Review of the Garment Industry

in Pakistan

Submitted By Ms.Asna Mubashra

Submitted To Dr Samia Kalsoom
M.Phil.(2009-2011) Semester---------III

Department Of Textiles And Clothing

College Of Home Economics , Gulberg , Lahore.
8th October , 2010
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Table of Contents
1) Introduction...........................................................................................................................................3
2) Global Market.......................................................................................................................................4
3) Garments Export Market History..........................................................................................................5
4) Apparal Industry Structure....................................................................................................................7
5) Raw material for garment industry........................................................................................................8
6) Imports of stitching machines as Production Tools............................................................................10
7) Gender split in.Labour Force of the Garment Industry........................................................................12
8) Exports of Readymade Garments from Pakistan.................................................................................13
9) Product mix of exports........................................................................................................................14
10) Knit and woven apparel segment........................................................................................................16
11) Readymade industry facing traditional competitors in the region.......................................................17
12) Impact of the World Economic Crisis on the Garment Industry in Pakistan.......................................18
13) Improvement Model for Ready-made Garment Industry of Pakistan..................................................18
14) Surface Level Improvement................................................................................................................18
a) Competitiveness:..........................................................................................................................19
b) Price competitiveness:..................................................................................................................19
c) Lead time......................................................................................................................................19
15) Deep Level Improvement....................................................................................................................19
a) Linkage expansion........................................................................................................................19
b) Compliance issues:.......................................................................................................................20
c) Product and market composition..................................................................................................20
d) Reducing Production and distribution time...................................................................................20
16) Indirect Improvement..........................................................................................................................20
17) Issues, concerns and suggested strategy thrust for apparel sector development in Pakistan................21
18) Pakistan joins International  Apparel Federation.................................................................................21
19) References...........................................................................................................................................21
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Readymade garment industry in Pakistan

Ready-to-wear apparel has become a large industry in a number of developing countries.
These countries are able to manufacture the apparel both for domestic consumption as well as for
export. Recent years have seen particular advancement in the ready-to-wear apparel segments in
Asia. This discussion focuses on this industry within Pakistan, with emphasis on how the
industry has grown and what the near future holds for the industry.

1) Introduction

The apparel industry is one of Pakistan's largest foreign exchange earners, accounting for
nearly 16% of the country's total exports. The 1996 Pakistan textile exports approximately
amounted to Rs.35,000 crores of which apparel occupied over Rs14,000 crores. The textile and
garment industry in Pakistan is one of the oldest manufacturing sectors in the country and is
currently its largest. Pakistani readymade garments and textiles are extremely popular the world
over

Readymade garment industry has emerged as one of the important small scale industries
in Pakistan. Its products have large demand both at home and abroad. The local requirements of
readymade garments are almost wholly met by this industry. Its exports in 1999-2000 stood at
US $ 772 million or 8.5% of the total exports.

Garment industry is also a good source of providing employment opportunities to a large

number of people at a very low capital investment. It mainly uses locally produced raw
materials. Most of the machines used by this industry are imported or locally made and
assembled.

The readymade garment industry started in 70's in Pakistan. With the passage of time and
industrialization, this industry expanded very rapidly. The majority of the units making cotton
fashion garments is medium and small-size in terms of machines, workers and output, with a few
notable exceptions and scattered throughout Pakistan. The importance of this industry lies in the
value it adds to indigenous raw material - cotton + blended cloth - thereby substantially
increasing the revenue from its sale in the international market.

After meeting expanding domestic requirements, the industry is capable of making

available a large volume of its products for export. The industry turns out various kinds of
garments for men, women, sports ,babies and unisex such as plain/embroidered/printed dresses,
blouses, maxies, shirts, skirts, night dresses, track suits, middies, trousers, sub-dresses etc. All
sorts of readymade garments are made from cotton fabric and synthetic fibre.
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The bulk of these garments are mainly exported to developed countries, like U.S.A.,
Europe, Japan and Australia. However, our country's exported readymade garments are inferior
in quality in comparison with garments from India, Korea, Hong Kong, Taiwan, Philippines and
Sri-Lanka. Consumption of local fabrics in making of garment and apparel accounts for 80% in
Thailand, 70% in Hong Kong and 100% in India. Pakistan's cotton textile industry, has won
world-wide recognition for producing cool and colourful lawns, which cater for the fashion
needs of the people, both at home and abroad.

Other fashion fabrics are silk, linen and man-made materials, which are generally blended
with cotton. Much of the success of any design depends on the clever handling of such elements
as line, shape, colour and texture. Pakistani textile craftsmen are increasingly acknowledging the
importance of this, alongwith the qualities of balancing as a centre of interest repetition, rhythm
and contrast.

In Pakistan woven garments have grown rapidly in recent years and now account for
almost 10% of Pakistan's total export earnings. North America and the EU are the major markets
supplied by Pakistan and together account for over 50% of Pakistani garment exports.

2) Global Market

Rings of global market demand of apparal

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Apparel market segments

Buyers preference in apparel market segments

3) Garments Export Market History

Consistent efforts towards extensive market coverage, improving technical capabilities
and putting together an attractive and wide merchandise line has paid rich dividends. But till
today, our clothing industry is dominated by sub-contractors and consists mainly of small units
of 50 to 60 machines. Pakistan’s supply base is medium quality, relatively high fashion, but
small volume business. The Pakistan’s textile industry accounts for about 23% of the world’s
spindle capacity, making it the second highest after China, and around 6% of global rotor
capacity. Also, it has the highest loom capacity—including hand looms—with a 61%
share. Pakistan accounts for about 12% of the world’s production of textile fibres and yarns. This
includes jute, of which it is the largest producer. The country is the second largest producer of
silk and cellulose fibre and yarn, and the fifth largest producer of synthetic fibre and yarn.
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Volume of world apparel imports

Source: PC-Trade Analysis System database of International Trade Centre (ITC)-Geneva

Today, garments exports from Pakistan have made inroads into the international market
for their durability, quality and beauty. One of the reasons for the economical pricing of
Pakistan’s ready made garments and apparels is the availability of highly skilled, cheap labor in
the country. The superiority of Pakistan’s Garment Industry has been acknowledged in the
National Textile Policy (NTP) 2000. Having realized the tremendous growth potential of this
sector there is a proposal in the NTP for taking the Pakistan Garment Industry out of the SSI
reservation list.

Pakistan’s exports to world

Source: PC-Trade Analysis System database of International Trade Centre (ITC)-Geneva

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Split of Pakistan’s exports 1999

Source: PC-Trade Analysis System database of International Trade Centre (ITC)-Geneva

4) Apparal Industry Structure

The readymade garment industry basically follows the piecework system which involves
completion of the whole garment, except cutting, by one person. A few organised and large scale
units use the trolley system (division of labour) in which one garment is prepared by different
persons.

Inspite of the fact that the industry has shown rapid growth no figures of annual
production are available either from the data published by Federal Bureau of Statistics or from
other sources, including the Readymade Garments Manufacturers and Exporters Association.
Further, determination of production in this industry is difficult to make. Firstly, due to
predominance of unorganised cottage scale units where the major portion of the work is
performed manually. Secondly, the capacity of the same machine varies significantly, depending
upon the type of garments prepared. Thirdly, it is easy to switch over from one product to
another. The production of the garment industry is roughly worked out at 60 million dozens per
annum

The industry covers a wide range of activities. These include the production of natural
raw materials such as cotton, jute, silk and wool, as well as synthetic filament and spun yarn. In
addition an extensive range of finished products are made.
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Split of textile products, 1999-2000

Source: Export Commodities of Pakistan during 1999-2000, Export Promotion Bureau of

Pakistan

5) Raw material for garment industry

The readymade garment industry uses both locally produced and imported raw-materials, but it
mainly uses locally produced raw materials. Both locally produced and imported are readily
available in the market. The production of cotton and cotton blended cloth, which are largely
used by the garment industry, is not only sufficient but also surplus for exports

Global consumption of fibres

Source: Textile Vision 2005, SMEDA.

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Raw material for garment industry is easily available. The major items which are
frequently used by the garment industries include cotton and cotton blended cloth, lining, thread,
button, zip, labels, and polythene. The raw material both locally produced and imported are
readily available in the market. The sources of supply of raw materials are textile mills,
wholesalers and non-mill sector. Some garment makers, have their own rooms to manufacture
cloth. Such garment units produce special kinds of garments and mark them with their brand
names. Payment of advance tax is a deterrent in expanding the export operations. Alternate
mechanism should be devised for realising income tax from the local suppliers.

Besides the mill sector, the non-mill sector also produces cotton cloth which is widely
used by the garment industry. The non-mill sector is scattered and unorganised. Its production is
estimated to have risen to 3,690 million square meters in 1999-2000, from 2,561 million square
meters in 1990-91. According to an estimate there were about 2,50,000 looms operating in the
non-mill sector in 1999-2000. The power loom sector produces pure cotton, polyester, viscose
and blended fabrics, which usually fetches low prices in the market. Production of cloth in mill
and non-mill sectors is given .

Production of Cloth (Mill and Non-mill Sector)

(Million Sq. Meters)

Year Mill Sector Non-mill Sector Total
1990-91 293 2,561 2,854
1991-92 308 2,931 3,239
1992-93 325 3,035 3,360
1993-94 315 3,063 3,378
1994-95 322 2,779 3,101
1995-96 327 3,379 3,706
1996-97 333 3,448 3,781
1997-98 340 3,573 3,913
1998-99 385 3,600 3,985
1999-2000 449 3,690 4,139
Source: I) All Pakistan Textile Mills Association.

II) Federal Bureau of Statistics,

Government of Pakistan

The other locally produced raw materials of the readymade garment industry which
include lining, thread, buttons, buckram, labels, polythene etc. are wither imported or
manufactured by the un-organised sector. The production data of these is not available. However,
these are also produced locally in fairly large quantities and have easy availability.

The quality of some of the locally produced raw materials, such as threads, buttons,
buckram, etc., are not as good as the imported. Secondly, some items of the readymade garment
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industry are not produced locally, the requirements, of which are met through imports. Import of
major raw materials is given .

Import of Raw Materials for Garments

(Rs. in `000’)
Products 1997-98 1996-97
Qty Value Qty Value
 
Sewing Thread Synth. Filaments 249,994 61,752 397,840 71,676
Sewing Thread Artificial Filaments 3,006 523 2,720 512
Sewing Threads Synth. Staple Fibre 22,252 4,433 4,841 1,189
Sewing Thread Art Staple Fibre 3,355 756 25,259 5,229
Bukram 63,129 7,969 104,199 12,118
Hooks 43,811 4,817 22,252 1,984
Buckles 15,727 1,513 33,642 3,380
Claps 29,938 2,612 82,434 3,232
Eyes of Apparel 214,790 19,975 178,964 14,820
Ribbons 3,552 2,104 3,669 1,634
Total 649,554 106,454 855,820 115,774
Source: Federal Bureau of Statistics, Government of Pakistan

Pakistan also imports cotton cloth as well as silky, nylon, synthetic and art-silk fabrics. Pakistan
has occasionally been importing cotton cloth bleached handloom, cotton drills and jeans both
mill and non-mill made. The quantity of these has been meagre and is exclusively imported to
manufacture garments for exports.

Apart from locally produced and imported raw materials, the garment industry also obtains some
raw materials from the imported worn clothing. These include zips, lining and buttons etc. The
first two items are frequently used, particularly by the unorganised sector which manufacturers
garments for local markets. Such inferior raw materials are generally not used in the manufacture
of export garments. 

6) Imports of stitching machines as Production Tools

The readymade garment industry in Pakistan generally operates on a small and
unorganised scale. According to an estimate about 70% of its units are in the unorganised sector
and are established in small shops, flats and houses.

These units also do not have modern machines like over locking, creasing, collar pressing
buttoning and cutting etc. These units are mostly equipped with 4-10 sewing machines and 1-2
electric irons. These items are usually Pakistan-made/assembled and give satisfactory service.
The useful life of a sewing machine is stated to be about eight to ten years, whereas an electric
iron is expected to last one to two years only. However, their durability depends on their
handling.

During the last five years more than $3.2 billion have been invested in the value-added
sectors including in sewing machines, stitching, knitting, finishing and knitting processing.
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Pakistan imported large numbers of sewing machines from China, Japan and Singapore. Import
of various sewing machines into Pakistan decreased from 175,158 numbers valued Rs. 2.05
billion in 2006-07 to only 44,582 numbers valued Rs. 0.85 billion, thus showing decline of 58%
in terms of value. At present industry enjoys the facilities of duty free import of machinery and
income tax exemption. Import of sewing machines into Pakistan is given .

Import of sewing machines 

                                                                                              Quantity: Numbers 
                                                                                          Value: Rs. 000
2008-09 2007-08 2006-07
Machines
Quantity  Value Quantity  Value Quantity  Value
 Sewing machines
1,427 2,395 19,052 27,803 17,534 23,871
(household)
 Other sewing
21,434 38,326 46,197 54,675 29,222 35,121
machines (household)
 Automatic sewing
288 33,841 744 65,186 647 47,100
machines
 Other sewing 1,942,30
40,433 780,766 69,115 1,228,587 127,755
machines industrial 6
2,048,39
 Total 44,582 855,238 135,108 1,376,251 175,157
8
  Source: Federal Bureau of Statistics, Government of Pakistan.

The garment industry uses both industrial sewing machines and domestic sewing
machines. The domestic sewing machines operate at a considerably slower speed of upto 250
stitches per minute. These are of low price and require much less skill to operate than the
industrial sewing machines. As such these are commonly used in small units.

There are seven factories which produce sewing machines in Pakistan. Their production
shows an erratic trend during the last five years. Local production of sewing machines decreased
from 68,131 numbers in 1994-95 to 35,690 numbers in 1999-2000. Table-3 shows local
production of sewing machines.

Local Production of Sewing Machines

Year No. of Units Production

(Number)
1994-95 3 68,131
1995-96 5 84,137
1996-97 6 61,131
1997-98 7 36,191
1998-99 7 29,696
1999-2000 7 35,690
Source: Federal Bureau of Statistics, Govt. of Pakistan

 
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Import of Sewing Machines and their Parts

(Rs. in `000’)
Product Unit 1997-98 1996-97
Qty Value Qty Value
   
Sewing Machines (House hold type) No. 6,755 7,619 4,193 3,263
Sewing Machines (Industrial) No. 47,435 563,059 25,408 250,946
Other Sewing Machines NS No. 5,788 35,148 3,930 15,050
Sewing Machine Needles Kg 35,745 185,897 68,245 35,353
Domestic Sewing Machines Parts Kg 30,920 5,067 29,532 3,991
Industrial Sewing Machine Parts Kg 317,897 87,033 169,261 59,483
Source: Federal Bureau of Statistics, Government of Pakistan

  The industrial sewing machines are mainly imported from Japan and are capable of
working at high speed upto 4,500 stitches per minute. These are specially suitable for assembly
line operation and are mostly used by the organised sector. Besides industrial sewing machines,
household sewing machines alongwith parts and electric irons etc. are also being imported.

The other important machines used by the ready-made garment industry is the
overlocking, which is used to trim the edges of cut cloth. In addition, specialised machines are
used for cutting, making button holes and stitching of buttons. According to an estimate, one
specialised machine is required for very five sewing machines.

7) Gender split in.Labour Force of the Garment Industry

Each industry employs/engages labour force according to the number of sewing machines
operated, besides one or two garment cutters and a pressman. The production capacity of each
labour depends on the nature of garment which he stitches. The labour of this industry consists of
both male and female. Female labour is mostly of widows, orphan and members of low earning
families. The production capacity of male labour is higher compared with female labour. It is due
mainly to additional responsibilities of the female folk. The stitching of units established in-
houses is also not as good as that of established commercial centres with male labour.

The organised and large scale units mostly hire labour on monthly basis while
unorganised small units hire labour on daily wages or contract basis. The stitching charges of
garments vary according to their nature and quality of work. Ladies garments are stitched at a bit
higher rate as compared with the gents garments. The exact stitching charges cannot be
ascertained as it varies from unit to unit and also depends upon the efficiency and experience of
the labourer.

8) Exports of Readymade Garments from Pakistan

Production of garments by units depends on export orders directly of indirectly. These

orders have somewhat risen in terms of value, but they have fluctuated widely in terms of
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quantity. Generally export earnings from garments have increased tremendously. Pakistan's
export of ready-made garment and apparel came up 5th position during 1999-2000.

Exports increased from 19 million dozens of various types of readymade garments worth
US$ 394 million in 1989-90 to 31 million dozens worth US$ 772 million in 1998-99, thus
showing an increase of 96% in terms of value. Export of readymade garments for the last twenty
years is given .

Exports of Readymade Garments from Pakistan

Quantity 
Year Value (US $ Million)
(Million Doz)
1990-91 21 479
1991-92 27 613
1992-93 26 617
1993-94 27 612
1994-95 27 642
1995-96 26 649
1996-97 29 736
1997-98 27 746
1998-99 28 651
1999-00 31 772
2000-01 36 827
2001-02 41 875
2002-03 61 1,093
2003-04 28 993
2004-05 34 1,088
2005-06 37 1,310
2006-07 41 1,385
2007-08 42 1,592
2008-09 30 1,230
    Source: Trade Development Authority of Pakistan.

Pakistan exports garments to a number of countries. Major buyers of readymade garments during
2008-2009 were USA, Germany, UK, Italy, France, Netherlands and Spain. Country-wise
exports of readymade garments are given .

Country wise export of Readymade Garments 

                                                                    (Value in 000 $)
Country 2008-09 2007-08 2006-07
 Germany 174,501 207,649 181,053
  Spain 68,120 95,550 83,146
 France 67,994 78,088 71,282
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 The Netherlands 41,786 58,344 56,983

U.A.E 38,684 47,746 44,238
 Turkey  25,513 22,771 13,675
Sweden  20,017 15,786 15,488
Australia 9,551 8,792 8,607
 Greece  7,715 6,688 7,873
Norway  9,097 5,990 3,387
 Benin  3,782 4,706 3,348
Denmark  13,730 4,036 3,875
Brazil 3,081 2,688 1,246
 Hong Kong 554 1,692 1,238
 Poland 1,817 1,510 969
 Japan  1,508 1,344 636
U.S.A 403,580 531,794 651,114
UK 136,027 156,570 174,806
 Italy  53,353 68,826 73,953
 Belgium 66,875 54,473 60,567
Canada  16,165 17,110 19,760
Saudi Arabia  22,939 14,906 17,109
Ireland  6,998 8,210 9,085
 Finland 3,107 3,681 4,761
South Africa 1,649 2,469 4,096
Portugal 1,166 1,457 2,164
Singapore 967 921 1,516
  Other countries 29,743 168,583 31,370
 Total 1,230,019 1,592,380 1,547,345
Source: Source: Trade Development Authority of Pakistan.

9) Product mix of exports

Readymade garment industry mostly produces cotton and cotton blended shirts, T-shirts, Bush-
Shirts, Pants, Children's suits, school uniforms, EU-gloves, socks, shirts, nightwear, trousers,
babywear, sportswear skirts, blouses and maxies.

Among these men's shirts and children garments are widely manufactured for local markets.
These are mostly made of cotton blended cloth. In cotton articles, the non-mill made cotton cloth
is largely used as against mill-made cloth. The unorganised sector of the industry largely uses
non-mill made cotton cloth even when it manufacturers garments for exports.

The mill made cotton and cotton-blended cloth is used mainly for manufacturing shirts,
T-shirts, Pants, Kurtas and Shalwars. The non-mill made cloth is used for shirts, T-shirts, maxies,
skirts, blouses and children suits which have potential markets abroad. Apart from these, some
traditional, as well as regional dresses of ladies such as Sindhi and Balochi long Kurtas, are also
manufactured, particularly for export.
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World imports of apparel – product split

Source: PC-Trade Analysis System database of International Trade Centre (ITC)-Geneva

Trend of world imports of apparel

Source: PC-Trade Analysis System database of International Trade Centre (ITC)-Geneva

Local demand of readymade garments during the past five years increased manyfold due
to increase in GNP, urbanisation and population. Growing tailoring charges will induce the
people to purchase readymade garments in larger quantities in the coming years.

On the other hand industry also provides an impetus to many other allied industries such
as spinning, weaving, printing/dyeing processing and also provides employment to various
artisans, such as embroidery art work, block printing and hand screen printing, cutting, stitching
and packing etc. The potential for export of readymade garments is estimated at more than US$
2.0 billion in the coming years, provided appropriate measures are taken to solve the problems
confronting this high value-added industry.
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One of our drawbacks has been that all along, Pakistani exporters have just focused on
the developed world for exports. Given the protectionist policies of the USA and the EEC,
coupled with their overwhelming technological superiority, Pakistan textiles would certainly be
at a disadvantage in their markets. It would be worthwhile to reorient export strategy and
concentrate on Third World markets, notably Africa! This would be a far more lucrative
proposition.
There is need to give urgent attention to the problems of garments industry. The industry
has a potential of becoming the top foreign exchange earner of the country.

Trend in Pakistan’s apparel export

Source: PC-Trade Analysis System database of International Trade Centre (ITC)-Geneva

10) Knit and woven apparel segment

. Share of knit and woven garments in Pakistan’s exports
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Source: PC-Trade Analysis System database of International Trade Centre (ITC)-Geneva

11) Readymade industry facing traditional competitors in the region 

At present Pakistan is fast losing its share in the global garment market because of high
cost of production. Garments exports from Pakistan’s traditional competitors in the region -
Bangladesh, Sri Lanka, China and India - have picked up dramatically because the exporters of
those countries are getting hidden subsidies from their respective governments. Export of
readymade garments from Pakistan decreased form 42 million dozens worth US $ 1.59 billion in
2007-08 to only 30 million dozens worth US $ 1.23 billion in 2008-09, thus showing decline of
23% in term of value.

The apparel segment is the highest value added link in the entire textile value chain. The
global trade in the sector accounts for 53% of the total value of global textiles trade and is
consistently growing since the last two decades.

Pakistan has been a major Asian player in the garment export market especially during
1990s and early 2000. Total apparel exports from Pakistan were to the tune of US$ 1.38 billion
in 2006-07. The importance of the apparel sector in the overall economic perspective is two fold.
On the one hand the sector has the potential to be the engine of Pakistan textile export growth,
while on the other the sector is the largest source of creating low cost employment in the country
at all levels.

USA and the European Union remain to be the largest markets for garments and other
apparel products with a combined share of 73% in total global clothing trade.

At present the major thrust of garments exports from Pakistan is on the USA market. The
European Union is the second largest market for garment manufacturers from Pakistan. Major
markets that Pakistani manufactures have so for not been able to explore are the Japanese
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market, the United Arab Emirates and some new markets in the European Union. These markets
demand high product standards and in return offer higher per unit price.

Pakistan produces apparel of various patterns and styles, of the latest fashions and
quality. The industry is adequately equipped to produce latest fashions to suit tastes and needs in
any part of the world.

Leading Pakistani designers, garment manufacturers and exporters regularly display their
designs and products round the world at international fairs and exhibitions and in trade centres
like Paris-London, New York, Tokyo and Berlin.

12)Impact of the World Economic Crisis on the Garment Industry in Pakistan

The garment industry in Pakistan is badly affected by the Impact of the world economic
crisis The huge impact on Asia from the global economic crisis has destroyed the ‘myth” that
countries can live in isolation. Asian equity and financial markets have moved in lip-synch with
global markets – mostly downward. Moreover, unlike the financial crisis of 1997 when Asian
countries could export their way out of the crisis, that option no longer looks so viable. This time
Asia must find its own solutions and in doing so help the rest of the world.

Some 300-400 million people came out of extreme poverty in the last decade in Asia and
overall it is on its way towards meeting the Millennium Development Goals. But with the Global
economic crisis not only is further progress at risk, but even some of the recent gains could be
reversed.  The girls working in garment export factories in Cambodia, Bangladesh and Sri
Lanka, diamond cutters in India, factory labor in China’s coastal cities, migrants from South
Asia and Philippines and Indonesia are all affected by the crisis, many of whom will be
unemployed and will return to the farm.

Moreover, Asia’s middle class which now numbers some 1.5 billion people in Thailand,
Malaysia, India and China, and many young aspiring upwardly mobile will have their dreams of
a better life thwarted. We are already seeing large unemployment, school drop-outs, and health
impacts as well are social strife. We are also seeing the first signs of growing protectionism and
are concerned that a race to the bottom may develop through weakened currencies and special
export incentives to keep market share.

13) Improvement Model for Ready-made Garment Industry of Pakistan

Ready made garment industry in Pakistan has to struggle a lot to stand in line with other
Asian garment manufacturing markets. For this purpose the following model is introduced which
can help in industrial and national development.

14) Surface Level Improvement:

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Competitiveness:
To compete with the foreign market garment industry in Pakistan has to strengthen its
competencies; at the same time it has to seek changes as opportunities and not a threat. There is
severe competition all over the world.

· Basic machinery that is required for performing regular tasks of cutting, stitching,
trimming and finishing should be modernized.

· Trends report, buyers manual and trade shows organization in Pakistan and abroad should
be done by the garment associated companies.

· Strict quality control should be observed and government or private sector should setup
advisory services for the small scale garment industries.

· To compete in the local market garment industries should concentrate on the quality of
the products because quality is the first thing on the mind of consumers.

Price competitiveness: 
China and India have been successful in recent years in cutting price ranges for their
RMG products to greater extent: the reason is that they can afford buying raw material at cheap
rates; they have had enough linkage expansion in their textile and garment industry they do not
need to purchase raw material from foreign countries (it cuts the price on the final product).
Lead time:
Another improvement is desired in reducing the lead time required to produce and fulfill
the orders placed by foreign companies. One way to decrease the lead time required for
producing RMG is to increase domestic linkage expansion in this way we can have deep level
improvements in the RMGI too. Lead time refers to the time required for supplying the ordered
garment products after the export order has been received. In comparison to other countries like
china has 40-50 days lead time, India on the other hand has 50-60 days and Bangladesh has 60-
70 days lead time. Lead time can also be reduced by improving the technology used by the
industry. Using modern fast and effective machinery can reduce time taken to deliver the order.

15) Deep Level Improvement:

Linkage expansion:
At this moment we have a fine textile industry at our disposal, an industry which is
making finest cloth in the world and is a major exporter of cotton fabrics and yarn. There should
have to be a backward linkage expansion i-e; garment industries should work in collaboration
with textile industries so that they can have good quality fabric and they do not need to waste
time in importing fabrics especially for the orders that have been placed by the foreign buyers. In
this way lead time will be reduced and quality of the product will be enhanced. Some of the large
textile industries have started doing there own garment business which is a sign of healthy
change. For example Gul Ahmed is a network of composite textile mills which manufacture
everything from yarn to finished products. Their core competency is their high quality products.
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They are working on the standards set by the ISO 9000. Previously they concentrated on yarn
and fabric but today they are producing high quality trendy women's and men's garments
including: gents' kurtas, shirts, pants and ladies couture dresses. They are catering to the elite
class in Pakistan and they are also successful in attracting foreign buyers. They are working on
the principle of change management, they train there employees every few months to refresh
them and they are tracking even the minute change in fashion or technology.

Compliance issues:
It is true that in Pakistan labor is available at minimum wages and men power is never a
limitation or hindrance; but industry have to follow the international code of conduct in
recruiting and accommodating employees. Recruiting employees after 18 years of age,
maintaining healthy and relaxed environment for the employees, taking practical measures for
health and safety, and giving equal opportunities is more important than improving the quality if
the product. Today even foreign buyers want to know about the social compliance issues of the
company, they are dealing with. Every facility should be provided to the employee so that he/she
can work in a positive manner and he/she can utilize all his strengths and creativity for the
betterment of the industry and for growth of himself/herself.

Product and market composition:

Upgrading product quality, upgrading product range, targeting diversified markets,
targeting markets with greater demand, gaining access to new markets is very important in order
to keep pace of the competitive market.

Today the RMGI of Pakistan is producing a limited range of products from t-shirts,
cotton and cotton blended shirts and pants to children school uniforms and gents kurtas. Most of
these products are developed for indigenous market. In fashion wear RMGI of Pakistan is
manufacturing ladies skirts, blouses and maxis for foreign market as well as some shirts
shalwars, frocks and gowns for both indigenous and foreign market. Usually the raw material –
the fabric- used in fashion wear is not of good quality except for the few big brands who account
for 0.1 percent of the total garment industry brands.

Reducing Production and distribution time:

Foreign buyers are interested in knowing how much time the company will take to
deliver their order. Due to power failure every on and off, Pakistani garment industry is not able
to fulfill the orders in short time on the other hand many other Asian countries are producing the
same orders in limited time. Therefore buyers do not take interest in placing orders in Pakistan.

16) Indirect Improvement:

Government of Pakistan should take initiatives for maintaining quota free trade system,
reduction of inappropriate taxes and tariffs, improvement in the power supply to the industries,
reduction in price fluctuations and strict control over social and environmental issues of the
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industry. These are only few of the many steps government should take to bring positive changes
in the garment industry of Pakistan.

17) Issues, concerns and suggested strategy thrust for apparel sector
development in Pakistan
 Limited product base
 High dependence on cotton
 Quality vs. quantity
 Upstream industry and linkages
 Reactive vs. proactive selling
 New product development
 Mobility of inputs
 Technical barriers to trade and apparel industry
 Job quality for productivity

18) Pakistan joins International  Apparel Federation

Recently Pakistan Readymade Garments Manufacturer and Exporters Association

(PRGMEA) have joined the International Apparel Federation (IAF), making Pakistan 44th
country to join the federation. Membership of the IAF would help the Pakistani apparel industry
and exporters develop direct business contacts with the business communities of 43 members of
the IAF globally.IAF is a world-wide knowledge network that collects and disseminates
information about statistics, benchmarking, developments in apparel designing, distribution
sourcing, and trade and technology.

PRGMEA would soon launch its web-site, enabling its members and SMEs develop
direct business contacts with the IAF members, which will not only save time and money but
also reduce chances of business travelling. PRGMEA had focused its special attention on
developing close liaison with the member countries for setting up joint ventures, business
collaborations and industrial up-gradation of technical institutes. PRGMEA would also try to
strengthen bilateral trade agreements with the IAF member countries, and that adequate efforts
would also be made
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19)References

Ali, W. M. (2005). Ready-to-wear apparel, popularity, economics, growth, problems, trade, challenges.
Chigago: International labor Organization.

Appelbaum, R. P. (2004). Assessing The Impact of the Phasing-out of the Agreement on Textiles
and Clothing on Apparel . Santa Barbara: Global and International Studies,.

Dr. Noor, A. M. (2006). Ready Made Garment Industry Problems and Prospects. Pakistan
Textile Journal.

Haidery, I. (2004). Ready Made Garment Industry In Pakistan. Economic Review , 147.

Joshi, G. (2002). Garment Industry In South Asia Rags Or Riches. New Delhi: International
Labor Organization.

Memon, D. N. (2010). Readymade industry facing traditional competitors in the region. Pakistan
Textile Journal.

Sheikh, .. H. (2010). Quantitative possibilities of value addition along the textile chain in
Pakistan. Karachi: Textile Institute Of Pakistan.