You are on page 1of 3

-:Assignment # 04:Inam-Ul-Haq

Roll No. 12-NTU-59
Introduction:With stagnant exports and continuously declining market share in the international arena,
Pakistan’s 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 Pakistan’s textile sector is not different from other major
export-oriented industries of the country. The only difference is its sheer size in the country’s
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 country’s 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:-

world trade in textiles and clothing increased to $766 billion in 2013 from $454 billion in 2004.9% to 3. China’s share increased from 27% to 37% and India’s share improved from 3.8% from $24.8 billion in fiscal year 2010-11. Pakistan got the GSP Plus facility in December 2013 that allowed it to export its products to the EU on reduced or zero duty.3%. Pakistan Apparel Forum Chairman Jawed Bilwani said he is certain textile exports will drop further.” said Bashir. “The government knows everything about the international and domestic challenges of the textile industry and yet it is not doing anything.8% in 2013. according to data compiled by the All Pakistan Textile Mills Association (Aptma). including the textile industry that contributes over 50% to total exports. Pakistan’s textile export share in the global market decreased from 2. This shows a practical breakdown of Pakistan’s export-based industries. textile exports have been hovering around $13 billion for the last five years. down 4.2% in 2006 to just 1.6 billion.4% to 4.7%. textile exports would have been in a much worse situation.  Textile sector dreading gas suspension:Total exports of Pakistan in fiscal year 2014-15 were $23. Similarly. During the same period. a significant increase of 69% despite the fact that the world experienced one of the worst financial crises in 2008-09. Bangladesh’s share jumped from 1.”  Textile industry: Think tank outlines factors hitting competitiveness:- .  Regional comparison:According to the World Trade Organisation (WTO).“Had the government failed in securing the GSP Plus status.

the worst hit is Pakistan. but the price is 14. However. India.2 in Vietnam. Pakistan’s electricity tariffs are also highest in the region.” Aptma Chairman Tariq Saud said when asked about the decline in textile exports in the last decade.7 per million British thermal units (mmbtu) mainly due to the imposition of Gas Infrastructure Development Cess (GIDC). Gas price in India is $4. “It is not lack of innovation. $3.1 in Bangladesh and $4. Bilwani said.  Global impact:The economic slowdown in Europe and North America – the two most important textile markets for Pakistan. Bangladesh and Sri Lanka – has affected all the textile exporting nations of the region. it is the cost of doing business that has resulted in the decline in exports. adding this shows how serious the government is about arresting the dwindling exports.  We represent the entire textile industry: APTMA:The cost of gas for the industry has jumped to $6. .5 cents per unit in Pakistan. Pakistan lagged behind in the region mainly because of its own domestic problems. said Saud. indicating it has its own domestic problems that are contributing to low exports. Average electricity prices in regional countries are in the range of 6-9 cents.2 per mmbtu.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.