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Pakistan Textile Industry Overview and Market Analysis 2020 article


https://www.textileinfomedia.com/textile-industry-in-pakistan
points >>>

a. Pakistan Has So Many Textile Businesses and About 30% Of Pakistani Workforce Depends on Textile
Sector.
b. After China, India And Bangladesh Pakistan Is 4th Major Producer Of Cotton In World. Pakistan Has
Huge Spinning Capacity And It Plays An Important Role In Textile Industry Of Pakistan. 
c. The Segment Of Textile In Pakistan Has A Giant Impact On The Business Economy And Over All
Contributing 57% To The Country Exports As Per Government Of Pakistan Ministry Of Textile
Industry. 
d. The Main Focus Of The Cloth Industry, Because Of The Vast Amount Of Agro Cotton Yarn Produce
In The Country Its Fourth Rank In Across The World After India And China.
e. Pakistani Textile Industry Provide 9 % Of The Global Textile Business Suppliers Needs Mainly
Located At Arab Countries , African Region , Latin America , East Europe , Canadian Market And
Some Southern Asia.
f. Pakistan Rank Is Number 10 Textile Producers In The Globe As Specially Produces Cotton Yarn
Material, Cotton Apparel Cloth Manufacturers, Ethnic Wear Wholesaler And Local Production Of
Textile Machinery And Mills Equipments. 
g. The Global Demand For Apparel Cloth Is Increasing At Around 2.5%, Impact That Much More
Opportunity For Rise In Exports Apparel Garment From Pakistan.

2. Pakistan's textile sector jumps to full capacity production 2020 article


https://tribune.com.pk/story/2162491/2-textile-sector-jumps-full-capacity-production/
Points >>>>

a. The textile manufacturing sector – the single largest export-oriented sector of Pakistan – has spiked
to full-capacity production after the government withdrew duties and taxes on import of the raw
cotton in January.
b. there is a 26% volumetric growth in textiles export. “This (26%) was the capacity in surplus till
recent months. The government has fully utilized
c. Pakistan is estimated to import around 7.5-8 million bales (of 170 kilogram each) this fiscal year
after local production came almost half of the required 15 million bales in FY20.
d. so far Pakistan imported around one-third of the total required quantity of imported cotton at 7.5-8
million bales.
e. The import of cotton paced up following the government withdrew 3% regulatory duty, 2%
additional customs duty and 5% sales tax on import of cotton from January 15, 2020.
f. The withdrawal of duty and taxes has fully mitigated the risk of decline in
cotton consumption in Pakistan.
3. Textile industry, CPFTA — II and new trends 2020 article

https://dailytimes.com.pk/546424/textile-industry-cpfta-ii-and-new-trends/

a. Textile industry contributes 57% percent of total export volumes and around 9% of the GDP of Pakistan.
b. It employs almost 40% of industrial labor force both skilled and un-skilled workers.
c. Pakistan Bureau of Statistics (PBS) recently reported a growth of merely 3.94% in First Half of Fiscal
Year 2020 (1HFY20) despite of devaluation and incentive packages to textile industry. 
d. after implementation of second China Pakistan Free Trade Agreement (CPFTA-II) hopes are high for
additional exports as out of 313 products added into revised FTA nearly 120 representing this industry.
e. Now when rise in demand side is expected, cotton production for latest season remained devastatingly
very low. With high interest rate scenario, increased energy cost and devaluation impact, industries are
bound to procure expensive cotton through import which is affecting country’s trade balance as well.
f. In first six months of fiscal year 2020 (i.e. July to December) Textile exports recorded growth of 3.94%
mainly due to orders received from the impact of currency depreciation coming from last fiscal year.
According to PBS, the country has exported textile goods of worth $6.91 Billion in 1HFY20 as
compared to $6.64 Billion in same period last year.
g. In value added segment, export of knitwear increased by 7.6% followed by 3.2% in bed wear.
h. Export of readymade garments rose by 12.1% however towel segment showed a very little increase i.e.
0.22%.
i. Export of Cotton cloth recorded a decline of 3.7% whereas tents, canvas and tarpaulin witnessed a
decrease of 19.7%. 
j. Not only that the yield from Pakistani cotton is not up to the mark. Pakistan needs 15 million bales of
cotton to satisfy demand side however it produces 10 million bales on average whereas due to climate
change recent outcome further deteriorated to around 8 million bales.
k. Cotton is a basic raw material for textile industry. Pakistan, whose 57% exports are dependent on
textiles, does not produce enough cotton to meet the requirement of existing demand.
l. Pakistan needs 15 Million bales of cotton to satisfy demand side however it produces 10 Million Bales
on average whereas due to climate change recent outcome further deteriorated to around 8 Million
Bales.
m. government have decided to waive all duties and taxes in import of cotton via the Torkham land border
from Afghanistan and Central Asia to meet the demand of the value-added textile sector. 
n.  The government has in 2014-15 imposed 1% customs duty and 5% sales tax on cotton import. PM
Imran Khan showed his concern over low production of cotton despite of his direction to Ministries to
increase export no matter what it takes.
o. World is witnessing new trends in Textile related products. Use of Organic Cotton is increasing by each
passing day. Europe, that has given us GSP plus status, is giving huge export orders to countries
efficient in Textile for the goods produced from Organic Cotton.
p. Organic cotton promotes healthy soils, healthy ecosystems, healthy people and thriving farming
communities and is consequently becoming a key point for fashion brands worldwide. 
q. It offers a lower ecological impact, reducing exposure to insecticides, pesticides and other chemicals,
than conventional cotton production which involves some of the highest use of pesticides and incurs a
heavy water footprint.
r. There is another international platform getting stronger and that is called Better Cotton Initiate (BCI)
where more than 1600 countries are registered members including Pakistan.
s.

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