Home / Knowledge / News / Textiles / Textile industry in throes of pessimism
Textile industry in throes of pessimism
23
Jul '08
Woes of the textile industry of Pakistan seems to be perpetuating forever and in the back drop of declining cotton production and soaring domestic demand, the situation seems to be turning for the worse.

Shortage of cotton production for the past three years has nearly crippled the textile industry impacting the economy in uncountable ways. While local consumption increased from 16 to 17 million bales, annual production was still hovering around 13 million bales in June 2008.

This apart, the industry which forms the backbone of the country's economy has been plagued by a series of other adversities which has relentlessly ensured to keep the output of the textile sector way below its proven potential.

Qualitatively incompetent products, power intensive & less productive machinery, lack of skilled labors, improper research & development, inability to fulfill big export orders, failure to make timely deliveries and an array of other problems have perturbed the textile industry for a long time.

Statistical reports have unveiled that in the period between July 2007 and April 2008 of this fiscal, textile products which accounts for nearly 65 percent of the total exports, gave a poor performance registering a decline of 2.5 percent.

Exports from the textile sector dropped by 9 percent to touch 56 percent of all shipments from the country, due to high cost of sustaining business and colossal competition posed by countries like India, China and Bangladesh. Astoundingly, the results turned out to be this atrocious, despite financial support bestowed on the industry by the Government.

The State Bank of Pakistan and other commercial banks had made available a total of Rs273 billion under the Export Refinance Scheme (EFS) to all eligible export-oriented sectors during the first three quarters of fiscal 2007-08. Of this, the textile sector alone availed Rs176 billion or 65 percent of the total loan at an interest rate of 7.5 percent.

This only goes to show that lack of proper finance may not be the only reason, behind poor performance and the actual problem may really be more structural in nature. So in spite of a magnanimous monetary support offered by the Government, the problem may still persist unless constructive changes are brought about by means of adequate supply of electricity, gas, provision for advanced technology and other infrastructural inputs.

To add to the existing adversities, the recent hike in prices of gas and power has virtually led the textile industry to the brink of collapse. Already cost of doing business is making exporters fear new ventures and to make matters worse, a considerable drop in foreign orders has also become a cause of worry.

Besides, import bill of the country is surging ceaselessly and this is amply evident from the fact that until May of this current fiscal year, import of oil alone had touched US $8.67 billion, reflecting a 47.04 percent year on year growth.

In the period between July and January of 2007-08, overall exports reported an increase of 5.95 percent despite a drop of 3.44 percent in textile shipments. Nearly all the categories of yarn and fabrics showed a negative growth with value-added sectors like knitwear, towel and bed-wear registering a decline of 11.21, 6.72 and 6.21 percent respectively.

Must ReadView All

Textiles | On 29th May 2017

Special package creates 7,50,000 jobs in garment sector

The special garment package of Rs 6,000 crore that was introduced by...

Md Siddiqur Rahman, president, BGMEA, addressing a press conference with other dignitaries. Courtesy: BGMEA

Apparel/Garments | On 29th May 2017

BGMEA asks govt for 5% incentive for 2 years in Budget

The Bangladesh Garment Manufacturers and Exporters Association...

Textiles | On 29th May 2017

Tintex, Bruckner bring new effects to knitted fabric

The textile company Tintex has joined hands with the system supplier...

Interviews View All

Siddharth Biyani
Mangalam Industries Pvt Ltd

‘The manufacturing sector is improving day-by-day, becoming better in...

Veronique Lee
Modavanti

‘Sustainable fashion is trending upwards, slowly but surely, as people...

Rashi Menda
Zapyle

Every fifth sale we make on Zapyle is a repeat purchase

Ashok Desai
Bombay Textile Research Association

Bombay Textile Research Association (BTRA) is a leading name in textile...

Marcel Alberts
Eurofibers

Coating at a fibre level is a practice not usually seen in the...

Giorgio Mantovani
Corman S.p.A

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

Mike Hoffman
Gildan Activewear SRL

Gildan Activewear, a manufacturer and marketer of branded clothing and...

Madhu Jain
Madhu Jain

She grew up in the walled city of Old Delhi, completed her studies, and...

Judy Frater
Somaiya Kala Vidya

Among the many honours showered on Frater, including Fulbright and Ford...

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

news category


Related Categories:
May 2017

May 2017

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

SUBSCRIBE


Browse Our Archives

GO


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