by Mohammed Ather Akhlaq.
The textile and clothing sector is regarded as the engine of growth for many developing countries in Asia, since it accounts for around 45 percent of developed markets imports from the
An anti-dumping of 5.8% has been imposed on Pakistan by
the European Union, which has put Pakistan in a desperate position to match competitors like Bangladesh, India, China, Sri-Lanky and Vietnam.
Pakistan’s textile industry ranks amongst the top in the world. Pakistan is world’s fourth largest producer of cotton, the third largest consumer of the same, sixth largest importer of raw cotton and first class exporter of cotton yarn.
Current Scenario of the textile Industry
This industrial sector in Pakistan has been playing a pivotal role in the national economy. Cotton based textiles contribute almost 60% to the total exports, accounts for 46% of the total manufacturing and provides employment to 39% 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 in Pakistan.
Importance of textile industry in Pakistan’s Economy
Share in total exports
Share in manufacturing
Share in employment
Share in GDP
$ 6.6 billion
$ 6.4 billion
$ 7.0 billion
According to APTMA, textile exports have declined by about
20% in 2008. The industry is bracing for more trouble ahead with continuing crises of electricity and gas, international market access, global economic slowdown, and adverse travel advisories. APTMA, Pakistan's spinning industry association established for the promotion and protection of the textile industry, says that the high cost of finance because of the nation's tight monetary policy has added to their continuing woes.
$ 6.3 billion
Investment in textile
Pakistan has a very low share of the international textile market and due to the economic slow down in US and Europe, Pakistan’s textiles exports are also declining as they are mostly dependent on these two markets. China tops the US market with a share of 36% followed by Bangladesh 21%, India 18%, Morocco 19% and
Pakistan 13%. South Korea has lost 20% market share of the US market. In the European market, China tops again with a share of 29%, Vietnam 28%, India 19% and Pakistan only 1.5% while the Philippines had lost 11% of the market.
Source: Textile Commissioner’s Organization.
Based on abundant supply of indigenous cotton, textile is the leading sector of industrial manufacturing and depends on agriculture for supply of raw material. Therefore, whatever happens to cotton crop is likely to affect the performance of textile sector. Textile production is comprised of cotton ginning, cotton
yarn, cotton fabric, fabric processing (grey dyed- printed), home textiles, towels, hosiery & knitwear and readymade garments. These components are being produced both in the large scale
organized sector as well as in unorganized cottage/small and medium units.
The SWOT analysis on the Pakistan’s textile industry is given here for the interest of readers. In this way we would identify the weaknesses in the textile industry and find the alternative solutions and remedies so as to make the textile industry competitive and efficient against our biggest challengers, India and China and against the emerging markets such as Bangladesh and Vietnam
1. Raw material base
Pakistan has high self sufficiency in raw material and is
the fourth largest producer of cotton. Abundant use of
cotton resources has made the Textile industry of Pakistan
move towards the area of industrialization.
Growth of cotton textile industry in Pakistan
Installed capacity (in 000)
Working capacity (in...