GROUP MEMBERS:SYED ANAS AHMED(2440)MAHUM ASIF(2565)ZOHAIB ALI(2147)MARYAM TARIQ(2123)M.FAIZAN KHAN(2391)
ORIGIN OF TEXTILE:• Textile is a term that comes from “textilis”
which is a Latin word, that means “woven fabric”.• A cloth, especially one manufactured by
weaving or knitting a fabric.
TEXTILE INDUSTRY..?The textile industry or apparel industry is primarily concerned with the production of yarn, and cloth and the subsequent design or manufacture of clothing and their distribution. The raw material may be natural, or synthetic using products of the chemical industry.
STANDPOINT IN PAKISTAN• The textile industry is often considered the
backbone of the Islamic Republic of Pakistan’s economy.
• Pakistan’s textile Industry is the fourth Largest Cotton Producer.
• 6th largest importer of raw cotton• The Third largest Consumer
• The textile industry contributes approximately 46 percent to the total output or 8.5 percent of the country GDP.
• In Asia, Pakistan is the 8th largest exporter of textile products providing employment to 38 percent of the work force in the country.
Value chain of textile industry
TEXTILE PLANTS SPININGWEAVING
OVERVIEW: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 Cotton Textile Industry in Pakistan.
HISTORY OF TEXTILE INDUSTRY:
1950:• Pakistan's industrialization began in the 1950s
with the textile industry at its center• PIDC came into being which had the main
objective of industrializing the country in major fields.
• The modern development of the sector started in 1953 with the inauguration of the Valika textile Mill at Karachi.
1960’s• By mid sixties there were about 180 units of
textiles bleaching, printing and processing units, mostly situated in Karachi and Punjab.
• New private investment began with a highly protected home market
• Newly established mills were based upon imported technology but there was a lack of technical staff and shortages of capital
1970’s• By 1970-71 there was 113 textile units and the
industry had 2,605 thousand spindles and 30 thousand looms
• After the separation of East Pakistan Cotton Export Corporation of Pakistan was established which meant that most of the private sector work was taken over by the state
• The textile industry suffered heavy losses because the export of cotton was controlled by the CEC
1980’s• The eighties brought a relief to the textile industry
due to the boom in international market and industry friendly policies of the government.
• There was a rapid growth in spinning sector. • Till 1980-81 spinning continued to expand.
1990’s• The number of units rose to 440 in 1996-97• World demand for good quality, wide width
fabrics grew and replacement and a modernization process started.
• Machinery for producing garments and made-ups was also freed from import duty. As a result, a huge expansion in the spinning sector took place in the first five years of the 1990s.
1999 to 2000• Textile exports in 1999 were $5.2 billion and rose
to become $10.5 billion by 2007.• Textile exports managed to increase at a very
decent growth of 16% in 2006• Textile exports share in total export of Pakistan
has declined from 67% in 1997 to 55% in 2008, as exports of other textile sectors grew
2009:• The textile industry employs almost 40 percent
(2008-09) of the industrial workforce• textile industry is being hit hard due to ongoing
energy crisis, depriving the gas supply to the textile units for three days a week.
• Pakistan’s cotton cultivation has declined due to several factors ranging from cultivation of traditional varieties and via traditional methods, poor marketing, and failure in making timely payments to cotton producers
2010• (APTMA) had prepared a based report for the
federal government in which it has been projected that the textile industry exports would cross over $16 billion compared to its present level of around $8 billion
• Significant changes to the general sales tax (GST) on industrial sector including textiles
2011:• Textile exports stood at $12.5 billion from July 2010 to
May 2011• Energy crisis leaves Pakistan textiles in tatters
2012 TO 2014:• Pakistan’s $13.8 billion textile industry is struggling to
survive a critical shortage of energy to run its plants.• 10 percent of the spinning mills and fabric printing units
have shut down, and half of the remaining plants are struggling to survive
• thousands of textile workers poured out onto the streets of the city, burned tires, and shouted slogans against the government.
SIGNIFICANCE IN ECONOMIC ZONE OF PAKISTAN:
• Pakistan’s economy relies heavily on its cotton and textile sectors.
• cotton-textile sectors account for 11 percent of GDP and 60 percent of export receipts.
• In 2008-09 contributed 60% to the country’s total exports, which amounts to around 5.2 billion US dollars.
• Textile industry itself constituted about 4% of the total size of the economy.
LEADING BUYERS OF PAKISTANI TEXTILE GOODS
USA, EU, Gulf region, UK, Hong Kong, Japan, Korea, Saudi Arabia, Italy, Turkey, Germany, Norway, France, Canada, Sweden, Australia, etc.
TOP PLAYERS IN PAKISTAN
• Chenab Limited• Fateh Textile Mills• The National Silk & Rayon Mills Limited• Gul Ahmed Textile Mills Limited• Husein Industeries Limited • Kohinoor Textile Mills Limited• Nishat Mills Limited• Safa Textiles Limited• The Crescent Textile Mills Limited• Fazal Textile Mills Limited
IMPORTANCE OF TEXTILE SECTOR
• In Asia, Pakistan is the 8 largest exporter of textile products.
• Cotton is the basic Cash crop of Pakistan.• Textile products are one of the essential and basic
human requirement next to food.• Pakistan is the 3rd largest exporter of raw cotton.
• Cheap labor and Raw cotton are available.• employment to 38% of the work force in the
country.• However, the proportion of skilled labor is very
less as compared to that of unskilled labor• 2nd Largest supplier of cotton yarn with 26% share
of the international market.
SUBDIVISION OF TEXTILE INDUSTRY
FACTORS AFFECTING TEXTILE INDUSTRY
• PROBLEMS FACED BY INDUSTRY• CLIMATIC CONDITION • TRAINING• EDUCATION
• Lack Of Research And Development In Cotton Sector
• Lack of Modernize equipment• Finance bill to burden industry further• Increasing cost of production• Internal issues Pose a Larger Threat for Pakistan’s
Textile Industry.• Energy crisis• Lack of new investment.
PROBLEMS FACED BY THE INDUSTRY
CLIMATIC CONDITION: Although Pakistan has the ideal climatic conditions for the growth of cotton providing a factor advantage to the textile industry, but it is also quite vulnerable to pesticides that can lower the yield per hector.
The textile sector is largely dependent on the supply of raw material of the agricultural sector and hence whatever happens to the agricultural sector like floods will adversely affect the textile industry rendering it even more vulnerable to environmental conditions.
TRAINING:Limited availability of trained technical staff to maintain and run machinery at full efficiency is a constraint upon the development of Pakistan’s textile industry.
This shortfall is partly due to a lack of technical education facilities.
Some of the developments in the textile industry include: Advances in ring spinning, computerized dyeing and finishing, computer-aided designing , manufacturing and developming retailing links hence, all these demand new and greater skills and Pakistan lacks it.
EDUCATION• Education is essential for the development of the
textile industry. Even if the basic factors are present, unless value-addition is not done on them, they will not be productive enough.
• Even if there is not enough production a country could still manage through research and development.
• Survey shows that technical manpower need in the industry is 12,750 grads. But up to 2003 the available graduates were 7,950.
THREATS: New competitors: Pakistan is facing new competitors in textile
sector such as Bangladesh, Vietnam and Turkey. Though we cannot avoid competition but we can always stay ahead of them by reforming our strategies and educating our entrepreneurs so as to move one step forward in every aspect.
Phasing out of quota system: As the quota system is ruled out by WTO, there is
a threat by the Chinese and Indian manufacturers to gain most of the market share. We have high costs, low labor productivity and inefficient production processes.
EXPORTS OF TEXTILE INDUSTRY
Pakistan has dynamic, vigorous and export oriented textile industry that has an overwhelming impact on economy. • Cotton Fabrics Textile Materials• Yarn Home Textile• Textile pattern Sports Ware• Towel Woven Fabrics • Textile Waste, etc.• Bed Ware• Hosiery
STATISTICS• country’s highest export earnings of about 58%; • providing the bulk of employment (39%) to
largely underutilized workforce, • contributes 8.5% to GDP.• Cotton yarn’s remarkable increase of 39% over
the same period last year. • 12% increase in cotton fabrics exports• almost 13.3% for woven garments • 12.7% increase in towel exports.
• (July-March) of 2012-13, export of textile and clothing witnessed a growth of 7.09pc this year as it stood at $9.630bn from $8.993bn over the corresponding period of last year.
• A negative growth of textile products, are raw cotton, and cotton carded in March 2013 over the same month last year.
• Growth in exports in March was mainly driven by knitwear, bed-wear, towels and readymade garments, which are valued-added products.
IMPORTTS OF TEXTILE INDUSTRY
• Textile Machinery• Fiber• Silk yarn• And other raw materials
STATISTICS• Textile industry invested around $548.997 million
during July-May 2013-14 to replace the rundown machinery.
• Import of textile machinery grows by $200.714 million (58 percent) to $548.997 million in July-May 2013-14 as compared to the machinery import of $348.283 million in the same period last fiscal year.
• The textile fiber and silk yarn is developed on a small scale so it needed to be imported on annual basis.
TEXTILE INDUSTRIES NEWS
Textile industry of Pakistan worst hit by power cuts “The energy crisis has forced the textile mills to
close their units, especially in Punjab the industry is under severe pressure. Chairman APTMA Punjab, Shahzad Ali Khan, said daily electricity load shedding has increased to 12 hours.”
The Pakistan textile industry contributes more than 60 percent (US $ 9.6 billion) to the country’s total exports. However, currently this industry is facing great decline in its
growth rate. The major reasons for this decline can be the global recession, internal security concerns, the high cost of production due to increase in the energy costs etc.
‘’ A spokesman for the All Pakistan Textile Mills Association (APTMA) claimed that 60 to70
percent of the industry had been affected and was unable to accept export orders coming in from around the globe, as a result of gas load shedding ‘’