Value addition remains the only viable
path for the textile industry
In our previous issue,
we provided our readers with a compendium of the annual textile
statistics and analysis that covered the last fiscal year from
July 2018 to June 2019. 2020 brings unique challenges for our
textile industry. It is evident that during first 7 months
export growth in the value added sectors show a promise of
The apparel sector, is
leading the growth with a total increase of 8.4% from US$3.24
Billion to US$3.5 Billion in the first seven months of the
current fiscal year 2019-20 July 2019 -Jan 2020.
The ready made garments
accounted for 48% of total apparel exports for the said period.
Exports increased by 10.84% from $1.51 Billion to $1.68 Billion.
The readymade garments sector incorporates the denim exports as
well which is a thriving sub-sector of Pakistan’s textile
The knitwear sector had
a growth of 6.27% for a total of $1.84 Billion. The unit value
of knitwear export is very low at US$25.25 /dozen. Significant
investment has taken place in the knitting sector in the last
three years. Import of of knitting machines in Pakistan
increased from Rs 1969 million in 2016-17 to Rs 4509 million in
2018-19, thus showing a remarkable increase of 128%.The raw
material for the knitting sector is cotton yarn which is at the
moment facing declining exports and therefore a strong knitwear
sector is a blessing for the local spinners. Pakistan’s share in
the global knitting sector remains negligible despite growth in
During last seven months
(July 19-Jan 20) growth in the bedware sector have remained 2.7%
in value and 9.78%n terms of quantity for a total exports of
$1.39Billion. Unit value of bed ware exports decreased by
6.38% in the same period.
Towel industry faced a
decline of 0.5% in exports in terms of value and 6.3% in terms
of quantity. In terms of value effectively the status quo has
been maintained in the first seven months. The growth has been
practically stagnant in the towel sector.
The textile industry of
Pakistan is struggling to survive facing intense global
competition. The situation is far from satisfactory. The only
way forward is to strive for the highest value addition through
continuous R&D, brand development and marketing as well as
investments in lean and efficient manufacturing facilities. The
GSP Plus duty free status given to Pakistan by the EU in 2014
gave a much needed boost which is due for appraisal and
renewal. Hopefully Pakistan will be able to maintain this vital
benefit to our textile industry through diligent compliance of
the social and environmental treaties ratified by Pakistan.
The current issue
devoted the apparel and knitwear with detailed analysis of the
current status of these high value added sectors. Also as an
excellent example of excellence, a special report on Archroma
Pakistan can found in this issue highlighting their commitment
and invaluable contribution to the value added textile sector.