1. Page 1 Gherzi Contract 4088a A Perspective Plan for the Pakistan Textile and Clothing Industry up to the year 2020 in two Phases Gessnerallee 28, CH-8021 Zürich Tel: +41 44 219 60 00 June 2008 The Ministry of Textile Industries, Islamabad,Pakistan QUESTIONNAIRE 1: COMPANIES Complete 1 questionnaire for each business unit. CONFIDENTIAL: COMPLETED QUESTIONNAIRES FOR GHERZI EYES ONLY Please return completed questionnaires to keithstuartsmith.gto@talk21.com

2. Page 2 Gherzi Questionnaire: COMPANIES Perspective Plan for the Pakistan Textile and Clothing Industry up to the Year 2020 Phase 1 (2008-2013) Company/ Group Sales (2006/07): $ of which Exports: $ and Domestic: $ Company/ Group Sales Forecast for 2007/08: $ of which Exports: $ Domestic: $ Persons employed: Total: Sales/ person employed/ year $ of which Production Services/ Utilities Administration Sales/ Marketing Others Spinning: Number ring spindles installed Production: kgs/ year: Number rotors installed Production: kgs/ year: Weaving: Number of looms installed Production: metres/ year: Processing: Production/ day- metres Production: metres/ year: Garments: pieces/ days

3. Page 3 Gherzi Perspective Plan for the Pakistan Textile and Clothing Industry up to the Year 2020 Phase 1 (2008-2013) Sector/ Sub-sector activityEnter X if active during this year Last major investment - YearPresent investment climate- Rating 1 to 5 Spinning Man Made Fibre Texturing Yarn dyeing Weaving – 160 cms wide Weaving – 320 cms wide Woven fabrics Dyeing, printing, finishing Circular knitting Flat knitting – knitwear Flat knitting – raschel, warp Knitted fabrics Dyeing finishing Woven Garments Knitted Garments Bed linen Terry towels Company/ Business unit name:…………………………………Employees: …………………. Address: …………………………………………………….. Phone: ……………………..... Email: …………………………………………………… Year company started: ……… CEO/MD: ……………………………………………………………………………………… Rating: 1= weak; 2= poor; 3= reasonable; 4= good; 5= excellent

4. Page 4 Gherzi Questionnaire: COMPANIES cont Perspective Plan for the Pakistan Textile and Clothing Industry up to the Year 2020 Phase 1 (2008-2013) Sector/ Sub-sector activityEnter X if activeLast major investment - YearPresent investment climate- Rating 1 to 5 Spinning: ring spinning Spinning: core spinning Spinning: open end Weaving: dress/ blouse fabrics Weaving: shirting fabrics Weaving: terry towels Weaving: denim fabrics Weaving: bottom weights (not denim) Weaving: bed linen <320 cms Warp knitting – raschel, warp Knitting: socks Non woven fabrics Woven Ready-Made Garments Knitted Garments Others Rating: 1= weak; 2= poor; 3= reasonable; 4= good; 5= excellent

5. Page 5 Gherzi Questionnaire: COMPANIES cont. Perspective Plan for the Pakistan Textile and Clothing Industry up to the Year 2020 Phase 1 (2008-2013) 1. Was your company more or less successful in 2007/8 than in 2005/6 or 2006/7? More successful: …………………………………. Less successful: ………………………………………………… 2. Why was this? ………………………………………………………………………………………………………….. ……………………………………………………………………………………………………………………………… 3. Do you expect to be more successful in 2008 than in 2007? “If YES, WHY?”………………………………………… ………………………………………………………………………………………………………………………………… “If NO, WHY NOT?” ………………………………………………………………………………………………………… ……………………………………………………………………………………………………………………………… 4. What are the 5 main issues facing your company? 1. ………………………………………………………………………………………………………………. 2. ………………………………………………………………………………………………………………. 3. ……………………………………………………………………………………………………………… 4. ………………………………………………………………………………………………………………. 5. ……………………………………………………………………………………………………………….

6. Page 6 Gherzi Questionnaire: COMPANIES cont. Perspective Plan for the Pakistan Textile and Clothing Industry up to the Year 2020 Phase 1 (2008-2013) 5. 1 What are the major products that you export? Is competition becoming less or more? What methods of selling do you use? Product (e.g. shirts, trousers, jeans, towels, etc) More competitionLess competitionMethod of selling 1. 2. 3. 4. 5. 6. 7.

7. Page 7 Gherzi Questionnaire: COMPANIES cont. Perspective Plan for the Pakistan Textile and Clothing Industry up to the Year 2020 Phase 1 (2008-2013) 5. 2 What have been the changes in your export/ domestic market sales over the past 7 years? YearExport Markets $Domestic Markets $WHY THE CHANGES? 2001 2002 2003 2004 2005 2006 2007

8. Page 8 Gherzi Questionnaire: COMPANIES cont. Perspective Plan for the Pakistan Textile and Clothing Industry up to the Year 2020 Phase 1 (2008-2013) 5. 3 What changes in the market requirements have you noticed in the export markets in the last 5 years? ISSUEIncreaseDecrease WHY THE CHANGES? Order size Response/ Lead times Quality levels Buyers’ demands Raw materials Raw material prices Sales: own designed products New product development Price competition Others – please specify

9. Page 9 Gherzi Questionnaire: COMPANIES cont. Perspective Plan for the Pakistan Textile and Clothing Industry up to the Year 2020 Phase 1 (2008-2013) 5. 4 What changes in the market requirements do you anticipate in the next 5 years ? ISSUEIncreaseDecrease WHY THE CHANGES? Order size Response/ Lead times Quality levels Buyers’ demands Raw materials Raw material prices Sales: own designed products New product development Price competition Others – please specify

10. Page 10 Gherzi Questionnaire: COMPANIES cont. Perspective Plan for the Pakistan Textile and Clothing Industry up to the Year 2020 Phase 1 (2008-2013) 5. 5 What are your present strengths and weaknesses? ISSUEStrengthsWeaknessesCOMMENTS Marketing Response/ Lead times Quality levels Labour Productivity Machine Technologies used Management Marketing Methods of selling New product development Price competitiveness Others – please specify

11. Page 11 Gherzi Questionnaire: COMPANIES cont Perspective Plan for the Pakistan Textile and Clothing Industry up to the Year 2020 Phase 1 (2008-2013) 5.6 What demands do buyers make that you are unable to meet? 6.What are the advantages that competing countries (e.g. China, India, Bangladesh, Sri Lanka) have in the export markets? 7.Marketing and selling: 7.1 Do you have a regular and active presence in the export markets so that you know your customers, the share of their business that you have and what are the strengths of the competing suppliers? 7.2 Do you have an own product development department and sell your own designed products?

12. Page 12 Gherzi Questionnaire: COMPANIES cont. Perspective Plan for the Pakistan Textile and Clothing Industry up to the Year 2020 Phase 1 (2008-2013) 8. The World Bank said recently that Management & Marketing was the weak point of the industry. 8.1 Does this comment apply to you company? If Not, why not? If Yes, Why? 8.2 Do you have the same customers in 2008 as in 2006? Have you lost any customers? If so, for what reasons? 8.3 Have you gained new customers in this period? How many? How? 9.1 Describe the Management team that you employ 9.2 Does your management team have academic/ professional qualifications? If so, from where did they graduate? 9.3 Is there a shortage of management personnel in (a) your company and (b) the industry? (a) Your company (b) The industry? 9.4 Can you expand your business with the existing management team? 9.5 Do you employ expatriate management?In what capacities

13. Page 13 Gherzi Questionnaire: COMPANIES cont Perspective Plan for the Pakistan Textile and Clothing Industry up to the Year 2020 Phase 1 (2008-2013) 10. The World Bank Report spoke also of low machine/ labour productivity. 10.1 Are you satisfied with the productivity levels in your company? 10.2 Why are the productivity levels at these levels? 10.3 How do you train your production workers? 10.4 How do you motivate your production workers? 11. What “hidden costs of doing business”, i.e. any costs that are not usually declared in the published accounts, do you have to pay? 12. What Government support do you appreciate most? 12.2 What additional support should the Government give to the industry?

14. Page 14 Gherzi PERSPECTIVE PLAN FOR THE PAKISTAN TEXTILE AND CLOTHING INDUSTRY TO 2020 Finally, Sector specific questions: 1. Ginning a.What gins do you have? Make …………….., Model …………………………., Year …………………………. b.Are spare parts easily available? ……………………………………………………………………………… c.Can these gins be up-graded? …………………………………………………………………………………….. d.What is your (i) Capacity per year? ……………………………… (ii) production per year? …..……………… e.What type of trash/ contamination do you find in the cotton? …………………………………………………. ……………………………………….What % trash/ contamination …………………………………………….. f.What is the GOT in your ginnery? ………………………………………………………………………………… g. What is the increase in fibre length after ginning? ……………..………………………………………………. h.Are any special loans available to enable you to up-grade your ginnery? …………………………………… ………………………………………………………………………………………………………………………… i.What can be done to make the ginning sector more efficient? ……………………………………………… …………………………………………………………………………………………………………… j.Do you employ skilled workers? ……………………. Are the workers employed full time or on a seasonal basis? ………………………………………………… k.How are the workers trained? ……………………………………………………..……………………………… ………………………………………………………………………………………………………………………. l.Do you use contract labour? ……………. If so, why? ………………………………………………………….. ……………………………………………………………………………………………………………………….. m.Do you have own full-time maintenance personnel? ………………………………………………………….

15. Page 15 Gherzi PERSPECTIVE PLAN FOR THE PAKISTAN TEXTILE AND CLOTHING INDUSTRY TO 2020 Finally, Sector specific questions: 2. Spinning a.Why is cotton the preferred fibre and not MMF? …………………………………………………………………. b.Is the price and quality of local MMF comparable to imported MMF? …………………………………………. …………………………………………………………………………………………………………………………… c.What impurities are to be found in (i) local cotton and what in what quantities (%) …………………………….. …………………………………………(ii) imported cotton………………………………………………………….. d.What do you consider to be the economic sized spinning unit? Ring ……………… Rotors …………..…… e.To what extent will production costs decrease if units of 100,000 spindles are installed? …………………. ………………………………………………………………………………………………………………………… f.Why are major investments in Rotor spinning not being made? ………………………………………………. g.Do you employ qualified/ skilled labour on the production machines and in maintenance? What training programmes do you have? ……………………………………………………………………………………… h.What yarn count range do you produce?................. Do you concentrate on coarse counts? ….………. If so, why?…………………………………………………………………………………………………………… i.Can the spinning sector integrate vertically and make value added products? ……………………………… ………………………………………………………………………………………………………………………. j.Would you consider mergers and acquisitions with other companies? ……………………………………… k.Are there advantages if cotton warehousing were provided for the Spinning Sector? …………………….. l.Does the evenness of your yarn lies within 5% Uster statistics? …… 25% or above? ……………………. m.Does your lab equipment include: HVI ……. AFIS …….. Evenness tester …….. Classimat …………..?

16. Page 16 Gherzi PERSPECTIVE PLAN FOR THE PAKISTAN TEXTILE AND CLOTHING INDUSTRY TO 2020 Finally, Sector specific questions: 3. Power Loom Weaving a.What is average unit size in the power loom sector? …………………………………………………………. b.What fabrics do you make? …………………………………………….…………………………………………. ………………………………………………………………………………………………………………………… c.What is the finest construction ……………………………….…………………………………………………… d.Do you produce apparel fabrics? ……. If so, what constructions? …………………………………………… e. What do you consider to be an economic size of power loom unit? ……………………………………..…… f. Do you produce blended fabrics? …………….. What constructions? ……………………..…………………. g. Where is your unit located? Residential or Industrial area? …………………………………………………… Do you have problems in the location? ………………………………………………..……………………….. h. Do you employ skilled workers? ……….. How are they trained? ……………………………………………. i. Do you commission services, e.g. warping, sizing, maintenance, others? …………………………………. …………………………………………………………………….………………………………………………… j.What is waste made in your unit? (i) Yarn ………&, (ii) Fabric …………..(%) k.What is the make / model / age of your looms? ……………………….……………………………………… ……………………………………………………………………………………………….…………………….. l.Do you employ contract labour? Why? ……………………………………………………………………….. ………………………………………………………………………………………………………………………. m.What are the major issues facing your unit? ………………………………………………………………….. ………………………………………………………………………………………………………………………

17. Page 17 Gherzi PERSPECTIVE PLAN FOR THE PAKISTAN TEXTILE AND CLOTHING INDUSTRY TO 2020 Finally, Sector specific questions: 4. Shuttle Less Weaving - i a.What make /model / age of looms do you have? ……….………………………………………………………. ………………………………………………………………………………………………………………………… b.Do you have an economic size of unit? …………………………………………………………………………. c.Do you make apparel fabrics? If so, what constructions? ……………………………………………………… ………………………………………………………………………………………………………………………… d.Do you develop new products? ……….. What is the cost of new product development? …………………. e.How many of your new products have been taken up by export buyers? …………………………………… f.Do you produce jacquard or coloured woven fabrics? Jacquard …………… Coloured woven…………… g. What yarn counts do you use? ……………………………………….……………………………………..…… h. Do you employ skilled workers? ……….. How are they trained? ……………………………………………. i. What are the waste factors in your mill? (i) Yarn ………, (ii) Fabric …………..(%) How can the waste be reduced? ……………………………………………………………………………………………………………. j.What are the costs of doing business for the mill? …………………………………………………………….. k.How can the costs of doing business be reduced? ……………………………………………………………. ………………………………………………………….…………………….……………………………………… l.Do you export most of your fabric? ……….. If so, why? ………………………………………………………. ……………………………………………………………………………………………………………………….. m. Would you be interested in merging with another company or acquiring one?..………………………….. ……………………………………………………………………………………………………………………….

18. Page 18 Gherzi PERSPECTIVE PLAN FOR THE PAKISTAN TEXTILE AND CLOTHING INDUSTRY TO 2020 Finally, Sector specific questions: 4. Shuttle Less Weaving – ii continued n.What could the Government do to promote mergers and acquisitions of companies? ……………….……. ……………………………………………………………………………………………………………………….. o.How can jacquard and dobby weaving be encouraged? ………………………………………………………. ………………………………………………………………………………………………………………………… p.What are the main pieces of equipment in your laboratory? ………………………………………………… ………………………………………………………………………………………………………………………. q.Do you have a sizing recovery plant? If so, what is the advantage? ……………………………………….. ………………………………………………………………………………………………………………………. r.Do you employ contract labour? …………. If so, why? ………………………………………………………. ………………………… Can contract labour be eliminated? ………………………………………………….

19. Page 19 Gherzi PERSPECTIVE PLAN FOR THE PAKISTAN TEXTILE AND CLOTHING INDUSTRY TO 2020 Finally, Sector specific questions: 5. Processing a.What make /model / age of machines do you have? ………………………………………………………….. ……….……………………………………………………………………………………………………………… b.Do you have an economic size of unit? …………………………………………………………………………. c.Do you employ skilled workers? ………….. How are they trained? ………………………………………… ………………………………………………………………………………………………………………………… d.Do you employ contract labour? …….. If so, why? ……………………………………………………………. e.What are the waste factors in your mill? (1) Dyes & chemicals …… (%), (2) Fabric ………….(%), (3) Re- dyes……………..(%) f.How do domestic dyes & chemicals compare with imported dyes & chemicals?…………….……………. ……………………………………………………………………………………………………………………… g.What matching / colour fastness tests have to be made by international laboratories?..………………… h.Do you have issues with meeting compliance standards? …………… If so, what? ….………………….. ……………………………………………………………………………….……………………………………… i.Does meeting compliance standard add to your costs? …………………………………………………….. j.What do you need to process larger quantities of apparel fabrics? ……………………………………….. ……………………………………………………………………………………………………………………… ………………………………………………………………………………………………………………………..

20. Page 20 Gherzi PERSPECTIVE PLAN FOR THE PAKISTAN TEXTILE AND CLOTHING INDUSTRY TO 2020 Finally, Sector specific questions: 6. Garmenting a.Do you employ only own skilled workers? ………….. How are they trained? ………………………………… b.Do you also employ contract labour? …….. If so, why? ………………………………………………………… c.What is the size of your unit? ……….. Number of sewing machines …………….. What are the waste factors in your factory? (1) Cutting waste ………..(%), (2) Re-making …………..(%), (3) Garment seconds ………..(%) e.What cutting & laying technologies do you use? ……………………………………………………………… f.Are the fabric constructions needed for orders readily available?………………………….……………. g.Do you have a design / new product development department? ………….. If so, how many of your new products are in your selling range? …………………………………………………………..………………… h.Do you produce (i) basic garments ………. or (ii) added value garments ……………….? i.Are you close to the markets and sell directly or do you work through buying houses / buying agents?.. ……………………………………………… If so, why? …………………………………….………………….. ……………………………………………………………………………….……………………………………… j.Hat order sizes can you handle? ……………………………………………………………………………….. j.What delivery times do you quote?............... What share of the quoted delivery times do you keep? …………………………………………………………………………….……………………………………….. k. What major issues do you face? ……………………………………………………………………………… ………………………………………………………………………………………………………………………. ………………………………………………………………………………………………………………………