The Pakistan Textile Industry – An Overview

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.

Established capacity

The textile industry of Pakistan has a total established spinning capacity of 1550 million kgs of yarn, weaving capacity of 4368 million square metres of fabric and finishing capacity of 4000 million square metres. The industry has a production capacity of 670 million units of garments, 400 million units of knitwear and 53 million kgs of towels.

The industry has a total of 1221 units engaged in ginning and 442 units engaged in spinning. There are around 124 large units that undertake weaving and 425 small units. There are around 20600 power looms in operation in the industry. The industry also houses around 10 large finishing units and 625 small units.

Pakistan’s textile industry has about 50 large and 2500 small garment manufacturing units. Moreover, it also houses around 600 knitwear-producing units and 400 towel-producing units.

Contribution to exports

According to recent figures, the Pakistan textile industry contributes more than 60% to the country’s 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

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.

Organisations in the industry

All Pakistan Textile Mills Association is the chief organization that determines the rules and regulations in the Pakistan textile industry.

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.

According to the Pakistan Ministry of Textiles, an export target of 13 billion USD has been fixed for the year 2007-08. Hence, the textile units in Pakistan have an opportunity to expand their scope.

Challenges

The Pakistan textile industry is currently facing several challenges. According to experts, there is a need for the industry to improve the quality of its products. There is also the need for greater value addition in its products.

The textile machinery used in Pakistan is imported mainly from the countries of Japan, Switzerland, Germany, China and Belgium. The technology that is in use in the industry leaves a lot to be desired. It is necessary that the industry undertake an upgradation in the technology used. Also, there is lack of efficient R&D and training.

The Pakistan textile industry is facing tough competition from the Indian, Bangladeshi and Chinese textile industries. The cost of power in Pakistan is high as compared to that in other countries.

On account of these reasons, the Pakistan textile industry is going through a critical condition.

According to the National Assembly Standing Committee on Textile Industry in Islamabad, "Pakistan needs to improve bilateral relations with the US for greater market access.”

Copyright © 2007

Article Source: http://myarticlezine.com

View Full Article

Please Rate this Article

5 out of 54 out of 53 out of 52 out of 51 out of 5 

Not yet Rated