Yarn-EFE (External Factor Evaluation)

Opportunities Weights Rates W.A

Score
Pakistan’s cotton arrival surges 71% in marketing year 2024 witnessed by a significant increase of 13.3% in last Q
0.2300 4 0.92
The textile sector in Pakistan has experienced 27% upswing in domestic demand for yarn, indicating robust market
locally and supporting industry growth 0.1800 4 0.72
With diverse product range, including specialty yarn meeting global demands, the yarn industry witnesses 31.12%
expansion in product variety globally 0.1300 3 0.39
On a year-on-year basis, cotton yarn exports registered 87.88 per cent growth and stood at $92.160 million when
compared to $49.052 million. 0.1700 3 0.51
The global recycled yarn market is poised for significant growth in the coming years, with sales projected to account for a
remarkable compound annual growth rate (CAGR) of 7% from 2023 to 2030. 0.1200 3 0.36
Threats
Energy prices fluctuation (RLNG & electricity can escalate operational expenses for textile manufacturers) 0.0500 2 0.10
Rising raw material costs 0.0400 2 0.08
The rising number of global competitors in the international market intensifying competition 0.0400 2 0.08
Vulnerability to geopolitical factors affecting the supply chain. 0.0300 1 0.03
Regulatory changes and compliance challenges in the textile industry 0.0100 1 0.01
Total 1.0000 3.20
Yarn-IFE (Internal Factor Evaluation)
Strengths
Usage of latest machinery 0.2260 4 0.904
Established expertise in spinning technology and production 0.1932 4 0.7728
Competitive labor cost, contributing to cost effective production 0.1630 4 0.652
Strong domestic demand for yarn 0.1750 4 0.7
producing supreme quality yarn 0.2420 4 0.968
Weaknesses
Dependency on limited number of suppliers 0.0003 2 0.0006
Environmental concerns related to water usage in yarn production 0.0002 2 0.0004
High production cost 0.0000 2 0.00006
Maintenance of Yarn is critical in extreme weather conditions of Pakistan 0.0001 2 0.0002
Limited product diversification in the yarn domestically 0.0002 2 0.0004
Total 1.0000 3.99846
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 Fabric-EFE (External Factor Evaluation)
Opportunities Weights Rates W.A
Score
The global demand for clothing and textile products is expected to grow at a staggering 8% CAGR from 2022-2026
0.1900 4 0.76
Textile Apparel Policy 2020-2025, launched by Ministry of commerce, promises to boost value-added exports and make
Pakistan a major player in textile supply chain 0.1200 4 0.48
The market for digital textile printing in Pakistan is increasing by annual growth rate CAGR 39% 0.1600 4 0.64
63% of Pakistan's population consists of youth, among whom 32% have a median age of 20.6 years and actively follow
the latest fashion trends 0.1900 4 0.76
Pakistan’s cotton arrival surges 71% in marketing year 2024 witnessed by a significant increase of 13.3% in last Q
0.1600 4 0.64
Threats
Intense competition from other fabric producing nations affecting global market share 0.0500 2 0.10
Tariffs and trade barriers impacting exports opportunities 0.0300 2 0.06
Economic downturn affecting consumer spending on textile 0.0400 2 0.08
Pakistan sees 9.95% decline in textile export in Q1 FY24 0.0200 2 0.04
Energy prices fluctuation (RLNG & electricity can escalate operational expenses for textile manufacturers) 0.0400 2 0.08
Total 1.0000 3.64
Fabric-IFE (Internal Factor Evaluation)
Strengths
Impactful online presence due to responsive and user friendly website 0.1900 4 0.76
Usage of latest textile machinery 0.1500 4 0.60
Adopt latest fashion trends according to customer preference 0.1300 3 0.39
Premium quality fabric as per standard in the market 0.1500 4 0.60
Competitive labor cost, contributing to cost effective production 0.1600 4 0.64
Weaknesses
Dependency on limited number of suppliers 0.0500 2 0.10
Limited number of outlets 0.0700 2 0.14
Reliance on energy intensive process affecting production cost 0.0400 2 0.08
Environmental concerns related to water usage in fabric dyeing process 0.0200 1 0.02
Fluctuations in the prices of key raw materials (cotton, dyes, etc.) 0.0400 2 0.08
Total 1.0000 3.41

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 Home Textile-EFE (External Factor Evaluation)
Opportunities
The global demand for clothing and textile products is expected to grow at a staggering 8% CAGR from 2022-2026 0.1700 4 0.68
The annual population growth rate is growing by 2% 0.0900 2 0.18
Pakistan’s cotton arrival surges 71% in marketing year 2024 witnessed by a significant increase of 13.3% in last Q 0.1500 4 0.60
Home textile market size was valued at USD 112.6B in 2021 and is poised to grow from USB 119.09B in 2022 to USD
185.56B by 2030 at a CAGR of 5.7% 0.1700 3 0.51
Textile Apparel Policy 2020-2025, launched by Ministry of commerce, promises to boost value-added exports and
make Pakistan a major player in textile supply chain 0.0700 2 0.14
Threats
Pakistan’s overall global market share in textile and garment industry is dropping from last 2 years. It has dropped
from 2.25% to 1.75%. 0.0800 2 0.16
Pakistan sees 9.95% decline in textile export in Q1 FY24 0.0400 2 0.08
Energy prices fluctuation (RLNG & electricity can escalate operational expenses for textile manufacturers) 0.0700 3 0.21
Rising raw material costs 0.0700 2 0.14
The rising number of global competitors in the international market intensifying competition 0.0900 4 0.36
Total 1.0000 3.06
Home Textile-IFE (Internal Factor Evaluation)
Strengths
Impactful online presence due to responsive and user friendly website 0.0630 3 0.19
Usage of latest textile machinery 0.0610 3 0.18
Competitive labor cost, contributing to cost effective production 0.0460 3 0.14
Emphasizing on wellness aspect for health conscious consumer 0.0500 3 0.15
Greater market share in hospitality-industry 0.0200 3 0.06
Weaknesses
Changes in international trade policies, imposition of tariffs, trade barriers can affect the ease of exporting products 0.0120 1 0.01
Polyester cotton used in home textile is a synthetic fiber and is not biodegradable 0.1380 1 0.14
Presence of numerous global competitors 0.2490 1 0.25
Limited number of outlets 0.1920 1 0.19
Reliance on energy intensive process affecting production cost 0.1690 1 0.17
Total 1.0000 1.48

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