood at Rs2.4bn as a result of mismanagement and corruption, ,
making the project totally unviable.
On Tuesday, the committee, headed by its Chairman MNA Khawaja Ghulam Rasool
Koreja, asked Secretary Ministry of Textile Industry Hassan Iqbal that efforts should be
made for making the project operational by involving Chinese/foreign companies.
MNA Abdul Rashid Godil said it will be a disaster in case government closed down the
project. Sindh is already facing huge unemployment and this will further add to the
unemployment in the province, he said.
Mr Iqbal informed the committee that it was difficult for the government to pay Rs0.7
million as interest payment on the outstanding debt.
He said the Textile Board, since its establishment, has convened 65 meetings but failed
to come up with a plan on how to return the loan.
MNA Jamshaid Ahmad Dasti said that it was unfortunate that there was no minister for
the textile industry which has more than 55pc share in the export proceeds of the
country.
As the portfolio falls under the ambit of the prime minister, Mr Dasti suggested calling
Mr Sharif to appear before the committee in the next meeting.
However, Mr Koreja said that he was not sure whether the committee has the power to
call a prime minister to attend its meeting.
On the issue of gas supply to the textile industry, the committee issued notice to the
managing director of a gas company to appear before the committee.

Secretary Textile Industry presented a report on the performance of Plastic Technology

Centre (PTC), stressing the facility was in terrible condition and needs to be focused
upon.
The committee unanimously agreed that a new campus of National Textile University
should be established at PTC in order to make it a profitable organisation.
Published in Dawn December 7th, 2016

Punjab Textile Forum constituted

The Newspaper's Staff Reporter Published Dec 10, 2016 07:07am

WHATSAPP
1 Comment
Email

Email
Your Name:
jscheck

Recipient Email:

Email

Print
LAHORE: Leading textile bodies on Friday constitued the Punjab Textile Forum to fight
against the gas price differential in Punjab and Sindh and arrest falling exports.
Representatives of All Pakistan Textile Mills Association (Aptma), Pakistan Textile
Exporters Association (PTEA), Pakistan Hosiery Manufacturers Association (PHMA),
Pakistan Readymade Garments Exporters and Manufacturers Association (PRGEMA), All
Pakistan Textile Processing Mills Association (APTPMA) and the Council of Power Looms
Association (CPLA) also urged the government to announce a textile relief package to
restore competitiveness of the export sector.
Aptma Chairman Aamir Fayyaz, APTPMA Vice Chairman Pervez Lala, PTEA Vice Chairman
M. Naeem, PAKSEA Chairman Shahzad Azam and Ijaz Khokhar of PRGMEA addressed the
press conference.
A joint communiqu issued after the conference sought a level playing field to let the
textile industry grow.
It stressed upon the government to announce a textile industry revival package and
mitigate the energy

tariff disparity hitting 70 per cent textile industry in Punjab against the textile units
located in other provinces. It also urged the government to overcome structural
imbalances at the earliest.
The participants also expressed their concern over the delay in annoucing an incentive
package saying the industry will be losing out on potential export orders at the
upcoming Heimtextil exhibition next month as well as under the GSP+ scheme.
They said revival of 35pc closed capacity is also being delayed and the industry is not
taking new investment decisions because of the prevailing uncertainty.
Published in Dawn December 10th, 2016

Unified gas tariff sought

The Newspaper's Staff Reporter Published Dec 16, 2016 06:30am

WHATSAPP
1 Comment
Email

Email
Your Name:
jscheck

Recipient Email:

Email

Print
LAHORE: Rejecting the breakup of provision of 28 per cent system gas at Rs400 per
million British thermal unit (mmBtu) and 72pc RLNG at Rs925 per mmBtu to the Punjabbased textile industry, the All Pakistan Textile Mills Association on Thursday demanded
the government to apply uniform gas tariff country-wide to save the provincial industry
from complete disaster. It also demanded reduction in power tariff from Rs11 to Rs5 per
unit for the export-oriented industry which has got its export share reduced globally
because of high cost of doing business.
Published in Dawn, December 16th, 2016
DAWN_VIDEO - /1029551/DAWN-RM-1x1

Dwindling exports worry Aptma

The Newspaper's Staff Reporter Published Jan 01, 2017 06:26am

WHATSAPP
0 Comments
Email

Email
Your Name:
jscheck

Recipient Email:

Email

Print
LAHORE: The textile industry has become uncompetitive in the global market due to a
high cost of doing business, a statement by the All Pakistan Textile Mills Association
(Aptma) said on Saturday.
Overall, textile exports remained dismal in 2016 as they recorded a drop of $600
million, the statement said. Total exports are expected to fall by $1.2 billion in the
current fiscal year, it added.
The countrys trade deficit has swelled to $28.3bn. This gap cannot be bridged until
exports-led growth policy initiatives are undertaken, the statement quoted Aptma
Chairman Aamir Fayyaz as saying.
He said the textile industry kept paying an unrealistically high energy cost in 2016,
adding that the Punjab-based textile industry is exposed to a severe disparity in energy
prices.
Resultantly, a bulk of the textile manufacturing capacity lies underutilised, he said,
highlighting that over 70 textile mills have shut down in the last six months.
Two basic raw materials of the textile industry cotton and manmade fibre must be
imported, he said, because an acute shortfall of domestic cotton is having a crippling
effect on the entire textile value chain.
Mr Fayyaz said the presumptive tax regime in the country is an additional burden on the
organised segment of the textile industry as it cannot pass it on to international buyers.
He said that free trade agreements (FTAs) are posing a serious challenge to the
domestic industry. Manufacturing has been replaced with trading because of the
shattered confidence of investors, he added.

Pakistans currency is overvalued by 10pc in dollar terms, which is having an inhibiting

effect on exports, he noted.
Published in Dawn January 1st, 2017
DAWN_VIDEO - /1029551/DAWN-RM-1x1

Textile industry assured of support

APP Updated Jan 04, 2017 07:47am

WHATSAPP
4 Comments
Email

Email
Your Name:
jscheck

Recipient Email:

Email

Print
KARACHI: State Bank of Pakistan (SBP) Governor Ashraf Mahmood Wathra said on
Tuesday the central bank will extend all kinds of support to the stakeholders of the
textile industry.
He said this at a meeting of the Senate Standing Committee on Textiles that took place
at the SBP headquarters to discuss the problems faced by the textile industry and seek
proposals for its sustainability.
Besides members of the committee, representatives of major banks of the country also
attended the meeting, according to an official statement.
Mr Wathra asked the representatives of the banking sector to play their due role in the
rehabilitation of the textile industry by extending soft loans to exporters.
It is a moral responsibility of the entire business community to bring back its foreign
assets and liquidity into the country to strengthen the textile industry, he said.
Senator Nihal Hashmi drew attention of the committee members to what he called the
monopoly of private banks in the advancement of loans. He said the SBP should be
tougher in regulating private banks. He said the government alone will not be able to

bail out the textile industry, adding that the private sector should extend financial
support to the textile industry.
Expressing the concerns of the banking sector, Habib Bank CEO Nauman Dar said the
textile industry should prove its competiveness if it expects the banking sector to come
to its rescue. He said the government should announce subsidies for exporters.
Expressing his optimism about its future and potential, Mr Dar said the textile industry is
not dead in Pakistan. To support his stance, he cited the names of leading textile groups
that have made their fortunes from the textile industry.
Committee Chairman Mohsin Aziz highlighted the significance of the textile industry in
ensuring the countrys economic stability. He said sustainability in the textile industry
ensures employment and optimum benefits to the agriculture sector.
Senators Nasreen Jaleel, Khushbakht Shujaat, Hari Ram and Saleem Mandviwala were
also present at the meeting.
Published in Dawn, January 4th, 2017

Aptma for growth-led revival strategy

The Newspaper's Staff Reporter Published Jan 06, 2017 06:57am

WHATSAPP
0 Comments
Email

Email
Your Name:
jscheck

Recipient Email:

Email

LAHORE: A meeting between the Trade Development Authority of Pakistan (TDAP) and
All Pakistan Textile Mills Association (Aptma) office-bearers was held on Thursday to
discuss viability and growth of textile industry.
Aptma Chairman Aamir Fayyaz informed TDAP Chairman SM Muneer that exports of all
sectors registered a downward slide due to the high cost of doing business. Trade
deficit has reached $28 billion while the exports have dwindled to $19.5bn, he said.

Mr Fayyaz suggested that the government should remove customs duty on import of
cotton from Jan 1, 2017, allow duty-free import of all man-made fibres not being
manufactured locally and provide graduating drawbacks of local taxes and levies at 4
per cent on yarn and greig fabric, 5pc on processed fabric and 6pc on home textiles,
made-ups and garments on exports.
Published in Dawn, January 6th, 2017