JINNAH UNIVERSITY FOR WOMEN

Department of Business Administration

Final Project Report on

Textile Industry

Submitted By: Anoosha Alam

Student Id:
030690
Class: BBA (Fall)

Submitted On: 15- November-2022

Submitted To: Miss Sobia Jameel

Department of Business Administration
 ACKNOWLEDGMENT

I would like to express my sincere gratitude towards our course teacher, Miss
Sobia Jameel who gave me this great opportunity to work on this thoughtful
assignment, which was quite impactful for the whole class. The completion of
this assignment gives me much Pleasure. I would like to show, Thanks to Allah
(SWT) for unlimited blessings.
Executive Summary:
The purpose of this report is to know how Industries work in Pakistan. For this purpose, I choose
Textile Industry. After the completion of this report, I have learned how the textile industry
works, contributes a percentage of the employment rate, the whole process of cotton covert into
finished goods, and contributes to GDP. Also, I know the issues and challenges faced by
Pakistan’s textile industry This report also provides certain recommendations for the future
growth of the textile industry and how to get through these factors.

I am very grateful for the opportunity to study the textile industry in depth.
Table of Contents
Introduction 1

1.2- Market Structure and Dynamics of the Textile Industry 2

1.3- Key Areas for Value within the Structure 3

2- Economic Contribution to Pakistan’s Economy 3

2.1- GDP Contribution: 3

2.2- Economic Growth 4

2.3- Import and Export………………………….………………………………………………………………………………………….4-5

3- Government of Pakistan Policy (2022) ……………………………………………………………………………………………5-6

4- Industry Portfolio of Product ……………………………………………………………………………………………………….6

4.1- Zaib Textile Group (Faisalabad)……………………………………………………………………………………………….6-7

4.2- Fazal Clothing Mills – Muzaffargarh ……………………………………………………………………………………….8

4.3- Rainbow Textile (Karachi) …………………………………..…………………………………………………………………..8

4.4- Nishat Mills Ltd (Lahore) …………………………………………………………………………………………………..……9

4.5- Yunus Textiles Mills Limited…………………………………………………………………………………………………9-10

5- Recommendation for Future Growth…………………………………………………………………….…………………….10

6- Conclusion ………………………………………………………………………………………………………………………………10-11

7- References …………………………………………………………………………………………………………………………………..11
 Textile Industry of Pakistan

1.1- Introduction:

The beginning of the textile industry in Pakistan is associated with the beginning of Pakistan
itself. Shortly after the state gained its independence from the British Raj in 1954, the first textile
mills were created. In the 1970s and 1980s, the textile industry became increasingly important in
the national economy. Textile is the most important manufacturing sector of Pakistan and has the
longest production chain, with inherent potential for value addition at each stage of processing,
from cotton to ginning, spinning, fabric, dyeing and finishing, made-ups, and garments. This
sector contributes nearly one-fourth of industrial value-added and employs about 40 percent of
the industrial labor force. Throughout the last half of the twentieth century, the industry steadily
grew from a cottage industry to an industrialized, international industry that placed Pakistan in a
beneficial position in the global economy. The textile industry in Pakistan is a significant part of
the economy of Pakistan. Its textile industry is built upon cotton production and harvesting rather
than sheep and wool, as in other parts of the world. Pakistan is the 4th largest cotton producer in
the world, enabling it to be one of the most capable textile-making countries in Asia.
Specifically, Pakistan has more than 440 mills used by more than 2,500 textile-producing
businesses. Pakistan has a supply base for almost all man-made and natural yarns and fabrics,
including cotton, rayon, and others. This abundance of raw materials is a big advantage for
Pakistan due to its beneficial impact on cost and operational lead time.

Since its independence the textile sector is growing at a frequent pace and certain global and
domestic factors can bring certain changes with these changes, Pakistan is losing its competitive
advantage over other countries. the factors affecting the growth during the nineties are as follows

1. Increase domestic prices due to the removal of duty on raw cotton.

2. Leaf curl virus and its effects on the cotton crop reducing the supply
substantially.
3. Government policies are not stable because of frequent changes in
governments.

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 4. Rapid expansion of the installed industry in the hands of new entrants who did
not have the managerial skills or the liquidity base to succeed.
5. Global market competition and its fluctuations.

1.2- Market Structure and Dynamics of the Textile Industry:

RAW APPAREL DISTRIB. RETAIL

MATERIAL PLANTS CENTRES STORE

TEXTILE PLANTS
Spinning
CUSTOMERS
Weaving
Dying
Printing

1.3- Key Areas for Value within the Structure:

 Spinning
 Weaving

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  Garments

2 - Economic Contribution to Pakistan’s Economy:

According to the Pakistani government, the country is Asia’s 8 largest textile exporters.
The total number of textile industries working in Pakistan is 423. In Pakistan,
manufacturing with a share of 12.4 percent of the GDP has a dominant presence within
the industrial sector. Pakistan’s economy relies heavily on its cotton and textile sector.
The cotton processing and textile industries make up half of the country’s manufacturing
base. Cotton is Pakistan’s principal industrial crop that is supplying crucial income to
rural households.

2.1- GDP Contribution:

The textile industry contributes to GDP in the last five years.

2022 2021 2020 2019 2018

GDP 7.19 5.90 -2.58 -2.57 -0.17
Source: Pakistan Bureau of Statistics (PBS)

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 GDP

7.19

5.9

-0.17
2022 2021 2020 2019 2018

-2.58 -2.57

2.2- Economic Growth:

The textile industry is the major industrial sector that plays an important role in the country’s
economic growth.

 Five percent of the total textile companies are listed on the stock exchange.
 The textile sector grew by 3.2 percent during July-March FY2022 as compared to 8.0
percent in the same period last year.
 The textile industry also works for other companies like driving banking, shipping,
transport, allied goods, etc.
 It comprises 46% of the total manufacturing sector and employs 40% of the total labor
force.

2.3- Import and Export:

Total exports or $4.8 billion from the U.S. in F22. Pakistan's textile sector delivered remarkable
performances in the third quarter of F2022. The textile group recorded a 24% increase in F2022
(Jan-Mar) from last year’s period.

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 Table: Textiles group exports (Trade values in USD million)

Sectors Jan -March Jan -March Change July -March July – March Change Jan-March Oct-Dec Change
FY21/22 FY20/2 1 % FY21/ 22 FY20/2 1 % FY21/22 FY20/2 1 %
Textile 4861 3913 24% 14243 11355 25% 4861 4960 -2%
Group
Raw 5 0 - 7 0.593 1009% 5 2 141%
Cotton
Cotton 298 320 -7% 908 721 26% 298 322 -7%
Yarn
Cotton 661 484 36% 1795 1419 27% 661 578 14%
Cloth
Cotton 0.02 0.06 -67% 2 0.064 2450% 0 0 -
Carded
Yarn 20 10 97% 48 23.56 105% 20 16 24%
Other
than
Cotton
Yarn

Table: Export & Imports of Pakistan (Value in Million US$)

Years Exports Imports Trade Balance

2016-2017 20,422 52,910 -32,488
2017-2018 23,212 60,795 -37,583
2018-2019 22,958 54,763 -31,805
2019-2020 21,394 44,553 -23,159
2020-2021 25,304 56,405 -31,101
2021-2022 15,125 40,649 -25,524
(JUL-DEC)
Source: PBS

3- Government of Pakistan Policy (2022):

The draft of the Pakistan Textile Policy gives 4 years of policy for 2020-25. The
government makes 21 recommendations, all of which are ready to be presented at any
time before the ECC (Economic Coordination Committee) for approval. It will try to
increase the country’s textile exports target by 2025 to $25.3 billion and $50 billion by
2030. It was $13.33 billion in 2018.

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 Policies:
 Restoring the profitability of cotton farmers by increasing cotton yield, improving
the quality of cotton, and decreasing the cost of production for the farmers
 Strengthening the manmade fiber/filament sector to make this chain
internationally competitive and export-oriented
 Regionally competitive energy pricing fixed for five years
 Prompt Sales Tax Refund System
 The abolition of Zero- Rating has created a serious liquidity crisis for exporting
sectors as the current refund system is soaking up market liquidity and is not
working
 Long Term Financing Facility for the entire textile value chain
 Revival of impaired textile capacity and introduction of bankruptcy law.
Establishment of Textile clusters and Export Processing Zones with plug-and-play
facilities.

4- Industry Portfolio of Product:

These are the main key textile industries of Pakistan.

4.1- Zaib Textile Group (Faisalabad):

Zaib Textile Group is one of Pakistan's leading textiles and garment manufacturing exporters.

 Main Product:
Their main product line is knitwear articles, T-shirts, polo shirts, sweatshirts, basic and
fashionable jogging suits, leggings, bike shorts, tops for the ladies and the girls,
underwear, and pants in solid/print, with a selection of fabrics including 100 % cotton,

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 95% cotton, 5 % lycra and microfiber with lycra. They have a complete setup for
Knitting, Dying, Sewing, Packing, Printing, EMB

 Basic Material Used at Zaib Textile:

The basic material is yarn, which is knitted from the approved knitting units.

Fabrics:
1) Rib
2) Pique
3) Fleece
4) Jersey
5) Jacquards
6) Drop Needles
7) Interlock
8) Jersey with Rib & Elastane

Yarn:
1) 100% Cotton
2) PV
3) PC
4) Polyester
5) Viscose

Dyed:
1) Direct Dyes
2) Reactive Dyes
3) Jet Dying (For Polyester)

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4.2- Fazal Clothing Mills – Muzaffargarh:

Fazal Clothing was founded in 1966. Since its launch, it has successfully catered to its customers
with high-quality products. It is one of the best clothing manufacturers in Pakistan. Their
foundation stone is placed in Muzaffargarh, and now it is also listed in the stock exchanges of
major cities like Karachi and Lahore. The company is solely engaged in the manufacturing and
sale of yarn and fabric. It aims to provide the best customer service to its clientele. The utmost
commitment to quality standards has been the sole reason Fazal Clothing Mills has grown
incredibly over the last couple of years. Today, it has become the best textile company in
Pakistan.

4.3- Rainbow Textile (Karachi):

Rainbow Textile was established in 1992. The Company provides the best apparel and home
textiles in terms of quality, cost-effectiveness, and service while staying observant of fulfilling
their responsibilities as corporate citizens.

Rainbow Textile is one of the best textile companies in Pakistan, with a local and international
clientele. It always aims at providing its clients with top-notch quality products and has pride in
itself as a fabric manufacturer of high-quality fabric. It believes in an ever-evolving fashion
world. They have a complete setup from weaving, knitting, sewing, dyeing, printing, and

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embroidery to packaging. They use modern technology with high-speed ring frames to produce
yarn

4.4- Nishat Mills Ltd (Lahore):

Nishat Mill Ltd was established in 195; it is the flagship company of the Nishat Group. It is the
largest, most modern, and vertically integrated textile company in Pakistan. It is a premier
business house in Pakistan. Nishat group has a presence in all major sectors, including Textiles,
Cement, Banking, Power Generation, Insurance, Agriculture, and Paper Products.

The company’s production facilities include weaving, spinning, stitching, and processing. They
aim to anticipate market trends, offer their clients multiple options to expand their existing
ranges and have always responded to a dynamic marketplace. Nishat Mills is considered at par
with multinationals operating locally in terms of its management skills and quality products.

4.5- Yunus Textiles Mills Limited:

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Yunus Textile Mills Limited is a global leader when it comes to the design, marketing, and
distribution of premium textile products. For more than 20 years, YTML’s reputation and
distinctive image have been developed via an expanding number of products, brands, and
networks in the international market. Yunus Textile Mills Limited supplies a wide range of
bedding products under branded and private label packaging to department stores, mass
merchants, off-price retailers, and eCommerce.

5- Recommendation for Future Growth:

According to my analysis, Pakistan faces lots of problems in the future because of
flooding. Our crops are finished because of natural or man-made disaster government
should take some initiative to resolve this problem. Here are some recommendations to
solve these issues.
 Make value-added products.
 Work on technological advancement.
 Improve quality.
 Make a branding strategy.
 Compete with the price.
 Work on labor skill development.
 Use local raw materials.
 Enhance labor skills.
 Introducing efficient management techniques.
 Enter market access so we know new markets and make experience in generating new
products.
 To increase economic growth, they should introduce new investments.
 Work on foreign investment with other countries where foreign partners bring technical
and market expertise.

6- Conclusion:

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The textile industry is the backbone of Pakistan’s economy. The textile industry of Pakistan
plays an important role in our economic growth and in employing the country. Pakistan’s textile
industry is going through the toughest period this decade because of the flood. Our textile sector
needs to capitalize on the new emerging opportunities by observing global best practices,
adapting rapidly changing technologies, and better quality, techniques, and supply chain
management while trying to reach global value chains.

7- References:
https://invest.gov.pk/textile

https://www.google.com/search?
q=textile+value+chain+image+&tbm=isch&ved=2ahUKEwiWvNrt0936AhXfgc4BHXjpDcEQ2

https://rainbowtextile.com/best-textile-company-in-pakistan/

https://www.finance.gov.pk/survey/chapter_22/PES03-MANUFACTURING.pdf

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