Pakistan's Textile Vision 2005-2010 envisages an
investment of about Rs300 billion with a raise in export of textile
products to above $16 billion per year (from present about $7 billion)
during the next five years.
The All Pakistan Textile Mills Association (APTMA)
experts claimed that they have made realistic projections on the basis
of an in-depth study of the textile sector which is of course the
mainstay of our economy.
The assessment has been carried out on the basis of
(a) historic expansion in the textile industry in Pakistan, (b)
relocation of textile industry from high cost to low cost countries,
i.e. China, Pakistan and India, (c) increased market access in EU, USA
and Canada, (d) better revealed competitive advantages of Pakistan,
(e) historic growth in domestic consumption of textile products i.e.
yarn and fabrics, and (f) since textile industry is being relocated
from developed countries, demand of basic items is increasing in these
The textile experts are of the view that under
globalization, textile industry is being relocated to cost competitive
areas. Therefore, value addition in textile would take place where
strong basic textiles exist. Therefore, textile industry and exports
will expand in China, Pakistan and India. According to them Pakistan
textile industry is relatively less sheltered (i.e. tariff protection
and subsides); enjoys an edge in technology i.e. western technology;
better cotton yield per hectare than India; an opportunity to attract
relocation of American, Korean and European textile industry;
prospects of converting US cotton in Pakistan for export of textiles
under duty free access under TIFA/FTA; and view prospects of alliances
with Sri Lanka and Bangladesh.
The experts estimated that cotton consumption would
reach 17 million bales and consumption of man made fabric (MMF) would
be around 1 million tons during the next five years. They foresee yarn
1. Export of
yarn 11 percent
Ready-made garments 30 percent
Knitwear 22 percent
Bed wear sector 28 percent
Towel and other made ups 11 percent
GROWTH RATES FOR 5 YEARS
1. Man made
fabric production 11.1 percent per annum
Spinning production) 6 percent per annum
Weaving production 11 percent per annum
Finishing production 11 percent per annum
5. Knitwear exports 30 percent per
Ready-made garments exports 6.85 percent per annum
FUTURE PROSPECTS (2010)
consumption is projected to increase to 3.9 million tonnes — cotton
2.9 million tonnes, MMF 1 million.
Production of basic textiles will increase.
addition in basic textile products.
of basic textile will decrease i.e. domestic consumption of these
products will increase.
Distribution of yarn will change in favor of value-added sector, and
exports of value-added textile will increase.
The experts said that these growth rates have been
estimated on historic performance of production and exports of
textiles. Certain growth rates are based on exports performance under
availability of market access to value-added sector.
They expect that exports in basic textile would
decrease as local consumption in these sectors is on the rise.
The experts said they were confidant that exports
of bedwear, knitwear and ready-made garments would also show good
potential for growth and it is expected that these sectors would gain
in exports. The quantum of exports expected from each sector is:
spinning $600 million; weaving $800 million; bedwear $3000 million;
knitwear $3500 million; ready-made garments $2500 million; finishing
$2500 million; other made ups $3500 million.
INVESTMENTS EXPECTED TO BE MADE TILL 2010
Spinning Rs154,000 million
Weaving Rs3,450 million
Knitwear Rs11,640 million
Ready-made garments Rs13,290 million
The experts said that the present structure of
textile industry is unbalanced in favor of basic textiles and 35
percent of the textile exports are in basic products. They said that
"Textile Vision 2010" lays stress on value addition in basic
textile products which is not difficult to achieve with the reigning
upbeat mood of the textile industry.
Though the Textile Vision 2005-10 focuses on value
addition and quality of the textile products which are the most
significant areas and can help meet WTO challenges and hitting the
targets of the textile vision, yet another area which is equally
important to survive amidst the cut throat competition in the world
market especially to cope with the onslaught of cheaper textile
products from China and India. It is high time that our industry
should take concrete steps to put the textile industry on the track of
economic scale which is the open trade secrete to bring down the cost
of production and thus survive in the world market.