-:Assignment # 04:Inam-Ul-Haq

Roll No. 12-NTU-59

FM(Weaving)
Introduction:With stagnant exports and continuously declining market share in the international arena,
Pakistans textile industry is going through the worst patch in its history.
The gap between Pakistan and its regional competitors has widened so much that now it looks
unlikely that the country will ever catch up. The situation started deteriorating a decade ago but
the stark disparity in exports became much more visible in the last five years.

Value-added textile: Industry fears further drop in exports:The story of Pakistans textile sector is not different from other major
export-oriented industries of the country. The only difference is its sheer size in the countrys
total exports that allows it to remain in the limelight. Other than securing the Generalised
Scheme of Preferences (GSP) Plus status in the European Union (EU), textile exporters say
this government has not done anything noticeable for the industry.
The major difference is the attitude of our government and the governments of regional
countries. The response time in Pakistan is too slow, commented Ziad Bashir, Executive
Director of Gul Ahmed Textile Mills, one of the countrys largest composite textile mills.
There is not a single major reason why Pakistan is lagging dramatically behind regional
competitors. Problems like security challenges, energy shortages, high interest rates, lack of
policy implementation and high utility prices have all contributed equally to the decline in
textile exports, he added.

Manufacturers gear up for Chinese interest:-

Had the government failed in securing the GSP Plus status, textile
exports would have been in a much worse situation, said Bashir.
Pakistan got the GSP Plus facility in December 2013 that allowed it to export its products to
the EU on reduced or zero duty.

Regional comparison:According to the World Trade Organisation (WTO), world trade in

textiles and clothing increased to $766 billion in 2013 from $454 billion in 2004, a significant
increase of 69% despite the fact that the world experienced one of the worst financial crises in
2008-09.
Pakistans textile export share in the global market decreased from 2.2% in 2006 to just 1.8%
in 2013. During the same period, Bangladeshs share jumped from 1.9% to 3.3%, Chinas share
increased from 27% to 37% and Indias share improved from 3.4% to 4.7%, according to data
compiled by the All Pakistan Textile Mills Association (Aptma).

Textile sector dreading gas suspension:Total exports of Pakistan in fiscal year 2014-15 were $23.6 billion, down
4.8% from $24.8 billion in fiscal year 2010-11. Similarly, textile exports have been hovering
around $13 billion for the last five years.
This shows a practical breakdown of Pakistans export-based industries, including the textile
industry that contributes over 50% to total exports.
Pakistan Apparel Forum Chairman Jawed Bilwani said he is certain textile exports will drop
further. The government knows everything about the international and domestic challenges of
the textile industry and yet it is not doing anything.

Textile industry: Think tank outlines factors hitting competitiveness:-

Pakistan is facing numerous economic problems but the prime minister has
just met the exporters after assuming the office two and a half years ago, Bilwani said, adding
this shows how serious the government is about arresting the dwindling exports.

Global impact:The economic slowdown in Europe and North America the two most
important textile markets for Pakistan, India, Bangladesh and Sri Lanka has affected all the
textile exporting nations of the region. However, the worst hit is Pakistan, indicating it has its
own domestic problems that are contributing to low exports.
It is not lack of innovation; it is the cost of doing business that has resulted in the decline in
exports. Pakistan lagged behind in the region mainly because of its own domestic problems,
Aptma Chairman Tariq Saud said when asked about the decline in textile exports in the last
decade.

We represent the entire textile industry: APTMA:The cost of gas for the industry has jumped to $6.7 per million British
thermal units (mmbtu) mainly due to the imposition of Gas Infrastructure Development Cess
(GIDC). Gas price in India is $4.2 per mmbtu, $3.1 in Bangladesh and $4.2 in Vietnam.
Pakistans electricity tariffs are also highest in the region. Average electricity prices in regional
countries are in the range of 6-9 cents, but the price is 14.5 cents per unit in Pakistan, said
Saud.