TEXTILE
IMPRESSIVE PERFORMANCE

Industry are of the view that the textile exports would continue to grow

By AMANULLAH BASHAR
May 19 - 25, 2003
   

Cotton and textile sector, the mainstay of Pakistan's economy has so far produced unprecedented results and is sure to achieve new heights in the export regime at the end of the current financial year next month.

The entire cotton and textile sector including cotton yarn, fabrics, towel, bed wear, knitwear and garments bettered the performance of the previous year and the overall exports earnings by all these segments of the cotton regime are likely to culminate somewhere $7 billion during the years.

So far, during the 10 months of the current financial year from July 2002 to April 2003 this sector earned around $5.644 billion as compared to 4.661 billion in the corresponding period of last year which shows an increase of 21.1 per cent over the previous year.

Area wise export performance of the first 10 months shows that cotton yarn gained by 3.2 percent to $792 million, cotton fabrics showed growth of 16.3 per cent to $1.05 billion, knitwear earned $875 million indicating growth of 30.4 per cent and bed wear fetched $1billion indicating growth of 37.2 per cent, towel exports increased by 30 per cent and ready-made garments earned $880 million against $709 million in the corresponding period last year. Active players in the industry are of the view that the textile exports would continue to grow even after the implementation of WTO rules bringing an end to textile quota regime in 2005. Their assessment for textile growth was based on the changing scenario of textile industry in the developed world including US and Japan which getting out of the textiles to hi-tech industries.

With the increase in exports, the demand for raw cotton was naturally increased in the country. However, the farming sector producing better cotton crop over 10 million bales to cater to the needs of the industry. It is surprising to note that even drought like conditions persisting over the last three years; the overall agriculture output including cotton produce registered a better yield.

Commenting on the situation, Akbar Hashwani, President Karachi Cotton Association observed that the drought conditions in a sense proved as the blessing in disguise, as the shortage of water resulted lowering the water-table which helped improving per acre yield of the water-logged agriculture lands.

Currently, the textile industry is engaged in diversifying the range of products as well as enhancing value addition of the cotton produced in the country. Presently there are 419 registered textile units comprising of 322 spinning units, 44 weaving units and 53 composite units. The textile industry contributes over 60 per cent to Pakistan's exports, over 38 percent to employment and over 20 per cent to value-added production by manufacturing.

Importance of Textile Sector

From almost non-existence at the time of creation of Pakistan in 1947, the textile industry has grown into the largest and most significant economic sector of Pakistan. It contributes over 60% to Pakistan's exports, over 38% to employment and 20% to value-added production by manufacturing. This domination role of the Ttextile sector in the economy of Pakistan, for better or worse will continue till such time that other economic activities achieve significant growth and development. The industry will continue to play an important role in economy of Pakistan for the following reasons:

Pakistan is one of the four largest cotton growers in the world. Availability of large quantity (around 10 million bales per annum) of reasonable quality is the basis of the development and sustenance of the local Textile Industry.

Textile industry is labour-intensive. Pakistan, has the advantage of a large labor force with one of the lowest wages in the world.

Textile production will continue to grow in the developing countries since the developed countries are giving it up in favor of more technology-oriented and value-added economic activities.

THE BREAK-UP

.

.

INSTALLED CAPACITY (IN 000)

WORKING CAPACITY (IN 000)

Period Units

Spindles Growth

%

Rotors Growth

%

Looms Growth

%

Spindles Growth

%

Rotors Growth

%

Looms Growth

%

1981-82

210

4,229

4.86

23

21.05

25

0

2,832

-0.04

19

26.67

13

0

1982-83

215

4,313

1.99

27

17.39

24

-4.00

2,986

5.44

25

31.58

12

-7.69

1983-84

216

4,272

-0.99

29

7.41

24

0

2,919

-2.24

23

-8.00

11

-8.33

1984-85

219

4,445

4.05

29

0

23

-4.17

2,872

-1.61

21

-8.70

10

9.09

1985-86

227

4,485

0.90

37

27.59

19

-17.39

3,151

9.71

25

19.05

9

-10.00

1986-87

226

4,356

-2.88

48

29.73

17

-10.53

3,469

10.09

40

60.00

8

-11.11

1987-88

224

4,393

0.85

55

14.58

16

-5.88

3,607

3.98

46

15.00

9

12.50

1988-89

247

4,853

10.47

66

20.00

17

6.25

4,026

11.62

60

30.43

9

0

1989-90

266

5,271

8.61

72

9.09

16

-5.88

4,489

11.50

64

6.67

8

-11.11

1990-91

277

5,568

5.63

75

4.17

15

-6.25

4,827

7.53

67

4.69

8

0

1991-92

307

6,216

11.64

81

8.00

15

0

5,333

10.48

67

0

8

0

1992-93

334

6,860

10.36

95

17.28

14

-6.67

5,520

3.51

79

17.91

6

-25.00

1993-94

471

8,419

22.73

138

45.26

14

0

6,105

10.60

84

6.33

6

0

1994-95

494

8,610

2.27

132

-4.35

14

0

6,262

2.57

74

-11.90

5

-16.67

1995-96

503

8,717

1.24

143

8.33

13

-7.14

6,548

4.57

80

8.11

5

0

1996-97

440

8,230

-5.59

143

0

10

-23.08

6,538

-0.15

87

8.75

5

0

1997-98

442

8,368

1.68

150

4.89

10

0

6,631

1.42

80

-8.05

4

-20.0

1998-99

442

8,392

0.48

166

11.41

10

0

6,671

0.57

66

-16.46

5

25.0

1999-00

443

8,477

1.01

150

-9.64

10

0

6,825

2.31

66

0

4

-20.0

2000-01

444

8601

1.46

146

-2.67

10

0

6913

1.29

70

6.06

4

0

2001-02

445

8819

2.53

142

-2.74

10

0.00

7189

3.99

65

-7.14

5

25.00