Musharraf Era Textile Boom Returning to Pakistan?

Pakistan textile industry is booming with exports soaring 27% to more than $6 billion in the first four months (July-October) of the current fiscal year. “We believe that $5 billion investment (in textile industry) in the Musharraf era would be matched in the next six to eight months”  says Zubair Motiwala, a leading textile industrialist and chairman of Businessmen Group (BMG), as quoted in the Pakistani media reports. Pakistan textile exports more than doubled from $5.2 billion to more than $11 billion during Musharraf years. Exports soared 19.43% in 2001, 20% in 2004, 24.5% in 2005 and 11.23% in 2006, all on President Musharraf's watch, according to "The Rise and Fall of Pakistan's Textile Industry: An Analytical View" published by Javed Memon, Abdul Aziz and Muhammad Qayyum.     


Pakistan Textile Exports Growth. Source: Javed Memon

Pakistani government officials report that the textile sector has invested $3-3.5 billion on modernization and expansion in the last 2-3 years and the investment is likely to match the $5 billion that was witnessed during Musharraf era when the sector was undergoing major modernization, balancing and replacement (BMR). Textile machinery imports jumped 110% in the last four months, according to the Pakistan Bureau of Statistics (PBS). Capital equipment imports are contributing to Pakistan's widening trade gap

Pakistan Textile Exports FY 2006-2021. Source: APTMA

All sectors of the textile industry from yarn to fabric to ready-made garments are experiencing double digit growth.  Ready-made garments exports jumped 22.34% during July-Oct 2021,  knitwear exports soared 35.45%, bed-wear posted positive growth of 21.30%, towel exports were up by 14.17%, cotton cloth rose 18.54%. Among primary commodities, cotton yarn exports surged by 71.39%, while yarn other than cotton by 114%. The export of made-up articles — excluding towels — rose by 11.55%, and tents, canvas and tarpaulin dipped by a massive 23.98% during the 4-month period.

International Comparison of Textile Machinery Imports. Source: Business Recorder


History of Pakistan Textile Machinery Imports 2004-2021 in Millions of US$. Source: Ali Khizar



The textile industry is very important for Pakistan's economy. It is a very large employer and contributes nearly 10% of GDP.  Textile exports account for more than half of Pakistan's exports.  Unfortunately, the textile industry has stagnated in the last 12 years. Textile boom is good news for the country's economy. 

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Comments

Riaz Haq said…
From Twitter:

Samiullah Tariq
@samigodil
Cotton arrivals are up by 70% YoY to reach 6.8mn bales compared to 4mn bales last year. Higher production plus higher prices should support farm income, industrial activity and exports

https://twitter.com/samigodil/status/1461227968957534212?s=20
Riaz Haq said…
Production of home appliances soars

https://www.dawn.com/news/1629800

KARACHI: Easing of lockdown and rising heatwave have caused a sharp rise in production of home appliances with refrigerators hitting a 32-month high in April, followed by 19-month high in air conditioners and 22-month in deep freezers.

Production of refrigerators during April soared to 131,953 units from 6,996 units in April 2020 while in March the production was 119,535 units, showed Large-Scale Manufacturing (LSM) data.

Production of air-conditioners soared to 62,953 units in April as compared to 5,246 units in April 2020 while in March the production stood at 35,418 units, showing a jump of 78pc MoM.

Deep freezers sales also saw a strong rebound, rising to 11,732 units in April 2021 from 1,048 units in April 2020 while March 2021 production stood at 7,236 units.

According to a financial analyst at a brokerage house, demand for electrical goods is rising after tapering off the Covid-19 led lockdown which is much evident from LSM figures of April. Production of other power sector electrical goods such as electric transformers and meters production also witnessed strong rebound in April.
Shafaat Hussain said…
مہنگائی کے اس شور میں یاد دلاتا چلوں کہ پاکستان میں ایئر کنڈیشنر، فریج، ڈیپ فریزر اور الیکٹرک پنکھوں کی پیداوار میں اضافہ ہوا ہے۔ اس کے علاوہ گاڑیوں، موٹر سائیکل اور ٹریکٹر کی فروخت میں بھی اضافہ ہو رہا ہے.

یہ کوئی چاند سے آکر شاپنگ کر رہا ہے؟

#PakistanMovingForward

https://twitter.com/sshabdali/status/1461404359292600321?s=20
Riaz Haq said…
Pakistan Receives $635 Million by Exporting the Information Technology Services

https://www.phoneworld.com.pk/pakistan-earns-635-million-by-exporting-the-information-technology-services/


The Pakistan Bureau of Statistics is a federal agency of the Government of Pakistan tasked with providing reliable and comprehensive statistical research as well as commissioning national statistics services. According to figures from the Pakistan Bureau of Statistics (PBS), the exportation of Information Technology services increased by 40.90 percent between July and September 2021, rising from $348.4 million in the previous financial year to $490.89 million this year. During the first quarter of the financial year 2021-22, Pakistan earned more than $635 million by supplying various IT services to different countries

-------------
Ovais
@Sabbandkardo
·
2h
Pakistan IT Exports in OCT 2021 were 195 M$
The momentum of IT exports persisted and IT exports are projected to reach around 2.5 B$ by FY end .
Pakistan should aim to reach 5 B$ soon
#PakistanMovingForward

https://twitter.com/Sabbandkardo/status/1461707968664285188?s=20
Riaz Haq said…
Baqir projects sustainable growth

https://tribune.com.pk/story/2321444/baqir-projects-sustainable-growth

Contrary to previous years, Pakistan’s economic growth will be sustainable this time around due to a persistent uptrend in remittances, robust inflows through Roshan Digital Accounts (RDAs) and expected rise in exports owing to the refinance facility, said State Bank of Pakistan (SBP) Governor Reza Baqir.

Speaking at a session titled “The Future of Pakistan’s Economy” at the Leaders in Islamabad Business Summit on Wednesday, Baqir said that the textile sector was aiming to enhance exports by $5 billion after the modern machinery imported with the help of Temporary Economic Refinance Facility (TERF) was installed.

He added that the foreign exchange reserves were climbing due to the receipt of robust remittances and hefty inflows via RDAs. He cherished that on average 1,000 RDAs were being opened every day.

The governor expected the economic growth to consolidate further following capacity expansion of the export-oriented industry as businessmen were upgrading their units with state-of-the-art equipment imported under TERF.

Talking about how monetary and fiscal policies would aid the ongoing growth momentum, the SBP governor pointed out that SBP’s policies had begun responding immediately to the deterioration in macroeconomic indicators.

“The current account deficit has been rising since June 2021 and the exchange rate began adjusting in May, therefore, our policies are responding in a timely manner,” he said. “We now have a market-based exchange rate and it acts as a natural shock absorber.”

He lamented that macroeconomic policies were delayed in previous years whenever imports rose and the current account deficit widened and as a result, the government had to devalue the rupee.

“When imbalances increase and corrective decisions are delayed, difficult measures need to be taken,” he said.

He was of the view that immediate and timely responsive measures would aid the sustainability of growth.
Riaz Haq said…
#Pakistan providing subsidies, incentivizing #construction industry. #imrankhanPTI: Rs 35 billion allocated for low income buyers. Rs. 300,000 subsidy on every house for the first 100,000 homes. #NayaPakistan #economy https://www.pakistantoday.com.pk/2021/11/19/govt-providing-subsidies-incentivising-construction-industry-pm/ via @ePakistanToday

While visiting Naya Pakistan Housing Authority’s project Farash Town Apartments in Islamabad on Friday, Prime Minister Imran Khan expressed the government is providing subsidy and incentivising construction industry to help low income people to have their own houses.

The prime minister said thirty-five billion rupees have been allocated for subsidy on construction of houses by the low income people. He said the government will provide three hundred thousand rupees subsidy on every house for the first one hundred thousand units.

He said while one hundred thousand apartments are under construction, the process will now speedily move forward as the structure of the system has been finalised.

He said the construction industry has been incentivised in different ways including tax relief. He said One Window Operation has also been started to facilitate the construction sector.

Regarding Farash Town, the prime minister said of the total 4400 apartments, 2000 each have been allocated for low income people and middle income people and four hundred apartments will be provided to slum dwellers.

The premier, while chairing a separate meeting, said Ravi Urban Development Authority and Central Business District projects will promote modern, self-sustained, clean and green residential and business facilities in the country.

The PM said these projects are very crucial for attracting foreign direct investment in housing and construction sectors in the country. The prime minister directed the authorities to win over maximum investment for both the projects.

Earlier, the prime minister was informed that work on the development of basic infrastructure including roads, sewerage and drainage in the Central Business District is in full swing and is likely to be completed ahead of schedule. The construction work on Bab-e-Pakistan Project will also start soon.

The prime minister was apprised that the Ravi Urban project is all set to develop its Saphire Bay Project. A state of the art industrial estate, powered by renewable energy, is also ready to be launched very soon.
Riaz Haq said…
From Twitter:

Arif Habib Limited
@ArifHabibLtd

During Oct’21, technology exports was up 29% YoY to $ 195mn. During 4MFY22, technology recorded exports worth $ 830mn contributing 39% to the overall services’ export and marking a 39% YoY jump.

@StateBank_Pak

@Hammad_Azhar

@aliya_hamza

@MuzzammilAslam3

#Pakistan #Economy #AHL

https://twitter.com/ArifHabibLtd/status/1461747220114550791?s=20
Riaz Haq said…
Pakistan needs to create export culture: Dawood
Emphasises all departments should facilitate exporters to boost exports

https://tribune.com.pk/story/2329944/pakistan-needs-to-create-export-culture-dawood

KARACHI:
Although Pakistan’s exports are rising due to favourable government policies, the country needs to create an export culture to give it a further boost, said Adviser to Prime Minister on Commerce and Investment Abdul Razaq Dawood.

Speaking at a press conference on Wednesday, Dawood said that the creation of export culture was a major task for the Ministry of Commerce.

To achieve the desired objective, all departments like the Federal Board of Revenue (FBR), ports as well as the government should facilitate the exporters, he said.

“Again and again, we go to the IMF to get dollars as we are short of foreign exchange,” he lamented.

Last year, Pakistan’s exports increased 30% year-on-year while information technology exports registered a rise of 47%, Dawood said. This year, IT exports have surged 45% year-on-year so far.

Pakistan’s overall export target for FY22 is $38.7 billion including $20 billion in textile exports.

He voiced hope that the country would make $38 billion worth of exports, with $31 billion in goods shipments and $7 billion in services exports.

He underlined that under the diversification policy, Pakistan witnessed a 77% surge in exports of non-traditional products to the unconventional markets.

However, the increase was not phenomenal in the traditional markets, he said, adding that it would take up to five years to reap full benefits of the policy.

“We are exactly on target,” Dawood remarked and emphasised the need to instill export culture in every sector so “everybody should have export in their mind, right from the FBR to the people working in farms.”

Stressing the importance of export diversification, Dawood said that Pakistan was targeting new markets such as Central Asia, Kenya and Nigeria.

“We had been to Nairobi, but could not follow up due to Covid-19,” he said.

The adviser revealed that around 115 businessmen from textile, engineering, IT and other sectors would be visiting Nigeria, where a series of business-to-business meetings had been arranged along with a conference and an exhibition.

Pakistan needed regional connectivity like the European Union, where member countries had 80-90% regional trade, he said, adding that Pakistan’s regional trade stood at only 5%.

Dawood highlighted that currently cargo trucks went through numerous loading and unloading phases at the borders.

Quoting an example, he said that cargo trucks from Uzbekistan arrived in Afghanistan and from there the goods were loaded on to Pakistani trucks.

He was of the view that cargo trucks should travel directly to their destinations in order to save time and the hassle of loading/unloading.

“In the next five to six months, we will streamline this,” he remarked.

Recently, two cargo trucks travelled from Karachi to Turkey and Azerbaijan, while one truck reached Moscow directly, he revealed.

Around 40% of the raw material was being imported at zero duty “but it is less than what we need”, he said.

Dawood highlighted that Pakistan collected 47% of duties at ports, while Bangladesh and India collected 27% of duties at ports. “The more you collect duties at the import stage, the more there is a bias against export.”

Answering a question about the prevailing gas crisis, he said “no doubt gas is a big issue.”

The supply of gas to any industrial unit that had a captive power plant would not be discontinued, he said. “Those working purely on electricity may face gas load-shedding.”
Riaz Haq said…
Aakar Patel | No good news: It’s difficult to be an optimist in India today

India’s economic growth has been falling for 42 months now, but the government has not spoken about why that is so and what went wrong

https://www.deccanchronicle.com/opinion/columnists/220621/aakar-patel-no-good-news-its-difficult-to-be-an-optimist-in-indi.html


It is not easy to find good news in India and has not been easy for a long time now. A recent report said that the Indian economy is contracting again in this quarter, between April and June, by more than double digits.

This report from one agency was carried in multiple media outlets but it was not refuted or commented upon by others, including by the government. It was just assumed to be true. After 24 months of slowdown starting in January 2018 before the Covid-19 pandemic, and then 18 months of collapse since January 2020, we have turned into the world’s worst performing economy.

India’s economic growth has been falling for 42 months now, but the government has not spoken about why that is so and what went wrong or what it plans to do to correct it. Former Prime Minister Manmohan Singh in an interview last year offered five points to correct course, but he also added that a course-correction was possible only after one had acknowledged that there was a problem.



Since we have not accepted that anything is wrong, we will continue.

CMIE, the only body offering regular employment data (the Narendra Modi government has little data and says that it is conducting some surveys, whose results will come around the end of the year) says that unemployment in India is at 11 per cent, higher than Pakistan and Bangladesh.

Inflation is high though demand is low, and wholesale prices are at their highest since 1992. Petrol is around Rs.100 a litre, diesel is almost there and the price of crude oil is expected to rise another 20 per cent by the end of the year. Exports are at the same level as they were in 2014 and in seven years under Narendra Modi have shown no growth, though in the same period Bangladesh and Vietnam have grown and China has held onto its share.


Eighty crore Indians are being given free food for seven months from May till November. Five kilos of wheat or rice per person per month and one kilo of dal. In May, 16 lakh tonnes of wheat and 15 lakh tonnes of rice was distributed.
Sixty per cent of Indians depend on free food. This should tell you more than enough about the state of poverty in India today.

When Mr Modi took over in 2014, he said MGNREGA was a monument to the failure of the Manmohan Singh government. He would give people real jobs, and not MGNREGA jobs. The MGNREGA programme’s size last year was three times what it was under UPA rule because crores of people have lost their jobs and fallen into poverty and now depend on MGNREGA and free foodgrains. The Gujarat government put out a statement last week which said that MGNREGA was a lifesaver.



Elsewhere, it has been a year since the clash in Ladakh. China has stopped its disengagement. This means India has to keep tens of thousands of troops in that area almost permanently.

China has also told us that it is demoting the level of talks, and now only area commanders will discuss specific issues rather than general disagreement. Our soldiers still cannot patrol in the Depsang Plain but the government has not acknowledged that or held a single press briefing on Ladakh since the crisis began a year ago. Opacity is the hallmark of dictatorships and not democracies, but this is the status of our national security.


India was supposed to be the Vaccine Guru and Vaccine Factory for the world. Instead, India has wrecked the world’s vaccination programme by stopping the delivery of vaccines others already paid for in advance and which were manufactured in India. Our government has begun taking over those stocks while the world waits. Even with that, India has only managed to fully vaccinate only three per cent of its population against the world’s average of nine per cent.

https://youtu.be/HozHH4sD8Pg

Riaz Haq said…
Interloop divests from Bangladesh operations

https://profit.pakistantoday.com.pk/2020/11/28/interloop-divests-from-bangladesh-operations/


Why is it that if one looks at the tags of clothes bought in Europe, they will invariably say ‘Made in Bangladesh’? Entirely European fast fashion brands like Zara (which is a Spanish retailer) will manufacture their clothes in Bangladesh.

There is a specific reason for this, and not just the usual developing world cliches of ‘cheap labour’ and ‘advantage in cotton’. Technically speaking, Bangladesh has been part of the World Trade Organisation since 1995. But in 2001, it would make a decision that would alter its fortunes for the better. That year, the country signed the ‘EU-Bangladesh Cooperation Agreement’ with the European Union. That agreement provides broad scope for cooperation, extending to trade and economic development, human rights, good governance and the environment.

But the real benefit, of course, was trade. Bangladesh was to receive duty-free access to EU markets under a programme known as the globalised scheme of preferences (GSP), designed to help developing countries grow through trade. The country has the most generous level of GSP, aimed at least-developed countries.

And it worked. For instance, in 2015, the EU accounted for 24% of Bangladesh’s total trade. Over 90% of the EU’s total imports from Bangladesh were in clothing. More impressively, between 2008 and 2015, EU imports from Bangladesh trebled from €5,464 million to €15,145 million, which represented nearly half of Bangladesh’s total exports.

One textile company in Pakistan took notice: the sock moguls, Interloop. The company is one of Pakistan’s fastest-growing and most exciting textile companies, and let us explain why.

--------------

The natural conclusion from this expansion was to look at who had favourable relations with Europe. Enter Bangladesh. That is why in 2010, the company set up IL Bangla Ltd, a vertically integrated hosiery plant with a monthly production of 3 million pairs of socks.

This made Interloop one of the first Pakistani companies to set up operations in Bangladesh to take advantage of the tariff-free access to the EU that Bangladesh got.

Incidentally, the government of Pakistan has been trying for the past two decades to get that same GSP Plus access to the European Union’s market, without success. Part of that has to do with the fact that the EU demands changes in legal structures to protect human rights, including the abolition of the death penalty.

Under the Zardari Administration, from 2008 through 2013, Pakistan had a moratorium on the death penalty, but did not actually abolish it. The EU came close to considering offering GSP Plus status to Pakistan, but then, when Pakistan started executing people again after the 2014 attack on the Army Public School in Peshawar, the EU withdrew that offer.

And all of this is becoming relevant now, because in a notice sent to the PSX on November 18, Interloop said it would divest from the operations.

Apparently, whatever magic advantage they thought would appear from investing in Bangladesh had simply not appeared. In fact, for the last few years, “market conditions had made its ongoing operations untenable, and the unit is in losses for quite some considerable time, and as a consequence it is imperative the company divest its investment, and use that resource in some profitable venture.”

Currently, Interloop holds 31.61% of IL Bangla’s shares. The sale of assets and winding up process will be according to the laws of Bangladesh.

It turns out that despite Interloop’s track record, and high expectations of its Bangladeshi venture, it simply could not reap the regional promises it thought it could. No more made in Bangladesh socks then; simple made in Pakistan socks (with all the not so nice duties), for now.
Riaz Haq said…
The European Commission has retained Pakistan in its preferential trade access scheme while finding no grounds to exclude the country on demand of the European Parliament that passed two resolutions to review the Generalised Scheme of Preference-Plus (GSP+) status.

https://tribune.com.pk/story/2321501/gsp-status-for-pakistan-extended

The extension will provide a relief to Pakistan, as the reduced rates of duties and taxes by the European countries under the preferential treatment has helped Pakistan to secure additional exports in the range of 1 billion to 1.5 billion euros a year since 2014.

The announcement was made by the European Commission (EC) on Wednesday from Brussels, Belgium. The commission has extended the Generalised Scheme of Preferences-Plus (GSP+) status to Pakistan till 2024, it said.

Media reports suggested that the commission attached six new conventions, mostly related to greater accessibility for people with physical disability, eradication of child labour and environmental safety.

Pakistan was granted GSP+ in 2014 and has shown commitment to maintaining ratifications and meeting reporting obligations to the United Nations Treaty Bodies for the 27 UN conventions.

The EU is Pakistan’s first export destination, absorbing over a third (34%) of Pakistan’s total exports to the world in 2018, followed by the US.

According to the media reports, the EC reviewed the status of several countries for the extension of the preferential status. However, it added that Pakistan’s individual status was not discussed.

According to a statement on Wednesday, the EC proposed that developing countries wishing to prosper from access to EU markets should uphold environmental and governance standards and adhere to extra commitments on human and labour rights.

The statement said that GSP+, with zero tariffs on two-thirds of products, was offered to a group of countries, including Pakistan and The Philippines that implement 27 international conventions on human and labour rights, the environment and good governance.

Pakistan’s exports to EU decreased in 2020 by over 9% but the extension has provided an opportunity to Islamabad to take maximum benefit from the scheme in the remaining period.

Under the commission’s new proposal, which covers a 10-year period from 2024, six new conventions will be added, including the Paris climate change agreement and ones covering rights for people with disabilities and trans-national organised crime.

Pakistan has been showing greater commitment to climate change and its recent drive can facilitate the new EC conditions.

In March 2020, the EU had extended Pakistan’s GSP plus status till 2022. The commission noted that Pakistan had made considerable progress when it came to labour laws and tackling climate change — two important conditions for the continental bloc to grant or extend a GSP+ status.

Since April this year, the European Parliament has passed two resolutions with an overwhelming majority to review Pakistan’s GSP+ status. However, the resolutions could not convince the European Commission to suspend its GSP+ status for Pakistan.

The European Parliament resolution of September 16, 2021 on the situation in Afghanistan gave more direct warning. The September resolution questions Pakistan’s role in “provision of safe havens for Taliban” and instructed the European External Action Service (EEAS) to consider if there was reason to immediately review Pakistan’s eligibility for GSP+ status in the light of current events.

The European Parliament had expressed its concern about the safety of Afghan nationals at high risk and those crossing to the neighbouring countries over land borders, in particular to Pakistan; and regretted the lack of coordination by the international community.
Riaz Haq said…
"Pakistan’s ..demonstrated access to external financing...offset rising external risks from a widening current-account deficit..reforms...could create positive momentum for the sovereign’s ‘B-’ rating, which we affirmed in May 2021 with a Stable Outlook"
https://www.fitchratings.com/research/sovereigns/reforms-financial-support-ease-pakistan-sovereign-risks-24-11-2021

Fitch Ratings-Hong Kong-24 November 2021: Fitch Ratings believes Pakistan’s recent policy adjustments and demonstrated access to external financing, as well as its commitment to a market-determined exchange rate, offset rising external risks from a widening current-account deficit. Ongoing reforms, if sustained, could create positive momentum for the sovereign’s ‘B-’ rating, which we affirmed in May 2021 with a Stable Outlook.

Increases in global energy prices and a strong domestic recovery from the initial Covid-19 pandemic shock have put additional strains on Pakistan’s external position. The current-account deficit in the fiscal year to June 2022 is set to be wider than our previous forecast of 2.2%. The State Bank of Pakistan (SBP) on 19 November 2021 raised its policy rate by a significant 150bp to 8.75%, pointing to rising risks related to the balance of payments and inflation.

We think external liquidity pressures should be manageable in the near term, despite the wider current-account deficit, given Pakistan’s adequate foreign-exchange reserves and success in accessing financing.

Official reserve assets nearly doubled to USD24.1 billion by end-September 2021 from USD12.6 billion two years ago. However, liquid foreign-exchange reserves have dropped since mid-September, which we believe may partly reflect debt repayment.

Pakistan’s near-term financing efforts have been supported by Saudi Arabia, which plans to place USD3 billion on deposit with the SBP and provide an additional USD1.2 billion oil-financing facility under a one-year support package. Its foreign reserves also received a USD2.8 billion boost in August from the IMF’s one-off global allocation of Special Drawing Rights.

Funding from these sources followed Pakistan’s successful international debt issuance through a USD2.5 billion bond in March 2021 and a follow-on USD1 billion bond as part of its global medium-term note programme. Pakistan aims to tap debt markets more regularly through the scheme, which could reduce the costs of coming to market. The authorities also plan new sukuk issuance in 2021.
Riaz Haq said…
Pakistan’s garment industry has not taken the full advantage of its access to the European Union market because the sector is facing massive shortage of skilled manpower, said Pakistan Readymade Garments Manufacturers and Exporters Association (PRGMEA) North Zone Chairman Sheikh Luqman Amin.


https://tribune.com.pk/story/2331418/lack-of-skilled-workforce-hindering-exports

In a statement on Saturday, he added that the government needed to collaborate with the industry to identify the areas where trained and skilled manpower was needed in a bid to enhance share of Pakistan in the global garment export segment.

“We are making adequate efforts to upgrade the industry on modern lines and enhance export volume in many fields,” he said. “There is a great scope of growth in the value-added garment industry in the export-oriented city of Sialkot which is now producing 40% of the world’s martial arts apparel.” He stressed that the expansion of Sialkot’s value-added garment sector can only be made possible through the removal of hurdles like lack of skilled labour, expansive electricity and irregular gas supply.

Amin saw large scope of additional growth after the continuation of GSP Plus status for another decade but lamented that there was no roadmap in place to produce professionals that could be absorbed by the industry. On behalf of the apparel industry, he appealed the government to make amendments in labour laws and revise the age limit of labourers working in the industrial sector.

He highlighted that the industry was facing problems due to a shortage of trained and skilled industrial workers. The official held the view that after revision in the law, youth would have the opportunity to work in a pleasant atmosphere in the export industry and the menace of bonded labour would be eliminated in the country.
Riaz Haq said…
China to bolster textile sector
Cooperation in cotton industry providing possibilities for textiles


https://tribune.com.pk/story/2330653/china-to-bolster-textile-sector


XINJIANG:
If you walk into a clothing store in any shopping mall in a major Chinese city – whether it is an international or a local brand – “Country of Origin: Pakistan” hang tag is not uncommon.

Especially in the jeans wear section, these high-quality Pakistani products are increasingly popular with Chinese consumers.

According to the Pakistani government, the textile industry contributes nearly 60% to the country’s total exports. Denim fabric, as one of Pakistan’s main garment products exported to the world, occupies a pivotal position in its garment industry chain.

According to the Pakistan Bureau of Statistics (PBS), exports of denim fabric from Pakistan reached Rs96.92 billion during the year 2017-18, a commendable performance of the denim sector.

However, whether it is jeans wear or other garment products, the impact of recent global cotton prices and other factors cannot be ignored.

Pakistani industrialists argue that the textile and garment industry of the country faces a series of challenges, including low production of cotton and difficulty in obtaining financing for new facilities.

Cotton industry: China-Pakistan cooperation

Pakistan, one of the world’s largest cotton producers, is finding it increasingly hard to meet its own needs.

“Last year, we had to import more than 50% of cotton,” said Sapphire Fibre Executive Director Muhammad Abdullah. Low production and quality force the local industry to choose imports.

“So far, the domestic consumption of cotton is 14 million bales. Nevertheless, Pakistan only harvested 5.6 million bales of cotton in the last season,” he said.

“As far as I am concerned, the seed of high quality must be the top priority. Unless we can increase the yield per unit area, the demand cannot be met,” he added.

The idea of Muhammad Abdullah was echoed by Central Cotton Research Institute Director Zahid Mehmood. “Under CPEC, we hope to see the plan between China and Pakistan in cottonseed cooperation soon,” he said.

Regarding this, Xinjiang Agricultural University Deputy Dean Chen Quanjia introduced further planning during an interview with China Economic Net.

“Local high temperature-resistant cotton varieties in Pakistan are of great use to us,” Quanjia said. “In Xinjiang, the heat resistance of cottonseed is particularly indispensable when facing the extreme high temperature. At the same time, our high-yielding cotton varieties are also needed for Pakistani farmers,” he said.

Recently, international cotton futures have remained high, and China’s domestic cotton futures prices have also risen simultaneously.

According to a survey conducted by the China Cotton Association, the country’s cotton planting area this year has dropped year-on-year, but due to favourable weather conditions, the total output remains relatively stable.

It is expected to be 5.83 million tons, down 1.5% year-on-year. Improving cotton production to maintain the stability of the futures market will be a problem, demanding prompt solutions from China and Pakistan.

Besides, the impurity, which is caused by 100% manual picking, also worsens the dilemma of Pakistan cotton.

Sapphire Fibre cotton field supervisor Kamran Razaq said that the impurity content of imported cotton is 4.5%, while the counterpart in Pakistan cotton is 8-9%, which is well below the criteria of textile mills.

Accordingly, Xinjiang Agricultural University and University of Agriculture Faisalabad (UAF) have set up experimental fields in Faisalabad and plan to test mechanical picking in Pakistan.

“In north Xinjiang, one of the biggest cotton areas in China, the mechanisation can reach 90%. We use machine picking everywhere so as to decrease the impurities,” Chen Quanjia said, adding that in future, China’s advanced cotton pickers can play a role in Pakistan as well.
Riaz Haq said…
#Pakistan #textile #exports likely to achieve $20 billion target in current FY21-22. “Higher textile exports came on the back of strong growth in value-added products, particularly knitwear, home textiles, bedwear, towels and made up articles.” #economy
https://tribune.com.pk/story/2331666/textile-exports-likely-to-achieve-20b-target

LAHORE:
Keeping in view the rebound in textile exports, traders have said that Pakistan can achieve the export target of $20 billion owing to export-oriented policies of the government and strong economic recovery in major export markets.

In a statement on Monday, Pakistan Textile Exporters Association (PTEA) chairman underlined that the textile export industry was entering the phase of sustainable economic growth after attaining stability. They anticipated the segment to keep moving forward to achieve lofty growth rate.

Expressing satisfaction on the rising trend, the chairman highlighted that the country’s exports had witnessed a rapid recovery since the Covid-related restrictions were lifted.

In the recent months, the outbound shipments of Pakistan have increased compared to the regional competitors - Bangladesh and India, he said.

Quoting figures, he pointed out that in October, shipments recorded highest ever monthly average of $2.46 billion.

Textile exports posted 24.24% growth in the same month, rising to $1.6 billion, he added.

Similar trend was observed in the first quarter of this fiscal year as textile exports grew by 26.55% to $6.02 billion, compared to $4.76 billion during the same quarter of previous year, the chairman highlighted.


“Higher textile exports came on the back of strong growth in value-added products, particularly knitwear, home textiles, bedwear, towels and made up articles.”

Rejecting the claims that the country’s exports had declined in terms of quantity, he said that foreign shipments of bedwear, during the quarter under review, increased to $1.09 billion from $899.55 million, showing a year-on-year growth of 21.3% in terms of value.

Exports of towels rose by 14.17% to $323.38 million from $283.25 million in the same quarter of previous year. In volumetric terms they increased by 7.75% year-on-year to 71,701 tons from 66,545 tons.

Foreign shipments of readymade garments surged by 22.34% year-on-year to $1.16 billion from $947.07 million and in terms of volume, they increased by 20.5% compared to the same quarter of previous year.

“At the same time, raw cotton, cotton yarn and cotton cloth showed a declining trend,” he said, adding that this was the indication that the value-added sector was the “main engine of growth”.

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