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Yarn manufacturers face challenging times
May '08
Textile industry of Pakistan is in a dilemma whether to focus on domestic market whose yarn and fabric consumption is stagnant, or to give attention to the international market which is undoubtedly a slow and gradual process.

Although yarn consumption and imports in countries like India, Bangladesh and China has increased due to various reasons, their respective textile industries are putting up stiff competition for Pakistan in terms of price and production and in a bid to survive this battle, global yarn prices would remain low for a while.

Presently, supply over demand of Polyfilament yarn is increasing, by 20 to 22 percent mainly due to China which is flooding global market with its price-competitive yarns.

In an exclusive interview with Fibre2fashion, Mr Shahabuddin, member of Pakistan Yarn Merchants Association stated, “In a situation so grave as this, textile manufacturers in Pakistan must face the challenge by making their products qualitatively better by cutting costs and producing specialty yarns. Government on its part must also lend its support by providing incentives and rebate and organizing trade fair for promoting local products.”

Mr Shahabuddin also acknowledged the fact that India itself is the biggest manufacturing market for fine fabrics and nearly 95 percent of Pakistan's requirement comes from India via Dubai.

It is therefore very difficult for local producers to compete with India on this particular product. However, Mr Shahabuddin strongly believed that trade relations between the two countries could be significantly improved by removing trade barriers which hampers exchange of goods and services.

Experts have recommended that unless the Government of Pakistan encourages small power looms by giving them incentives, improved manufacturing unit cannot be established. Besides, the cottage industry should also be developed and organized so that domestic yarn consumption could be increased.

Fibre2fashion New Desk - India

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