Textile Industry in Pakistan

‡ Nauman Khalid (101303) Pak-Aims

Textile Industry of Pakistan

‡ Pakistan¶s textile industry ranks amongst the top in the world. The Economist reports that Pakistan is the 6th largest importer of raw cotton, and the 1st largest exporter of cotton yarn. World's fourth largest cotton producer and the third largest consumer of the same. Over 1.3 million farmers, out of total of 5 million are involved in cultivation of this crop. ‡ The textile and apparel industry is often considered the backbone of the Islamic Republic of Pakistan¶s economy

Textiles Industry of Pakistan

‡ Pakistan must compete with other producers similar in conditions and comparative advantage. ‡ Fulfill demands of local consumers as well as international consumers and to sustain its global positioning ‡ Provide strong and advantagable environment to facilitate domestic and international investors. ‡ to increase its market share by both increase in volume as well ‡ as increase in unit values. . ‡ By changing their business philosophy and market value they can make their image better in world market. ‡ To train employees and produce more labor force for the market.

‡ Cotton based textiles contribute over 60% to the total exports, accounts for 46% of the total manufacturing and provide employment to 38% manufacturing labor force. ‡ The contribution of this industry to the total GDP is 8.5%.



Expots Manufacturing Employment GDP Investment Market Captilization (Listed Companies)


COTTON YARN Preiod WORLD EXPORT 1956.6 2090 2043 2120 1783 1783 2380 PAKISTAN EXPORT 534.1 561.3 550.7 503.5 504.0 671.0 780 PAK SHARE IN WORLD EXPORT % 27.3 26.9 27.0 23.8 28..3 37.6 32.8 WORLD EXPORT 2571.8 2912.0 3274.0 2856.0 3065.0 3180 3235 COTTON CLOTH PAKISTAN EXPORT 249.8 271.0 299.2 283.0 282.2 239.9 263.3 PAK SHARE IN WORLD EXPORT % 9.7 9.3 9.1 9.9 9.2 7.5 8.1

2000 2001 2002 2003 2004 2005 2006

Sectors of Textile Industry

Textile Industry of Pakistan

Cotton Sector
‡ Cotton is a natural fiber used primarily as a raw material for textiles. ‡ Leading producers of cotton include USA, China, India, Pakistan, Uzbekistan and Turkey. ‡ The current market share of cotton is 56 percent in all fibers. ‡ Textile fibers are divided into three basic types according to their sources such as Cotton Fiber, Man Made Fiber and Wool. ‡ Both Punjab and Sindh are the major cotton growing provinces and their share in total cotton production is estimated at 76% and 23% respectively ‡ Survey 2005-06, cotton accounts for 8.6 percent of the value added in agriculture and about 1.9 percent to GDP. The area and production target for cotton crop during the current fiscal year were 3247 thousand hectares and 15.0 million bales, respectively

Cotton, Area, Production and Yield
Cotton, Area, Production and Yield YEAR 2001-2002 2002-2003 2003-2004 2004-05 (E) 2005-06 (T) 2006-07 2007-08 (T) Acreage 000' acre 7,700 6,903 7,380 7,750 7,536 7,598 8,030 Production 000' bales (Ex-Farm) 10,612 10,200 10,550 14,265 13,019 13,000 14,140 Yield per acre in, lbs. 517 550 559 517 785 723 740 Cotton consump, in 000' bales 10,529 11,440 11,434 12,633 14,224 Export bales 268,000 323,000 218,082 516,187 412,000 263,000 -

Cotton Production And Consumption- Pakistan

Exports of Raw Cotton
EXPORT OF RAW COTTON Period Quantity 000 Kg. Value 000 $ Value 000 Rs. Unit Value $/ Kg. Rs/Kg.

2000-01 2001-02 2002-03 2003-04 2004-05

135,094 34,926 55,100 37,307 117,084

138,138 24,581 49,016 47.671 109,957

8,072,481 1,493,295 2,875,000 2,744,419 6,545,740

1.02 0.70 0.89 1.28 0.94

59.75 42.76 52.18 73.56 55.91

Process Flow of Textile Processing Process Flow of Textile Processing
Grieg Fabric Receiving Pretreatment






‡ The first mechanical process involved in the processing of cotton is ginning where lint (fiber) is separated from seed cotton (phutti). ‡ The informal ginning sector, lacking adequate regulations, has 1,221 ginning factories in the country with an installed capacity of 20 million bales, part of which lies unutilized. ‡ Out of 1,221 ginning units, 75 percent are based in Punjab against 22 percent in Sindh and only 700-800 units are operational with an average production of about 10 million bales per year.

‡ The spinning sector is where the majority of Pakistan's textile industry is concentrated. ‡ Over the years, spinning expanded while weaving declined. The rapid expansion of the spinning sector was hastened by access to cheap raw materials and cheap labour. ‡ Spinning is the process of converting fibers into yarn. The fibers may be natural fibers such as cotton or manmade fibers such as polyester.

‡ Weaving sector is one of the most important textile sub-sectors. The exports of woven fabrics and other related woven made-ups form a major portion of textile exports from Pakistan. ‡ There are three different sub-sectors in weaving, Integrated, independent Weaving Units, and Power Loom Units

Installed and Capacity Worked in Weaving Sector
Installed and Capacity Worked in Weaving Sector Category (a) (b) (c) Integrated Textile Units Independent Weaving Units Power Loom Sector Total Installed Capacity 9050 27500 295442 331992 Effective/ Capacity Worked 4350 27000 285442 316792

Source: Textile Commissioner Organization

‡ The knitwear (Hosiery) is playing a pivotal role in value addition of textile sector. The products made in Pakistan include T-Shirts, jogging suits, jerseys, sport shirts, children wear, gloves, night gowns, track suits, sweaters socks, etc. There are around 750 knitwear units operating in the country. Export receipts generated from hosiery and knitwear valued at US$ 1,471,426,000 in 2005 This sector is not only catering for domestic demand but also has enormous export potential
21,000 knitting machines 350 mills. Pcs 1,471,426

‡ ‡


Size Production Exports (000 $)

Textile Industry of Pakistan

Establishing Capacity
The textile industry of Pakistan has a total production capacity of
Establishing Capacities: Spinning: Weaving: Finishing: Garments: Knitwear: Towels: Ginning: 1900 Million Kgs Yarn 5600 Million Sq. Mtr. Fabric 3500 Million Sq. Mtr 650 Million PCs. 350 Million PCs. 55 Million Kgs.

More than 10 Million Bales

Textile Sector of Pakistan

Structure of Industry
‡ Large Scale Mill Sector
Sub Sector 1. Spinning No. of Units 403 Size 9.2 million spindles 147,852 Rotors 2. Composite Units Total 50 453 9,876 Looms 384 M. Sq. meter Production 1550 M. Kgs.

3. Independent Weaving Units 4. Finishing Units 5. Garments Units

124 10 50

23,600 shuttleless looms

5,000 Sewing machines

Structure of Industry

‡ Cottage / Small Scale Sector
Sub Sector 1. Independent Weaving Units 2. Power Looms Total No. of Units 453 20,600 21053 Size 50,000 Looms 175,200 Looms 225,200 Production 3600 M. Sq. meter

3. Finishing


Cotton Synthetic

2700 M. Sq. meter 760 M. Sq. meter 3460 M. Sq. meter

4. Terry Towels 5. Garments 6. Knitwear

400 2,500 600

7,602 Looms 300,000 Sewing machines 12,000 Knitting machines

53 M. Kgs. 600 M. PCs 400 M. PCs.

Main Products
Main Products of Pakistan Textile Industry are; ‡ Cotton (Raw) ‡ Yarn (Raw) ‡ Fibre ‡ Greige Fabric ‡ Finished Fabric Apparel( Fashion wear and work wear) ‡ Finished Fabric Made Ups ‡ Garments (Suits,Shirts, Trousers of all sorts) ‡ Undergarments ‡ Bed sheets ‡ Blankets ‡ Quilt ‡ Pillows ‡ Curtains

‡ Regardless of abundant raw cotton and cheap labor, industry has been unable to exploit the potential. ‡ It has failed to make real progress in the international markets. ‡ The export has been decreased during the last few years. ‡ Great Energy, Poiltical and social Problems. ‡ Implementation of new taxes. ‡ Decline in new machinery Imports.

Crisis in Textile Sector of Pakistan

‡ Structural imbalances : ‡ technological gaps ‡ Lack of co-ordination among different sub-sectors of textile industry. ‡ Internal weaknesses of the industry and its inability to improve efficiency to the desired level ‡ Abolishment of Quota System by WTO. -Currency de-valuation. -Lack of trust between investors and manufacturers. - Increase in gas and electricity tarrifs are the major reason for the crisis in sector.

Future of Textile Industry
‡ In spite of bad conditions, people are hopeful due to its major role in economy. ‡ If the political conditions of Pakistan become stable and if government and industry play their role, industry can flourish again.

Textile sector of Pakistan

Government Initiatives
‡ In 2005, the Pakistani government created a special textile sub-committee in order to formulate a new textile strategies and policy for revamping the textile industry. ‡ The sub-committee submitted a report entitled "Textiles Vision 2005" which included a number of recommendations including - improved product quality, - equipment upgradation - developing human resources, - Stable market environment. - aggressive targeting of new markets - development of high-powered leadership for the textile sector. - Cutting down of taxes.

Textile Industry of Pakistan

Support Programmes:
‡ Industry Support Program ‡ Renewable Energy & Energy Efficiency Program

Support Programs

Industry Support Program
‡ Improvement in productivity ‡ Optimal capacity utilization ‡ Introducing efficient management techniques ‡ Cost controls ‡ Skill up-gradation at middle management level ‡ Introducing concept of on-the- job-training ‡ Minimizing rejections ‡ Awareness of International Quality Standards ‡ Cultural change by introducing concept of ³Continuous Improvement´

Support programe

Renewable Energy & Energy Efficiency Program
It has been observed that REEE programme will help the Textile Industry in the following key areas: o Raise awareness with respect to industrial energy efficiency o Conduct/ facilitate industrial energy audits o Energy and cost savings by identifying suitable energy saving measures o Reduction in Electricity & Gas Bills o Recycling or utilization of useable waste resources o Optimal capacity utilization of Energy Resources o Institute industrial training, µtrain-the-trainer¶ programs. o Build capacities of local consultants with specific reference to energy efficiency

Textile Sector of Pakistan

Suggestion & Recommendation
The industry has to: ‡ Redevelop competitiveness by improving productivity ± reduce wastages and thus lower cost of production. ‡ Develop marketing strength by adopting aggressive marketing strategies. ‡ Launch some new brands in order to increase our exports. ‡ Need of skilled man power. ‡ Switch market also towards SOUTH EAST ASIAN NATION i.e. Malaysia ,Japan ,Korea, Singapore.

Textile Industry of Pakistan

‡ ‡ ‡ ‡ 1. TDAP (Trade Development Authority of Pakistan) 2. APTMA (All Pakistan Textile Mills Association) 3. IIN (Industrial Information Network) 4. USDA ( United States Department of Agriculture)

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