INDUSTRIAL POLLUTION

A future challenge to Pakistan exports

Dec 29 - Jan 04, 1998
Contrary to the concept in vogue that Pakistan has a very narrow export base,
mainly supported by the cotton and textile sector, the actual number of traditional
and non-traditional exportable items has reached1951 mark. This suggests that
the view that our exports need to be diversified is generally overemphasized.
themselves in the
A vast majority of these exportable items have already carved a place for
export market. The need of the hour is to expand the volume of foreign trade.
However the emerging trade scenario at the global level has brought challenges
to Pakistan's export sector. On the one hand, under the conclusion of Uruguay
Round, an efforts is being made to dismantle both tariff and non-tariff barriers of
liberalize world trade, while certain provisions of the WTO, ISO-9000 and
forthcoming ISO-14000 have started to pose a serious threat of restricting the
exports of the country, on the other hand.
The export sector has already a bitter experience of facing a ban by the United
States on import of surgical goods from Pakistan two years back because of what
the US described "lack of quality certification". It is worth to mention here that
quality-wise surgical goods of Sialkot are immaculate and recognised the world
over. Germany imports these surgical instruments from Pakistan without label of
"Made in Pakistan" and after pasting label of its own country re-exports them
which are acceptable by every country. This naturally evokes the feelings being
discriminated amongst our export industry.
Another good example of restriction of foreign trade under WTO agreement is the
allegation or propaganda of child labour against Pakistan which brought the
hand-knotted carpet industry to a virtual halt.
A few years ago Pakistan was the second largest exporter of hand-knotted
carpets in the world. It is a pity that now this cottage industry has been relegated
to the background.
Another source of foreign exchange earning is the marine fish catch. At present
Pakistan is exporting 10 to 12 percent of the catch which earns around 2 percent
of the total export proceeds. In some cases, we export more than most of our
competitors quantity-wise but in terms of value we are lagging far behind
because of quality difference, caused by dumping of industrial waste, effluent,
sewerage, burnt lubricating oil and other waste in coastal fishing areas.
The issues like child labour, environment, quality standards such as ISO-9000
and ISO-14000, have started sounding the note of warning for our major exports
including textiles and leather sectors, followed by the conditions set by the
market forces, especially the European Union. These countries are now
demanding that the textile and leather goods should carry the certification marks
of the International Standard Organization (ISO), regarding pollution free
environment at the factory premises, where the product is manufactured. The
chemicals and dyes used in the process of bleaching, dying and printing should
be unharmful to the health.
AZO
At the moment, the most important environmental and health issue in textile
trade, and leather industry, is the legislation on azo dyes. AZO dyes are
commonly used for colouring textiles and leather. Some of the azo dyes,
according to latest research findings, may form carcinogenic amines. It is feared
amongst the importing countries that import of products containing azo dyes
may release toxic amines. Its use was first prohibited in Germany from April 1,
1996.
The ban on azo dyes is applicable to all products which come into contact with
the skin for prolonged period, like textile garments. Netherlands have also
introduced similar legislation from August 1996. The import of garments,
footwear and bed-linen containing banned azo dyes is completely prohibited.
Other countries in Europe, Such as Sweden, France and Denmark are also
preparing legislation on azo dyes.
The exporters of the textiles and garments, leather and leather made-ups have
been advised by the importing countries to have their products tested, if they
want to export to Germany, The Netherlands and in the future other countries of
the EU as well.
In order to limit the loss in competitiveness arising, from liberalization and the
possible threat of eco-protectionism, the government will have to take measures
at both the domestic and global levels. It is important that the social costs of
production, including environmental externalities, be incorporated in the price
structure of the goods and services to be traded in order to ascertain the true
costs and benefits to be derived from trade, is the consensus prevailing among
the export circles.
EXPORTS
Pakistan has been fixing its annual export target at about $10 billion for the last
many years but has failed to realize it even once. The major factor behind the
stagnant growth in exports is of course lack of research and development work
for improvement in quality of our products.
The textile units operating all major industrial areas of the city, have no
arrangements for treatment of their toxic effluent at primary level within their
factory premises. So much so, even the industrial areas, where these units are
located, do not have the teatment plants for their poisonous effluent and the
entire untreated industrial waste of the Landhi-Korangi, SITE, North Karachi and
Federal B Area industrial zones, which in terms of volume approximately
estimated around 35 million gallon, is being drained out into sea every day.
Although the textile industry has grown at a much faster rate in Pakistan and at
present around 8.5 million spindles, a large number of looms, over 2000 small
and big industrial units inolved in dying, printing and finishing of textile products
are in operation, however, the the factor of envrionmental marketing of the textile
industry was completely ignored. At present our textile sector fetches around
$5.5 billion per annum and have the potential to make a three time increase in this
volume of foreign exchange earnings. Similarly our leather sector earns around
600 million dollar a year and have the capacity to rise to one billion dollars. We
will have to protect these major source of earnings by making them quality
conscious. This state of ignorance led to piling up formidable challenges to our
textile products because of immense toxicological and environmental factors.
The question of eco-standards and eco-lablels, in the apparel and textile industry
shall be fast assuming great significance for surviving in the export business.
Unfortunately, a vast majority of smaller textile units in the unorganized sector
lack detailed information and the ability to change their process to cope with
international eco requirements. Although the government on its part has passed
the environment protection bill and has formed Environmental POrotection
Council, headed by the Prime Minister, yet a lot of ground has still to be covered.
The environment protection Act will provide mechanism for the enforcement and
compliance with the National Environment Quality Standard(NEQS) but the
desired results could only be possible when an environment freindly culture is
created among the society as a whole.
Sheharyar Kamal, the Project Director of Environmental Management Project for
Korangi Tanneries, disclosed a hair raising story about the ignorance of the
people of the environmental problems or their cruality to make money. He said
that seven or eight poultary feed producers have illegally set up their factories in
the tannery area. They collect shaving powder of the tanned hides and skin
thrown outside the tanneries and use it as the basic ingredient for preparing
poultary feed. This solid waste contains a large portion of chromium which is
highly toxic and dangerous to health. The feed they are producing with the solid
waste of tanneries mixed with chromium is supplied all over the city. They are
making money at the cost of human life. Such elements deserve immediate and
examplary punishment.
We will have to change the image of a producer of cheap products, if we have to
survive in the face of the hard competition ensuing fast with the globalization of
trade under WTO.
An ugly example of the irresponsible attitude of our exporters was highlighted the
other day by Dr.Mohammad Hussain, a US based Pakistani trader. He had
imported footballs from a Sialkot sports manufacturer namely Khawaja
Mohammad Anwar. The goods, he despatched in April this year were quite
different from the specimen on which the export orders were placed and of sub-
standard quality.
The matter was brought to the notice of the Export Promotion Bureau, but to
remedial action was taken except a letter to say sorry on this highly criminal act.
Dr. Hussain said such acts were more harmful in damaging the reputation of the
country and the manufacturers of this country. He has moved his case to the
Prime Minister.
The requirement of quality and environment certificates and labels, will now
enhance the competition among the exporting countries, as these tests of quality
and environment will distinguish their products from competitors in a positive
way.