Introduction Of Pakistan Textile Industry

In fiscal year 2021, Pakistan's GDP grew by 3.9%, and the improvement in its growth rate was mainly due to strong industrial growth and stable overseas remittance inflow. China is Pakistan's largest trading partner, with cotton yarn, grain and mineral sand and other products occupying the top three exports to China for a long time, accounting for about 60%, 10% and 6% respectively. The second phase protocol of China Pakistan FTA has been formally implemented in January 2020.

Textile industry

Pakistan is the eighth largest textile exporter in Asia, the fourth largest cotton, yarn and cotton producer and the third largest cotton consumer in the world. The textile industry accounts for about 8.5% of GDP in the country and 46% in the whole manufacturing industry. The number of textile workers is about 15 million, accounting for 40% of its manufacturing labor force. The credit scale accounts for 40% of the credit scale of the manufacturing industry in Pakistan, and the industrial added value accounts for 8% of its GDP.

In the fiscal year 2022 (July 2021 to June 30, 2022), Pakistan's textile exports reached US $19.321 billion, up 25.32% year on year, accounting for 60.77% of the total merchandise exports; The export of cotton yarn was 332200 tons, a year-on-year decrease of 14.38%; The export of cotton cloth reached 429 million square meters, down 60.90% year on year.

Cotton yarn, cotton cloth, towel, bedding, knitwear and other low value-added products account for nearly 80% of Pakistan's textile exports. More than 60% of textiles are exported to the European Union and the United States, and the market is relatively concentrated, especially clothing (clothing and knitwear), and more than 90% are exported to Europe and the United States. Cotton yarn, cotton and other primary products are mainly exported to China, India, Bangladesh, South Korea, Japan and other countries. At the same time, Pakistan is also importing textiles, mainly raw cotton, chemical fiber, jute and other raw materials and used clothing.

As a traditional textile country, Pakistan's advantages are the natural conditions of cotton production and cheap labor. However, the cotton production and quality are declining year by year, and the overall skill level of labor force is low, which also restricts the development of Pakistan's textile industry. In addition, Pakistan's competitive advantages are weakening, such as political instability, power supply shortage, high electricity prices, currency depreciation, excessive foreign exchange gap, and high financing costs.

The government of Pakistan is formulating a new textile policy to enhance the international competitiveness of its textiles. In 2022, the investment and expansion plan of Pakistan's textile industry will be about 3.5 billion US dollars, which has been implemented at the beginning of the year.

Textile machinery equipment

Pakistan has the production capacity of the whole industrial chain, including 1221 ginners, 442 spinning mills, 124 large-scale textile and garment factories and 425 small-scale textile and garment factories. The ring spinning scale is about 13 million spindles and the rotor spinning is 200000 heads. The annual production capacity of cotton is about 13 million bales (480 lb / bag), the annual output of man-made fiber is about 600000 tons, and the annual output of terephthalic acid, the raw material for polyester production, is 500000 tons. More than 60% of Pakistan's textile production capacity is concentrated in Punjab province, 30% in Sindh province, and only 10% in other provinces and regions. Pakistan's textile industry is generally at the low end of the international industrial chain, staying in the links with relatively low added value such as primary products, primary processed products, medium and low-grade textile consumer goods.

At present, the textile machinery from Japan, Europe and China accounts for the main share of the equipment in use in the country. The selling point of Japanese equipment is simple operation and durable, which is very suitable for the use characteristics of textile enterprises in this country. European equipment is somewhat "acclimatized", and its advanced selling point in Pakistan can not support it to compete with Japanese equipment. The main advantages of Chinese equipment are high cost performance and short delivery time, while the disadvantages are poor durability, many small problems and frequent maintenance.