textile industry of pakistan
TRANSCRIPT
Presenters Ayesha Bibi 18-10129 Sheikh Faizan 17-10490 Qasim Mustafa 17-10707
TEXTILE INDUSTRY OF PAKISTAN
INTRODUCTION
Textile Industry is one of the sectors in Pakistan which provides high employment opportunities and has had a substantial contribution to the growth and development of the country. Hailed as being the backbone of Pakistan economy, more than 500 textile mills were set up during the past four decades making this sector an important stakeholder in Pakistan’s economy .Pakistan’s textile industry ranks amongst the top in the world. Cotton based textiles contribute over 60% to the total exports, 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 Pakistan Textile Industry.
OBJECTIVES:
Our research aims to:
Provide a detailed analysis of the problems historically being faced by the textile industry of Pakistan.
Provide sustainable solutions to the aforementioned problems and find alternative methods to return the profitability back to this sector.
Try and find a relationship between cotton production and the growth of textile industry.
SIGNIFICANCE Pakistan is the 8th largest exporter of textile products.
Pakistan is the 3rd largest exporter of raw cotton.
Pakistan is the 4th largest producer of cotton with the third largest
spinning capacity in Asia.
Pakistan is the 2nd largest supplier of cotton yarn with 26% share of the
international market.
Pakistan Cotton-textile sector accounts for 11% of GDP and 60% of
exports.
ECONOMIC IMPORTANCE
Employment opportunities for the labor force to 15 billion people 38 % of the
work force.
Share in the GDP of the country, especially in the exports.
Indirect affect on the cotton production of Pakistan.
Textile industry contributes approximately 60% to the total output or 11% of the
country GDP.
Textile industry also has a major stake in the balance of payment of the country.
ISSUSES OF TEXTILE INDUSTRY
Lack of research and development.
Lack of Modernize equipment.
Increasing cost of production.
Effects of inflation.
Government unhealthy policies.
Power and Energy crisis.
Electricity crisis. Gas shortage.
Tight monitory policy.
Removal of subsidy on textile sector.
Lack of new investment.
High Raw material prices.
Export performance of textile
sector.
Devaluation of Pakistani rupee.
FUNDAMENTAL PROCESSES
1. Ginning : Separating cotton from seed and impurities.
2. Spinning : Fiber is converted into yarn.
3. Weaving : Forming of fabric on looms.
4. Processing : It includes bleaching ,dyeing and printing of fabric.
PAKISTAN TEXTILE SECTER
Pakistan textile sector consist of following:
400 textile mills
7 million spindles
27,000 looms in the mill sector
700 knitwear units
4,000 garment units
650 dyeing and finishing units (with finishing capacity of 1,150 million
square meters per year)
PRODUCTION OF COTTON
1990-9
1
1991-9
2
1992-9
3
1993-9
4
1994-9
5
1995-9
6
1996-9
7
1997-9
8
1998-9
9
1999-0
0
2000-0
1
2001-0
2
2002-0
3
2003-0
4
2004-0
5
2005-0
6
2006-0
7
2007-0
8
2008-0
9
2009-1
0
2010-1
1
2011-1
2
2012-1
3
2013-1
4
2014-1
5 0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
16,000
Pakistan Bureau of Statistics reports the production of cotton. Dur-ing 2014-15, cotton production stood at 13,983 thousand bales
cotton bales
cotton tones
Fiscal Year
AREA PERCENTAGE UNDER COTTON
15%
11%
9%
7%
6%5%5%
4%4%
3%3%
3%3%3%
2%2%
2%2%
2% 2% 2%2% 2% 2%
Cultivated area under cotton 1990-911991-921992-931993-941994-951995-961996-971997-981998-991999-002000-012001-022002-032003-042004-052005-062006-072007-082008-092009-102010-112011-122012-132013-14
CULTIVATED AREA UNDER COTTON
1990-9
1
1991-9
2
1992-9
3
1993-9
4
1994-9
5
1995-9
6
1996-9
7
1997-9
8
1998-9
9
1999-0
0
2000-0
1
2001-0
2
2002-0
3
2003-0
4
2004-0
5
2005-0
6
2006-0
7
2007-0
8
2008-0
9
2009-1
0
2010-1
1
2011-1
2
2012-1
3
2013-1
4
2014-1
5 0
500
1,000
1,500
2,000
2,500
3,000
3,500
Area under cotton crop 1990-2015
area
Fiscal years
Thou
sand
s of
Hec
tars
COTTON EXPORTS VS TOTAL EXPORTS
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2013-14 2014-15 0
500,000
1,000,000
1,500,000
2,000,000
2,500,000
3,000,000
Cotton Exports (Million of Rupees)
Cotton ExportsTotal Exports
Source: Surveys Pakistan Bureau of Statistics
COTTON EXPORTS Six sectors including raw cotton, cotton fabric, garments , towels, hosiery, bed
wear and cotton yarn achieved exports.
2007-08 2008-09 2009-10 2010-11 2011-12 2012-13 2013-14 2013-14 2014-15 0
200,000
400,000
600,000
800,000
1,000,000
1,200,000
1,400,000
Cotton exports in US$ 25 billions in 2014
Raw cotton Cotton Fabrics Garments TowelsHosiery Cotton Yarn Bedwear
BUYERS OF PAKISTAN TEXTILE GOODS
30%
7%
6%5%4%3%
3%3%
3%3%
3%
3%2%
2%1%1%1%
1%1%
1%14%
Percentage of Buyers Countries by (APTMA) U.S.A.UNITED KINGDOMGERMANYCHINAITALYBANGLADESHSPAINUAEBELGIUMTURKEYNETHERLANDSHONG KONGFRANCESAUDI ARABIASOUTH AFRICACANADAPORTUGALSRI LANKASOUTH KOREAAUSTRALIAOTHER COUNTRIES
CONCLUSION Pakistan’s textile industry is going through one of the toughest periods in
decades. The global recession which has hit the global textile really hard is not the only cause for concern . Serious problems that are discussed in this research effected Pakistan’s textile industry very badly. Given the fact that this industry still provides the major share of exports and employment opportunities, there is more than a greater need for steps in right direction to revive it. Moreover, there is need to control quality as our yarn and apparel products from finer counts are highly vulnerable to international competition.
RECOMENDATIONS
Removal of Energy Crisis.
Forming special export policies and tax exemptions.
Improvement in productivity.
Exploration of new export markets.
Awareness of International Quality Standards.
Use of High Yielding Seeds for better quality production.
Increasing the government cooperation with textile industry.
