Textile Industry

Analysis of Pakistan Industry

 Agenda
1. Introduction
2. History
3. Major players
4. Export
5. Primary goals
6. Areas of growth
7. Timeline
8. Summary

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 Introduction

• The textile industry is the largest manufacturing industry in Pakistan.

• Pakistan is the eighth largest exporter of textile commodities in Asia.

• Textile sector contributes 8.5% to the GDP of Pakistan. 

• In addition, the sector employs about 45% of the total labor force in the country (and 38% of the
manufacturing workers).

• Pakistan is the fourth largest producer of cotton with the third largest spinning capacity in Asia
after China and India and contributes 5% to the global spinning capacity. 

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 History
• The origin of the Indian textiles is thought to be the Indus Valley Civilization, situated in modern
Pakistan, where people used homespun cotton to weave garments. Historically, the Indus valley
region engaged in significant trade with the rest of the world. The silk from the region, for example,
is known to have been popular in Rome, Egypt, Britain, and Indonesia.
• The modern development of the sector started in 1953 with the inauguration of the Valika textile
Mill at Karachi. Pakistan's industrialization began in the 1950s with the textile industry at its center
1950’s
• By mid of 1960’s there were about 180 units of textiles bleaching, printing and processing units,
mostly situated in Karachi and Punjab.
• There was a rapid growth in spinning sector. Till 1980-81 spinning continued to expand.
• 1980’s brought a relief to the textile industry due to the boom in international market and industry
friendly policies of the government.

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 Major players
Zaib Textile Group – Faisalabad:
Zaib Textiles is the best textile company in Pakistan. Based on its wholly-owned and operative
capability, Zaib Textile is driven by the effort to excel in whatever they do.
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.
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

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 Major players
Nishat Mills Ltd – Lahore:
Nishat Mill Ltd was established in 195; it is the flagship company of Nishat Group. It is the largest,
modern, and vertically integrated textile company in Pakistan.
Capital Spinning Mills Ltd – Raiwind:
Capital Spinning Mills Ltd is one of the leading groups and the emerging textile company in
Pakistan through their effortless hard work, dedication, and the grace of God.

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 Export
Pakistan is deindustrializing prematurely. The premature deindustrialization of Pakistan is contributing
to an increase in Pakistan’s trade deficit. With the country deindustrializing, the share of exports in GDP
has gone down from 13.0 percent in 2006 to 8.7 percent in 2019. Additionally, Pakistan’s share in global
exports went down from 0.16 percent in 2005 to 0.13 percent in 2019. Clearly, Pakistan hasn’t kept up
with global demand for manufactured/value-added products.
To begin the process of reversing the premature deindustrialization of Pakistan and for increasing the
contribution of manufacturing in GDP, it is important to start with a sector in which Pakistan has a
global presence. In 2018, textiles contributed 8.5 percent to the GDP, 25 percent to industrial value-
addition and employed 40 percent of the industrial labor force.
After the separation of East Pakistan Cotton Export Corporation of Pakistan was established which
meant that most of the private sector work was taken over by the state. The textile industry suffered
heavy losses because the export of cotton was controlled by the CEC By 1970-71 there was 113 textile
units and the industry had 2,605 thousand spindles and 30 thousand looms 1970’s

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 Primary Sectors of Textile Industry
1. Spinning

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 Primary Sectors of Textile Industry
2. Weaving

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 Primary Sectors of Textile Industry
3. Processing

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 Primary Sectors of Textile Industry
4. Printing

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 Primary Sectors of Textile Industry
5. Garment Manufacturer

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 Primary Sectors of Textile Industry
6. Knitwear

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Swot Analysis
 Swot Analysis
Strength Weakness
• Availability of raw material • Lack of research and development
• Low cost • Dependency on cotton
• Spinning sector • Insufficient infrastructure
• Large varieties of cotton fiber • Inadequate quality standards
• Demand driven industry • Textile machinery importation

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 Swot Analysis
Opportunities Threats
• large potential in local international • Global competition
market • political instability
• shift to readymade garments • energy crisis 
• elimination of quota restriction • fast fashion
• Diversification

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 Quarterly performance
Series 1 Series 2 Series 3 Series 1 Series 2 Series 3

2.0 3.0
Q1 2.4 Q3 1.8
4.3 3.5

2.0 5.0
Q2 4.4 Q4 2.8
2.5 4.5

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 Challenges faced by Textile Industry

1 Financial problems
2 Domestic issues
3 Global recession
4 energy crises
5 International competition
6 environmental issues

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 Areas of growth

B2B Supply chain ROI E-commerce

Q1 4.5 2.3 1.7 5.0

Q2 3.2 5.1 4.4 3.0

Q3 2.1 1.7 2.5 2.8

Q4 4.5 2.2 1.7 7.0

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 “Business opportunities are like
buses. There's always another one

”
coming.
Richard Branson

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 Meet our team
Takuma Hayashi Mirjam Nilsson
President Chief Executive Officer

Flora Berggren Rajesh Santoshi

Chief Operation Officer VP Marketing

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 The full team

Takuma Hayashi Mirjam Nilsson Flora Berggren Rajesh Santoshi

President Chief Executive Officer Chief Operations Manager VP Marketing

Graham Barnes Rowan Murphy Elizabeth Moore Robin Kline

VP Product SEO Strategist Product Designer Content Developer

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 Timeline

Sep 20XX Nov 20XX Jan 20XX March 20XX May 20XX

Synergize Disseminate Coordinate e- Foster Deploy

scalable standardized business holistically strategic
e-commerce metrics applications superior networks with
methodologie compelling e-
s business
needs

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Pest Analysis
Pest Analysis
Politics
Every government has its
own policy and vision,
instead of long run approach
for e.g PMLN AND PTI,
Bangladesh example could
also be added.
Political Instability decreases
investor confidence, aswell
as buyers and suppliers.
Energy Crisis causing loses
of up to a billion a in just
Punjab alone, causing
disruption and ineffeciency
Raw Material crises causing
cotton to be produce having
10% wastage instead of
global avg of 2-3%.
Un-trained workers and lose
of 19% cotton land in last 2
decades.
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Pest Analysis
Economic Contribution
Contributes to GDP by 8.5% Helps in BOP and contributes around
and employees around 40% 19.3$ billion in foreign exchange
of workforce.

Diversification of economy
Agricultural Development

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Pest Analysis
Technological Analysis
Back in 1990-2000 Japanese
machine was imported before
Chinese revolution but now
because of cheaper, easy to
use and maintain.
Entire process are capital
intensive in all areas

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Pest Analysis
Social Contribution
Better living Standard e.g
person making a living in
farm compared to a factory
Contribute in Social welfare by
meeting needs, helping other
industry and etc.

Population gap, higher labor

supply and lower demand
causing lower pay and
exploitation

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Porter 5 Forces
Porter 5 FORCES
ENTRY & EXIST
Subsidy Cheaper and easily available
In budget of 2022-2023 loan scheme

- RS20 billion subsidy on

electricity Energy Crisis
- Rs40 Billion on Gas bills
- Seeing the flood hitting
cotton fields, Govt
allowed to import cotton
from India

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Porter 5 FORCES
Level of Competition
High competition Locally as
more and more players in the
market.

Also, fierce competition is

faced by Bangladesh,
Vietnam ,India and Thailand

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Porter 5 FORCES
Bargain Power of Buyers
High as EU and USA, major A lot of global player ready
importer and if they cancel to substitute Pakistan’s
order Pakistan lose a lot manufacture goods.
WHO new trends regarding
environment friendly Even locally due to a lot of
production and consumer competition, buyer has more
concerns, become another power
problem and impose
restrictions in the form of
duties and etc

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Porter 5 FORCES
Bargain Power of
Supplier
Low due to high competition
and many firms and country
willing to provide the
product

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Porter 5 FORCES
Threat of Substitute

Rare or none as there is no

effective substitute of textile
yet

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What is GSP ?
 GSP(Generalized Scheme of Preferences)

• Pakistan got the Generalized Scheme of Preferences (GSP) plus status on 12-Dec’2013

• Under the scheme, textile exporters can sell most of their products to EU states at concessionary
rates of duty or without any duty, making the goods cheaper for European importers

• Textile exporters hoped that GSP plus status will help to increase textile exports to EU by 30 to
40 percent and will generate significant economic activity in the country.

• Major markets for Pakistan’s woven garments exports to EU are UK, Germany, Italy, France,
Spain and Belgium.

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 GSP(Generalized Scheme of Preferences)

• This would create more opportunities in domestic industry, resulting not only in competitiveness, jobs
growth, exchange of technological know how and development of skills

• implemented international conventions relating to human and labor rights, environment and good
governance. The GSP+ status can be suspended if a country fails to show its progress over these
conventions.

• EU and the USA account for 91% of Pakistan’s total garment exports.

• Pakistan's textile exporters will not be able to benefit from the preferential scheme unless the
government takes serious measures to resolve energy shortage that holds back the textile industry.

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Textile Policy
(2020-2025)
Textile Policy (2020-2025) and its Goals

The draft of Pakistan Textile Policy for 2020-25 with four tier strategy and 21
recommendations. The goals include,

• Regionally competitive energy pricing fixed for five years.

• Prompt Sales Tax Refund System.
• Long Term Financing Facility for the entire textile value chain.
• Revival of impaired textile capacity and introduction of bankruptcy law.

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Textile Policy (2020-2025) and its Goals

• Establishment of Textile clusters and Export Processing Zones with plug and play
facilities.
• Restoring profitability, improving quality, and decreasing cost of production of
cotton.

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Conclusion

• 1 Important part of pakistan economy

• 2 provide employment

• 3 need to capitalize on new emergency opportunities

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Thank you