Pakistan Textile Industry Plays An Important Role In Foreign Trade.

Pakistan is the fourth largest cotton producing country in the world. Its spinning capacity accounts for 5% of the world's total capacity, and the third largest in Asia. Spin Industrial country. July 2012 ~2013, April, Pakistan textile clothing Total exports amounted to US $10 billion 749 million, up 6.1% from 10 billion 127 million US dollars in the same period last year. Despite the growth in exports, there are still some restrictive factors in the export of Pakistan's textile industry, which affect the export of Pakistan's textiles, such as less foreign investment, rising energy shortage costs, low added value of export textiles and the tight monetary policy adopted by the government, which affect the export of Pakistan's textile and clothing.

Pakistan is the fourth largest cotton producing country in the world. Its spinning capacity accounts for 5% of the world's total capacity and is the third largest textile country in Asia. Pakistan's textile industry is the largest industry in the country, accounting for 46% of the manufacturing industry, and the manufacturing industry accounts for 40% of the total employment rate, accounting for 30% of the total employment rate and 8.5% of the gross national product.

Pakistan textile industry also plays a decisive role in foreign trade. Exports account for about 60% of the total export volume. Its cotton and textile semi-finished yarn and cotton cloth occupy a certain share in the world textile trade. In 2005, the export of Palestinian textiles ranked eighth in the Asian region. Since December last year, the European Union has implemented preferential trade measures for 75 commodities in Pakistan, which has facilitated the export of Pakistan's textile and garment products. According to statistics released by the Pakistan Statistical Bureau, the total export volume of textiles and clothing in Pakistan amounted to US $10 billion 749 million in the first 10 months of 2012~2013 fiscal year (July 2012 ~2013 April), up 6.1% from 10 billion 127 million US dollars in the same period last year. Knitwear, mattress products, towels, garment manufactures and other value-added products have become the main commodities driving the textile and garment industry, while the export of some raw materials such as cotton yarn, spinning and silk continues to decline.

However, there are still some restrictive factors in the export of Pakistan textile industry, which affect the export of Pakistan textiles:

In the past 20 years, the Pakistani government rarely invested heavily in infrastructure construction, resulting in backwardness in infrastructure, plus the bad reputation of "high-risk" countries in security. International textile companies rarely invest in Pakistan, and invest more in China, India and other countries. Although the economy has grown in recent years, its absolute amount is relatively small compared with other countries, and its economic operation is not stable and implies certain variables. For many years, macroeconomic instability, high debt ratio, inflation, high investment and operating costs, poor investment environment and backward infrastructure. Low labor skills, low labor productivity and low external competitiveness have a negative impact on the textile industry.

Pakistan is relatively short of energy, electricity and water resources. Pakistan's energy imports are too dependent on imports, making it difficult for the Palestinian textile industry to spend on electricity. Pakistan's power shortage is serious, and the cost of electricity is higher. Power cuts are also a common occurrence. Quite a few textile enterprises use their own gas or fuel to generate electricity, which greatly increases the cost burden. In addition, Pakistan's industrial base is relatively weak, and many goods rely on imports. These weak industries are exactly what the Palestinian government wants to protect. Import tariffs and explicit or dark surcharges are relatively high, and the prices of imported goods are high in the market, coupled with the excessive profits of importers and wholesalers. These factors directly led to the increase of the cost of Ba textiles.

At present, textile exports are mainly made of primary textile products such as cotton, spinning, cotton, bed textiles, towels, low-grade garments and so on. The added value and product price are not high, and are easily affected by fluctuations in the international market. In recent years, there has been a clear trend in the world trade in textiles and clothing, which is changing to high value-added clothing trade. Over the past few years, Pakistan has invested about 5 billion US dollars in textile industry, mainly in spinning and weaving and other primary products: spinning 47%, knitting 27%, 11% processing, 8% accessories, synthetic chemical fiber 5%, weaving and clothing 5%. in the 05-06 fiscal year 10 billion 100 million cotton textile exports, cotton yarn and cotton cloth accounted for nearly 1/3, these products were sold to their competitors.

As the continued high inflation (fiscal year average of more than 8%) and the government's monetary tightening policy, the interest rate of Palestinian loans has risen, and the average interest rate of the banking sector has exceeded 7.5%. 4-5 years ago, Pakistan's lending rate was 3%, but it has risen to 9-12% in just a few years. This has increased the cost of Pakistan textile industry relative to China, India and Bangladesh. According to the latest idea of the Pakistan Textile Association, the borrowing cost of the textile industry increased by 83% in the 2005-06 fiscal year, and the interest rate dropped by 29% in the year of 15%.. In the fiscal year 2005-06, the textile industry borrowed 28% in the fiscal year. In the first quarter of this fiscal year (2006 7-9 months), textile industry lending almost had negative growth compared with the same period last year.