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1
Pakistan’s Garment Sector:
An OverviewCompiled & presented
by: PRGMEA
3
Textile’s share in Pakistan economy:Textiles is the premier industry & backbone of
Pakistan’s economy:
• Generates 54 % of exports • Constitutes 46 % of Manufacturing Industry • Employs 38 % of country’s working force • Contributes 8.5% to the total GDP• Drives Banking,
Shipping ,Transport ,Insurance, Machinery,
Dyes/Chemicals,Printing/Packaging & Other allied sectors.Source:
TCO
8
Pakistan’s Garment Exports by Region:
Source: Trade Map
Garment Exports in 2007
9
Apparel Exports to countries:Pakistan exported HS Code # 61 & 62 (Articles of apparel and clothing accessories,
knitted and woven) to about 146 countries in the year 2008.
Sources : ITC calculations based on COMTRADE statistics. All values in USD ‘000
List of importing markets for garments exported by Pakistan Importers 2004 2005 2006 2007 2008
United States of America 1,210,314 1,562,230 1,740,706 1,672,330 1,637,803
Germany 203,165 210,869 235,663 250,527 288,860
United Kingdom 274,048 272,459 317,724 329,937 334,845
Spain 68,592 102,768 135,972 131,735 134,299
France 102,990 91,808 100,673 105,071 107,917
Netherlands 120,807 125,500 119,799 131,623 127,817
Belgium 74,865 88,089 89,808 89,108 102,764
Canada 54,810 54,943 68,390 65,925 59,564
Italy 120,150 107,321 154,876 157,214 98,470
United Arab Emirates 118,381 98,617 58,130 66,718 77,947
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Categories of Apparel Exports:Pakistan exported in following major categories of HS Code # 61 & 62 (Articles of apparel and clothing accessories, knitted and woven):
Sources : ITC calculations based on COMTRADE statistics. All values in USD ‘000
List of products exported by Pakistan
Code Product label 2004 2005 2006 2007 2008
'6203Men's suits, jackets, trousers etc & shorts
389,972 596,441 632,495 708,291 785,802
'6105 Men's shirts, knitted or crocheted 622,306 617,066 697,991 606,631 569,003
'6204Women's suits, jackets,dresses skirts etc&shorts
157,192 290,858 382,880 326,636 334,668
'6109T-shirts, singlets and other vests, knitted or crocheted
146,383 216,396 279,260 284,349 293,319
'6103Men's suits,jackets,trousers etc&shorts, knit/croch
92,266 140,484 158,330 209,067 243,707
'6115Panty hose, tights, stockings & other hosiery, knitted or crocheted
124,442 164,234 218,045 203,073 243,677
'6106Women's blouses & shirts, knitted or crocheted
81,671 63,140 91,766 93,492 106,489
'6104Women's suits,dresses,skirt etc&short, knit/croch
73,512 71,028 90,902 99,961 100,532
'6116Gloves, mittens and mitts, knitted or crocheted
36,559 28,603 41,805 57,379 74,016
'6207Men's singlets, briefs, pyjamas, bathrobes etc
50,894 71,976 72,810 66,103 64,928
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Applicable import duties on Apparel:Import duties on Cat 6203 (Men's suits, jackets, trousers etc & shorts)Duty rates shown are total ad valorem equivalent tariff (estimated)
USA EU Brazil Australia Canada
Pakistan 10.85% 9.6% 35% *10% 17.46%
China 10.85% 12% 35% 17.5% 17.46%
Bangladesh
10.85% 0% 35% 0% 0%
Vietnam 10.85% 9.6% 35% 17.5% 17.46%
Cambodia 10.85% 0% 35% 0% 0%
India 10.85% 9.6% 35% 17.5% 17.46%
Sri Lanka 10.85% 0% 35% 17.5% 17.46%
* WEF 1/1/2010 Source: International Trade Centre (UNCTAD/WTO)
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Why Garment sector is essential:Employment:
Garment sector is the largest employment creating sector in Pakistan with around 2 million people directly employed.
An additional million dollars invested creates:
Garment SectorSpinning/WeavingAdditional Jobs 460 34Additional exports US$ 3.2 millionUS$ 0.27 million
Value Addition:A bale of cotton exported earns
US$ 238Clothing made & exported of one bale earns
US$ 1,600
13
Investment in Textiles:
Total investment = US$ 7.5 Billion( 1999-2009)
Spinning 50.20 %
Weaving 15.23 %
Textile Processing 17.08 %
Knitwear +Garments 7.02 %
Made Ups 4.71%
Synthetic Textiles 5.76%
Source: TCO
14
Value Addition:
Source: Trade Map data
ProductsAUP 2008 (USD/Kg)
Value Addition
520100 Cotton, not carded or combed
$1.35 -
5205 Cotton yarn (not sewing thread) 85% or more cotton, not retail
$2.61 93%
630221 Bed linen, of cotton, printed, not knitted
$6.50 381%
5209 Woven cotton fabrics, 85% or more cotton,weight over 200 g/m2
$8.14 503%
620342 Mens/boys trousers and shorts, of cotton, not knitted
$38.88 2780%
610510 Mens/boys shirts, of cotton, knitted
$46.85 3370%
15
Value Addition:
Source: Trade Map data
If Pakistan's entire crop of 12 million bales are exported at the above prices, it would generate….
ProductsValue in USD
Billions
520100 Cotton, not carded or combed
$3.53
5205 Cotton yarn (not sewing thread) 85% or more cotton, not retail
$6.81
630221 Bed linen, of cotton, printed, not knitted
$16.99
5209 Woven cotton fabrics, 85% or more cotton,weight over 200 g/m2
$21.27
620342 Mens/boys trousers and shorts, of cotton, not knitted
$101.58
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Textile Exports of Selected Economies:
Source: WTO
(Million dollars and percentage)
Value
Share in economy's total merchandise exports
1990 2000 2006 2007 2008 2000 2008 aWorld
104,354 157,295 220,367 240,364 250,198 2.5 1.6
Bangladesh b, c
343 393 1,494 884 1,090 6.2 7.1
China d
7,219 16,135 48,678 55,961 65,256 6.5 4.6
India
2,180 5,570 8,909 9,667 10,267 13.1 5.8
Pakistan
2,663 4,532 7,469 7,371 7,186 50.2 35.4
Sri Lanka c
25 244 154 176 188 4.5 2.2
Turkey 1,440 3,672 7,585 8,942 9,399 13.2 7.1 Viet Nam c
... 299 1,058 1,321 1,639 2.1 2.6
a Or nearest year. b Figures refer to fiscal year. c Includes Secretariat estimates. d Includes significant exports from processing zones.
17
Garment Exports of Selected Economies:
Source: WTO
(Million dollars and percentage)
Value Share in economy's total merchandise
exports 1990 2000 2006 2007 2008 2000 2008 aWorld
108,129 197,722 309,142 345,830 361,888 3.1 2.3
China d
9,669 36,071 95,379 115,233 119,978 14.5 8.4
Bangladesh b, c
643 5,067 8,318 8,855 10,920 79.3 71.1
India
2,530 5,960 9,499 9,786 10,854 14.1 6.1
Viet Nam c
... 1,821 5,579 7,400 8,971 12.6 14.3
Pakistan
1,014 2,144 3,907 3,806 3,906 23.8 19.2
Cambodia c
... 970 2,513 3,491 3,645 69.8 84.8
Sri Lanka c
638 2,812 3,046 3,283 3,460 51.8 40.9
a Or nearest year. b Figures refer to fiscal year. c Includes Secretariat estimates. d Includes significant exports from processing zones.
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Existing Market - USA:
Sources : ITC calculations based on COMTRADE statistics. All values in USD ‘000
Existing trade between United States of America and Pakistan
Product code
Product labelPakistan's exports to USA USA's imports from world Pakistan's exports to world
2006 2007 2008 2006 2007 2008 2006 2007 2008
'620342Mens/boys trousers and shorts, of cotton, not knitted
202,713 234,174 238,734 5,550,775 5,461,354 5,390,716 526,323 580,434 609,917
'610510Mens/boys shirts, of cotton, knitted
426,566 345,503 275,203 1,995,625 2,107,015 1,783,983 553,222 442,825 355,388
'610910T-shirts, singlets and other vests, of cotton, knitted
152,919 164,937 194,372 3,877,210 3,645,942 3,971,235 261,911 258,266 266,334
'620462Womens/girls trousers and shorts, of cotton, not knitted
99,096 78,846 83,251 6,101,518 6,095,207 5,845,705 242,385 217,348 244,109
'610610Womens/girls blouses and shirts, of cotton, knitted
56,190 44,516 47,472 1,087,956 1,125,877 970,096 79,749 71,983 77,513
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Existing Market - UK:
Sources : ITC calculations based on COMTRADE statistics. All values in USD ‘000
Existing and potential trade between United Kingdom and Pakistan
Product code
Product label
Pakistan's exports to UK
UK's imports from world Pakistan's exports to world Indicative potential trade
2006 2007 2008 2006 2007 2008 2006 2007 2008 2006 2007 2008
'610910T-shirts, singlets and other vests, of cotton, knitted
21,428 19,874 21,735 2,109,495 2,323,210 2,174,378 261,911 258,266 266,334 240,483 238,392 244,599
'611020
Pullovers, cardigans and similar articles of cotton, knitted
2,541 3,382 3,375 935,391 1,100,488 1,342,991 51,644 38,665 29,506 49,103 35,283 26,131
'611030
Pullovers, cardigans and similar articles of man-made fibres, knitted
68 57 151 1,101,568 1,167,888 1,317,983 1,101 3,535 3,247 1,033 3,478 3,096
'620462
Womens/girls trousers and shorts, of cotton, not knitted
22,960 19,524 23,014 1,108,669 1,142,549 1,226,178 242,385 217,348 244,109 219,425 197,824 221,095
'620342Mens/boys trousers and shorts, of cotton, not knitted
64,378 71,300 70,818 1,012,629 1,074,941 1,113,934 526,323 580,434 609,917 461,945 509,134 539,099
'620520Mens/boys shirts, of cotton, not knitted
5,286 17,505 1,601 625,712 715,410 698,520 60,624 100,683 15,027 55,338 83,178 13,426
20
Existing Market - Germany:
Sources : ITC calculations based on COMTRADE statistics. All values in USD ‘000
Existing and potential trade between Germany and Pakistan
Product code
Product label
Pakistan's exports to Germany
Germany's imports from world
Pakistan's exports to world Indicative potential trade
2006 2007 2008 2006 2007 2008 2006 2007 2008 2006 2007 2008
'610910
T-shirts, singlets and other vests, of cotton, knitted
9,758 6,881 4,473 2,421,032 2,620,078 2,773,528 261,911 258,266 266,334 252,153 251,385 261,861
'620342
Mens/boys trousers and shorts, of cotton, not knitted
72,938 76,767 78,947 2,112,619 2,323,413 2,682,264 526,323 580,434 609,917 453,385 503,667 530,970
'611020
Pullovers, cardigans and similar articles of cotton, knitted
734 649 110 1,484,870 1,649,160 2,044,215 51,644 38,665 29,506 50,910 38,016 29,396
'620462
Womens/girls trousers and shorts, of cotton, not knitted
45,499 47,720 64,903 1,666,884 1,804,679 1,836,069 242,385 217,348 244,109 196,886 169,628 179,206
'611030
Pullovers, cardigans and similar articles of man-made fibres, knitted
32 10 54 1,470,676 1,327,881 1,452,515 1,101 3,535 3,247 1,069 3,525 3,193
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Existing Market - Spain:Existing and potential trade between Spain and Pakistan
Product code
Product label
Pakistan's exports to Spain
Spain's imports from world Pakistan's exports to world Indicative potential trade
2006 2007 2008 2006 2007 2008 2006 2007 2008 2006 2007 2008
'610910T-shirts, singlets and other vests, of cotton, knitted
6,877
3,129
3,971
1,112,745
1,297,499
1,349,335
261,911
258,266
266,334
255,034
255,137
262,363
'611020Pullovers, cardigans and similar articles of cotton, knitted
1,170
1,340
1,424
591,286
763,396
1,047,294
51,644 38,665 29,506
50,474
37,325
28,082
'620462Womens/girls trousers and shorts, of cotton, not knitted
23,241
20,510
25,632
784,319
969,696
1,034,922
242,385
217,348
244,109
219,144
196,838
218,477
'620342Mens/boys trousers and shorts, of cotton, not knitted
27,582
27,970
27,495
702,801
868,289
1,004,616
526,323
580,434
609,917
498,741
552,464
582,422
'611030Pullovers, cardigans and similar articles of man-made fibres, knitted
52 55 - 414,973 438,755 584,010 1,101 3,535 3,247
1,049
3,480
3,247
'620520Mens/boys shirts, of cotton, not knitted
1,853 1,445 703 359,723 490,539 515,115 60,624 100,683 15,027 58,771 99,238 14,324
Sources : ITC calculations based on COMTRADE statistics. All values in USD ‘000
22
Potential Market - Brazil:Existing and potential trade between Brazil and Pakistan
Product code
Product label
Pakistan's exports to Brazil
Brazil's imports from worldPakistan's exports to
worldIndicative potential trade
2006 2007 2008 2006 2007 2008 2006 2007 2008 2006 2007 2008
'620343 Mens/boys trousers and shorts, of synthetic fibres, not knitted
8 15 10 38,259 51,137 63,423 8,887 15,936 18,196 8,879 15,921 18,186
'620342 Mens/boys trousers and shorts, of cotton, not knitted
23 24 73 18,806 34,898 47,834 526,323 580,434 609,917 18,783 34,874 47,761
'611030 Pullovers, cardigans and similar articles of man-made fibres, knitted
-
-
- 19,459 24,349 27,982 1,101 3,535 3,247 1,101 3,535 3,247
'620520 Mens/boys shirts, of cotton, not knitted
14
-
-
10,291 17,377 27,450 60,624 100,683 15,027 10,277 17,377 15,027
'620462 Womens/girls trousers and shorts, of cotton, not knitted
104
-
-
14,661 17,774 25,282 242,385 217,348 244,109 14,557 17,774 25,282
'620530 Mens/boys shirts, of man-made fibres, not knitted
-
- 63 11,843 14,256 22,684 10,438 3,490 2,818 10,438 3,490 2,755
Sources : ITC calculations based on COMTRADE statistics. All values in USD ‘000
23
Potential Market - China:Existing and potential trade between China and Pakistan
Product code
Product label
Pakistan's exports to China
China's imports from world Pakistan's exports to world Indicative potential trade
2006 2007 2008 2006 2007 2008 2006 2007 2008 2006 2007 2008
'620462
Womens/girls trousers and shorts, of cotton, not knitted
38 31 27 151,696 195,772 168,468 242,385 217,348 244,109 151,658 195,741 168,441
'611020
Pullovers, cardigans and similar articles of cotton, knitted
5 33 - 187,924 195,843 166,110 51,644 38,665 29,506 51,639 38,632 29,506
'620342
Mens/boys trousers and shorts, of cotton, not knitted
13 179 106 84,809 112,192 138,970 526,323 580,434 609,917 84,796 112,013 138,864
'610910 T-shirts, singlets and other vests, of cotton, knitted
4 43 3 92,633 97,690 122,639 261,911 258,266 266,334 92,629 97,647 122,636
'620520 Mens/boys shirts, of cotton, not knitted
5 - - 111,239 115,544 119,600 60,624 100,683 15,027 60,619 100,683 15,027
'611030
Pullovers, cardigans and similar articles of man-made fibres, knitted
- - - 120,225 114,547 81,019 1,101 3,535 3,247 1,101 3,535 3,247
Sources : ITC calculations based on COMTRADE statistics. All values in USD ‘000
24
Potential Market - Japan:Existing and potential trade between Japan and Pakistan
Product code
Product label
Pakistan's exports to Japan
Japan's imports from world Pakistan's exports to world Indicative potential trade
2006 2007 2008 2006 2007 2008 2006 2007 2008 2006 2007 2008
'611030
Pullovers, cardigans and similar articles of man-made fibres, knitted
-
-
3 1,641,726 1,852,305 2,082,289 1,101 3,535 3,247 1,101 3,535 3,244
'611020 Pullovers, cardigans and similar articles of cotton, knitted
6 2 - 1,439,971 1,417,637 1,484,415 51,644 38,665 29,506 51,638 38,663 29,506
'610910 T-shirts, singlets and other vests, of cotton, knitted
23 32 92 1,104,650 1,080,600 1,217,869 261,911 258,266 266,334 261,888 258,234 266,242
'620462 Womens/girls trousers and shorts, of cotton, not knitted
17 53 194 1,198,837 1,150,590 1,150,513 242,385 217,348 244,109 242,368 217,295 243,915
'620342 Mens/boys trousers and shorts, of cotton, not knitted
42 33 81 694,217 683,386 711,246 526,323 580,434 609,917 526,281 580,401 609,836
'620311 Mens/boys suits, of wool or fine animal hair, not knitted
- - - 558,491 558,211 602,069 188 25 21 188 25 21
Sources : ITC calculations based on COMTRADE statistics. All values in USD ‘000
25
Potential Market – Russian Federation:
Existing and potential trade between Russian Federation and Pakistan
Product code
Product label
Pakistan's exports to Russian Federation
Russian Federation's imports from world
Pakistan's exports to world
Indicative potential trade
2006 2007 2008 2006 2007 2008 2006 2007 2008 2006 2007 2008
'621600 Gloves, mittens and mitts, of textile materials, not knitted
51
103
460 4,568 6,093 8,133
28,910 20,319 18,251 4,517 5,990 7,673
'620462 Womens/girls trousers and shorts, of cotton, not knitted
13 492 152 86,770 174,395 247,379 242,385 217,348 244,109 86,757 173,903 243,957
'620342 Mens/boys trousers and shorts, of cotton, not knitted
65 389 133 69,659 138,679 203,122 526,323 580,434 609,917 69,594 138,290 202,989
'620432 Womens/girls jackets, of cotton, not knitted
-
104 94 15,364 25,389 24,942 10,488 7,107 3,783 10,488 7,003 3,689
'620333 Mens/boys jackets and blazers, of synthetic fibres, not knitted
-
1 76 2,505 4,547 6,111 13,632 7,930 8,679 2,505 4,546 6,035
'620319 Mens/boys suits, of other textile materials, not knitted
-
29 58 2,836 7,409 9,890 7,468 8,847 12,018 2,836 7,380 9,832
Sources : ITC calculations based on COMTRADE statistics. All values in USD ‘000
26
Competitors:Code Product label
Pakistan 2008
China 2008
India 2008
Bangladesh 2008
Cambodia 2008
Sri Lanka 2008
Vietnam 2008
'620342 Mens/boys trousers and shorts, of cotton, not knitted
609,917
3,585,168
493,736
2,086,297
274,468
243,004
238,270
'610510 Mens/boys shirts, of cotton, knitted 355,388
1,143,169
424,209
476,545
105,128
73,013
149,162
'610910 T-shirts, singlets and other vests, of cotton, knitted
266,334
5,522,681
1,471,257
2,655,403
228,077
276,935
576,437
'620462 Womens/girls trousers and shorts, of cotton, not knitted
244,109
5,344,290
310,645
1,104,683
379,029
212,732
307,031
'611530 Women''s full-length or knee-length hosiery, knitted or crocheted, mea
134,137
54,210 - -
283
'610610 Womens/girls blouses and shirts, of cotton, knitted
77,513
450,352
321,206
214,350
103,753
22,897
97,150
'611510 Graduated compression hosiery [e.g., stockings for varicose veins], of
73,061
887 -
18
6
'620349 Mens/boys trousers and shorts, of other textile materials, not knitted
69,583
272,808
43,262
18,138
1,209
37,331
338,074
'620791 Mens/boys bathrobes, dressing gowns, etc of cotton, not knitted
48,989
64,965
10,766
11,668
4,980
263
2,337
'610332 Mens/boys jackets and blazers, of cotton, knitted
45,985
819,499
28,696
1,964
1,176
8,487
6,221
'610349 Mens/boys trousers and shorts, of other textile materials, knitted
41,383
83,732
7,625
1,293
139
8,227
54,001
'610462 Womens/girls trousers and shorts, of cotton, knitted
39,199
5,344,290
95,772
180,746
205,486
74,752
110,995
Sources : ITC calculations based on COMTRADE statistics. All Values in USD ‘000
Data based on the partner reported data (Mirror data) are shown in Blue
27
Average Unit Prices:Code Product label
Pakistan 2008
China 2008
India 2008
Bangladesh 2008
Cambodia 2008
Sri Lanka 2008
Vietnam 2008
'620342 Mens/boys trousers and shorts, of cotton, not knitted 38.88 38.88 38.88 17.66 21.14 38.88 38.88
'610510 Mens/boys shirts, of cotton, knitted 46.85 54.28 46.85 15.19 23.53 46.85 46.86
'610910 T-shirts, singlets and other vests, of cotton, knitted 32.33 32.33 32.33 10.04 41.31 32.33 32.33
'620462 Womens/girls trousers and shorts, of cotton, not knitted 50.27 50.27 50.27 21.42 27.16 50.27 50.27
'611530 Women''s full-length or knee-length hosiery, knitted or crocheted, mea 41.35 - - - - - 38.99
'610610 Womens/girls blouses and shirts, of cotton, knitted 39.93 84.87 39.93 19.10 31.09 39.94 39.93
'611510 Graduated compression hosiery [e.g., stockings for varicose veins], of 56.36 88.89 - - - - -
'620349 Mens/boys trousers and shorts, of other textile materials, not knitted 57.28 - 57.32 22.67 27.76 57.31 57.29
'620791 Mens/boys bathrobes, dressing gowns, etc of cotton, not knitted 22.06 48.65 22.06 15.37 15.33 20.71 22.02
'610332 Mens/boys jackets and blazers, of cotton, knitted 43.51 23.46 43.51 15.35 34.11 43.51 43.40
'610349 Mens/boys trousers and shorts, of other textile materials, knitted 31.88 98.19 31.84 17.38 25.54 31.93 31.88
Sources : ITC calculations based on COMTRADE statistics. All Prices are in US Dollars per KG
Data based on the partner reported data (Mirror data) are shown in blue
28
Labor Cost Comparison 2008:
Direct Wages *
Other Costs Paid to Operator *
Other Costs paid by Company *
Total Cost per Hour *
Exchange Rate (a)
Total Cost in US$
Pakistan 34.18 7.31 2.41 44.00 78.68 0.56
Bangladesh 19.08 0.90 1.20 21.18 68.55 0.31
India 31.34 4.54 5.09 40.97 48.41 0.85
China – Coastal 8.93 0.78 3.06 12.77 6.79 1.88
China – Inland 6.74 0.74 2.33 9.81 6.79 1.44
Vietnam 7,812 700 1,400 9,912 17,389 0.57
Average cost per operator hour:
* Local Currency (a) Exchange rate on December 30, 2008 Source: Werner International
