Pakistan ranks fifty-fifth worldwide in factory output.

Pakistan's manufacturing sector accounts for about 24% of GDP.

The manufacturing sector posted a growth rate of 3.56 percent during the current fiscal year July-March 2011-12 compared to 2.96 percent of the same period last year.

Manufacturing sector:

Major sectors of manufacturing:

Leather industryLeather industry

Telecom industryTelecom industry

Cement industryCement industry

Surgical industrySurgical industry

Sugar industrySugar industry

Defense industryDefense industry

Auto mobile industryAuto mobile industry

Sport industrySport industry

Fertilizer industryFertilizer industry

Oil & Gas industryOil & Gas industry

Chemical industryChemical industry

Textile industryTextile industry

Historically, Pakistan’s textile industry and clothing sector has always been a major contributor to the foreign exchange  earner and still contributes.

Pakistan Textile Industry:

The term 'Textile' is a Latin word originating from theword 'texere' which means 'to weave‘

In Asia, Pakistan is the 8thlargest exporter of textile products.

The annual volume of total world textile trade is US$18 trillion which is growing at 2.5 percent. Out of it, Pakistan’s share is less than one percent.

Major Agrarian industrial sector. Generates about 55.6 % of exports Constitutes 32.6 % of Manufacturing

Industry Employs 40 % of country’s working force in

manufacturing sector Contributes 7.4% to the total GDP Drives Banking,

Shipping ,Transport ,Insurance, Machinery, Dyes/Chemicals ,Printing/Packaging & allied sectors.

Textiles is the premier industry & backbone of Pakistan’s Economy:

‣2nd largest exporter of cotton yarn

‣3rd largest exporter of fabric

‣4th largest grower of cotton after USA, China and India

‣3rd largest consumer of cotton

‣3rd largest exporter of cotton textiles

‣2nd largest supplier of cotton yarn with 26% share of the international market

World ranking:

Total Investment in Textile $ 7.5 Billion (1999-2010)

TEXTILE MACHINERY IMPORTS

EXPORT OF PAKISTAN TEXTILES

EMPLOYMENT IN TEXTILE INDUSTRY

1.M/o labour 2.TCO survey

Employment Generated

    2004-05 2005-06 2006-08

1 Spinning 15,000 14,000 2,000

2 Weaving 3,000 2,000 500

3 Processing 1,500 1,000 300

4 Hosiery 1,000 100 100

5 Garments 32,000 20,000 10,000

6 Bedwear 13,000 10,000 7,000

7 Embroidery 500 400 600

8 Towel 500 500 100

  Total: 66,700 48,000 20,600

Wool fabrics Power loom products Scarf

Textiles products Handicrafts

Blanket

Winter shawls

Hand embroidered shawls

Products:

Spinning Weaving Finishing Dyeing Printing Pressing Fashion designing

Sectors of textile industry:

Textile value chain:

There are 1,221 ginning units, 442 spinning units, 124 large spinning units and 425 small units which produce textile products.

Cotton Yarn Grey fabric Bleached fabric Dyed fabric Printed fabric Knitted fabric Bed linen Home textiles

Textile and clothing range: Made ups Towels Industrial Uniforms Sportswear Baby wear Foundation Garments Woven apparel Knitwear Accessories

World Textile & Clothing Trade (US$.billion)

0

100

200

300

400

500

600

700

800

900

1985 1990 1995 1998 1999 2000 2004 2005 2010 2015

Total

105

213

311

453 458

675

850

356.42331 334

Federal Textile Board Contamination free cotton program. Textile City Garment Cities (Lahore-Faisalabad-Karachi). Compliant Labour laws. Textile Skill Development Board. Textile Training Institute Management

Board. Tariff rationalization.

GOVT INITIATIVES:

STRENGTHS:‣ Availability of cheap labour.

‣ Good markets for products.

‣ Large domestic market.

‣ Industry Supportive Government Policies.

‣ Free Import of cottons is Allowed (which is used for development of special fabrics)

‣ Yarn dyed fabrics & high quality blends is increasing.

WEAKNESSES:

Low productivity resulting in high labour costs

Very limited experience in generating new products

Pakistan’s image continues to be that of a low quality, low price, non consistent and unreliable supplier

Average quality of products

The largest problem that the industry faces today is the sales tax.

Custom duty taxes.

Load shedding of electricity.

Interference of Govt. in industry.

Problems of Textile Industry:

The Pakistan textile industry is currently facing several challenges:

‣Need for the industry to improve the quality of its product.

‣Need for greater value addition in its products.

‣Need to undertake an up gradation in the technology used.

‣Cost of power of competitors.

Challenges to a Textile Industry:

‣ Assist the Industry to sustain its existing market shares

‣ Synergise all policy initiatives to support the Industry to develop its competitiveness in the changing global environment

‣ Focus on Short Term Strategies with result oriented approaches to help companies progress

‣ Promotion of the Value Added products. This Sector has the possibility to create more than 1 million additional jobs – more than any other sector

CHALLENGES TO BE ADDRESSED:

Formation of Pakistan Compliance Initiative (PCI) by the private sector

All Textile related Associations imparting awareness and training in benchmarking

No child labour or sexual harassment

Provision of transport to women workers

Social compliance:

Environment Protection Agency Trade Policy emphasis on process management

and environmental concerns The Government subsidizing waste water

treatment plants in all industrial clusters Imports of hazardous chemicals and dyes for

textiles are either banned or strictly regulated

Environmental standards: