Status of Fabric manufacturing in Pakistan. Problems that Pakistan is facing. Status of Fabric import or export. Role of Government and Recommendations to improve current status.

1. NAME: M. Mubeen Afzal
REG. NO: 18-NTU-1485
Semester: BS-TMM 6th
Department: Faisalabad Business School
Assignment: 1st
TE-2112
Submitted To: Mam, Aima Sameen
Date: 25-04-2021

2. “Current status of Fabric Manufacturing in Pakistan”
Introduction:
The textile industry is the largest manufacturing industry in Pakistan. Pakistan is the 8th largest
exporter of textile commodities in Asia. Textile and Garments is considered the most important
sector of Pakistan’s economy with a 46% share of total manufacturing. Accounting for 67% of
exports, employment for 45% of the workforce and a 10.20% share in GDP confirms the
importance of this sector. Although Pakistan is the fourth largest cotton producer in the world
with strong spinning and weaving infrastructure. International brands working in Pakistan with
local textile mills are namely; H&M, Levi’s, Nike, Adidas, Puma, Target etc.
Industrial Scenario:
As mentioned by Chairman of All Pakistan Textile Mill Association, Textiles are the most
important industry in Pakistan. Pakistan’s textile industry, based on locally grown cotton, produces
cotton yarn, cotton cloth, and made-up textiles and apparel.
Industry Facts and Figures:
There are 423 textile industries working in the country. The industry consists of 11.3 million
spindles, 3 million rotors, 350,000 power looms, 18,000 knitting machines and processing capacity
of 5.2 billion square meters. It has about 700,000 industrial and domestic stitching machines.
Pakistan has 1221 ginning factories, 445 spinning mills, nearly 550 weaving units, over 700 textile
processing units and 5000 garment units.
Fabric Exports Analysis:
Export of $3.5 billion (6.5% of total exported cotton in world) in 2017-2018. Pakistan is the 8th
largest exporter of textile commodities in Asia. In the year 2017-18 Exports of textile sector grew
by $4.4 billion. The total exports of the country and contributes 8.5% of Gross Domestic Product
(GDP).
Issues Regarding Textile Manufacturing Sectors:
The main challenges are energy crises, fluctuating yarn prices, shortage of gas supply and load
shading, law and order situation, devaluation of Pakistani currency, lack of research and
development (R&D) institutions, lack of modern equipment and machinery and production cost.
Research& Development:
There has been a limited effort to improve the quality and quantity of textiles in Pakistan through
research and development, limiting the competitiveness of Pakistan's textiles in the global market.
In Pakistan, research done on small scale by private companies to invent modified cotton fibers.
Practically no efforts are being made by the APTMA in the R&D of the textile industry.
Labor Productivity: In Pakistan productivity of the labor is very low. According to a study
by Federal Adviser on textiles, the regional competitors of Pakistan take75 minutes to complete

3. and produce one piece of cloth whereas we take 133 minutes for the same work. We also waste
30% in finishing and 12% in washing. European buyers recommended that we should cut our costs
up to 45%in sewing by getting more efficient.
PoorInfrastructure:
The important resources and infrastructure, such as adequate of supply of water, continuous supply
of electricity and gas, efficient logistics and transportation, tax structure, raw material supply are
all basic requirements for the development of an industrial base. Although, all these factors are
affecting textile industries of Pakistan one way or another.
Unstable PoliticalSituation:
Political unrest, strikes and terrorism have critically affected the economy of Pakistan. Frequent
changing of the government has adversely affected the policies of the textile sector.
Impact of Covid-19:
The impact of the coronavirus pandemic on Asia's textile manufacturers has been unknown.
lacking sales, closed factories and lower wages are just some of the problems according to a new
ILO report. For the textile industry, this meant less work and less income. Thousands of factories
were closed down, initially because of regulations to fight the pandemic.
 The data shows that the textile shipments have surged by 3.8 per cent to $4.8 billion
between July and October from $4.6bn a year ago. The rise in the textile and clothing group
has been a faster than the 0.6pc growth in the overall export. The export recovery is in the
knitwear, home textiles and denim segments.
 There is also a significant decline in certain cases in the shipments of the basic textile
commodities such as yarn and grey cloth, indicating that the country is exporting more
value-added products than ever before.
 The garment sectors share of exports of Pakistan in 2019 was 60%.
Role of Government:
The government has recently announced an energy package for the industry to help the exporters
recuperate from the Covid 19 shock. The package does away with peak electricity rates, offers
reduced tariffs on additional power consumption, and fixes power price at $0.07 a unit and gas
tariff at $0.065mmbtu for the export industries.
Recommendation’s:
There is an urgent need to increase textile production and capacity especially in the blended
sector. Blended products made boom at combination of natural and man-made fabrics are
preferred in clothing over the world. The textile Board should establish a separate training wing
as a Center of Human Resource Development where training courses should be conducted for
the capacity building of labor. There is also an urgent need to increase the number of such
vocational institutions where modem technical education is provided.