Professional Documents
Culture Documents
Idrees Ahmed
Textile Commissioner
June - 2004
GOVERNMENT OF PAKISTAN
MINISTRY OF INDUSTRIES & PRODUCTION
TEXTILE COMMISSIONER’S ORGANIZATION
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Textile Industry is the major economic sector of Pakistan and for quite some time
to come it will continue to be the main driving force in the industrial and agriculture area.
It contributes more than 66% to the total export earning of the country, accounts for 46%
of the total manufacturing and provide employment to 38% manufacturing labor force.
The availability of cheap labor and basic raw cotton as raw material for textile industry
has played the principal role in the growth of the Cotton Textile Industry.
During the boom periods Pakistan has emerged as the major supply source of
cotton textiles in the world market confirming its competitive strength. Pakistan’s share
in the world yarn trade is about 30% and the share in cloth is 8%. This describes its
competitive position in international market and future potentials for improvements &
growth. The Textile Industry has an in built potential for performing better both in
production as well as in export by virtue of its inherent competitiveness in the
international market for its conventional products. However, to sustain its position and to
move in high value added products as well as for the increased market share, a large
investment in machinery equipment and new technology is essential.
- Internationally integrated.
- Globally Competitive
- Fully equipped to exploit the opportunities created by the MFA phase out.
Printing Machine. Trends is the past had been for wider width fabrics, however, recent
tread is for continuous bleaching, dyeing in medium width to cater to Garment sector.
The processing industry is catering the needs of both “Home Textiles” & Readymade
Garment Industry (local & export). Besides processed fabric is also exported in bulk.
Introduction of Cad-Cam & laser techniques in Printing & Garment Units is recent
phenomenon however, “Inkjet-Direct Printing & Weave – Gate network system” are
being studied with interests.
Industrial Policy:
Developing countries, regardless of their ideologies have in the recent year been
re-assessing their industrial development policies with the basic aim of facilitating
industrial change and re-develop competitiveness. With the onset of trade liberalization
under W.T.O. and phasing out of quota restrictions under Agreement on Textile &
Clothing’s a highly competitive Textile Trade environment is anticipated by the year 2005
and beyond. It is clear that between developed and developing countries no one is
prepared to lose its international market positions. The restructuring programs in future
would thus aim at not to meet low-cost competition, but to meet high efficiently
competition. The Industrial Development Policy should therefore stress on shifting the
emphasis from creation of industrial capacity to the encouragement of more efficient use
of resources, with the aim of increase in supply response in the short term, and broader
industrial base that can sustain growth in output employment and productivity in the long
run. Besides grooming the domestic industry another way is to develop strategic alliance
with internationally progressive foreign firms in the form of joint venture with equity
participation, technical know-how or marketing tie-up. In textiles Japanese and Chinese
firms can be persuaded for setting-up of joint venture in Pakistan.
The performance of Textile Industry during the last four years had been
satisfactory. The market was responsive, the Govt. Policy was supportive and inputs were
viable. The industry made profits and re-invested in new machinery for BMR and
Expansion. This resulted into substantial increase in capacities of all products.
Consequently yarn production has increased by 6%, cloth production by 14% and
synthetic fibers by 26%. The exports showed positive improvements and textile export
grows from $ 5.9 billion last year to 7.4 in 2002-03. The Fabrics – Bedwear – Knitwear
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& Garments crossed billion dollars level and consequently the share of made-up and
clothing increased to 57% while share of yarn & fabric was 43%. The industry though
followed “Low Road Scenario” but was moving in the right direction and preparing itself
for the 2005 Scenario when a highly competitive environment would develop.
For Mexico, quota-free access to the US market will cease to be a competitive weapon.
However, Mexico will continue to enjoy the competitive advantages of market proximity,
preferential tariffs and low labour costs. In addition, it will continue to benefit from close
links and production-sharing arrangements with US manufacturers. Although China has
taken over as the USA's leading supplier -- and stands to make further gains in 2005 and
beyond -- Mexico should be able to retain a high share. The same applies to Caribbean
countries, which have been granted enhanced benefits in recent years. For suppliers in
Central and Eastern Europe and the Mediterranean Rim, including Turkey, quota-free
access to the European Union will similarly cease to be a competitive weapon once
quotas have been eliminated for all. This is likely to lead to falls in market share at the
expense of Asian suppliers. But major exporters in the region will continue to benefit
from market proximity, duty-free access and low costs. Also, ties with importing
countries will be strengthened for a number of the region's exporting countries in 2004
when they join the European Union. Hong Kong is a likely loser but is a different case.
Once quotas go, Hong Kong's advantages as a major quota holder will become worthless.
Market proximity will become an increasingly valuable competitive advantage as
customers demand better quality of service, timeliness and reliability of delivery from
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their suppliers. As product life cycles become shorter, the risks of being left with unsold
merchandise become ever greater. Market proximity can also help suppliers to carve out a
competitive advantage by building close relationships with their customers. Furthermore,
when quotas end, lower prices may even encourage consumers to buy more clothing --
which would benefit everyone in the industry worldwide.
Textile City
The industry has potential to perform better. There is need that both Government
and industry should realize that sincere and appropriate approach has to be made to meet
the challenges of the present day competitive environment and future scenario when
Textile & Clothing sectors are to be fully integrated into the GATT – by 2004 where
quality of product would be the major aspect to customers satisfaction besides price and
after sales service. Investment in knowledge of markets, training of workers,
improvement in labor productivity and product development would be immediate areas
for each company to concentrate.
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GOVERNMENT OF PAKISTAN
MINISTRY OF INDUSTRIES & PRODUCTION
TEXTILE COMMISSIONER’S ORGANIZATION
******
SUBJECT:-
Textile Industry is the major economic sector of Pakistan and for quite some time
to come it will continue to be the main driving force in the industrial and agriculture
area., it contributes more than 66% to the total export earning of the country, accounts for
46% of the total manufacturing and provide employment to 38% manufacturing labor
force. The availability of cheap labor and basic raw material for textile industry, cotton
has played the principal role in the growth of the Cotton Textile Industry.
During the boom periods Pakistan has emerged as the major supply source of
cotton textiles in the world market confirming its competitive strength. Pakistan share in
the world yarn trade is about 30% and the share in cloth is 8%. This describes its
competitive position in int6ernational market and future potentials for improvements &
growth. The Textile Industry has an in built potential for performing better both in
production as well as in export by virtue of its inherent competitiveness in the
international market for its conventional products. However, to sustain its position and to
move in high value added products as well as for the increased market share, a large
investment in machinery equipment and new technology is essential.
- Internationally integrated.
- Globally Competitive
- Fully equipped to exploit the opportunities created by the MFA phase out.