TEXTILE INDUSTRY

Prepared by: ASRA ZULFIQAR

 ABSTRACT:
The textile industry of Pakistan is one of the most vital sectors for the
economic growth of the country. This paper aims to highlight the importance
of textile industry, growth of Textile industry in Pakistan and growth in textile
exports earning, as this industry has immense importance for overall
economy of Pakistan. This report presents a comparative analysis of Pakistan
Textile Industry with China’s Textile Industry to highlight the current
performance and to observe the hardships faced by this sector. This research
paper will also reveal the present situation of Pakistan’s textile industry.
Textile industry is the backbone of the Pakistan’s economy. We have to
seriously analyze its strengths and weaknesses so as to make the textile
industry more competent among its rivals. For that SWOT analysis will be
conducted to identify the strengths, weaknesses of Pakistan’s textile industry.
Afterwards, opportunities and threats will also be analyzed. Furthermore,
some suggestions and recommendations will be given to increase share in the
world market and to improve the overall performance.
About Textile Industry:
 Textile is a term that comes from “texture” which is a Latin word
that means “to weave”. Any filament, fiber, or yarn that can be
made into fabric or cloth, the resulting material is called Textile.

 The textile industry is primarily concerned with the design,

production and distribution of yarn, cloth and clothing. The raw
material may be natural, or synthetic using products of the
chemical industry.

 This includes, spinning mills, weaving mills, knitting mills, dyeing

mills, garments.
 Fundamental Processes:
Ginning : Separating cotton fibers from seed and impurities.

Spinning : Fiber is converted into yarn.

Weaving : Forming of fabric on looms.

Processing : It includes bleaching, dyeing and printing of fabric.

 HISTORY OF TIXTILE INDUSTRY:
The Textile industry was born with the
invention of the flying shuttle in 1733,
the spinning jenny in 1764, and the
power loom in 1784. Then the fabrics
and clothing began to be mass
produced
Now a day, the textile industry is a
global phenomenon comprised of every
business involved in the developing,
producing, manufacturing, and
distribution of textiles.
When James Watt’s improved steam
engine in 1775, Eli Whitney’s cotton
gin in 1792, and Elias Howe’s sewing
machine in 1846 all contributed
greatly to the success of the textile
industry as well.
It starts in agriculture with fiber
production, husbandry of sheep and
silkworm, mining of metals and
minerals. Then these fibers are
processed into yarns, fabrics and
apparels.
 INTRODUCTION:
 Pakistan’s textile and clothing industry is one of the significant players of global
textile and clothing trade.
 The availability of basic raw material for textile industry, cotton, has played a
principal role in the growth of the industry.
 The proportion of textile industry in the country’s economy along with its
contribution to exports, in terms of GDP employment, foreign exchange earnings,
investment and value added, and revenue generation altogether placed the
industry as the single largest manufacturing sector of the country.
 Textile industry will keep on to be powerful force of Pakistan's economic growth.
 Accounts 46% of the total manufacturing sector of Pakistan.
 The industry is going through tremendous changes with respect to globalization
and many economic challenges.
 HISTORY:
1950’s 1960’s 1970’s 1980’s 1990’s

After the separation The eighties

In mid-60’s there World demand for
of East Pakistan, brought a relief to
Pakistan’s were about 180 good quality, wide
Cotton Export the textile
units of textiles width fabrics grew
industrialization Corporation of
industry due to
bleaching, printing and replacement
began in 1950’s Pakistan was
and processing the boom in and a
with the textile established. The
units but there international modernization
textile industry
industry at its was a lack of suffered heavy losses market and process started. a
center. technical staff and industry friendly huge expansion in
because the export of
shortages of policies of the the spinning sector
cotton was controlled
government. took place in 1990s.
capital. by the CEC.

2000-
2009
 In Textile exports share total
export of Pakistan has
declined from 67% in 1997 to
55% in 2008, as exports of
other textile sectors grew
Textile exports in 1999 were
$5.2 billion and rose to
become $10.5 billion by 2007.
 In 2009, Textile industry was
hit hard due to ongoing
energy crisis.
HISTORY:
2010- 2016-
2015 2019
 Energy crisis leaves Pakistan
 A meager recovery was
textiles in problem. Many
observed in 2016-2017 when
textile industries struggling
garments sold overseas
to survive a critical shortage
increased by 0.04%.
of energy to run its plants.
 In 2018-2019, Pakistan’s
 10% of the spinning mills
largest export industry was
and fabric printing units shut
the textile industry, with
down, , half of the remaining
hosiery and readymade
plants were struggling to
garments contributing Rs.544
survive, thousands of textile
billion to total trade (2019).
workers were unemployed.
 COMPARISON OF TEXTILE INDUSTRIES:
PAKISTAN
 Pakistan is 4th big country in the
production of cotton.
 3rd largest consumer of cotton in
global market.
 Contributes almost 60% to the
total exports of Pakistan.
 Contributes 8.5% to the gross
domestic product (GDP).
 Provides employment to 40% of
the total labor force of Pakistan.
CHINA
 China is the world's largest
producer of cotton.
 It is also the world's largest
consumer of cotton.
 China accounted for 43.1% of
global clothing exports.
 Textile industry contributes 47%
of China's GDP.
 Provides employment over 10
million people of China.
 IMPORTANT  United States
(Export Product Share: 23.23%)
MARKETS FOR  United Kingdom
PAKISTAN (Export Product Share: 10. 55%)
 China
TEXTILE PRODUCTS (Export Product Share: 8.36%)
 Germany
(Export Product Share: 6.97%)
 Spain
(Export Product Share: 5.65%)
 Bangladesh
(Export Product Share: 4.7%)
INTERNATIONAL BRANDS WORKING IN
PAKISTAN
• H&M • Adidas

• Levis • Puma

• Nike • Target
PROVINCE-WISE NUMBER OF MILLS

  COMPOSITE SPINNING TOTAL

Sindh 17 110 127
Punjab 23 332 355
KPK 0 19 19
Balochistan 0 10 10
Azad Kashmir 0 6 6
All Pakistan 40 477 517
Source: Textile Commissioner’s Organization.
COTTON EXPORTS VS TOTAL EXPORTS
PERCENTAGE SHARE OF TEXTILE EXPORTS
IN GLOBAL MARKET

14%

3%
3%
China
38%
3% EU (28)
3% India
4%
USA
Turkey
Korea
Chinese Taipei
4% Vietnam
Pakistan
6% Others

24%
TEXTILE EXPORTS
EXPORT PERFORMANCE OF TEXTILE INDUSTRY WITH GROWTH PERCENTAGE

Growth Growth Growth Growth

  2015-16 2016-17 2017-18 2018-19
% Age % Age % Age % Age

Raw Cotton                

Qty (M. Kg) 49.315 -48.099 24.976 -49.354 35.262 -41.184 12.665 -64.083

Value (M.$) 76.631 -47.907 42.852 -44.080 58.227 35.879 20.39 -64.982

Cotton Yarn                

Qty (M. Kg) 423.624 -36.894 455.345 7.488 522.396 14.725 433.583 -17.001

Value (M.$) 71264.922 -31.345 1243.515 -1.692 1371.919 10.326 1125.414 -17.968

Yarn Other than Cotton Yarn                

Value (M.$) 32.751 -23.586 24.351 -25.648 33.358 36.988 33.862 1.511

Cotton Cloth                

Qty (M. Sq. Mtrs) 2152.132 9.619 1961.685 -8.849 2369.361 20.782 2762.852 16.607

Value (M.$) 2213.859 -9.809 2120.321 -4.225 2203.577 3.927 2101.322 -4.640

Hosiery & Knitwear                

Qty. (M.Doz) 112.459 1.252 113.200 0.659 105.606 -6.708 121.996 15.520

Value (M.$) 2363.622 -2.197 2362.007 -0.068 2711.201 14.784 2898.716 6.916
 Bed Wear                

Qty. (M.Kg) 328.857 1.624 353.108 7.374 376.996 6.765 407.837 8.181
Value (M.$) 2019.918 -3.609 2133.974 5.647 2261.069 5.956 2262.469 0.062

Towel                

Qty (M. Kg) 184.479 11.131 182.873 -0.871 203.169 11.098 188.511 -7.215
Value (M.$) 802.966 2.799 786.606 -2.037 797.381 1.370 786.125 -1.412

Tents/Canvas                

Qty (M. Kg) 32.354 -28.022 43.316 33.881 28.842 -33.415 29.628 2.725
Value (M.$) 85.083 -37.092 133.853 57.320 85.281 -36.288 82.416 -3.359

Ready Made Garments                

Qty. (M.Doz) 32.775 7.287 34.785 6.133 40.027 15.070 53.142 32.765

Value (M.$) 2195.216 4.474 2316.947 5.545 2577.198 11.232 2655.375 3.033

Synthetic Fabrics                

Qty. (Th.Sq.Mtrs) 272.277 13.872 122.561 -54.987 308.959 152.086 369.699 19.660
Value (M.$) 287.894 -12.955 204.272 -29.046 309.563 51.545 297.809 -3.797

Other Made-Ups                

Value (M.$) 628.256 -5.042 644.709 2.619 684.771 6.214 679.288 -0.801

Other Textile Products                

Value (M.$) 476.023 3.401 438.890 -7.801 427.292 -2.643 385.689 -9.736

Carpet & Carpeting                

Qty. (Th. Sq. Mtrs) 1.772 -28.807 1.666 -5.982 1.709 2.581 1.605 -6.085
Value (M.$) 97.685 -18.220 78.506 -19.634 75.853 -3.379 67.265 -11.322

Source: Pakistan Bureau of Statistics

SWOT ANALYSIS
 STRENGTHS
Availability of raw
material.

Cheap Labor

Export-focused sectorial
structure
WEAKNESSES
 Low Labor productivity.

 Dependency on cotton.

 Insufficient infrastructure.

 Research and Development.

 Inadequate quality standards.

OPPORTUNITIES
 Prospects For Exports And Growth Of
Ready-Made Garments.

 Growing Popularity Of The Knitting

Industry.

 Cheap Labor And Domestic Raw Material

Availability.

 Collaboration with foreign companies.

 THREATS
 New competitors.

 Unstable political situation.

 Phasing out of quota system.

 Energy Crisis.
 CONCLUSION
 Textile Industry is one of Pakistan’s largest industries. It plays a vital role in
contributing to the country’s economy through its industrial production,
high employment opportunities and bringing in Foreign exchange.

 China is the largest supplier of textile and clothing in the world market.
Pakistan, as compared to China, has a negligible share in these two
important markets, particularly for its clothing products.

 China have given due attention to their textile sector after WTO and MFA
have taken full advantage of international opportunities of trade.
Pakistan’s textile sector needs to capitalize on the new emerging
opportunities by adhering to global best practices.
 CONCLUSION
 Pakistan’s textile and clothing industry possesses abundant raw
material resources (cotton) and cheap and abundant labor, Export-
focused sectorial structure which strengthens the Textile industry of
Pakistan.

 Pakistan’ Textile industry lacks efficient research and development in

Textile sector, Low Labor productivity and Insufficient infrastructure. In
spite of these issues, Pakistan’s textile and clothing industry has an
important place in Pakistan’s economy and it still provides the major
share of exports and employment opportunities.
 RECOMMENDATIONS:

1 2 3 4
Short, medium Pakistan’s textile and Pakistan’s labor Production costs
and long term clothing industry is productivity is are increased due
policies and dependent on cotton remarkably lower to the increasing
incentive and cotton than its rivals. electricity and gas
implementations production. Labor skills and prices. Therefore;
of government However, the productivity continuous,
must be reviewed industry must be should be adequate and
and activated. focused on clothing improved by cheaper power
and technical textile proper training should be supplied.
production. and education.
 RECOMMENDATIONS:

5 6 7 8
All Pakistani textile All Pakistani textile textile and clothing
Pakistan is
and clothing and clothing industry’s share and
dependent on
companies should companies should efficiency within
textile machinery
pay attention to invest in Pakistan economy
importation.
international technology. High should be increased
Therefore,
quality standards. technology is progressively and
companies should
The products must helpful in terms of permanently.
invest to this
be manufactured product quality segment.
according to these and customer
standards. satisfaction
 REFERENCE:
 https://archive.cleanclothes.org/resources/publications/factsheets/china-
factsheet-february-2015.pdf
 https://en.wikipedia.org/wiki/Textile_industry_in_China
 https://en.wikipedia.org/wiki/Textile_industry_in_Pakistan
 https://textileapex.blogspot.com/2015/11/what-is-textile-industry-
definition.html
 https://textilelearner.blogspot.com/2015/12/textile-industry-of-pakistan-
overview.html
 https://valuablestudy.blogspot.com/2013/05/swot-analysis-of-pakistans-
textile.html
 https://www.diva-portal.org/smash/get/diva2:369374/fulltext01
 https://www.ptj.com.pk/Web-2009/08-09/Mohammed-Ather-Akhlaq.htm
 http://www.tco.com.pk/publications.aspx
 https://www.wto.org/english/res_e/statis_e/wts2019_e/wts2019_e.pdf
THANK YOU