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Textile Industry In Pakistan

Textile industry of Pakistan has progressed rapidly in the last few years. In 1947, the number of spinning factories were 6 only, and now it is increased in number to 503,mainly because of reduction in duties. Pakistan is the 4th largest cotton exporter after China, India and USA. Most of the foreign exchange earnings in Pakistan are through its textile division but current scenario in the textile sector is not favourable and machinery, proceedures and techniques need to be upgraded as per the international requirements.

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Overview:

The progress or development of any country is highly affected by it's textile industry. Pakistan's textile industry ranks almost top in the world, which contributes 46 percent, approximately, to the overall turnout or 8.5 % of the country's GDP. Cotton based textile contribute over 60% of the total exports. The availability of cheap labour and basic raw cotton as a raw material plays a vital role in the growth of textile industry in Pakistan. Following are the top buyers of Pakistan textile goods; UAE, EU, Gulf region, Norway, Germany, France, Italy, Hong Kong, Japan, Korea, Saudi Arabia, UK, Turkey, Canada, Sweden, Australia etc.

Evolution:

1950's: Pakistan's industrialization began in this era with the textile industry at it's centre. PIDC came into being, which had the main objective of country's industrialization in major fields. The modern development of the industry started in 1953 with the inauguration of Velika textile mill at Karachi.

1960's: By mid 60's there were about 180 units of textile bleaching, printing and processing mostly situated in Karachi and Punjab. Newly established mills were based upon imported technology but there were lack of technical staff and shortages of capital.

1970's: By 1970-1971 there were 113 textile units and the industry had 2,605 spindles and 30,000 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 by the state. The textile industry suffered heavy losses because the export of cotton was controlled by CEC.

1980's: This era brought a relief to the textile industry due to the boom in international markets and industry friendly policies of government. There was a rapid growth of spinning sector and it continued to expand till 1981 The number of textile segments increased to 440 in 1996-97. Good quality products were in demand, wide width fabrics grew and modernization process started. Machinery for garments production was also released from import duty. As a result the huge expansions in the spinning sector took place.

In the new millennium: The textile industry employs over 40% of the workforce. It has been 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 failures in making timely payments to the cotton producers.

Statistics:

Pakistan's economy relies heavily on its cotton sectors. The cotton processing and textile industries make up almost half of the country's manufacturing base, while cotton is Pakistan's principal industrial crop supplying critical income to rural households. Altogether cotton textile sectors account for 11 percent of GDP and 60 percent of export receipts.

Among the most substantial exporters of textile products in Asia, Pakistan is the 8th largest of all. Pakistan textile industry is the source of massive foreign exchange earnings in the country, and is known to be the second biggest employment creating section as well. Around 15 million people or nearly 30% of 49 million labour pool of the country is provided by the textile sector.

After India and China, Pakistan is the 4th tremendous producer of cotton along with the 3rd largest spinning magnitude, and has 5% of contribution to the worldwide spinning capacity. For producing textile products Pakistan currently owns 124 large spinning units, 425 small units, 442 spinning units and 1,221 ginning units.

Pakistan covers 3% of US imports of clothing and variant types of textile. In 1999, the worth of textile exports in Pakistan were $5.2 billion which flourished up to $ 10.5 billion by 2007. These exports inflated with the growth rate of 16% in 2006, but it's share in overall export of the country has turned down from 67% - 55% in 1997 - 2008 respectively

Conclusion:

Now, this is the era of high competition globally, industries are upgrading their operational techniques to outperform their competitors. In Pakistan textile industry is the back bone of it's economy, the progress and development of the country is greatly dependent on this sector and to achieve this goal, textile division ought to take certain steps to elevate and boost it's performance. Enhancing it's supply chain, advancing productivity and capitalizing value-addition can be of great advantage for the progress of this industry. The targets of the Textile Industry sector are to originate schemes and build policies to encounter the challenges of highly competitive global environment these days.

References

Textile industry in Pakistan https://en.m.wikipedia.org

Ministry of textile industry www.textile.gov.pk

Pakistan textile statistics www.aptma.org.pk › repo

Statistics on textile industry in Pakistan tribune.com.pk › Business


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