Importers and industrialists are reluctant to import textile machinery due to non-announcement of a proposed textile package by the Government. Official statistics show that country’s textile machinery imports stood at $356.58 million during the first eight months (July-February) of current fiscal year against $536.03 million imports during the same period of the last fiscal year, thus showing decline of 33% or $179.454 million during July-February 2007. New investment in the textile sector has also plunged and now textile industrialists are waiting for the textile package they expect, may allow  textile machinery import at zero rates.

In the mean time Government is considering waiving off import duty on water jet looms in a bid to encourage production of polyester fabric by the local industry and the enhance the country’s share in women fashion garments in the international market. Around 60% of world’s fashion garments consist of women’s wear and 40% men’s garments, while majority of local garments’ manufacturers deal in men’s fashion garments. This leaves 60% share of the world’s apparel market untapped.

Most of women’s fashion garments are prepared of such fabrics which are a blend of polyester or manmade fibre and cotton at a ratio of 70:30 in other countries of world, whereas - in Pakistan the mixing ratio is 30:70.  It may be noted that water jet looms are used in the production of manmade or polyester fibre, whereas installation of high-productive water jet looms used in the production of blended or polyester fabric is limited in the country due to multiple reasons.

The size of world textile and apparel market is considered $350 billion to $400 billion, which is likely to expand $800 billion by 2014, whereas the share of Pakistan is only 1.5% in world apparel trade conducted by developing economies. In post-quota regime China and India have emerged as major players in textile and garments and it is anticipated that by 2010 China may capture more than  50% share while India would be second with about 25% share in world’s textile and apparel market.

The weaving sub-sector has about 115,000 shuttle-less/Air jet looms and 250,000 conventional looms. Some of the units, which have water jet looms, are located in Karachi and Gujranwala whereas in other cities like Faisalabad and Lahore, the use of conventional or shuttle looms is common which are less productive and consume much electricity as compared to water jet and air jet looms.

Sources in the textile industry said that the textile industry was permitted to import water jet looms at zero rates under Duty and Tax Remission on Exports (DTRE) scheme, they have to deposit equal amount with banks as bank guarantee. As the weaving sector of the country has a lower capacity and is not as much developed as the spinning sector, the Government is endeavouring to support enhancing its capacity.

During the past five years remarkable progress of the power looms sector was made in the country, due to favourable Government policies as well as market forces. Import of shuttle-less looms increased from Rs.3.88 billion in 2002-03 to Rs 8.52 billion in 2005-06, thus showing an average increase of 24% per annum.

The industry produced 2.5 million tonnes of yarn and about 925 million sq meters of fabrics (Mill-sector) during the year 2005-06. Cotton fabric exports have shown an increase of 21% in quantity with respect of last year and an increase of 9% in value terms, reaching an export figure of US$ 2.1 billion.

Yarn is a semi raw material, used in the weaving of fabric that fetches low foreign exchange as of finished fabric or readymade garments which is considered a high value-added form of yarn. The rise in exports of cotton yarn is not good for local value-added sector, so the textile Ministry is striving hard to chalk out alternate sources like women fashion garments in order to cater to the world textile and apparel market.