Prospects for the Textile and Garment Industry in Pakistan, 2009 edition
The textile and garment industry is Pakistan’s most important industrial activity by far and is a crucial part of the country’s economy. In the 2007/08 financial year (July 1, 2007-June 30, 2008) the industry accounted for around 8.2% of the country’s gross domestic product (GDP). Also, it exported goods valued at US$10.6 bn, which represented 55% of national exports. In addition, it provided employment for 2.84 mn people, representing 40% of the manufacturing workforce. Pakistan is also the world’s fourth largest cotton producer, and cotton has played a principal role in the expansion of the textile and garment industry. However, man-made fibres are playing a growing role.
The government recognises the importance of the textile and garment industry to the country’s economic wellbeing and has given support in a number of ways. One measure is the Balancing, Modernisation and Replacement (BMR) programme under which finance is provided at a concessionary rate. Also, the industry is lobbying for the resumption of a scheme to support research and development. The scheme was withdrawn in 2008 because of suspicions that allocated funds were being misused.
Looking ahead, the textile and garment industry faces a number of serious issues and is operating under difficult circumstances which seem certain to persist. Foreign confidence and investment, especially compared with other Asian locations, have been undermined by the volatile political scene as Pakistan’s government has alternated unpredictably between military and civilian rule along with continuing threats of terrorism. Trade has been adversely affected by the global economic downturn, as demand has declined in the country’s major export markets, and production is often disrupted because of the unreliability and inadequacy of the country’s electrical power supply system. Above all, there is an urgent need to upgrade the industry’s manufacturing equipment and organise production in order to gain the economies of scale achieved by international competitors.
The government recognises the importance of the textile and garment industry to the country’s economic wellbeing and has given support in a number of ways. One measure is the Balancing, Modernisation and Replacement (BMR) programme under which finance is provided at a concessionary rate. Also, the industry is lobbying for the resumption of a scheme to support research and development. The scheme was withdrawn in 2008 because of suspicions that allocated funds were being misused.
Looking ahead, the textile and garment industry faces a number of serious issues and is operating under difficult circumstances which seem certain to persist. Foreign confidence and investment, especially compared with other Asian locations, have been undermined by the volatile political scene as Pakistan’s government has alternated unpredictably between military and civilian rule along with continuing threats of terrorism. Trade has been adversely affected by the global economic downturn, as demand has declined in the country’s major export markets, and production is often disrupted because of the unreliability and inadequacy of the country’s electrical power supply system. Above all, there is an urgent need to upgrade the industry’s manufacturing equipment and organise production in order to gain the economies of scale achieved by international competitors.
SUMMARY
IMPORTANCE OF THE TEXTILE AND GARMENT INDUSTRY TO THE ECONOMY OF PAKISTAN
DEVELOPMENT OF THE TEXTILE AND GARMENT INDUSTRY IN PAKISTAN
Knitwear
Bleaching, printing and processing
Setbacks and challenges
Balancing, modernisation and replacement (BMR) programme
Raw materials
PAKISTAN: GEOGRAPHICAL, POLITICAL AND ECONOMIC PROFILE
Geography
Political profile
Economic profile
PAKISTAN: INFRASTRUCTURE
Roads and highways
Railways
Ports and shipping
Airports
Dry ports
Energy
PAKISTAN: HUMAN RESOURCES
SIZE AND STRUCTURE OF THE TEXTILE AND GARMENT INDUSTRY IN PAKISTAN
TEXTILE AND GARMENT PRODUCTION IN PAKISTAN
Raw cotton
Raw material consumption
Yarn production
Fabric production
PRODUCTION TECHNOLOGY AND MACHINERY IN PAKISTAN'S TEXTILE AND GARMENT INDUSTRY
Government support schemes
PAKISTAN'S TEXTILE AND GARMENT EXPORTS AND IMPORTS
Exports
Raw cotton
Yarn
Fabrics
Garments
Made-up textiles
Artificial silk and synthetic textiles
Outlook
Imports
Textiles and garments
Textile machinery
TEXTILES AND GARMENTS IN PAKISTAN: FOREIGN INVESTMENT, GOVERNMENT
POLICIES AND FOREIGN INVESTMENT INCENTIVES
Foreign investment
Government policies
Trade policy
Export strategy
The Small and Medium Enterprise Development Authority (SMEDA)
Foreign investment incentives
THE TEXTILE AND GARMENT INDUSTRY IN PAKISTAN: STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS
Strengths
Weaknesses
Opportunities
Threats
IMPORTANCE OF THE TEXTILE AND GARMENT INDUSTRY TO THE ECONOMY OF PAKISTAN
DEVELOPMENT OF THE TEXTILE AND GARMENT INDUSTRY IN PAKISTAN
Knitwear
Bleaching, printing and processing
Setbacks and challenges
Balancing, modernisation and replacement (BMR) programme
Raw materials
PAKISTAN: GEOGRAPHICAL, POLITICAL AND ECONOMIC PROFILE
Geography
Political profile
Economic profile
PAKISTAN: INFRASTRUCTURE
Roads and highways
Railways
Ports and shipping
Airports
Dry ports
Energy
PAKISTAN: HUMAN RESOURCES
SIZE AND STRUCTURE OF THE TEXTILE AND GARMENT INDUSTRY IN PAKISTAN
TEXTILE AND GARMENT PRODUCTION IN PAKISTAN
Raw cotton
Raw material consumption
Yarn production
Fabric production
PRODUCTION TECHNOLOGY AND MACHINERY IN PAKISTAN'S TEXTILE AND GARMENT INDUSTRY
Government support schemes
PAKISTAN'S TEXTILE AND GARMENT EXPORTS AND IMPORTS
Exports
Raw cotton
Yarn
Fabrics
Garments
Made-up textiles
Artificial silk and synthetic textiles
Outlook
Imports
Textiles and garments
Textile machinery
TEXTILES AND GARMENTS IN PAKISTAN: FOREIGN INVESTMENT, GOVERNMENT
POLICIES AND FOREIGN INVESTMENT INCENTIVES
Foreign investment
Government policies
Trade policy
Export strategy
The Small and Medium Enterprise Development Authority (SMEDA)
Foreign investment incentives
THE TEXTILE AND GARMENT INDUSTRY IN PAKISTAN: STRENGTHS, WEAKNESSES, OPPORTUNITIES AND THREATS
Strengths
Weaknesses
Opportunities
Threats
LIST OF TABLES
Table 1: Pakistan: political and economic profile, 2009
Table 2: Pakistan: economic indicators 2006/07 and 2007/08
Table 3: Pakistan: number of composite mills and installed capacities, 2002/03-2007/08
Table 4: Pakistan: raw cotton production, 2002/03-2007/08
Table 5: Pakistan: raw cotton and man-made fibre consumption, 2002/03-2007/08
Table 6: Pakistan: yarn production, 2002/03-2007/08
Table 7: Pakistan: fabric production in the mill sector, 2002/03-2007/08
Table 8: Pakistan: textile and garment exports, 2006/07 and 2007/08
Table 9: Pakistan: raw cotton exports, 2000/01-2008/09
Table 10: Pakistan: raw cotton exports by leading country of destination, 2006/07-2008/09
Table 11: Pakistan: cotton yarn exports, 2000/01-2008/09
Table 12: Pakistan: cotton yarn exports by leading country of destination, 2006/07-2008/09
Table 13: Pakistan: cotton fabric exports, 2000/01-2008/09
Table 14: Pakistan: cotton fabric exports by leading country of destination, 2006/07-2008/09
Table 15: Pakistan: knitted fabric exports by leading country of destination, 2006/07-2008/09
Table 16: Pakistan: garment exports, 2000/01-2008/09
Table 17: Pakistan: woven garment exports by leading country of destination, 2006/07-2008/09
Table 18: Pakistan: knitwear exports by leading country of destination, 2006/07-2008/09
Table 19: Pakistan: made-up textile exports, 2000/01-2008/09
Table 20: Pakistan: bedwear (bedding) exports by leading country of destination, 2006/07-2008/09
Table 21: Pakistan: towel exports by leading country of destination, 2006/07-2008/09
Table 22: Pakistan: made-up textile exports by leading country of destination, 2006/07-2008/09
Table 23: Pakistan: artificial silk and synthetic textile exports, 2000/01-2008/09
Table 24: Pakistan: artificial silk and synthetic textile exports by leading country of destination, 2006/07-2008/09
Table 25: Pakistan: textile and garment imports, 2005/06-2008/09
Table 26: Pakistan: foreign investment in the textile and garment sector, 2000/01-2008/09
Table 1: Pakistan: political and economic profile, 2009
Table 2: Pakistan: economic indicators 2006/07 and 2007/08
Table 3: Pakistan: number of composite mills and installed capacities, 2002/03-2007/08
Table 4: Pakistan: raw cotton production, 2002/03-2007/08
Table 5: Pakistan: raw cotton and man-made fibre consumption, 2002/03-2007/08
Table 6: Pakistan: yarn production, 2002/03-2007/08
Table 7: Pakistan: fabric production in the mill sector, 2002/03-2007/08
Table 8: Pakistan: textile and garment exports, 2006/07 and 2007/08
Table 9: Pakistan: raw cotton exports, 2000/01-2008/09
Table 10: Pakistan: raw cotton exports by leading country of destination, 2006/07-2008/09
Table 11: Pakistan: cotton yarn exports, 2000/01-2008/09
Table 12: Pakistan: cotton yarn exports by leading country of destination, 2006/07-2008/09
Table 13: Pakistan: cotton fabric exports, 2000/01-2008/09
Table 14: Pakistan: cotton fabric exports by leading country of destination, 2006/07-2008/09
Table 15: Pakistan: knitted fabric exports by leading country of destination, 2006/07-2008/09
Table 16: Pakistan: garment exports, 2000/01-2008/09
Table 17: Pakistan: woven garment exports by leading country of destination, 2006/07-2008/09
Table 18: Pakistan: knitwear exports by leading country of destination, 2006/07-2008/09
Table 19: Pakistan: made-up textile exports, 2000/01-2008/09
Table 20: Pakistan: bedwear (bedding) exports by leading country of destination, 2006/07-2008/09
Table 21: Pakistan: towel exports by leading country of destination, 2006/07-2008/09
Table 22: Pakistan: made-up textile exports by leading country of destination, 2006/07-2008/09
Table 23: Pakistan: artificial silk and synthetic textile exports, 2000/01-2008/09
Table 24: Pakistan: artificial silk and synthetic textile exports by leading country of destination, 2006/07-2008/09
Table 25: Pakistan: textile and garment imports, 2005/06-2008/09
Table 26: Pakistan: foreign investment in the textile and garment sector, 2000/01-2008/09
