Group Members

Javaria Khalid (090528-019)

 Nida javaid (090528-004)
 History
 Increase in the cotton production and expansion of
textile industry has been impressive in Pakistan
since 1947.

 Number of mills increased from 3 to 600.

 spindles from about 177,000 to 805 million.

 Introduction & Importance
 Backbone of the economy

 From a most non-existence at the time of creation of

Pakistan in 1947, the Textile industry has grown
into the largest and most significant economic sector
of Pakistan.

 Plays pivotal position in the exports of Pakistan.

 Status of being the largest industry in Pakistan

 Introduction & Importance
 Pakistan is the 8th largest exporter of textile
products

 Has the comparative advantage of resource

utilization

 Major contributor towards GDP

 50% of industrial labour force

 Introduction & Importance
 Earns 65% foreign exchange of total exports.

 The industry consists of large-scale organized sector

and a highly fragmented cottage / small-scale sector.

 The industry consists of large-scale organized sector

and a highly fragmented cottage / small-scale sector.

 At present, there are 1,221 ginning units, 442

spinning units, 124 large spinning units and 425
small units which produce textile products.
Introduction & Importance
 Manufacturing sector………. 46%

 Export earnings……………... 68%

 Value addition………………. 09%

 Employment………………… 38%
 Major Crisis
 High interest rates

 High cost of inputs

 Non conducive government policies

 Non-guaranteed energy supplies hinder their

competitiveness
 Major Crisis

 Non-guaranteed supply of power by WAPDA is

another problem that negatively affects the textile
industry. Although, some textile units have built
their own energy generating plants to cut cost (these
units run on gas), small units production depends
entirely on the electricity supply of WAPDA.

 The textile industry suffered heavy financial losses

in Dec, Jan and Feb quarter, because of the
inconsistent electricity supplies
 Major Crisis
 The lack of production subsequently resulted in the
industry not meeting its target for the quarter,
massive financial losses were borne by textile owners
and sadly, it hit the most vulnerable: workers on
daily wages.

 After surviving from the load-shedding scenario the

industry has yet to survive the gas load shedding.
 Conclusion
 Textile industry is feeling the pinch of increase in
power interest rate, inflation and multiplicity of
taxes, which have increased the production costs.

 Productivity have further deteriorated due to

power break down – civil riots and other
disturbances and thus adding to the cost of the
products.

 Labour costs are amongst the lowest in the world,

the benefit is being wasted through operational
inefficiency.
 Recommendation
 Investments in developing human skills and
knowledge essential for upgrading competitive
advantages

 The commercially viable units may be considered

for revival by providing financial relief.

 Govt must granted a number of incentives for the

development of value added products.
 Recommendation
 Liberalized labour laws, tax and other benefits of
a Special Economic Zone need to be implemented

 Access to high quality and cost-effective

manpower

 Excellent connectivity by road, rail air and ports

 Single-window clearance
THANK YOU