NAME: QAMAR UN NISA AFTAB

CLASS: BBA-4D

SUBMITEED TO: SIR MEHMOOD

COURCE: ISLAMIAT &PAKISTAN STUDIES

DATE: 5TH MAY-2011

TOPIC: HISTORY OF TEXTILE INDUSTRY IN PAKISTAN

BAHRIA UNIVERSITY INSTITUTE OF MANAGEMENT SCIENCES

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Table of Contents
Table of Contents....................................................................................................... 3 INTRODUCTION:..........................................................................................................5 Contribution to exports : ........................................................................................6 Contribution to GDP and employment : ..................................................................6 3

Sectors of Textile Industry : .......................................................................................6 Spinning : ............................................................................................................... 6 Weaving : ............................................................................................................... 7 Finishing : ...............................................................................................................7 Dyeing : ..................................................................................................................7 Printing : .................................................................................................................7 Pressing : ................................................................................................................ 7 Fashion Designing : ................................................................................................7 Types of textiles:........................................................................................................8 Woolen:...................................................................................................................9 History of Pakistan Textile Industry:.........................................................................10 Overview of the textile Industry:..............................................................................15 TEXTILE MILLS IN PAKISTAN:.....................................................................................16 Problems Faced by the textile industry:...................................................................18 Advice for New Merchandiser:...............................................................................20 Importance of textile industry on the economy:.......................................................22 Growth of Textile Industry:....................................................................................22 Review of Export:.................................................................................................. 23 Import of textile machinery increased 3.1% during first eight months :...............24 (1999 -2009).........................................................................................................25 Textiles ....................................................................................................................26 Present status of Pakistan Textile engineering sector :........................................26 Competition: .........................................................................................................27 Textile industry still waiting for policy implementation: .........................................27 Insight into the Problems Facing Pakistans Textile Industry- ..................................29 Opportunities available ............................................................................................31 Challenges toTextile Industry :.................................................................................32 References:.............................................................................................................. 33

INTRODUCTION:
The textile industry is one of the most important sectors of Pakistan. It contributes significantly to the country's GDP, exports as well as employment. It is, in fact, the backbone of the Pakistani economy.

Pakistan is the fourth largest cotton producer in the world. Because of its plentiful, indigenous cotton supply, the textile industry is central to the Pakistani economy and is both a source of employment and a source of exports. Pakistan's industrialization began in the 1950s with the textile industry at its center. Today, textiles account for 38 percent of total manufacturing and 8 percent of GDP. The textile industry employs almost 40 percent of the industrial workforce. Despite the critical role textiles play in the economy, most textile manufacturers are cottage or small-scale industries. Pakistan relies on outside engineering and manufacturing expertise and must purchase most of its equipment abroad. Recognizing the importance of the textile industry to the nation's economy, the Pakistani government began taking steps in 2005 to rebuild the competitiveness of this critical industry.

Contribution to exports :
Contribution to exports According to recent figures, the Pakistan textile industry contributes more than 60% to the country total exports, which amounts to around 5.2 billion US dollars. The industry contributes around 46% to the total output produced in the country. In Asia, Pakistan is the 8th largest exporter of textile products.

Contribution to GDP and employment :

Contribution to GDP and employment The contribution of this industry to the total GDP is 8.5%. It provides employment to 38% of the work force in the country, which amounts to a figure of 15 million. However, the proportion of skilled labor is very less as compared to that of unskilled labor.

Sectors of Textile Industry :

Sectors of Textile Industry These are the main sectors of Textile Industry: SpinningWeaving Finishing Dyeing Printing Pressing Fashion designing

Spinning :
Spinning Spinning is the process of converting fibers into yarn. The fibers may be natural fibers such as cotton or manmade fibers such as polyester. Sometimes, the term spinning is also used for production of manmade filament yarn. Manmade Filament Yarn: yarn that is not made from fibers.

Weaving :
Weaving Weaving is the process of making cloth, rugs, blankets, and other products by crossing two sets of threads over and under each other .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.

Finishing :
Finishing Cloth finishing is one of the chief arts in the textile industry. The appearance of the goods is often of first concern, and the appearance of any fabric is largely due to the methods of finishing.

Dyeing :
Dyeing Dyeing clothing and other material is a fairly simple process. It doesn't take a lot of work and the amount of work it takes often depends on what type of dye you purchase.

Printing :
Printing is some thing through which cloths are printed with different designing and prints.

Pressing :
Pressing Pressing is to press the cloths.

Fashion Designing :
Fashion Designing Fashion design is the applied art dedicated to clothing and lifestyle accessories created within the cultural and social influences of a specific time.

Types of textiles:
The different types of textiles: 1) 2) 3) 4) 5) Cotton Wool Silk Nylon Polyester

A textile is a cloth, which is either woven by hand or machine. "Textile" has traditionally meant, "a woven fabric". The term comes from the Latin word texere, meaning to weave. Fibers are the raw materials for all fabrics. Some fibers occur in nature as fine strands that can be twisted into yarns. These natural fibers come from plants, animals, and minerals. For most of history, people had only natural fibers to use in making cloth. But modern science has learned how to produce fibers by chemical and technical means. Today, these manufactured fibers account for more than two-thirds of the fibers processed by U.S. textile mills. Plants provide more textile fibers than do animals or minerals. Cotton fibers produce soft, absorbent fabrics that are widely used for clothing, sheets, and towels. Fibers of the flax plant are made into linen. The strength and beauty of linen have made it a popular fabric for fine tablecloths, napkins, and handkerchiefs.

Woolen:
The main animal fiber used for textiles is wool. Another animal fiber, silk, produces one of the most luxurious fabrics. Sheep supply most of the wool, but members of the camel family and some goats also furnish wool. Wool provides warm, comfortable fabrics for dresses, suits, and sweaters. Silk comes from cocoons spun by silkworms. Workers unwind the cocoons to obtain long, natural filaments. Fabrics made from silk fibers have great luster and softness and can be dyed brilliant colors. Silk is especially popular for scarfs and neckties.Most manufactured fibers are made from wood pulp, cotton linters, or petrochemicals. Petrochemicals are chemicals made from crude oil and natural gas.The chief fibers manufactured from petrochemicals include nylon, polyester, acrylic, and olefin. Nylon has exceptional strength, wears well, and is easy to launder. It is popular for hosiery and other clothing and for carpeting and upholstery. Such products as conveyor belts and fire hoses are also made of nylon. Most textiles are produced by twisting fibers into yarns and then knitting or weaving the yarns into a fabric. This method of making cloth has been used for thousands of years. But throughout most of that time, workers did the twisting, knitting, or weaving largely by hand. With
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today's modern machinery, textile mills can manufacture as much fabric in a few seconds as it once took workers weeks to produce by hand.

Woven fabrics are made of two sets of yarns - a lengthwise set called
the warp and a crosswise set called the filling or weft. The warp yarns are threaded into a loom through a series of frames called harnesses. During the clothmaking process, the harnesses raise some warp yarns and lower others. This action creates a space, or shed, between the yarns. A device called a shuttle carries the filling through the shed and so forms the crosswise yarns of the fabric. The pattern in which the harnesses are raised and lowered for each pass of the shuttle determines the kind of weave.

Knitted fabrics are made from a single yarn or a

set of yarns. In making cloth, a knitting machine forms loops in the yarn and links them to one another by means of needles. The finished fabric consists of crosswise rows of loops, called courses, and lengthwise rows of loops, called wales. This looped structure makes knitted fabrics more elastic than woven cloth. Garment manufacturers use knitted fabrics in producing comfortable, lightweight clothing that resists wrinkling. Other fabrics include tufted fabrics, nets and laces, braids, and felt. None of these fabrics is woven or knitted. However, the textile industry produces another class of fabrics specifically called nonwoven fabrics.

History of Pakistan Textile Industry:

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Increase in the cotton production and expansion of textile industry has been impressive in Pakistan since 1947. Cotton bales increase from 1.1 million bales in 1947 to ten million bales by 2000. Number of mills increased from 3 to 600 and spindles from about 177,000 to 805 million similarly looms and finishing units increased but not in the same proportion. It employs 50% of industrial labour force and earns 65% foreign exchange of total exports. Pakistans textile industry experts feel that Pakistan has fairly large size textile industry and 60-70% of machines need replacement for the economic and quality production of products for a highly competitive market. But unfortunately it does not have any facility for manufacturing of textile machinery of balancing modernization and replacement (BMR) in the textile mills which need to think about joint ventures for the production of complete spinning units with china, Italy and production of shuttle less looms (Projectile) with Korea, Taiwan and Italy. Cotton textile industry has been premier industry in Pakistan and a major source of export earning and employment. It also helps in value addition to the manufacturing sector of the economy. During the six years between 1993 and 1998, production of yarn (in quantity terms) registered a steady annual growth rate of 302% in Bangladesh and 405% in India. On the contrary, Pakistan registered a growth rate of 101% per annum in yarn production although it ranked third after China and India in the global yarn production during the same six years. In exports, while Taiwan, India and the republic of Korea registered an annual increase of 18.1%, 27.7% and 5.4% respectively during 1993-1998, Pakistan registered a negative growth of 4.8% one important development was that till 1997, Pakistan was the
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worlds largest exporter yarn followed by India. However, in 1998, India gained the NO 1 position, leaving Pakistan at NO 2 In the case of cotton cloth production, a number of Asian countries have been emerging in the international market to compete with Pakistan. These countries are Bangladesh, India, Taiwan, Indonesia, Thailand, Turkey, Sri Lanka and Iran. The latest available date on overall export performance of Pakistan comported with some regional countries is given in table 1: The abovementioned presentation in the context of international scenario highlights the adverse position of Pakistans textile industry when is likely to continue further following the full implementation of WTO agreement from 2005 onwards when an era of free trade will start globally. Notwithstanding the above fact, current stagnation in the local textile industry can be overcome through efforts, consistent with charges occurring in the international market.

It must be appreciated that all successive governments since the birth of cotton textile industry in Pakistan have been encouraging the textile exporters to penetrate into new market and also to broaden the base of exportable commodities by including value added textile goods so that reliance on exports of cotton, cotton yarn and coarse fabrics gradually become minimal. Reflecting on the state of affairs, Abid Chinoy, Pakistan cloth merchants Association (PCMA) Chairman, Appreciated governments efforts to encourage new exports and finding new markets, which need aggressive export marketing. The steps taken on the monetary front, such as the frequent devaluation of Pak rupee in terms of dollar could not improve the
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cost competitiveness of exportable products due to increase in prices of the local and imported inputs of the local textile industry, and also due to inelastic demand for the Pakistans exports. It has been rightly mentioned in the latest stage bank of Pakistans annual report (FY01) that, Over the years Pakistans exports receipts have been vulnerable on account of the narrow base of exportable items, concentrated markets and low value addition this indicated that the growth in the countrys overall exports, including textile products which contributed more then 60% of total export receipts each year, could to be related some cosmetic and ad hoc measure like devaluation of Pak rupee and concession export credits. The first textile commission, which was constituted by the first material law government in 1960 had, inter-alia, recommended that an economic size textile unit should preferably have 25,000 spindles and 500 looms. No new mill with only 12,500 spindles and without looms should be sanctioned. However, no need was paid to the advice by the sanctioning authorities with the result that an excess capacity had tented to build up in the spinning sector. During the period 1973 to December 1992, some 71 spinning units with 1,136, 835 spindles, 6,600 rotors ands 7,329 looms were closed down. In 1992, a foreign consultant form was hired by the government to look into the stagnating conditions in the local textile industry. One of the observations of the foreign consultant was Pakistan has failed to make real progress in the international market and is being over taken by many of the neighboring competitor countries. The spinning sector, traditionally the core of the industry, is already in the crisis with many spindles lying idle and mills being forced to close. Worse still, this sector will be hit by the projected decline of its major markets in Japan and Hong Kong in the coming years. Another important strategic recommendation given by the foreign consultant very

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much relevant to the current conditions: It is vital that companies play very positive role in the markets, which each one having its own marketing activity, whose job is to understand the need of the customers and the ever changing competitive dynamics of the markets. In order to improve exports, Pakistans Readymade Garments Manufacturers and Exporters Association (PRGMEA) has urged the commerce minister Abdul Razzak Dawood to set up an Apparel Board for the promotion of export of woven and kit garments which fetch US$ 2.5 billion foreign exchange for the country. The industry experts are of the opinion that in the order to have a strong industrial base, Pakistan economy need investment upswing. Pakistans economic growth performance during recent years has been dismal: as against the average growth rate of 6.1% in the 1980s, the half and 4.0% in the 2nd half of the 1990s. The major micro-economic instability factors like high inflation rate, budgetary deficit, continuous depreciation of rupee, economic sanctions, etc. could not help the investment process. Such an environment cannot be conducive to investment and growth. Exporters of textile products have found the target of US$ 10.4 billion set by the government for the year 20022003, as achievable and termed it a realistic approach. The textile sector which constituted 69% of total export during 2001-2002, believes that enhanced quota by the European Union and Turkey would make this possible to fetch another US$1 billion this year. The rise in export of value-added products from Pakistan was another point of encouragement for the textile sector. The export of value-added products rose to 57.4% from 53.9% last year-a clear sign that we are moving in the right direction, said the Chairman of all Pakistan textile mills association. The trade policy is considered an acceptable paper, but in the industry does not fine anything that could lead to a high level exports achievement and remove trade imbalance. Pakistans textile sector earned US$5.77 billion during the outgoing year, compared with US$5.577 BILLION OF 2000-2001 indicating a growth of 0.69%. Textile vision 2005 has identified the present status and opportunities to make in roads in conventional and hew markets and has developed sectoral recommendations, hence the sectoral committees set up by the federal textile Board (FTB) would play an important role be ensuring the availability of quality raw materials on competitive prices and improvement in designing, and would adopt quality standards and increase
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productivity levels. It would attract foreign brands and promote Pakistani brands with world-class standers. With such a positive trend, Pakistans textile sector is getting rid of old impediments and gearing itself up for the new opportunities in the new trade regime.

Overview of the textile Industry:

The textile sector enjoys a pivotal position in the exports of Pakistan. In Asia, Pakistan is the 8th largest exporter of textile products. The contribution of this industry to the total GDP is 8.5%. It provides employment to about 15 million people, 30% of the country work force of about 49 million. The annual volume of total world textile trade is US$18 trillion which is growing at 2.5 percent. Out of it, Pakistans share is less than one per cent. The development of the Manufacturing Sector has been given the highest priority since Pakistans founding with major stress on Agro-Based Industries. For Pakistan which was one of the leading producer of cotton in the world, the development of a Textile Industry making full use of its abundant resources of cotton has been a priority area towards industrialization. At present, there are 1,221 ginning units, 442 spinning units, 124 large spinning units and 425 small units which produce textile products. The industry consists of large-scale organized sector and a highly fragmented cottage / small-scale sector. The various sectors that are a part of the textile value chain are: Spinning, most of the spinning industry operates in an organized manner with in-house weaving, dying and finishing facilities. Weaving comprises of small and medium sized entities. The processing sector, comprising dyeing, printing and finishing sub-sectors, only a part of this sector is operating in an organized
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state, able to process large quantities while the rest of the units operate as small and medium sized units. The printing segment dominates the overall processing industry followed by textile dyeing and fabric bleaching. The garments manufacturing segment generates the highest employment within the textile value chain. Over 75% of the units comprise small sized units. The knitwear industry mostly consists of factories operating as integrated units (knitting + processing + making up facilities). The clothing sectors both woven and knits are mainly clustering in Karachi Lahore and Faisalabad where sufficient ladies labor is available. High value added products i.e. garments and textile made-ups have over the years progressively increased their share in the textile export portfolio. Currently these products constitute 57% of the total textile exports. During early nineties the textile exports were dominated by yarn and greige fabric which had a share of almost 56% in the total exports. As far as the markets are concerned 60% -70% of the merchandise is exported to the USA and the EU.

TEXTILE MILLS IN PAKISTAN:

There are more than 175 listed companies who are providing the services in textiles industry. Most of them are in Karachi and Faisalabad. Faisalabad already famous for textile products is entering into another phase....value addition. The governement is supporting valude addition industry like embroidery, garments and similar in textile sectors. Rcentlly the Chief Minister of Punjab inaugurated a similar project in Faisalabad called the Value Addition City.

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Faisalabad is the biggest textile centres of the country. Annual textile

exports from Faisalabad are 5 billion dollars, and the city has complete range of textile manufacturing from cotton ginning to garments manufacturing. The range includes: 30 Ginning Factories 82 Textile Spinning Mills 200,000 Power Looms 150 Sizing Units 500 Dyeing & Printing Units 1,200 Hosiery Knitting Units 500 Stitching Units 70 Export Houses Biggest Yarn Market of Asia

Faisalabads share is 60% in total textile exports of the countryFaisalabad Garment City Company was registered with the Security Exchange Commission of Pakistan under companies Ordinance 1984 on 8th May, 2006. Faisalabad Garment City Project is under construction at the area of 40 Acres in Value Addition City, 1.5 K.M Khurrianwala-Sahianwala Road. Some of the listed textile companies are as followes: ACME MILLS (PVT) LTD., KARACHI. BLOW ROOM AT INTERNATIONAL TEXTILE MILLS LTD., KARACHI. COLONY THAL TEXTILE MILL THAL PUNJAB. DESTUFF STORAGE AND WEIGHING SYSTEM AT GUL AHMED TEXTILE MILLS-II, KARACHI EASTERN EXPORT (PVT) LTD., FACTORY BUILDING, KARACHI. FAISAL FABRICS, KARACHI. FAUZIA INDUSTRIES (EXTENSION), KARACHI FAZAL SHAFIQ TEXTILE MILLS, KARACHI.
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 FLAT PRINTING HALL FOR GUL AHMED TEXTILE MILLS (UNIT-II), LANDHI, KARACHI GLOBE TEXTILE MILLS, KARACHI. GLOBE TEXTILE MILLS, KOTRI. GUL AHMED TEXTILE MILLS LTD., KARACHI. HUB TEXTILE MILL, H.I.T.E., TAXILA. HUMIDIFICATION PLANT AT INTERNATIONAL TEXTILE MILLS LTD., KARACHI IDEAS GUL AHMED BAHADURABAD, KARACHI INTERNATIONAL TEXTILE MILLS, KARACHI. LATIF COTTON MILLS (PVT) LTD., NOORIABAD LATIF INTERNATIONAL (PVT) LTD. (TEXTILE MILL), KARACHI. LATIF KNIT (FACTORY), KORANGI, KARACHI LATIF TEXTILE MILLS, NOORIABAD. MAK DYEING & BLEACHING (PVT) LTD., KARACHI. MAK SPINNING (PVT) LTD., KARACHI. MAK TEXTILE (PVT) LTD., KARACHI. MEHRAN JUTE MILLS, KARACHI. MIAN SIDDIQ TEXTILE MILL, GADOON INDUSTRIAL ESTATE, N.W.F.P. NAGINA COTTON MILLS, KOTRI NAKSHBANDI INDUSTRIES LTD., KARACHI. NAZ TEXTILE MILLS (PVT) LTD., KARACHI. NEW PROCESSING UNIT AT NAKSHBANDI INDUSTRIES, LANDHI, KARACHI SARNING & DESIGN DEPT. FOR GUL AHMED TEXTILE MILLS (UNIT-IV), LANDHI, KARACHI SEAGULL INDUSTRIES, KARACHI. STITCHING COMPLEX AT GHAFOORIA INDUSTRIES (PVT) LTD., NATIONAL HIGHWAY KARACHI STITCHING COMPLEX AT NAKSHBANDI INDUSTRIES UNIT-II, LANDHI, KARACHI TERRY WEAVING DEPT., INTERNATIONAL TEXTILE MILLS LTD., KARACHI. TOWEL PROCESSING PLANT, INTERNATIONAL TEXTILE MILLS LTD., KARACHI. UNDER GROUND TANK AT GUL AHMED TEXTILE MILLS (VIII), LANDHI, KARACHI

Problems Faced by the textile industry:

The Textile Industry in Pakistan is fast loosing the price benefit in raw material prices
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while the energy cost and the credit cost has increased considerably. Harvest failure has made Pakistans dependence to importing cotton. Pakistani import of cotton increased by 107 % The Pakistan Textile Industry is facing an uncertain environment. The increase in input cost of minimum wage by 50 percent, increasing interest rates, non-guaranteed energy supplies, lack of R&D and reduction in cotton production has had a negative impact on the industrys competitiveness internationally. Because of the entire situation the companies are downsizing, production units are shutting down; around 500,000 of the workers have already lost their jobs. After surviving from the load-shedding scenario the industry has yet to survive the gas loadshedding scenario as on 6th Nov, LESCO has informed the industry that it would not be to supply power for the additional load and only the sanctioned load will be supplied during the winter months. The government is stressing upon the industry for the consolidation of the sector through mergers & acquisitions in order to effectively face tough international trading environment, as the international and regional competitive pressures are going to further build up and it will be large corporate that are more likely to survive. To deal with this scenario government has approved the textile package, including different measures including relief in the interest rate for loan to spinning sector and Research and Development (R&D) support to textile and clothing industry. Although the textile sector is the backbone of Pakistans economy, the Government as well as the textile industry has kept their focus on conventional textiles, ignoring technical textiles and knowledge-based products. In many industrialized countries, technical textiles account for over 50% of the total textile activity, while this
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figure for China is 20%.

Advice for New Merchandiser:

Merchandisers are social scientists; they deal with people, their wants, desires, and reactions under certain conditions. This job requires a person to be on the job, on the spot to crack the right deals. It involves a lot of determination, patience and an eye for detail. In today's competitive marketplace, a textile merchandiser must have more than just the basic information to survive. Anew merchandiser should have the passion to learn and should have proactive approach towards work. For any merchandiser the knowledge about the business is very necessary. He should learn all about the business or it would be difficult to survive. The areas he need to concentrate on as a new entrant is the knowledge of Company and its Processes, Products offered by the Company, Related Products, International Markets & Business Trends/Events, Buyers, Buyers Standards, Competitors. With this information the merchandiser will be able to make informed decisions and it would also be help in negotiations. One of the merchandiser's most important responsibilities is maintaining proper communication both inside and outside the company. For that the merchandiser should try to sharpen his abilities to establish and build productive relationships, both internal and external, and it can be prove as to be a plus a point if he manages to establish key contacts early on. Other than that strong computer skills are really essential, as all the work is done on spreadsheets and databases. A merchandiser should have sound knowledge about all the technical aspects of the product.
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A new merchandiser should keep a log of all the developments and tasks otherwise it would be very difficult to coordinate and manage work. Time management is really vital in merchandizing or it can cost the job. Pressure handling is another important aspect, instead of panicking a merchandiser should look for best possible solutions to deal with the situation. The merchandiser should happily put up with the buyers attitude, as it can result as an increment in his salary. Merchandiser should also keep an eye on new developments like Categories of New Developments, New Season Shades, Styles & Designs, Marketing Research, R&D in Manufacturing Facilities. All these factors combined will enable a new merchandiser to establishhis repute and impression in the industry he is working and that will set the tone for his future.

Textile industry facing worst crisis: Aptma

LAHORE (May 27 2007): All Pakistan Textile Mills Association (Aptma) spokesman Tanvir Sheikh has said that the textile industry is experiencing the worst crisis in Pakistan's history as no steps are being taken by the government to remedy the situation. The industry has faced with numerous problems like daily power outages, increase in mark-up rates by over 300 percent within two years, increase of labour costs by over 33 percent in one go in the last budget, increase in polyester prices by rupees four in the past two months alone, increase of gas prices for captive power generation by 36 percent in the last one year, huge increase in transport costs of its raw material as well as its finished products. He further said that huge amounts continue to remain stuck up in sales tax despite zero-rating of this sector. The Gherzi report commissioned by the government of Pakistan clearly elaborates on three points, namely high mark-up rates, high trash content in cotton and low productivity of workers, while it appreciates the state of the textile machinery particularly in the spinning sector making it clear that there is no quality or BMR issue as is being made out by certain groups having vested interests. Even those points, which had been highlighted by the government's own consultant, had not resulted in any positive action, he maintained.

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Importance of textile industry on the economy:

It is necessary for our textiles industry to undertake structural changes to censure production of the fabric not produced by our industry, particularly of wider width used in garments industry. The emergence of strong weaving sector is very essential to enable Pakistan to develop as an exporter of value added fabrics and garments. Textile industry is the backbone of our economy. It has been playing a significant role in providing employment and raising the standard of living of the people. Its contribution in the overall exports is very large and the share of textile exports excluding cotton in Pakistan's global exports during 199091 went 59.27 per cent. Item-wise data on export of Textile are given below: Item Cotton Yarn Cotton Fabrics Readymade Garments Made-Ups (excluding towels) Towels Hosiery Cotton Bags Tents and Canvas Cotton Waste Cotton Thread Synthetic Textiles Total:Value in Million 1,171.64 667.50 494.03 349.78 128.88 320.31 20.51 76.49 55.50 3.39 347.43 3,635.46

Growth of Textile Industry:

Our textile industry witnessed remarkable growth during the 50's and 60's but it started encountering problems in the 70's. The industry, however, get severe set-back and a large number of spinning units became sick during the 70's. Things started improving gradually and phenomenal changes have taken place during the last few years. In early 70's Pakistan had only 131 textile units which have now increased to 300 in 1991. The number of spindles have increased from 2,848,000 in 1971-72 to 6,330,000 in 1991, showing an increase of more than 122 per cent. The following table shows the number of spindles installed during the last ten years:22

Period Installed Capacity Spindles (000) 1980-81 3,983 1981-82 4,180 1982-83 4,265 1983-84 4,224 1984-85 4,396 1985-86 4,422 1986-87 4,292 1987-88 4,330 1988-89 4,853 1989-90 5,271 1990-91 6,330 The weaving capacity is mostly confined to power loom sector. The development of shuttle less technology is unfortunately very slow and has not made much progress. The total number of shuttle less looms installed is about 5,000 only. The slow progress in this technology is attributing to the high cost of investment in the shuttle less looms.

Review of Export:
Cotton Yarn: Of all the items, cotton yarn has done very well in production as well exports. As will be seen from the following table, its export rose from 207 million dollars in 1980-81 to 1172 million dollars in 1991, showing an increase of about five times. Our share in global exports has increased from 17 per cent in 1985 to 27 per cent in 1989. With the installation of another 70 new spinning units by the March 1992. The production would increase to meet the target of 1400 million dollars in 1991 besides meeting the demands for ancillary industries in the country. The following table shows the export of yarn over the years: Period Value (Million US $) 1980-81 207.04 1981-82 196.67 1982-83 247.32 1983-84 717.63 1984-85 260.42 1985-86 279.18 1986-87 506.09 1987-88 541.02
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1988-89 1989-90 1990-91

600.85 833.71 1,17.64

Major buyers of our cotton yarn are Japan, HongKong and South Korea. Gone are the days when there used to be some complaints about the quality of Pakistani yarn. Our yarn is now graded superior to many countries and are also fetching better prices. In today's competitive world, there is, however, no place for complacency. We have been exporting mainly yarn of coarse and medium counts. The industry should now come forward to produce and export yarn of finer counts from which we can earn more foreign exchange and meet domestic demand for garments and made-ups. Cotton Fabrics: Cotton fabrics occupies second position on the export list. Export of fabric during 1990-91 amounted to 676 million dollars as against 216 million dollars in 1978-79. Major buyers of cotton cloth are UK, USA, Australia, Japan, Italy, Bangladesh and Federal Republic of Germany. In 1972-73 the share of unbleached cloth in total export of cloth was 60 per cent which has now fallen to 47 per cent. The textile industry has to come forward to modernise their units so that the quality of fabrics they produce can be improved and our share of finished fabric in total export of cloth is incre ased further. The following table shows annual growth in exports of cotton fabrics

Import of textile machinery increased 3.1% during first eight months :

During the firsteight months (July to February) of the c urrent fiscaly year the import of textile machinery recorded Growth to $163.844 million as c ompared to $158.897 million in the c orresponding period of last year. In the c urrent tough and disappointing scenario, investment in textile industry is like a light at the e nd of the tunnel and reflects that still there are c hances of revival in this important sector of the economy. The import cost in February was $23.10 million as against $7.992 million in the same month of last fiscally ear, showing an increase of190% The textile machinery had beenshowing dec reasing trend insince 2006. Pakistan imported textile machinery worth $928.6 million during 2004 -05.
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However a decline of12 % in the import of textile machinery was witnessed in2005 - 06 worth $817.2 million. In 2006 -07 imports declined by 38.4 % and totalled $502.9 million, while machinery worth $438.3 million with a decrease of12.8 % was imported during 2007 - 08.Before the removal of quota system, the textile industry made around Rs 5 billion investments by modernizing andexpanding its units to prepare itself in the post quota regime

(1999 -2009)
During the last teny ears (1999 -2009) textile industry has made an investment of about US$7.5 billion. The total investment to be divided in various sub sectors of textile industry, indicatest h a t 50.2 % inspinning sector followed by 17 % in textile processing,15 % in weaving while the investment and others ectors namely like knit wear, made ups andsynthetic textile at respective rate of7.02 %,4.71 % and5.76% . This investment includes both investment through bank loan as well as ownsources. This investment has been made in the form ofBalancing Modernization Replacement (BMR) expansion and new capacity. T extileMachinery worth US$ 215.5 million has been imported during the year2008 - 09. Presently whatever investment is being made it is mostly c onfined to the denims ector whereas s pinning and value-added sector havem odest investment inthis context.Cotton textile e xports grew from $9.2 billion in 2004 -05 to $10.4 billion in2006 - 07 and $10.5 billion in 2007 -08, but in the last fiscaly earexports of textiles fell by 6 if compared to2008 - 09 ($9.95) billion. With the broad focus on framework of knowledge technology andvalue addition improvements, the Ministry of Textile is s triving to achieve the objectives of availability of high quality c otton, developing the e ntire textile value chain at par with international best practices, expanding the textile sector to produce value-added garments along with new innovative products, developing a state of the art infrastructure, augmenting investment in human resource management and enlarging our textile and clothing export. With the waiver of customs duty in the c urrent trade policy, the import of textile machinery and equipment would receive a boost and would help further industrialize the c ountry. According to the ECONOMIST intelligence report of August 2003 for Pakistan the following observations have been made: Despite Government efforts to diversify exports and widen the industrial base, the industrial sector remains dominated by the Textile sector. Textile Sector still represents 46%
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of total manufacturing and provides 68% of Pakistan Export receipts. The strong performance stemmed from two factors : a Increase in import quotas especially by U.S.A, EU and TURKEY b Textile industry has invested over US$1.5 billions in new technologies and modernization in the last 3 years. Efficiency and the innovation in textile is the only hope to get the country out of economic problems.

Textiles
The Textile Industry is dominated by Punjab. For example, only 1.5 million people from NWFP are employed in the Industry. 3% of United States imports regarding clothing and other form of textiles is covered by Pakistan. Textile exports in 1999 were $5.2 billion and rose to become $10.5 billion by 2007. Textile exports managed to increase at a very decent growth of 16% in 2006. In the period July 2007 June 2008, textile exports were US$10.62 billion. Textile exports share in total export of Pakistan has declined from 67% in 1997 to 55% in 2008, as exports of other textile sectors grew.

Present status of Pakistan Textile engineering sector :

The Pakistan Textile Engineering Sector is underdeveloped and underutilized. Mostly it caters in the form of spares, components for modernization and machines used in cottage or small scale industries. A cursory look at the structure of Pakistan Textile Industry shows that most of them are cottage industry, small/medium industrial units and few large integrated state of art units. The number of units which fall under each category varies from sub-sector to sub-sector. Similarly the Textile Engineering Units also vary from small, medium and large in size. The Textile Engineering Industry comprises approximately 80% small work shops, 15% medium engineering Units and 5% large Engineering Units. It will not be out place to mention that the large engineering units are in Public Sector. The small and medium Engineering Units work on reverse Engineering principles, only few work according to Engineering Drawings andmstill fewer have Testing or Quality Control
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facilities. On the basis of initial survey of Textile Engineering Units (Not complete yet), approximately 500 units are engaged all over Pakistan, employing approximately 50000 work force which is mostly skilled. Even under the present conditions and without any support, Pakistan Textile Engineering Industry is providing import substitution worth around one billion US dollars. This sector also exports to small and medium Textile Units in Bangladesh, Iran, Sri Lanka,etc

Competition:
The present Textile Engineering Industry is up against competition from smuggled, under invoiced, and mis-declared components, parts and accessories. For example, in case of second hand machinery, there is little or no check and the competition mainly rests on lower price. Machines smuggled especially from China, India, Taiwan are not better in qualitybut are selling cheaper. A bold initiative is needed which can boost the production as capacity and markets are there, only change in environment is need.

Textile industry still waiting for policy implementation:

KARACHI: Exporters of value-added textile goods face severe liquidity crunch due to non-fulfillment of assurances of benefits and relief package announced in the textile policy last year. The 5-year policy was widely praised by the exporters about five months back as it painted a rosy picture promising lot of benefits and relief for the value added sector. But as of today exporters of textile goods find themselves into deeper financial crisis not only because they had been deprived of the incentives and relief announced in the new policy but due to non-payment of routine sales tax refunds and duty drawback.

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Exporters complain that instead of getting the much-needed relief and incentives they are presently being even deprived of their routine benefits, which have badly damaged their liquidity position and working capital. Exports of most of value-added textile goods are declining and our competitors are capturing our share in the world market but there seems to be no realisation or any sort of concern amongst the policymakers, Shabir Ahmed, chairman Pakistan Bedwear Exporters Association (PBEA) remarked. The much-appreciated textile policy had not been implemented in letter and spirit, while routine nature of benefits of the past policies such as payment against duty drawback or refunds against sales tax or income tax claims are also being withheld, he added. Shabir Ahmed said as a result exporters are faced with liquidity crunch and are unable to even meet export orders fast diminishing. The enhanced rates of duty drawback are not being made effective, while the difference against reduced rate of export refinance as committed in the new policy had not been paid so far. Another major benefit announced in the new policy was with regard to government contribution towards EOBI against women workers and deferment of payment of mark-up and loans taken by the industry under Long Term Financing (LTF), Mr Shabir maintained. After getting identification (ID) from the ministry of textile, he said, exporters submit their duty drawback and refund claims with banks for onward clearance from the State Bank. But unfortunately, the SBP had been asking under which account these payments have to be made. Mohsin Ayub Mirza, chairman Pakistan Readymade Garment Exporters and Manufacturers Association (Prgmea) said that presently, the industry is on the verge of collapse and many medium and small size units have already closed down. He said as the process of merger of sales tax, federal excise duty with income tax department is under way along with reshuffle and transfer of officers within the Federal Board of Revenue, even the normal payments against refunds and drawback are being held back.
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Mr Mohsin further said that yarn crisis had deepened but there seems to be no government functionary, who is least bothered about this issue of national importance. The negligence on part of policymakers tantamount to destroying countrys economy because when the current fiscal closes on June 30, 2010, exports of most value-added textile goods will be down, he asserted. When value-added textile sector is not getting yarn for onward processing to meet its export commitments, the industry would ultimately close down resulting in large scale unemployment in the country, he added.

Insight into the Problems Facing Pakistans Textile IndustryAbida Mukhtar April 17, 2008 byK alsoom There are currently a multitude of major issues facing Pakistan. Of these issues, the economic crises are perhaps the most palpable to the average Pakistani. Below, Abida Mukhtar, a consultant currently based in Lahore, Pakistan, discusses the current problems with the Pakistani textile industry: The Pakistan textile industry contributes more than 60 percent to the countrys total exports that sum around 5.2 billion US dollars. The industry contributes approximately 46 percent to the total output produced in the country. In Asia, Pakistan is the 8th largest exporter of textile products. The contribution of this industry to the total GDP is 8.5 percent. Moreover, it provides employment to38 percent of the work force in the country, which amounts to a figure of 15 million. However, the textile industry currently faces massive challenges. The All Pakistan Textile Mills Association (APTMA) needs to enhance the quality of its products, upgrade the technology used, and encourage effective Research and Development (R&D) in order to compete internationally. However, APTMA argues other factors such as high interest rates and cost of inputs, non conducive government policies, and non-guaranteed energy supplies hinder their competitiveness. Critics argue that the indolent attitude of the industrialist in the 1990s has led up to the current crisis. If the textile industrialist had worked with the government towards implementing policies that prepared for the current
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international scenario, Pakistan textile industry would have boomed. Instead, the industry suffers from severe technological obsolescence, insufficient R&D, falling cotton crop, and an unclear path forward. The lack of R&D in the cotton sector of Pakistan has resulted in low quality of cotton in comparison to rest of Asia. Because of the subsequent low profitability in cotton crops, farmers are shifting to other cash crops, such as sugar cane. In Punjab alone, the cotton area sown this season was less by 1.14 percent as compared to the last year. Textile owners argue that although the Cotton Vision 2015 targets 20 million bales till 2015, it is an ambitious target as in reality cotton production is decreasing each year. It is the lack of proper R&D that has led to such a state. They further accuse cartels, especially the pesticide sector, for hindering proper R&D. The pesticide sector stands to benefit from stunting local R&D as higher yield cotton is more pesticide resistant. Moreover, critics argue that the textile industry has obsolete equipment and machinery. The inability to timely modernize the equipment and machinery has led to the decline of Pakistani textile competitiveness. APTMA has highlighted that the Pakistan textile industry faces tough competition from the Indian, Bangladeshi and Chinese textile industries and local policies have resulted in Pakistani textiles facing a critical condition. For instance, Bangladesh, India andChina enjoy comparatively low interest rates than Pakistan. The prevailing rates are as following, 8.5 to 9.0 per cent in Bangladesh, 5.25 per cent in India (market rate is 10.25 per cent, however exemption of 5 percent is provided to the textile industry) and 5.58 per cent in China. Meanwhile, in Pakistan, the last three to four years has seen the interest rates to have risen more than 150 percent, to 13.25 percent. The increase has essentially crippled the small time textiles owner, while seriously hindering growth of the textile tycoons. This has led to textile owners accusing the government and banks for maintaining detrimental policies .I believe that it is imperative that the new government takes actions that have a positive impact on the industry as textile provides employment to approx 38 per cent of our working class. A coherent plan should be devised by the Pakistani government that allows some sort of exemption/concession such as in India; the Export-Import Bank was set up for the purpose of financing and facilitating the industries, especially textile. Industrialists also argue that the non-guaranteed supply of power byWA PD A (Water and Power Development Authority) is another problem that negatively affects the textile industry. Although, some textile units have built their own energy generating plants to cut cost (these units run on gas), small
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units production depends entirely on the electricity supply of WAPDA. The textile industry suffered heavy financial losses in Dec, Jan and Feb quarter, because of the inconsistent electricity supplies. The lack of production subsequently resulted in the industry not meeting its target for the quarter, massive financial losses were borne by textile owners and sadly, it hit the most vulnerable: workers on daily wages. Their frustration was observed recently, when the WAPDA and MEPCO (Multan Electricity Power Company)offices in Multan, were torched by daily wage workers, [see related post]. Textile owners as well as workers passionately assert that the inconsistent supplies have and are destroying business across Pakistan. They also highlight that the high cost of the utilities has making Pakistani textile uneconomical in the international market. All things considered, it is apparent that the Pakistani Textile Industry is facing an uncertain environment. The increase in input cost of minimum wage by 50 percent, increasing interest rates, non-guaranteed energy supplies, lack of R&D and reduction in cotton production has had a negative impact on the industrys competitiveness internationally. In order to sustain the Textile Industry, the new Pakistani government has a tough task ahead and needs to urgently implement a suitable long-term strategy that provides a level-playing field against their regional competitors

Opportunities available
The world demand for textiles is rising at around 2.5%, due to which there is a greater opportunity for rise in exports from Pakistan Our main competitors in primary textile products with the advantage of large engineering sector in this region are China and India. The only country in this region
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without strong engineering base is Pakistan and our dependence upon outside Engineering Industry keeps our cost of production higher with low engineering skills. Looking into the future a strong competition from China and India for this market requirements can be used to involve them to start assembly plants under their guidance and cooperation. Some progress in the direction has led to the development of a Task Force in the Ministry of Industries and Textile Engineering is growingly lucrative for investors, local and foreigners

Challenges toTextile Industry :

Challenges to Textile Industry The Pakistan textile industry is currently facing several challenges. Need for the industry to improve the quality of its products. Need for greater value addition in its products. Need to undertake an up gradation in the technology used. Cost of power of competitors. Following are considered to be the some of the main challenges for textile industry: 1.Power and gas crises . 2. Short supply from downstream/supportive industries due to above crises. 3. Lack of export orders on good prices due to stiff competition with China, India and Bangla Desh. 4. Anti-dumping duty imposed to almost all industries in textile sector. 5. Quality (rejection/damaged production) issues due to lack of state of art
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production facilities, low quality raw materials and inefficient labor. 6. Increase in input costs specially of raw material, labor and utilities. 7. Shortage of liquidity in market and available low interest based export finances unless some big steps are taken by SBP. (However, I foresee that interest rates would be falling a great deal in the very short tenure). 8. Improper supply chain management and deviations from export terms due to internal/local failures. 9. Law and order situation and political strikes. 10. Non-availability of subsidies and R&D.

References:
http://www.scribd.com/doc/33126899/The-Pakistan-Textile-Industry http://www.textileguides.com/history-of-pakistan-textile-industry.html http://en.wikipedia.org/wiki/Textile http://www.scribd.com/doc/32304742/History-of-Pakistan-Textile-Industry

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http://findarticles.com/p/articles/mi_hb092/is_n10_v22/ai_n28609755/ http://www.pakissan.com/english/news/newsDetail.php?newsid=14180 http://hulchul.urdupoint.com/HC/topic/261034-textile-industries-in-pakistan/ http://library.thinkquest.org/C004179/textiles.html http://www.pk.all-biz.info/buy/goods/?group=1091107 http://www.list-of-companies.org/Pakistan/Keywords/Textile/ http://pakbiz.com/Textile-Mills_SID225.html http://www.thenews.com.pk/TodaysPrintDetail.aspx? ID=34112&Cat=2&dt=3/3/2011 http://www.pakissan.com/english/news/newsDetail.php?newsid=5343 http://smk-associates.com/ProjectListing/TextileIndustries/tabid/70/Default.aspx

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