2017! Trade!Analysis!Series!

Trade&
Analysis&Series!!
&
&
!
Pakistan!Textile!Made/Up!Sector!!
!!(2015/16)!
!
!

Turn%Potential%into%Profit!%
Small!and!Medium!Enterprises!Development!Authority!(SMEDA)!
Ministry!of!Industries!and!Production!!
Government!of!Pakistan!
www.smeda.org.pk!
UAN:!111!111!456!
 [Trade'Analysis'Series'–'Pakistan'Textile'Made5Up'Sector]' 1'

1. Product*Description*

Textile!Made+Ups!can!be!defined!as!the!textile!products!fabricated!for!other!than!apparel!purposes.!It!
consists! of! a! range! of! functional! as! well! as! decorative! products,! mainly! including! towels! and! cleaning!
cloths,!bed!wear!and!bed!linen,!blankets,!curtains!and!furnishings,!canvas!products!and!table!linen.!
The!Harmonized!Commodity!Description!and!Coding!System!(referred!as!HS!Codes)!designated!for!trade!
of!Textile!Made+Ups!is!63.!The!brief!description!of!sub!categories!falling!with+in!product!category!of!HS!
63!is!provided!in!the!following!table:!
Table&1:&Textile&Made.Up&Product&Details&

Product&Category&
Product&Description&
HS&Code&
6302! Bed!linen,!table!linen,!towels!and!kitchen!linen!of!all!types!of!textile!materials!

6307! Made+up!articles!such!as!cleaning!clothes!including!dress!patterns!and!life!jackets!

6305! Sacks!and!bags!used!for!the!packing!of!goods!

6304! Articles!for!interior!furnishing,!e.g!curtains,!drapes,!interior!blinds,!lampshades!

6301! Blankets!and!travelling!rugs!of!all!types!of!textile!materials!

6303! Curtains,!including!drapes,!and!interior!blinds!

6306! Tarpaulins,!awnings!and!sun!blinds;!tents;!sails!for!boats,!sailboards!or!land!craft!

6309! Worn!clothing!and!clothing!accessories,!blankets!and!travelling!rugs!

6310! Rags,!scrap!twine,!cordage,!rope!and!cables!and!worn+out!articles!

6308! Woven!fabric!and!yarn!sets!for!making!tapestries,!rugs,!table!cloths!
!

2. Global*Trade*of*Textile*Made:Ups*

Textile! Made+Ups! are! one! of! the! most! valuable! and! important! commodities! in! international! trade.!
During! the! year! 2016,! the! international! trade! value! of! Textile! Made+Ups! was! USD! 60.04! Billion.! The!
exports!have!shown!a!mixed!growth!trend!with!an!average!growth!rate!of!1.20!%!from!the!year!2012!~!
16.!The!last!five!years’!exports!of!Textile!Made+Ups!in!global!trade!are!as!follows:!
Table&2:&Global&Exports&of&Textile&Made.Ups&.&Last&5&Years&

Description& 2012& 2013& 2014& 2015& 2016&

World!Exports!(Value!in!US!$!Billion)! 56! 62! 66! 61! 60!
Growth!%age! 0.97! 9.23! 5.98! +8.45! +2.00!
Source:(Trade(Map(

'Small'and'Medium'Enterprises'Development'Authority'(SMEDA)'
 [Trade'Analysis'Series'–'Pakistan'Textile'Made5Up'Sector]' 2'

!
Figure&1:&Growth&Trend&of&Textile&Made.Ups&Exports&(Value&US&$&Billion)&

70! 66!
65! 62! 61! 60!
60! 56!
55!

50!
2012! 2013! 2014! 2015! 2016!
!
Major&Exporters&
During! the! last! 5! years,! the! exports! of! Textile! Made+Ups! have! been! dominated! by! China,! followed! by!
India.!The!percentage!share!of!the!five!biggest!exporting!countries!is!given!in!the!following!table:!
Table&3:&Major&Exporters&in&2016&

Exports& Avg.&%&Growth&in&Last&5&
Country& %&Share&in&Exports&in&World&
(Value&in&US&$&Billion)& Years&
China! 26! 42.5! 2.8!
India! 5! 7.6! 3.8!
Pakistan! 4! 6.3! 1.4!
Germany! 3! 4.7! 0.2!
United!States!of!America! 2! 3.3! 1.2!
Source:(Trade(Map(

Product&Mix&2&Share&in&Exports&
Bed! linen! is! the! most! valuable! commodity! of! Textile! Made+Ups! in! terms! of! global! trade! followed! by!
cleaning! clothes! and! life! jackets.! This! is! quite! evident! from! the! percentage! share! of! different! product!
categories!in!exports,!as!exhibited!below:!

Figure&2:&Product&Mix&of&Textile&Made.Ups&Export&
Tarpaulins,!Tents!and! Others,!1%!
Landcrag,!7%!
Bed,!Table!&!Kitchen!
Linen!and!Towels,!33%!
Curtains!and!Interior!
Furrnishings,!15%!

Blankets,!Travelling!Rugs!
and!Clothing!Accessories,!
14%! Cleaning!Clothes!incl.!
Dress!Paderns!&!Life!
Jackets,!22%!
Sacks!and!Bags,!8%!

!
Source:(Trade(Map(

'Small'and'Medium'Enterprises'Development'Authority'(SMEDA)'
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!
3. Pakistan’s*Exports*

Pakistan!is!one!of!the!major!exporting!countries!of!Textile!Made+Ups!with!availability!of!high!quality!raw!
material!and!skilled!labor!force.!Over!the!years,!export!figures!have!shown!tremendous!growth,!showing!
a!mixed!growth!trend!in!last!5!years!with!an!average!growth!rate!of!1.02!%!from!the!year!2012! ~!16.!
During!the!year!2016,!the!exports!value!of!Textile!Made+Ups!was!US!$3,803!Million.!Pakistan’s!last!five!
years’!export!figures!of!Textile!Made+Ups!are!as!follows:!

Table&4:&Pakistan&Exports&Textile&Made.Ups&.&Last&5&Years&

Description& 2012& 2013& 2014& 2015& 2016&

World!Exports!(Value!in!US!$!Million)! 3,285! 3,685! 3,906! 3,759! 3,803!

Growth!%age! +8.67! 10.86! 5.66! +3.90! 1.16!

Source:(Trade(Map(

Figure&3:&Growth&Trend&of&Pakistan’s&Exports&(Value&in&US&$&Million)&

3,906!
4,000! 3,759! 3,803!
3,685!
3,800!
3,600!
3,285!
3,400!
3,200!
3,000!
2,800!
2012! 2013! 2014! 2015! 2016!
!
Pakistan’s&Major&Product&Mix&
Bed!linen!is!the!most!valuable!commodity!of!Textile!Made+Ups!in!terms!of!Pakistan’s!exports!followed!
by!cleaning!clothes!and!life!jackets.!This!is!quite!evident!from!the!percentage!share!of!different!product!
categories!in!Pakistan’s!exports,!as!exhibited!below:!

Figure&4:&Pakistan's&Product&Mix&.&Textile&Made.Up&Export&
Curtains!and!Interior! Others!
Furnishings! 3%!
4%!

Sacks!and!Bags!
3%!

Cleaning!Clothes!incl.!
Dress!Paderns!&!Life!
Jackets!
11%!
Bed,!Table!&!Kitchen!
Linen!and!Towels!
79%!

'Small'and'Medium'Enterprises'Development'Authority'(SMEDA)'
 [Trade'Analysis'Series'–'Pakistan'Textile'Made5Up'Sector]' 4'

!
Pakistan’s&Exports&Destinations&
In! last! five! years,! Pakistan’s! major! export! partner! for!Textile! Made+Ups! was! United! States! of! America,!
followed! by! United! Kingdom.! The! percentage! share! of! top! five! importing! countries! of! this! commodity!
from!Pakistan!is!given!in!the!following!table:!
Table&5:&Pakistan’s&Top&Five&Export&Partners&–&Last&5&Years&(Value&in&US&$&Million)&

Country& 2012& 2013& 2014& 2015& 2016&

United!States!of!America! 1,339! 1,423! 1,388! 1,404! 1,319!
United!Kingdom! 418! 473! 568! 571! 574!
Germany! 205! 236! 303! 279! 284!
Netherlands! 96! 122! 166! 165! 207!
Belgium! 141! 159! 185! 159! 164!
Source:(Trade(Map(

4. Import*Destinations*of*Textile*Made:Ups*

The! largest! importing! country! of! Textile! Made+Ups! is! United! States! of! America,! followed! by! Germany!
and!United!Kingdom.!The!figures!of!five!biggest!importing!countries!are!given!below:!

Figure&5:&World&Top&5&Importers&(Trade&Value&in&US&$&Million)&
!
13,914!
&
13,000!
!

! 9,000!

!
5,000! 4,181! 3,648!
! 2,408! 2,409!
!
1,000!
United!States!of! Germany! Japan! United!Kingdom! France!
&
America!
& &
Source:(Trade(Map(

Partner&Countries&of&Top&3&Importers& &
The! trade! partners! of! the! world’s! top! 3! exporting! countries! of! Textile! Made+Ups! are! discussed! in! the!
following! section.! The! average! percentage! share! of! exported! value! of! Textile! Made+Ups! to! top! 3!
importing!countries!is!evaluated!and!presented!in!the!form!of!graphs.!

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!
Figure&6:&Trade&Partners&of&USA&(Avg.&%&Share&in&Export&Value&–&Last&5&Years)&

Pakistan! 10!

India! 16!

China! 54!

0! 10! 20! 30! 40! 50! 60!

!
&
Figure&7:&Trade&Partners&of&Germany&(Avg.&%&Share&in&Export&Value&–&Last&5&Years)&

Pakistan! 6!

Poland! 9!

Turkey! 13!

China! 29!

0! 5! 10! 15! 20! 25! 30! 35!

&

Figure&8:&Trade&Partners&of&Japan&(Avg.&%&Share&in&Export&Value&–&Last&5&Years)&

Pakistan! 0.4!
Bangladesh! 0.8!
Taipei,!Chinese! 1.0!
Korea,!Republic!of! 1.1!
Thailand! 1.2!
United!States!of!America! 1.3!
India! 1.5!
Indonesia! 2.0!
Viet!Nam! 8.2!
China! 79.4!
0.0! 10.0! 20.0! 30.0! 40.0! 50.0! 60.0! 70.0! 80.0! 90.0!
!
Source:(Trade(Map(

From!the!above!graphical!descriptions,!it!is!clear!that!Pakistan!has!been!able!to!tap!the!market!of!United!
States! of! America! and! Germany! relatively! well,! however,! China! is! leading! the! exports! in! both.!
Surprisingly,!Pakistan’s!exports!to!Japan,!which!is!the!third!largest!importing!country,!are!miserably!low.!
Therefore,!Pakistani!exporters!should!also!target!the!Japanese!market!that!has!huge!export!potential.!

'Small'and'Medium'Enterprises'Development'Authority'(SMEDA)'
 [Trade'Analysis'Series'–'Pakistan'Textile'Made5Up'Sector]' 6'

!
Price&Comparisons&
The!following!price!comparisons!of!Textile!Made+Ups!show!the!prices!charged!by!exporting!countries!for!
major!product!mix.!
Figure&9:&Price&Comparison&for&Bed,&Table&&&Kitchen&Linen&and&Towels&(HS&6302,&US&$&/&Ton)&&

11,966! 11,412! 11,382!

12,000!
9,306! 8,777!
10,000!
8,078! 7,543!
8,000!
6,043!
5,322!
6,000!
4,000!
2,000!
0!
Portugal! Spain! Germany! China! Belgium! Turkey! Netherlands! India! Pakistan!

&
Figure&10:&Price&Comparison&for&Curtains&and&Home&Furnishings&(HS&6303,&US&$&/&Ton)&
!21,059!!
&21,000&& !17,883!! !17,287!!
&18,000&&
&15,000&& !12,295!! !11,865!! !11,046!! !10,701!!
&12,000&& !9,917!!
&9,000&& !7,445!!
!6,350!!
&6,000&&
&3,000&&
&.&&&&
Czech! Germany! Mexico! Pakistan! Turkey! United! Taipei,! Poland! India! China!
Republic! States!of! Chinese!
America!
!
&
Figure&11:&Price&Comparison&for&Cleaning&Cloths,&Dress&Patterns&and&Life&Jackets&(HS&6307,&US&$&/&Ton)&
28,898!
30,000!
25,000!
20,000! 14,960!
15,000! 12,668! 11,654! 11,108!
8,098! 7,913! 7,392!
10,000! 6,090! 6,058!
5,000!
0!
Morocco! United! Germany! Mexico! United! India! Pakistan! Netherlands! China! Viet!Nam!
Kingdom! States!of!
America!
!
Source:(Trade(Map(

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!
5. Pakistan’s*Export*Trade*and*Tariff*

• There! is! a! 5%! rebate! on! the! exports! of! all! value+added! goods! in! textile! sector! including!
Textile! Made+Ups.! However,! the! rebate! is! applied! if! there! is! a! 10! percent! incremental!
increase!in!exports!over!the!preceding!year.!
• A!General!Sales!Tax!on!exports!of!Textile!Made+Ups!is!2%,!which!is!refundable.!
• Custom! Rebate! or! Duty! Drawback! also! exists! whose! percentage! varies! from! item! to! item!
imported!as!raw!material!for!Textile!Made+Ups.!
!

6. Prominent*International*Trade*Fairs*

Name&of&Trade&Shows& Location& Frequency& Web&Links&

Los!Angeles! California!Market!
http://www.californiamarketcenter.com/la
International!Textile! Center,!Los!Angeles,! Twice!a!year!
textile/home.php!
Show! USA!
http://www.expodatabase.com/tradeshow
Kingpins!Denim! Pier!36!+!Basketball!
Twice!a!year! /kingpins+denim+supply+chain+show+
Supply!Chain!Show! City,!New!York,!USA!
68568.html!
Jacob!K.!Javits! https://hometextilessourcing.us.messefran
Home!Textiles!
Convention!Center,! Annual! kfurt.com/newyork/en/for+
Sourcing!
New!York,!USA! attendees/welcome.html!
Jacob!K.!Javits! https://texworldusa.us.messefrankfurt.co
Texworld!USA! Convention!Center,! Twice!a!year! m/newyork/en/for+
New!York,!USA! attendees/welcome.html!
Business!Design!
The!London!Textile!
Centre,!London,! Twice!a!year! http://thelondontextilefair.co.uk/!
Fair!
United!Kingdom!
Business!Design!
Texfusion!The!London!
Centre,!London,! Annual! http://texfusion.co.uk/!
World!Textile!Fair!
United!Kingdom!
Heimtextil!
Messe!Frankfurt,!
International!Trade! https://heimtextil.messefrankfurt.com/fra
Frankfurt!/!Main,! Annual!
Fair!for!Home!and! nkfurt/en.html!
Hesse,!Germany!
Contract!Textiles!

Techtextil!Leading!
International!Trade! Messe!Frankfurt,!
https://techtextil.messefrankfurt.com/fran
Fair!for!Technical! Frankfurt!/!Main,! Biennial!
kfurt/en/besucher/willkommen.html!
Textiles!and! Hesse,!Germany!
Nonwovens!
!

'Small'and'Medium'Enterprises'Development'Authority'(SMEDA)'