- 1. BISMILLAH-AR-REHMAN-UR-RAHEEM
2. IMPORTANCE OF TEXTILE INDUSTRY IN PAKISTANS ECONOMY 2002-03 $
2.0 Bln. INVESTMENT IN TEXTILE (Import) (Last4Years) 38% SHARE IN
EMPLOYMENT $ 7.17 Bln. TEXTILE EXPORTS (2002-2003) 46% SHARE IN
MANUFACTURING65% SHARE IN TOTAL EXPORTS U.S.A- E.U , JAPAN, CHINA
(HONGKONG), TURKEY MAJOR BUYERS8.5% SHARE IN GDP 3. World Textile
& Cloting Trade(US$.billion) Clothing to become more than 65%
in 2005 RecessionAsian Crisis 105 213 311 331 334 356.42 500 4.
TEXTILE VISION-2005 Vision Statement
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AnOpen,MarketDriven,Innovative&DynamicTextileSectorWhichis
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- InternationallyIntegrated
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- FullyEquippedtoExploitthe OpportunitiesCreated by MFA Phase
Out
- AndWhichEnablesPakistanto be
AmongsttheTopFiveTextileExportingCountriesinAsia `
5.
- Textile Vision 2005 gave a road map to Textile Industry to
avail the opportunities of global Textile Trade when textile quotas
will phase out. Target set for 2005 under three scenarios
were:
1998 Low Road Do Able High Road Exports4.97.44010.1213.82 (Bln.
U.S. $) Investments2.74.56.4 (Bln. U.S.$)Employment1.37--2.38
(Millions)
- Pakistans Textile Exports in 2002 03 fetched US $ 7.17 Bln.
Which is almost the Low Road scenario.
EXPORT TARGET FOR TEXTILE 2005 6. UNDER THREE SCENARIOS EXPORT
TARGETS 2005 (Million ) 4,897 10,121 7,440 13,815 7.
- China has made huge investment in modern equipment. China has
merits of Scale, Productivities, Quality and Aggressive
Marketing.
- China has expanded textile exports from $ 39.5 billions in 1998
to $ 53.5 billions in 2001. China plans to increase its textile
exports further to US $75.0 billions by 2005.
- Buyers are watching the global supply position & if
Pakistani Entrepreneursare not willing to change , the buyers will
shift to China which has developed a large supply base for Textile
Products.
ANALYSIS OF THE MAJOR COMPETITOR 8.
- Pakistans Textile Industry haspotentials to increase volumes of
textile exportsand enhance earnings by shifting more & more to
high value added products. A comprehensive policy package is
desired to support the Textile Industry to survive & win the
post MFA competition by making available the necessary facilities
& infrastructure in a timely manner.
- It is critically necessary for Pakistan to provide
infrastructure for Textile Industry to expand in size and volume to
compete with China in the international market after the
elimination of MFA quota by 1st January, 2005.
REQUIRED ACTIONS 9.
- In order to give a boost to export of value added textile
products at a quicker pace, Textile Vision 2005 proposed
establishment of
REQUIRED ACTIONS (continued) 10.
- The concept of the Textile City is based on designing an
exclusive production area specializing inlarge-scaleproduction
ofvalue addedtextile products, and
- Providing necessary infrastructure facilities such as
sufficient water, gas, stable voltage power, and treatment of waste
water that ensures cleaner environment in the Textile City; as well
as
- Making available all support activities to facilitate the units
for concentrating on production activities with high level of
productivity and quick delivery response to the export orders.
CONCEPT OF TEXTILE CITY 11.
- Further it is easier for the foreign buyers to visit and place
orders for particular products with the units of their choice,
economizing their time-traveling and ease in contacts with local
manufacturers.
- The proposal is to create the Textile City as a broad and
integrated Free Trade Zone specializing in Textile Industry,
particularly dyeing factories in order to gather the scattered
textile companies together in the Textile City as much as possible
.
CONCEPT OF TEXTILE CITY (continued ) 12.
- The proposal is to locate the Textile City somewhere physically
near or having good access to a sea-port.In Karachi, vast land area
for industrial use is available at Port Qasim , which seems to be
an ideal place for the Textile City.
- (NB) The Textile City needs to be kept at 3-4 kilometers
distance from the Pakistan Steel Mill at Port Qasim because its
dust can harm the textile dyeing process. Additionally the water
used at the Textile City can be re-utilized by the Pakistan Steel
Mill.
LOCATION OF TEXTILE CITY 13.
- The Textile City will be declared under the legislation of
- offering the same incentives.
FACILITIES OF THE TEXTILE CITY 14.
- Priority will be given to large-scale factories with minimum
capacity of the knitted fabric dyeing of 20 MT/day and/or 50,000
meter/day for woven fabrics possibly with knitting/stitching
facilities.
- Guaranteed supply of sufficient water (18 million gallon/day or
80,000MT/day) (details explained later), as well as stable voltage
power and gas
- Common facilities for waste-water treatment to be used
collectively at reasonable fee will be provided to allow
participating companies to meet ISO -14000 certificate as a
requirement from their buyers in Europe and the US that is
envisaged to be escalated after the elimination of the MFA quota at
the end of 2004.
FACILITIES OF THE TEXTILE CITY (continued ) 15. HIGHLIGHTS OF
THE TEXTILE CITY 10 units Minimum No. of dyeing units in the Zone
1.8 Million gallons/day per unit Water requirement per unit Average
40 MT/day (Min. 20 MT/day) 50,000 meters/day Capacity of one dying
(knitting) Unit Capacity of one dying (woven) Unit Port Qasim,
Karachi Preferable Location 150 200 Acres Total Land Requirement
(10 Acres / Unit) 18.0 Million gallons/day (80,000MT/day) Total
water requirements 16.
- The supporting industry for the textile accessories e.g. sewing
thread interlining, padding, buttons, zipper, tags, embroidery
& name labels need to be promoted also.
- Inviting relevant industries like accessories makers or packers
to the adjacent area to the Textile City.
- A housing complex for the workers in the Textile City need to
be considered beside the transportation to the Textile City by the
stake- holders
SUPPORT SERVICES 17. JUSTIFICATION/DETAILS Value Addition in
Textile One Bale of 170 Kgs of Cotton is worth *
- Cotton Fabric (Grey): 579
- *Based on Actual Unit values of 2001-2002
18.
- Averagely, one kg of Pakistani dyed knitted fabric
fetchesUS$4.00 higher price. So the supply of sufficient water can
add the value ofUS$1.6 million/day(Average capacity:40MT/day,
10units). If each unit works 365 days a year, total increased value
becomes aboutUS$580 million . If dyed fabrics are stitched before
shipment, there will be 50% further increase in value, which is
equivalent to aboutUS$870 million . Supply of 18.0 Million gallons
water per day means that the export earnings increase toUS$870
million per year.
- As water supply condition is currently extremely inadequate at
Karachi, it is necessary to provide enough water for the dyeing
industry in Karachi. These units heavily seek abundant water supply
for their works and further expansion.
JUSTIFICATION / DETAILS (continued) 19.
- One more Textile City is being planned for up-country and
- Three Garment Cities are being planned in Karachi Lahore &
Faisalabad.
- Ministry of Industries is working separately on proposals for
the Garment Cities.
FUTURE PLANS 20. THANK YOU FOR YOUR CO-OPERATION INATTENDING
THISSESSION 21. SHIFT TOWARDS VALUE ADDITION ( % in textile
exports) 22. Source: WTO/Gherzi 16 16 24 34.9 46 70 21.1 23. Three
Scenarios (Assumptions)
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- Exports growth at historic patterns.
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- Export growth rate will match the growth rate of import
markets.
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- Market shares growth in ignored markets.
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- Unit Prices will improve.
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- Cotton production will increase.
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- Share of Man-Made Fiber will increase.
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- Value Added Products (Garments/Made-Ups)will be the engine of
export growth.
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- Product & Market mix will be diversified.
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- 50% of the total fabric will be imported.
Textile Vision 2005 24. Employment Generation in Textiles
Textile Vision 2005 77% 1,036,853 1,338,597 Total 61% 123,600
201,151 Spinning 5% 15,484 294,213 Weaving 41% 19,161 47,221
Knitting 92% 56,340 61,206 Processing 112% 822,267 734,805
Stitching % Increase New Employment Current Employment 25. TotalLow
RoadDo-AbleHigh RoadPAK Rs.Billion138233333US$Billion 2.74.56.4
INVESTMENTS Textile Vision 2005