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V the largest and most

important sub-sector of
the economy.
V ~ he textile and apparel
industry is considered as
the backbone of the
Islamic Republic of
Pakistanǯs economy.
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V ~extile products are a basic
human requirement next only
to food.
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V Pakistan ranks fourth among
world cotton producers
V Pakistan ranks third among
world cotton consumers
V Pakistan is the 6th
largest importer of raw
cotton
V Pakistan is the 1st
largest exporter of
cotton yard
V Over 1.3 million
farmers, out of total of
5 million are involved
in cultivation of this
crop
Introduction

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V ~extile share of overall
manufacturing activity is
46%
V export earning is 68%
V 63% of the total exports
of Pakistan comprise
textile products
V Provide employment of
38%.
V ~he contribution of this
industry to total GDP is
8.5%
V ~aken as a whole
between 30 and 40%
of the cotton ends up
as domestic
consumption of final
products .
V ~he remaining is
exported as raw
cotton, yarn, cloth and
garments.
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V ~he Pakistani textile
industry depends on
domestic agriculture to
supply its raw materials
V the success of the cotton
crop is critical to the
health of the textile
industry.
V Cotton accounts for 14
percent of land under
cultivation in Pakistan.
~he textile industry of
Pakistan has a
V spinning capacity of 1550
million kgs of yarn
V weaving capacity of 4368
million square metres of
fabric
V finishing capacity of 4000
million square metres.
V ~he industry has a production
capacity of 670 million units
of garments,
V 400 million units of knitwear
V 53 million kgs of towels.
.
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Cotton Quality
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~echnology

3 Aertically integrated units mean that there is full


control on the production of the entire value
chain, from fibre to garment
3 ~he buyers are assured of consistent quality
3 Short lead times and quick deliveries
3 Aersatility in product range
3 Flexibility in designing
3 In
In--house embroidery and accessories
V Cotton and yarn are
Pakistan's primary
textile exports.
V ~he textile industry
accounts for over 60
percent of Pakistan's
total exports.
V ~extile sector is highly
protected sector and its
demand and supply
depends on the global
economy.
V Previously export
countries for textile
industries were USA,
Hongkong, Germany,
China, South Korea,
Switzerland, Russia and
France.
V recently ~urkey, Portugal
and Singapore are added
in the list.
V Major imports are done
by European countries
through quota system.
V During First 8 months
(July-Feb, 2010), textile
industry import of
machinery increased by
1.3% i.e. form $158.897
million to $ 463.844
million.
V Besides machinery, textile
sector also imports
petroleum, plastic, iron,
steel etc.
V Import cost for textile
sector has also risen by
$7.992 million to 23.10
million.
V Pakistan must compete
with other producers
similar in conditions and
comparative advantage.
V ~he Pakistani ~extile
industry's biggest
competitors are China,
India, Indonesia and
~urkey.
V ~he cost of power in
Pakistan is
comparatively high.
V ~he All ~extile Mills
Association (AP~MA)
listed 455 companies in
textile sector
V Nishat Mills Limited
(NML) is the major
player in terms of
capacity as well as
market capitalization
(0.6% of the KSE All
Share Index)
V Gul Ahmed ~extile Mills
(GA~M) in terms of
exports.
V ~otal investment in
textile sector from past
10years (1999-2009)
was $ 7.5 million
V All Pakistan ~extile
Mills Association is the
chief organization that
determines the rules
and regulations in the
Pakistan textile
industry.
V premier national trade
association of the textile
spinning, weaving, and
composite mills
representing the
organized sector in
Pakistan.
V AP~MA emerges as the
largest association of the
country as it represents
396 textile mills out of
which 315 are spinning,
44 weaving and 37
composite units.
V ~o encourage friendly feeling and V ~o advance and promote commercial and
unanimity amongst ~extile Mill owners on technical education connected with the
all subjects connected with their common trade and commerce of its members.
good. V ~o undertake special inquiries and initiate
V ~o promote and protect the trade or support any.
commerce and manufactures of Pakistan in V ~o take any action which may be conducive
general and of the cotton trade in to the extension of the trade and commerce
particular of its members or incidental to the
V ~o collect and circulate statistics & attainment of this object.
information classify relating to the trade,
commerce and manufactures of its
members.
V ~o take all steps which may be necessary
for promoting, supporting or opposing
legislative and other measures affecting
the trade and commerce
V ~o make representation to local, Provincial
and Central authorities on any matter
connected with the trade, commerce and
manufactures of its members.
V Its Principal Office is located at
Karachi and Regional Offices are
at Karachi, Lahore and
Peshawar.
V ~he Principal Office functions
under the administrative control
of the Chairman and Central
Executive Committee.
V principal office deals with the
affairs connected with textile
trade and industry effecting
members relating to Federal
Government,
V matters concerning Provincial
Governments are dealt by the
Regional Offices under the
direction of Regional Chairmen.
V ~he world demand for
textiles is rising at
around 2.5%, due to
which there is a
greater opportunity for
rise in exports from
Pakistan.
V ~o overcome global competition, the Pakistani
government in 2006 approved a Dz~echnology-based
Industrial vision and strategy for socio-economicdz
which called for technology up-gradation, human
resource development, and establishment of a fully
integrated chemical industry in the country.
V Investment Policy & Incentives for Aision 2005-2010:
V Whole of textile sector is included in list of value
added industries.
V 5% custom duty on imported machinery if not
manufactured locally.
V ~ax relief: Initial Depreciation allowance (IDA) at 50%
of machinery & equipment cost.
V 2006-07 (July-June)
was the best year for
Pakistanǯs textile and
clothing industry when
the industry managed
to export US$ 10.8
billion with the support
of friendly government
policies, international
environment, and
lower cotton prices.
V Government claims to diversify
the export base by focusing on
the sectors other than the
traditional ones,
V According to textile exporters
No new product or new market
has significantly contributed to
the exports and it is the same
old and traditional items that
have been making the total
export volume
V Electricity crisis also declined
GDP rate.
V ~he power problem, gas
shortage, high financing cost
and infrastructure problems
disturbed badly the growth of
the value-added textile sector.
V ~he share of textile exports in
total exports of the country
shrunk to 55 percent so far in
the current financial year
from well above 60 percent in
the past years.
V overall export volume
remained stagnant in the first
seven months of the current
financial year,
V During July-January 2009-10,
total exports came to $10.870
billion as against $10.820
billion in the corresponding
period of last year.
V Pakistan's textile and clothing exports
fell in the first eight months of the
current fiscal year, due to surging raw
material prices, energy crisis, Cotton
yarn
V primary export earning category went
down by 15%, woven readymade
garments by 12%, bed wear by 10%, knit
wear garments by 3% during the period.
V exports of cotton cloth and ~owels went
up by 6% and 10% respectively cession.
V the textile industry in the country is
passing through a very critical period
with number of closers and shutdowns.
V On the domestic front, Interest rate has
gone up by 20%, during the last six
months and inflation in the country has
reached 21%.
V HIGH COMPE~I~ION: Pakistan is
currently placed at 8th position in
the world. Its major big competitors
are China, India and Bangladesh,
which are providing cheap and high
quality textile products than
Pakistan.
V Pakistan is surviving Just because of
quota system (USA and EU).
V Pakistan is producing below its
capacity.
V POWER PROBLEMS: Major loss
to textile sector is due to textile
sector. Due to power shortage,
textile industry is unable to
produce its demanded products.
·
V PAK RUPEE Ȃ USD PARI~ : As
PKR depreciates, it is a
profitable situation for textile
industry in terms of exports and
if PKR appreciates, it is a loss
situation for textile industry.
Reverse is the case with textile
imports.
V COS~ OF PRODUC~ION: As
China has cheap labor, which
automatically decreases cost of
production.
V there is a need for the
industry to improve the
quality of its products.
V ~here is also the need for
greater value addition in its
products.
V Need of efficient R&D and
training.
V tough competition from the
Indian, Bangladeshi and
Chinese textile industries.
V ~he cost of power in Pakistan
is high as compared to that in
other countries.
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V ~o overcome energy crises
problem, textile industries
should build its own power
plants.
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V ~o privatize Public Sector V ~he government should


Power Units so that these announce the financial
entities could be managed packages for the textile
efficiently. industry so that the
V ~he gas tariffs for textiles modern technology be
units should be freeze at imported to lessen the cost
the current level for at of production
least next 3-5 years. V ~hermal efficiency of
V ~he import of electricity is WAPDA and other Public
an option even for Sector Units be enhanced
short/medium term, to V Coal based power
meet the high growth generation to be explored
rates of demand in the on a priority basis, utilizing
country. the abundant availability of
coal reserves.

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