What's the future of the textile industry in Pakistan?
Pakistan has the biggest share in the textile sector and around 70% of the textile industry is based in the province of Punjab and Faisalabad city is believed to be the hub. Pakistan is the 8th largest exporter of textile products in Asia. It is the 4th largest producer and 3rd largest consumer of cotton. With all these achievements, the future of the textile industry can't be dark anymore but what are some of the problems? How will these problems be solved? What should be done to bring this industry back on its feet?
There are many elements involved in bringing a textile product from design to selling it. But there are four primary players involved: (1) a designer is responsible for creating a new design and ensuring its unique quality, (2) fabric manufacturers create high-quality cloth or yarn from cotton or synthetic fibers, (3) product finishers take final steps that are not part of traditional manufacturing processes and make sure that every item meets quality standards, and (4) retailers bring products to market and sell them to consumers.
The Industry Today
The textile sector is an important source of earning foreign exchange for our country. In recent years, there has been a noticeable improvement in trade imbalance due to increased exports and a decrease in imports.
The Issues
The government introduced a 10 percent tax on readymade garments (RMG) to encourage local manufacturing. In July 2013, President Asif Ali Zardari inaugurated his country’s biggest-ever industrial park, which was expected to create an estimated 500,000 jobs by 2016. But these steps have done little to address labor exploitation and environmental degradation. Efforts are being made to enforce stricter environmental and safety regulations but industrial pollution is still common throughout Pakistan.
The Future
Despite rising labor costs, increased competition, and a fragile political climate, demand for Pakistani textiles is expected to continue to grow. The textile sector also represents an important export opportunity for other countries within South Asia. This region is home to some very large markets that need to be tapped into by exporting Pakistani textiles from Faisalabad city. These markets are easily accessible via established trade routes.
A Look at Pakistan's Textile Industry
Pakistan’s textile industry has undergone tremendous growth in the past couple of decades. From being one of the poorest countries in the world, Pakistan now exports fabrics and clothing worth billions of dollars each year. With its abundant supply of raw materials and steady demand in international markets, Pakistan has become an important player in this competitive business of creating clothing. Here are some interesting facts about Pakistan’s thriving textile industry that you should know if you’re considering manufacturing in Pakistan.
Pakistan’s textile industry is one of its major exports. The textile industry has a domestic supply base, meaning it can be self-sufficient and produce raw materials. In 2012, Pakistan exported $18 billion worth of textiles. This was about 30% of its total exports for that year. Pakistani textiles have an excellent reputation for quality in both developed and developing countries around the world; countries like China, India, and Turkey imports from over 300 Chinese manufacturers.
The Powers
The textile industry in Pakistan is one of its economic pillars. The industry has exhibited solid growth over time and is projected to continue to do so. Growth projections for various sectors within textiles (such as cotton yarns, natural and synthetic fiber yarns, synthetic fabrics) are all positive. The strong expansion of both domestic and export markets for finished textiles keeps businesses optimistic about prospects.
The Opportunities
Pakistan is an extremely diverse country, but one of its most important characteristics is its diversified manufacturing industry. The textile industry leads in terms of sector size in terms of both value and volume. It generates about 35% of export revenue with a total export volume of US$12 billion. 423 textile industries are working in the country. There are many export markets for textiles, including the USA, UK, Germany, Spain, Italy, and Australia.
Challenges
The textile sector is facing challenges on several fronts. Poor infrastructure, high energy costs, and a lack of access to world markets are making it difficult for Pakistan’s textile companies to compete globally. Additionally, with so many mills currently in operation, adding any more would make it increasingly challenging for them to scale up and grow into larger enterprises.
Conclusion
The textile industry is an important sector of the economy which plays a vital role in employment and earning foreign exchange. Over 20% of the population is engaged in textile industries. The main producers are cotton, wool, silk, and jute. Moreover, it makes it possible to achieve national targets set by the Sixth five-year plan and therefore contributes towards economic growth. As there exists ample capacity for more textile units to be set up, the need is growing for sophisticated machinery as well as raw material such as yarns and fabrics to increase textiles production capacity both for the consumer and industrial sector.
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