Home / Knowledge / News / Textiles / Pak textiles business heads for retail
Pak textiles business heads for retail
06
Jul '16
There could be a paradigm shift underway in the ailing Pakistani textile sector. With falling exports and diminishing returns, many factory owners in Punjab province are taking money out of their textile business and investing in the fast growing retail markets to cash in on the booming consumption: real estate, education, entertainment, ready-to-wear garments, etc.

According to a series of articles in the Dawn newspaper, the diversion of capital is taking place despite a slew of budgetary measures for this financial year to support investment in the textile industry to boost falling exports. Few factory owners believe these decisions are enough to save the tottering textile industry, revive the closed production capacity and encourage investment at least in the short to medium term.

“Though the government has in theory declared our exports zero-rated by removing 3 per cent sales tax, it has done nothing about local and innovative taxes that form almost 8-9 per cent of our cost,” said a textile producer from Faisalabad who was forced to close down 50,000 spindles in last two years because viability issues. He, like others, did not want to give his name because it would make his recoveries from domestic buyers difficult and unleash creditor banks on him.

“If you look at property market, it has doubled in Punjab cities in one year. Which business gives you such margins? Textile certainly does not. So why shouldn't we invest in this kind of business where we don't have to pay taxes, or worry about raw materials and energy supply and prices, etc,” he added.

A major factor driving investment out of textile industry is the losses suffered by manufacturers including major textile groups over the last three years on the back of declining exports.

“A large number of textile factories in Punjab are closed and in some cases the owners just do not have money to pay the salaries to their workers,” Amena Cheema, chief executive officer of the Punjab Board of Investment and Trade, told the newspaper.

Overall, Pakistan's exports are down 12 per cent or $2.7bn in the first 11 months of the last fiscal from a year ago. The textiles, which form almost three-fifth of export revenues, have declined by 7 per cent or $909m due to the sluggish yarn demand from China and subdued international cotton prices.

Textiles and clothing exporters in Punjab are now increasing their exposure to the buoyant domestic apparel market with a promising future, particularly for women clothing, by investing heavily in retail outlets.

Many of them expect not only to make significant profits, but also anchor the textile industry in the domestic market owing to increasing affluence of the middle-income segment of the country's population.


Must ReadView All

Market share of Indian textile items expand in 13 nations

Textiles | On 11th Dec 2017

Market share of Indian textile items expand in 13 nations

Thirteen countries — Germany, France, Italy, the United States,...

Courtesy: EUBrasil

Textiles | On 11th Dec 2017

Euratex, ABIT welcome negotiations for EU-Mercosur FTA

European Apparel and Textile Confederation (Euratex) and the...

Most firms expect no change in investment plans: CII survey

Textiles | On 11th Dec 2017

Most firms expect no change in investment plans: CII survey

Despite visible optimism in Indian industry with the Confederation of ...

Interviews View All

Vidhyaa Shankar. S
A Ganapathi Chettiar

'The usage of knits is getting into the boundaries of woven fabrics'

Karan Toshniwal
Orange O Tec

Contemporary industry is paying more and more attention to the...

Hannah Lane
Redress

Encouragement from brands will motivate supply chains to become more...

Harmeet Singh

New Delhi-based Jogindra Industries Private Limited provides an assortment ...

Abhishek Pachauri

Reckon Industries adapts latest systems for manufacturing from designing...

Anupam Arya

<div>Jaipur-based Fabriclore Retailing Pvt. Ltd. is attempting to revive...

Iago Castro Asensio
RCfil Distribuciones S.L.

Iago Castro Asensio, International Business Manager of RCfil...

Marcel Alberts
Eurofibers

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

Mark Paterson
Technical Absorbents Ltd

Mark Paterson, R&D manager of Technical Absorbents Ltd talks about Super...

Divvya and Nidhhi Gambhir
Walnut

<b>Divvya and Nidhhi Gambhir</b> started their career with the launch of...

Tony Ward
Tony Ward

"You have to truly understand what your client wants, know her needs, what ...

Silvia Venturini Fendi
Fendi s.r.l

"Yes, my confidence and positive attitude are my strengths and should be...

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

December 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
69.2%
No
12.1%
Skip
18.7%

Total Votes: 91

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
61.5%
No
30.8%
Skip
7.7%

Total Votes: 91

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
86.8%
No
9.9%
Skip
3.3%

Total Votes: 91

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
81.3%
No
8.8%
Skip
9.9%

Total Votes: 91


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