• Textile is a term that comes from “texere”which is a Latin word, that means “to weave”.• A cloth, especially one manufactured byweaving or knitting; a fabric.About Textile
• The textile industry is often considered thebackbone of the Islamic Republic of Pakistan’seconomy.• Pakistan’s textile Industry is the fourth LargestCotton Producer.• 6th largest importer of raw cotton• The Third largest ConsumerIntroduction
INTRODUCTION• The textile industry contributes approximately 46percent to the total output or 8.5 percent of thecountry GDP.• In Asia, Pakistan is the 8th largest exporter oftextile products providing employment to 38percent of the work force in the country.
Value chain of textile industryRAWMATERIALTEXTILE PLANTSSPININGWEAVINGDYINGPRINTINGACCESSORIESAPPARELPLANTSDISTRIB.CENTRESRETAIL STORESCUSTOMERS
OVERVIEW• Pakistan’s textile industry ranks amongst thetop in the world. Cotton based textilescontribute over 60% to the total exports,accounts for 46% of the total manufacturingand provide employment to 38%manufacturing labor force. The availability ofcheap labor and basic raw cotton as rawmaterial for textile industry has played theprincipal role in the growth of the CottonTextile Industry in Pakistan.
HISTORY OF TEXTILE IND.PIDC came into being which had themain objective of industrializing thecountry in major fieldsThe modern development of the sectorstarted in 1953 with the inauguration ofthe Valika textile Mill at Karachi.Pakistans industrialization began inthe 1950s with the textile industry atits center1950’s
HISTORY OF TEXTILE IND.New private investment began with ahighly protected home marketNewly established mills were based uponimported technology but there was a lack oftechnical staff and shortages of capital.By mid sixties there were about 180units of textiles bleaching, printingand processing units, mostly situatedin Karachi and Punjab.1960’s
HISTORY OF TEXTILE IND.After the separation of East PakistanCotton Export Corporation of Pakistanwas established which meant that mostof the private sector work was takenover by the state.The textile industry suffered heavy lossesbecause the export of cotton wascontrolled by the CECBy 1970-71 there was 113 textile unitsand the industry had 2,605 thousandspindles and 30 thousand looms1970’s
HISTORY OF TEXTILE IND.There was a rapid growth in spinningsector.Till 1980-81 spinning continued toexpand.The eighties brought a relief to thetextile industry due to the boom ininternational market and industryfriendly policies of the government.1980’s
HISTORY OF TEXTILE IND.World demand for good quality, widewidth fabrics grew and replacementand a modernization process started.Machinery for producing garments andmade-ups was also freed from importduty. As a result, a huge expansion in thespinning sector took place in the first fiveyears of the 1990s.The number of units rose to 440 in1996-971990’s
HISTORY OF TEXTILE IND.Textile exports managed to increase at avery decent growth of 16% in 2006.Textile exports share in total export ofPakistan has declined from 67% in 1997to 55% in 2008, as exports of other textilesectors grewTextile exports in 1999 were $5.2billion and rose to become $10.5billion by 2007.1999 to2008
HISTORY OF TEXTILE IND.textile industry is being hit hard due toongoing energy crisis, depriving the gassupply to the textile units for three daysa week.Pakistan’s cotton cultivation has declined dueto several factors ranging from cultivation oftraditional varieties and via traditionalmethods, poor marketing, and failure inmaking timely payments to cotton producers.The textile industry employs almost 40percent (2008-09) of the industrialworkforce2009
HISTORY OF TEXTILE IND.Significant changes to the general salestax (GST) on industrial sector includingtextiles(APTMA) had prepared a based report for thefederal government in which it has beenprojected that the textile industry exports wouldcross over $16 billion compared to its presentlevel of around $8 billion.2010
HISTORY OF TEXTILE IND.Energy crisis leaves Pakistan textiles intattersTextile exports stood at $12.5 billionfrom July 2010 to May 20112011
HISTORY OF TEXTILE IND.10 percent of the spinning mills andfabric printing units have shut down,and half of the remaining plants arestruggling to survivethousands of textile workers poured outonto the streets of the city, burned tires,and shouted slogans against thegovernment.Pakistan’s $13.8 billion textile industryis struggling to survive a criticalshortage of energy to run its plants.2012
HISTORY OF TEXTILE IND.Textile millers, workers in gas protest2013
IMPORTANCE OF TEXTILE INDUSTRY INECONOMIC SECTOR• Pakistan’s economy relies heavily on its cottonand textile sectors.• The cotton-processing and textile industriesmake up almost half of the country’smanufacturing base, while cotton is Pakistan’sprincipal industrial crop, supplying criticalincome to rural households. Altogether, thecotton-textile sectors account for 11 percentof GDP and 60 percent of export receipts.
TEXTILE SECTOR’S CONTRIBUTION TOTHE ECONOMY OF PAKISTAN• According to the economic survey of Pakistan2008-09 the Pakistan textile industrycontributes more than 60% to the countrytotal exports, which amounts to around 5.2billion US dollars.• According to the 2012 Economic Survey ofPakistan, issued by the finance ministry, thetextile industry itself constituted about 4% ofthe total size of the economy.
TOP BUYERS OF PAKISTANI TEXTILEGOODS ARE• USA, EU, Gulf region, UK, HongKong, Japan, Korea, SaudiArabia, Italy, Turkey, Germany, Norway, France, Canada, Sweden, Australia, etc.
IMPORTANCE OF TEXTILE SECTOR• In asia pakistan is the 8 largest exporter of textileproducts• Cotton is the basic Cash crop of Pakistan.• Textile products are one of the essential and basichuman requirement next to food.• Pakistan is the 3rd largest exporter of raw cotton
IMPORTANCE OF TEXTILE SECTOR• Cheap labor and Raw cotton are available.• It provides employment to 38% of the work forcein the country which amounts to a figure of 15million. However, the proportion of skilled labouris very less as compared to that of uskilled labour• 2nd Largest supplier of cotton yarn with 26%share of the international market.
FORWARD AND BACKWARD LINKAGEBACKWARD LINKAGEThe backwardlinkage of textilesector is inagricultural sector.FORWARD LINKAGEThe forward linkageincludes finishedgoods and like knittedand readymadegarments
FACTORS OF PRODUCTION• Cotton is an economic asset of Pakistan, it isa natural fiber used primarily as a raw materialin textile industry.• The World cotton production is estimated at118.8 million bales in 2007-2008.
COTTON• Leading produces of cotton include USA,China, India, Pakistan, Uzbekistan and turkey.• Both Punjab and Sindh are the major cottongrowing provinces, where as N.W.F.P is notknown for growing cotton production.
FIBER• Cotton was primarily used as a raw material inyarn manufacturing but the growing demandfor blended yarn and fabrics has shifted theraw material source towards the manmade orsynthetic fiber in Pakistan.• Pakistan usage is currently at 74% cotton and26% manmade fiber, whereas the world fibermix is 45% cotton and 55% non-made fiber.
SPINNING• Spinning is the process of converting fibersinto yarn.• The fibers maybe natural fibers such as cottonor man made fibers such as polyester.• Sometimes , the terms spinning is also usedfor production of manmade yarn (that is notmade for fibers).• What so ever is the case the final product ofspinning is yarn.
SPINNING CONSIST OF• Blowing and mixing• Carding• Combining• Drawing• Simplex• Ring Spinning• Cone Winding
WEAVING• weaving sector is one of the most importanttextile sub sector.• The exports of woolen fabrics and otherrelated woolen made-ups from a majorportion of textile exports from Pakistan.• Weaving is a process which turns yarns intocloth.• The machine used for weaving is the loom
Weaving comprises on :• Wrapping• Sizing• Weaving
COTTON GINNING SECTOR• Leading producers of cotton includeUSA, china, India, Pakistan, Uzbekistan and turkey. Thecurrent market share of cotton in 56 percent in allfibers. Textile fibers are divided into three basic typesaccording to their sources such as cotton fiber, manmade fiber and wool.• There are 1221 ginning factories in the country.• Ginning industry has installed capacity of more thanone million bales on a single shift basis and totalcapacity of around 20million bales on three shift bases.
COTTON SPINNING SECTOR• Pakistan has the third largest spinning capacity inAsia with a spinning capacity of 5% of the totalworld and 7.6% of the capacity in Asia.• Pakistan growth rate in this sector has been 6.2%per annum.• At present, cotton-spinning sector is comprised of421 textile units (50 composite units and 471spinning units) with 10.1 million spindles and 114thousand rotors in operation with capacityutilization of 89 percent and 60 percentrespectively, during July-Mar 2007-08
WEAVING & MADE-UP SECTOR• There are three different sub-sectors in weavingi.e, Integrated, independent Weaving Units, andPower Loom Units.• This sector is producing comparatively low valueadded Grey Cloth of mostly inferior quality.• However, the performance of cloth sectorremained far better than last year and charted agrowth of 12.6 % during July – March 2007-08 .
Textile Value Chain Process• Cotton value chain starts from Ginning that adds valueto it by separating cotton from seed and impurities.• But Spinning can rightly be called as the first processof the chain that adds value to cotton by convertinginto a new product i.e. conversion from ginned cottoninto cotton yarn.• Since spinning is in the beginning of value chain, so allthe later value added processes of weaving, knitting,processing, garments and made-ups manufacturing aredependent upon it.
Textile Value Chain Process• If spinning industry produces sub-standard yarn, itseffect goes right across the entire value chain.• The spinning sector forms the heart of the textileindustry. This sector produces yarn for downstreamsectors, namely weaving, processing and knitting.• Pakistan is the third largest player in Asia with aspinning capacity of 5% of the total world and 7.6% ofthe capacity in Asia.• Pakistan’s growth rate has been 6.2% per annum andis second only to Iran amongst the major players.
TEXTILE NEWS• Textile industry of Pakistan worst hit bypower cuts“The energy crisis has forced the textile millsto close their units, especially in Punjab theindustry is under severe pressure. ChairmanAPTMA Punjab, Shahzad Ali Khan, said dailyelectricity load shedding has increased to 12hours.”
• “The Pakistan textile industry contributesmore than 60 percent (US $ 9.6 billion) to thecountry’s total exports. However, currently thisindustry is facing great decline in itsgrowth rate. The major reasons for this declinecan be the global recession, internal securityconcerns, the high cost of production due toincrease in the energy costs etc.”
‘’A spokesman for the All Pakistan Textile MillsAssociation (APTMA) claimed that 60 to70 per cent of the industry had been affectedand was unable to accept export orders comingin from around the globe, as a result of gasload shedding ‘’
PROBLEMS FACED BY TEXTILEINDUSTRY• Lack Of Research And Development In CottonSector• Lack of Modernize equipment• Finance bill to burden industry further• Increasing cost of production• Internal issues Pose a Larger Threat forPakistan’s Textile Industry• Effect of infaltion
PROBLEMS FACED BY TEXTILEINDUSTRY• Energy crisis• Electricity crisis• Gas shortage• Tight monetory policy• Removal of subsidy on textile sector• Lack of new investment• Raw material prices• Export performance of textile sector
SPECIAL ORGANIZATION• All Pakistan Textile Mills Association (APTMA) isthe chief organization that determines the rulesand regulations in the Pakistan textile industry.• APTMA is the premier national trade associationof the textile spinning, weaving and compositemills.• APTMA represents 391 textile mills out of which309 are spinning, 45 weaving and 37 compositeunits
HUMAN RESOURCE• The textile sector employs 45% of overall laborforce, with 38% of the manufacturing Workersemployed under textile sector.• Pakistan has the advantage of cheaper labor ascompared to its competitors, but unfortunatelythe labor productivity is very low.• There are hardly any training programs todevelop the skills of labor hence, the craftsmenentirely depend upon thier inherited skills withno advancement and movement towardstechnical knowledge.
CLIMATIC CONDITION Although Pakistan has the ideal climaticconditions for the growth of cotton providing afactor advantage to the textile industry, but it isalso quite vulnerable to pesticides that can lowerthe yield per hector.The textile sector is largely dependent on thesupply of raw material of the agricultural sectorand hence whatever happens to the agriculturalsector like floods will adversely affect the textileindustry rendering it even more vulnerable toenvironmental conditions.
TRAINING• Limited availibility of trained technical staff to maintain andrun machinery at full efficiency is a constraint upon thedevelopment of Pakistan’s textile industry.• This shortfall is partly due to a lack of technical educationfacilities.• Some of the developments in the textile industry include:Advances in ring spinning, computerized dyeing andfinishing, computer-aided designing , manufacturing anddevelopming retailing links hence, all these demand newand greater skills and Pakistan lacks it.
EDUCATION• Education is essential for the development of thetextile industry. Even if the basic factors are present,unless value-addition is not done on them, they willnot be productive enough.• Even if there is not enough production a country couldstill manage through research and development.• A recent survey shows technical manpowerrequirement is 12,750 graduates whereas total numberof technical personnel available up tp 2003 was approx.7,950, so there is a shortage of 4,800 graduates intextile science.
Textile Industry Pros And ConsPakistan has theadvantage of cheaplabor as compared toits competitors, butunfortunately thelabor productivity isvery lowADVANTAGEThere are hardly anytraining programs todevelop on the skillsof these labors andthe craftsmen dependupon their inheritedskills with noadvancement andDISADVANTAGE
STRENGHTS• Self reliance• Manufacturing flexibility• Abundance of raw material production 32• Design expertise• Availability of cheap labour• Growing economy and domestic market• Progressive reforms
WEAKNESSESResearch & Development (R&D)Developed countries are using the technology ofbiotechnology and genetic engineering to increase the qualityand quantity of their cotton production. In Pakistan, there isvery some research done on small scale by private companies.Practically no efforts are being made by the APTMA in theR&D of the textile industry to enhance the quality of itsproducts.
WEAKNESSES• Highly fragmented sector• High dependence on cotton• Lower productivity• Declining mill segment• Technological obsolescence• Non‐participants in trade agreements
WEAKNESSESPoor quality standards.Pakistan’s textile industry should focus onlatest material handling techniques andshould train workers. The inability to timelymodernize the equipment, machinery andlabor has led to the decline of Pakistani textilecompetitiveness
THREATSNew competitorsPakistan is facing new competitors in textile sector such asBangladesh, Vietnam and Turkey. Though we cannot avoidcompetition but we can always stay ahead of them byreforming our strategies and educating our entrepreneursso as to move one step forward in every aspect.Phasing out of quota systemAs the quota system is ruled out by WTO, there is a threatby the Chinese and Indian manufacturers to gain most ofthe market share. We have high costs, low laborproductivity and inefficient production processes.
THREATS3. Fashion life cycleFashion changes day by day these days. Media has so muchpenetrated in our daily lives that we easily adapt ourselvesas it wants us to. This has resulted in shortening the fashionlifecycle thus increasing the fashion risk.Now the buyer does not want to wait long for hisconsignment because he is insecure that by the time it willreach to him he will lost its demand due to change infashion. Therefore, they prefer to buy from neighboringcountries even at higher cost to get their products instantlyrather than to wait weeks or months for their consignmentsto reach them.
• Stiff competition from developing countries;especially China and India.• Pricing pressure• Locational disadvantage• International labour and environmental laws
ENVIROMENTAL ISSUES• Textile industry is associated with someenvironmental issues some of them are:• Large volumes of water.• Usage of complex chemicals.• Discharge of untreated effluent• Water Pollution.• Air Pollution.• Labours concern.
RECOMMENDATIONS• Remedy Though Foreign Direct Investment (FDI)• Image Building Of Pakistan To Attract Foreign DirectInvestment (FDI)• Focus On Value Addition• Technology Up-gradation & Capacity Building• Human Resources Development• Subsidy Removal Should Be Taken A Back• Interest Rate Should Be Low Down In Order ToSurvive This Industry• Electricity & Gas Tariff
RECOMMENDATIONS• Removal of Energy Crisis• Exploration of new Export Markets• Reducing the cost of doing Business in Pakistan• Need for Improving Textile Production• Improvement in productivity• Awareness of International Quality Standards• Introducing concept of on-the- job-training• Introducing efficient management techniques
CONCLUSIONTextile industry is the backbone of the Pakistan’seconomy. The textile industry of Pakistan plays animportant role in earning foreign exchange,providing employment to the country. Pakistan’s textileindustry is going through one of the toughest periods indecades. Our textile sector needs to capitalize on thenew emerging opportunities by adhering to globalbest practices, adapting rapidly changing technologies,better supply chain management whiletrying to reach global value chains.