Home / Knowledge / News / Textiles / 'Pakistan textile industry in trouble'
'Pakistan textile industry in trouble'
21
Aug '15
More trouble for Pakistan's beleaguered textile industry. The Institute for Policy Reforms (IPR) in a report outlining structural factors that have hurt the industry, has said that the textile industry has made inadequate investment in upgrading technology and replacing old machinery as it continues to lose competitiveness in the international market, the country's newspapers have reported.

“The import of textile machinery reached the peak of almost $1 billion in 2004-05. Since then, it has fallen to less than $500 million annually,” the IPR said in a fact sheet on the state of the textile industry.

Another key factor was persistent energy shortages with frequent outages limiting the effective capacity and raising production cost due to power generation through their own means. The textile industry has been asking the government to improve the power situation for a long time but there has been no visible change in the particular aspect of infrastructure.

According to the think tank, a full-fledged textile ministry is working and the government has also announced textile policy for 2014-19, but despite this the industry appears to be languishing due to neglect and lack of policy implementation.

Exports of the textile sector, which ships over 60 per cent of output to overseas buyers, have stagnated below $14 billion annually for the last four years compared to growth of 10 per cent per year from 2001-02 to 2010-11.

“This came despite a cumulative depreciation of 19 per cent in the rupee's value and the recent grant of GSP Plus status by the European Union,” the IPR said, pointing out that the latter had led to some diversion of exports, without substantially increasing the global volume of shipments.

In the last four years, Pakistan has been steadily losing textile market share to competitors. India, Turkey and Vietnam have achieved a significant growth in textile exports whereas in clothing, Bangladesh, Cambodia, Indonesia, Sri Lanka and Thailand have edged out Pakistan.

Apart from this, Pakistan's yarn exports to China, which accounts for almost 70 per cent of total exports of the product globally, fell 20 per cent in 2014-15.

Of late, the appreciating rupee has left textile products expensive in the international market. According to the State Bank of Pakistan, the rupee is now overvalued by 18 per cent.

On the other hand, many countries devalued their currencies significantly last year with India cutting the rupee's value by 6 per cent against the dollar, Turkey 30 per cent, Indonesia 15 per cent, Thailand 9 per cent and Vietnam 3 per cent.


Must ReadView All

Apparel/Garments | On 25th Sep 2017

Vietnam textile sector to gain if EU FTA gets ratified

Experts feel the Vietnam-European Union (EU) free trade agreement...

Prime Minister Narendra Modi dedicating the Deendayal Hastkala Sankul to the nation, in Varanasi, Uttar Pradesh on September 22, 2017. Courtesy: PIB

Textiles | On 25th Sep 2017

Handicrafts trade facilitation centre opens in Varanasi

Prime Minister Narendra Modi dedicated the Deendayal Hastkala Sankul, ...

Apparel/Garments | On 25th Sep 2017

AAFA urges US govt to plug lacunae in military procurement

The American Apparel & Footwear Association (AAFA), an alliance of...

Interviews View All

Abhishek Samdaria
Reflete

GST will certainly reduce a lot of paperwork in future

Awen Delaval
Samatoa

'Natural fibres are appreciated for traditional authenticity'

Luke Otten
Wigwam Mills Inc

Wigwam aims to recycle discarded yarn that doesn’t make it through the...

Lynda Kelly
Suominen Corporation

Suominen Corporation is a manufacturer of nonwovens as roll goods for...

Steve Cole
Xerium Technologies

Steve Cole of Xerium Technologies discusses the industry. Xerium is the...

Giorgio Mantovani
Corman S.p.A

Giorgio Mantovani, MD of Corman, with a presence in both Milano and New...

Wendell Rodricks
Wendell Rodricks

"We should not compare India and the West. There are things we do that...

Igor Chapurin
Chapurin

"Now we can see the Russian trend in international fashion. And Russian...

Anisha Chaudhari
Threads & Shirts

Threads & Shirts is a freshly-tailored concept providing men/women a...

Press Release

Press Release

Letter to Editor

Letter to Editor

RSS Feed

RSS Feed

Submit your press release on


editorial@fibre2fashion.com

Letter To Editor






(Max. 8000 char.)

Search Companies





SEARCH

September 2017

Subscribe today and get the latest update on Textiles, Fashion, Apparel and so on.

news category


Related Categories:

Planning to Take the Leap towards
Sustainability?

Do you see sustainability as a route to business growth?

Yes No

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes No

Active Poll

Do you see sustainability as a route to business growth?

Yes
74.5%
No
12.8%
Skip
12.8%

Total Votes: 47

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes No

Active Poll

Do you think the sustainability space has the needed tools and resources available for a business to lead change?

Yes
61.7%
No
25.5%
Skip
12.8%

Total Votes: 47

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes No

Active Poll

Do you think adopting a sustainable approach will be a profitable move for your business?

Yes
87.2%
No
6.4%
Skip
6.4%

Total Votes: 47

Thanks for your valuable feedback. Claim your free latest sustainability e-book.

Active Poll

Do you want the world to know about your sustainability journey and your business’ environmental footprint?

Yes
70.2%
No
10.6%
Skip
19.1%

Total Votes: 47


E-News Insight
Subscribe Today and Get the
Latest News Update in Your Mail Box.
Advanced Search