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Table 2: Import of Textile Machinery from China to Pakistan (Rs. 000) (Major Items) Machinery
Carding Machines Drawing / Roving Machines Blow Room Machinery
2010-11
1,273,960 100,653 188,202
2009-10
660,418 10,007 39,399 13,972 362,621 157,077 9,775 25,485 13,521 113,036 35,565 247,477 1,978 14,347
2008-09
88,993 14,914 42,886 197,058 255,450 75,867 2,607 14,954 57,958 125,080 719,60 31,612 17,039 46,393
Cone / Bobbin Winding Machines 14,702 Textile Winding Machines Textile Fibre Machinery 44,719 401,324
Weaving Machines/Power Looms 133,425 Weaving (Shuttleless Looms) Circular Knit Machines Flat Knitting Machines 165 mm Embroidery Machines Circular Knitting Machines 423,171 27,467 10,307
2,619,091 2,861,692 1,121,603 321,556 93,364 160,698 136,572 275,938 189,986 30,453 197,056 9,667 109,661 90,008 45,740 111,912 105,356 179,627 194,141 48,813 157,582 5,915 71,506 71,256 28,590 73,495 101,134 2,527 142,540 39,270 93,322 11,068 43,862
Dobbies Jacquards
Exports
437 548 685 661 1211 1645
Imports
1,843 2,321 3,029 2,708 3,284 4,145
Trade Balance
- 1,406 - 1,773 - 2,344 - 2,344 - 2,073 - 2,500
Shuttles
Parts of Weaving Machinery
Chinese Review
Despite this exclusion Pakistan has ben able to show remarkable increase in the exports of these categories. Imports: China has become one of the top five import sources of Pakistan. Major imports from China are machinery, chemicals, garments and other textile products, stationery products, construction materials like tiles, sanitary wares and crockery, etc. Imports from China also increased from US$ 3.03 billion in 2007-08 to US$ 4.14 billion in 2010-11, thus showing an average increase of 9% per annum. Textile machinery and electrical appliances are the major parts of overall exports. However, amongst other reasons, one of the reasons for improvement in trade and investment from China is the Chinese governments persuasion of its state-controlled enterprises to import Pakistani products in order to improve the trade balance and make more project specific investments. Statistics regarding the import of textile machinery from China to Pakistan is given in Table-3. The excellent political and strategic partnership between Pakistan and China has contributed in increased trade and economic cooperation, enhanced investment and mutual economic prosperity. Pakistans exports to China represent only 0.65% market share of a range of products constituting 13% of Chinas total imports. This share is very low in view of the US$ one trillion Chinese market. However it reflects the potential which exists for Pakistans exports to China. In the negotiations for the Phase II of FTA Pakistan should get the same preferential tariff as given to the ASEAN countries and the categories should include high value added textile products particularly ready made garments.
Table 3: Export of Textile and other products from Pakistan to China (Major Items) (Value : US $000) Item
Raw Cotton Cotton Yarn Cotton Fabrics Knitted FABRICS Ready made garments Textile made ups Bed wear Tents and Canvas Synthetics textiles Leather Tanned Leather gloves Sports goods Carpet and rugs Surgical instruments Petroleum and its products Fruits Vegetables Chemical and its products Marble and Stone
2010-11
75,819 914,594 137,339 1,264 2,654 3,359 16,349 347 2,035 47,862 158 1,177 599 3,194 18,067 6,892 267 61,609 30,677
2009-10
29,836 634,029 77,474 87 1,019 1,519 7,422 2,140 41,891 128 1,101 259 2,163 2,037 3,342 28 22,809 15,760
2009 In the end of last century, the textile industry was shaped by the effects of global2010 ization. Lower transportation costs, reduced 2011 commercial barriers and better information flows facilitated the relocation of manufacturing activities in many sectors. The textile industry is highly labour intensive, thus it benefited greatly from lower labour costs. As a consequence, many textile manufacturing facilities were
China occupies an important share of total exports of traditional industries, textile machinery exports are the fastest 1.50 growing sector in the past five years. . From the growth rate in 2006, that is, 1.57 the Eleventh Five-Year in the first 1.21 year, textile exports break billion-dollar mark, reaching US$ 1.237 billion is the 1.60 fifth during the export. These exports 2.25 continue to grow in 2007, to more than US $1.50 billion; despite the global financial crisis, from 2008 to 2009 the export volume, down from US $1.567 to U$1.211 billion. But by 2010, Chinas textile exports picked up again, and reached US $1.60 billion.