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Textile machinery imports ink growth
26 Mar '10
2 min read
The textile sector has once again started investing towards enhancement of its production capacity and this is apparent as, over February 2009, there has been a phenomenal hike in the import of textile machinery for corresponding month this year.
The textile sector has managed to survive despite dismal situations prevailing in the sector, and kept on investing in imports of textile machinery. Industry sources have divulged that, the import cost which was US $7.992 million during February 2009 has gone up to $23.10 million in February this year, depicting a growth of around 190 percent.
Textile machinery imports for the period of July to February in this fiscal year touched $163.844 million, thus reflecting a hike of 3.11 percent over the imports in corresponding period in previous fiscal year, when it reached $158.897 million.
The boost in imports of textile machinery has been witnessed after an elongated spell of decline, which followed an era when imports were amplifying as fresh investments flowed in the industry, as the quota system in respect of textile exports was abolished.
The country's textile sector was badly hit by the strong competition from overseas markets, which rendered it uncompetitive in its conventional markets. The sector was hit by high tariff slabs prevailing in respect of its goods, which were comparatively low for competing countries like Bangladesh and Vietnam, who received preferential treatment, and thus greater market access in European and American markets
As China and India offered power and finance at subsidized rates by means of concessions and incentives, there was a devastating effect on textile goods sector in Pakistan which was affected by the domestically persistent issues like, comparatively higher financing cost and scarce availability of power and gas, that too at high rates.
At present the investments are mainly being made in the denim sector, and no investments have been attracted by the spinning and value-added sector. Nonetheless, capacity enhancement is being considered by the spinners, due to ever-increasing demand from international markets for Pakistani yarn.
The textile sector has managed to survive despite dismal situations prevailing in the sector, and kept on investing in imports of textile machinery. Industry sources have divulged that, the import cost which was US $7.992 million during February 2009 has gone up to $23.10 million in February this year, depicting a growth of around 190 percent.
Textile machinery imports for the period of July to February in this fiscal year touched $163.844 million, thus reflecting a hike of 3.11 percent over the imports in corresponding period in previous fiscal year, when it reached $158.897 million.
The boost in imports of textile machinery has been witnessed after an elongated spell of decline, which followed an era when imports were amplifying as fresh investments flowed in the industry, as the quota system in respect of textile exports was abolished.
The country's textile sector was badly hit by the strong competition from overseas markets, which rendered it uncompetitive in its conventional markets. The sector was hit by high tariff slabs prevailing in respect of its goods, which were comparatively low for competing countries like Bangladesh and Vietnam, who received preferential treatment, and thus greater market access in European and American markets
As China and India offered power and finance at subsidized rates by means of concessions and incentives, there was a devastating effect on textile goods sector in Pakistan which was affected by the domestically persistent issues like, comparatively higher financing cost and scarce availability of power and gas, that too at high rates.
At present the investments are mainly being made in the denim sector, and no investments have been attracted by the spinning and value-added sector. Nonetheless, capacity enhancement is being considered by the spinners, due to ever-increasing demand from international markets for Pakistani yarn.
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