Post on 09-Apr-2018
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the largest and mostimportant sub-sector ofthe economy.
T he textile and apparelindustry is considered asthe backbone of theIslamic Republic ofPakistans economy.
The most importantindustrial sub-sectorin Pakistan.
Based on locallyavailable raw cotton.
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Textile products are a basichuman requirement next onlyto food.
It provides largest
employment to industrial
labor force.
Pakistan ranks fourth amongworld cotton producers
Pakistan ranks third amongworld cotton consumers
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Pakistan is the 6th
largest importer of rawcotton
Pakistan is the 1stlargest exporter ofcotton yard
Over 1.3 million
farmers, out of total of5 million are involvedin cultivation of thiscrop
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44thth largest grower of cottonlargest grower of cottonafter USA, China and Indiaafter USA, China and India
33rdrd largest consumer oflargest consumer ofcottoncotton
33rdrd largest exporter oflargest exporter ofcotton textilescotton textiles
22ndnd largest supplier oflargest supplier ofcotton yarn with 26% sharecotton yarn with 26% shareof the international marketof the international market
IntroductionIntroduction
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Textile share of overallmanufacturing activity is46%
export earning is 68% 63% of the total exports
of Pakistan comprisetextile products
Provide employment of38%.
The contribution of thisindustry to total GDP is8.5%
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Taken as a wholebetween 30 and 40%
of the cotton ends upas domesticconsumption of finalproducts .
The remaining isexported as raw
cotton, yarn, cloth andgarments.
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largest source of jobopportunities andaccounts for 33.23percent of the total
industrial labour force. It contributes 17.35
percent to the total valueaddition in large scalemanufacturing.
It is also a major sourceof revenue
Its value of fixed assetsaccounts for 18.49percent of the totalindustrial assets.
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TEXTILE INDUSTRY'S ECONOMIC CONTRIBUTIONTEXTILE INDUSTRY'S ECONOMIC CONTRIBUTION
ExportsExports62.1% OF TOTAL EXPORTS62.1% OF TOTAL EXPORTS
(US $ 10.211 BILLION)(US $ 10.211 BILLION)
ManufacturingManufacturing 46% OF TOTAL MANUFACTURING46% OF TOTAL MANUFACTURING
EmploymentEmployment 38% OF TOTAL LABOUR FORCE38% OF TOTAL LABOUR FORCE
GDPGDP 8.5% OF TOTAL GDP8.5% OF TOTAL GDP
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The Pakistani textileindustry depends ondomestic agriculture tosupply its raw materials
the success of the cottoncrop is critical to thehealth of the textile
industry. Cotton accounts for 14
percent of land undercultivation in Pakistan.
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The textile industry ofPakistan has a
spinning capacity of 1550million kgs of yarn
weaving capacity of 4368million square metres offabric
finishing capacity of 4000million square metres.
The industry has a production
capacity of 670 million unitsof garments, 400 million units of knitwear 53 million kgs of towels.
.
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CottonCotton
YarnYarn
Grey fabricGrey fabric
Bleached fabricBleached fabric
Dyed fabricDyed fabric
Printed fabricPrinted fabric
Knitted fabricKnitted fabric Bed linenBed linen
Home textilesHome textiles
Made upsMade ups
TowelsTowels
Industrial UniformsIndustrial Uniforms
SportswearSportswear
Baby wearBaby wear
FoundationFoundation
GarmentsGarments Woven apparelWoven apparel
KnitwearKnitwear
AccessoriesAccessories
Textile and Clothing rangeTextile and Clothing range
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The micronaire range ofThe micronaire range ofPakistan cotton is 3.8 toPakistan cotton is 3.8 to4.9 NCL which is prime4.9 NCL which is primemicronaire rangemicronaire range
Pakistan cotton is bestPakistan cotton is bestsuited for spinning of 20 tosuited for spinning of 20 to40 counts40 counts
It has good absorption i.e.It has good absorption i.e.90,000 PSI and above90,000 PSI and above
It has good uniformityIt has good uniformity
Pakistani cotton staple isPakistani cotton staple isbetween 2.38 c.m to 3.15 cmbetween 2.38 c.m to 3.15 cm
12 million bales per annum12 million bales per annum
New varieties introducedNew varieties introduced
every yearevery year Excellent absorptionExcellent absorption
capacitycapacity
Good dyeing and printingGood dyeing and printing
capabilitiescapabilities
Suitable for all kinds ofSuitable for all kinds ofcotton blendscotton blends
Cotton QualityCotton Quality
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Traditional producers ofTraditional producers ofyarn for domesticyarn for domesticconsumption and exportsconsumption and exports
Large spinning sectorLarge spinning sector
High investments in stateHigh investments in stateof the art machinery andof the art machinery andtechnologytechnology
Strong base for expansionStrong base for expansionin valuein value--addedadded sectorssectors
Cotton YarnCotton Yarn
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Range of light toRange of light toheavy fabricsheavy fabrics
All kinds of blendingAll kinds of blendingdone with importeddone with importedyarnsyarns
Used for home textilesUsed for home textiles
and all kinds ofand all kinds ofapparelapparel
Total export US$Total export US$1.345 Billion1.345 Billion
Cotton FabricCotton Fabric
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Vertically integrated units mean that there is fullVertically integrated units mean that there is fullcontrol on the production of the entire valuecontrol on the production of the entire value
chain, from fibre to garmentchain, from fibre to garment The buyers are assured of consistent qualityThe buyers are assured of consistent quality
Short lead times and quick deliveriesShort lead times and quick deliveries
Versatility in product rangeVersatility in product range Flexibility in designingFlexibility in designing
InIn--house embroidery and accessorieshouse embroidery and accessories
TechnologyTechnology
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Cotton and yarn arePakistan's primarytextile exports.
The textile industryaccounts for over 60percent of Pakistan'stotal exports.
Textile sector is highly
protected sector and itsdemand and supplydepends on the globaleconomy.
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Previously exportcountries for textileindustries were USA,
Hongkong, Germany,China, South Korea,Switzerland, Russia andFrance.
recentlyTurkey, Portugaland Singapore are added
in the list. Major imports are done
by European countriesthrough quota system.
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During First 8 months(July-Feb, 2010), textileindustry import ofmachinery increased by
1.3% i.e. form $158.897million to $ 463.844million.
Besides machinery, textilesector also importspetroleum, plastic, iron,steel etc.
Import cost for textilesector has also risen by$7.992 million to 23.10million.
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Pakistan must competewith other producerssimilar in conditions and
comparative advantage. The PakistaniTextile
industry's biggestcompetitors are China,India, Indonesia and
Turkey. The cost of power in
Pakistan iscomparatively high.
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The AllTextile MillsAssociation (APTMA)listed 455 companies in
textile sector Nishat Mills Limited(NML) is the majorplayer in terms ofcapacity as well asmarket capitalization
(0.6% of the KSE AllShare Index)
Gul AhmedTextile Mills(GATM) in terms ofexports.
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Total investment intextile sector from past
10years (1999-2009)was $ 7.5 million
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All PakistanTextileMills Association is the
chief organization thatdetermines the rulesand regulations in thePakistan textile
industry.
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premier national tradeassociation of the textilespinning, weaving, andcomposite millsrepresenting theorganized sector inPakistan.
APTMA emerges as thelargest association of the
country as it represents396 textile mills out ofwhich 315 are spinning,44 weaving and 37composite units.
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To encourage friendly feeling andunanimity amongstTextile Mill owners onall subjects connected with their commongood.
To promote and protect the tradecommerce and manufactures of Pakistan in
general and of the cotton trade inparticular To collect and circulate statistics &
information classify relating to the trade,commerce and manufactures of itsmembers.
To take all steps which may be necessaryfor promoting, supporting or opposinglegislative and other measures affectingthe trade and commerce
To make representation to local, Provincialand Central authorities on any matterconnected with the trade, commerce andmanufactures of its members.
To advance and promote commercial andtechnical education connected with thetrade and commerce of its members.
To undertake special inquiries and initiateor support any.
To take any action which may be conducive
to the extension of the trade and commerceof its members or incidental to theattainment of this object.
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Its Principal Office is located atKarachi and Regional Offices areat Karachi, Lahore andPeshawar.
The Principal Office functionsunder the administrative controlof the Chairman and CentralExecutive Committee.
principal office deals with theaffairs connected with textiletrade and industry effectingmembers relating to FederalGovernment,
matters concerning ProvincialGovernments are dealt by theRegional Offices under thedirection of Regional Chairmen.
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The world demand fortextiles is rising ataround 2.5%, due towhich there is agreater opportunity forrise in exports from
Pakistan.
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To overcome global competition, the Pakistanigovernment in 2006 approved a Technology-basedIndustrial vision and strategy for socio-economic
which called for technology up-gradation, humanresource development, and establishment of a fullyintegrated chemical industry in the country.
Investment Policy & Incentives forVision 2005-2010: Whole of textile sector is included in list of value
added industries. 5% custom duty on imported machinery if not
manufactured locally. Tax relief: Initial Depreciation allowance (IDA) at 50%
of machinery & equipment cost.
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2006-07 (July-June)was the best year forPakistans textile and
clothing industry whenthe industry managedto export US$ 10.8billion with the support
of friendly governmentpolicies, internationalenvironment, andlower cotton prices.
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Government claims to diversifythe export base by focusing onthe sectors other than thetraditional ones,
According to textile exporters
No new product or new markethas significantly contributed tothe exports and it is the sameold and traditional items thathave been making the totalexport volume
Electricity crisis also declinedGDP rate.
The power problem, gasshortage, high financing costand infrastructure problemsdisturbed badly the growth ofthe value-added textile sector.
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The share of textile exports intotal exports of the countryshrunk to 55 percent so far inthe current financial year
from well above 60 percent inthe past years. overall export volume
remained stagnant in the firstseven months of the currentfinancial year,
During July-January 2009-10,total exports came to $10.870billion as against $10.820billion in the correspondingperiod of last year.
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Pakistan's textile and clothing exportsfell in the first eight months of thecurrent fiscal year, due to surging rawmaterial prices, energy crisis, Cottonyarn
primary export earning category wentdown by 15%, woven readymadegarments by 12%, bed wear by 10%, knitwear garments by 3% during the period.
exports of cotton cloth andTowels wentup by 6% and 10% respectively cession.
the textile industry in the country ispassing through a very critical periodwith number of closers and shutdowns.
On the domestic front, Interest rate hasgone up by 20%, during the last sixmonths and inflation in the country hasreached 21%.
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HIGH COMPETITION: Pakistan iscurrently placed at 8th position inthe world. Its major big competitorsare China, India and Bangladesh,
which are providing cheap and highquality textile products than
Pakistan.
Pakistan is surviving Just because ofquota system (USA and EU).
Pakistan is producing below its
capacity.
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POWER PROBLEMS: Major lossto textile sector is due to textilesector. Due to power shortage,textile industry is unable toproduce its demanded products.
PAK RUPEE USD PARITY: As
PKR depreciates, it is aprofitable situation for textileindustry in terms of exports andif PKR appreciates, it is a losssituation for textile industry.Reverse is the case with textileimports.
COSTOF PRODUCTION: AsChina has cheap labor, whichautomatically decreases cost ofproduction.
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there is a need for theindustry to improve thequality of its products.
There is also the need for
greater value addition in itsproducts. Need of efficient R&D and
training. tough competition from the
Indian, Bangladeshi andChinese textile industries.
The cost of power in Pakistanis high as compared to that inother countries.
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The Government has to ensure:
Stable market environment. Adequate finance for investments and for labor
force. Cutting down of taxes. Rationalization of the existing policies and
development of a long term policy environment.
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The industry has to:
Redevelop competitiveness
by improving productivity
reduce wastages and thus
lower cost of production.
Develop marketing strength
by adopting aggressive
marketing strategies. To overcome energy crises
problem, textile industries
should build its own powerplants.
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Switch market alsotowards SOUTH EASTASIAN NATION i.e.Malaysia ,Japan ,Korea,Singapore.
Export end-productrather than rawmaterial.
Launch some new
brands in order toincrease our exports. Need of skilled man
power and cheap labor
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To privatize Public SectorPower Units so that theseentities could be managedefficiently.
The gas tariffs for textilesunits should be freeze atthe current level for atleast next 3-5 years.
The import of electricity isan option even forshort/medium term, tomeet the high growthrates of demand in thecountry.
The government shouldannounce the financialpackages for the textileindustry so that the
modern technology beimported to lessen the costof production
Thermal efficiency ofWAPDA and other PublicSector Units be enhanced
Coal based powergeneration to be exploredon a priority basis, utilizingthe abundant availability ofcoal reserves.