2. • Textile is a term that comes from “texere”
which is a Latin word, that means “to weave”.
• A cloth, especially one manufactured by
weaving or knitting; a fabric.
About Textile
3. • The textile industry is often considered the
backbone of the Islamic Republic of Pakistan’s
economy.
• Pakistan’s textile Industry is the fourth Largest
Cotton Producer.
• 6th largest importer of raw cotton
• The Third largest Consumer
Introduction
4. INTRODUCTION
• The textile industry contributes approximately 46
percent to the total output or 8.5 percent of the
country GDP.
• In Asia, Pakistan is the 8th largest exporter of
textile products providing employment to 38
percent of the work force in the country.
5. Value chain of textile industry
RAW
MATERIAL
TEXTILE PLANTS
SPINING
WEAVING
DYING
PRINTING
ACCESSORIES
APPAREL
PLANTS
DISTRIB.
CENTRES
RETAIL STORES
CUSTOMERS
6. OVERVIEW
• Pakistan’s textile industry ranks amongst the
top in the world. Cotton based textiles
contribute over 60% to the total exports,
accounts for 46% of the total manufacturing
and provide employment to 38%
manufacturing labor force. The availability of
cheap labor and basic raw cotton as raw
material for textile industry has played the
principal role in the growth of the Cotton
Textile Industry in Pakistan.
7. HISTORY OF TEXTILE IND.
PIDC came into being which had the
main objective of industrializing the
country in major fields
The modern development of the sector
started in 1953 with the inauguration of
the Valika textile Mill at Karachi.
Pakistan's industrialization began in
the 1950s with the textile industry at
its center
1950’s
8. HISTORY OF TEXTILE IND.
New private investment began with a
highly protected home market
Newly established mills were based upon
imported technology but there was a lack of
technical staff and shortages of capital.
By mid sixties there were about 180
units of textiles bleaching, printing
and processing units, mostly situated
in Karachi and Punjab.
1960’s
9. HISTORY OF TEXTILE IND.
After the separation of East Pakistan
Cotton Export Corporation of Pakistan
was established which meant that most
of the private sector work was taken
over by the state.
The textile industry suffered heavy losses
because the export of cotton was
controlled by the CEC
By 1970-71 there was 113 textile units
and the industry had 2,605 thousand
spindles and 30 thousand looms
1970’s
10. HISTORY OF TEXTILE IND.
There was a rapid growth in spinning
sector.
Till 1980-81 spinning continued to
expand.
The eighties brought a relief to the
textile industry due to the boom in
international market and industry
friendly policies of the government.1980’s
11. HISTORY OF TEXTILE IND.
World demand for good quality, wide
width fabrics grew and replacement
and a modernization process started.
Machinery for producing garments and
made-ups was also freed from import
duty. As a result, a huge expansion in the
spinning sector took place in the first five
years of the 1990s.
The number of units rose to 440 in
1996-97
1990’s
12. HISTORY OF TEXTILE IND.
Textile exports managed to increase at a
very decent growth of 16% in 2006.
Textile exports share in total export of
Pakistan has declined from 67% in 1997
to 55% in 2008, as exports of other textile
sectors grew
Textile exports in 1999 were $5.2
billion and rose to become $10.5
billion by 2007.
1999 to
2008
13. HISTORY OF TEXTILE IND.
textile industry is being hit hard due to
ongoing energy crisis, depriving the gas
supply to the textile units for three days
a week.
Pakistan’s cotton cultivation has declined due
to several factors ranging from cultivation of
traditional varieties and via traditional
methods, poor marketing, and failure in
making timely payments to cotton producers.
The textile industry employs almost 40
percent (2008-09) of the industrial
workforce
2009
14. HISTORY OF TEXTILE IND.
Significant changes to the general sales
tax (GST) on industrial sector including
textiles
(APTMA) had prepared a based report for the
federal government in which it has been
projected that the textile industry exports would
cross over $16 billion compared to its present
level of around $8 billion.2010
15. HISTORY OF TEXTILE IND.
Energy crisis leaves Pakistan textiles in
tatters
Textile exports stood at $12.5 billion
from July 2010 to May 2011
2011
16. HISTORY OF TEXTILE IND.
10 percent of the spinning mills and
fabric printing units have shut down,
and half of the remaining plants are
struggling to survive
thousands of textile workers poured out
onto the streets of the city, burned tires,
and shouted slogans against the
government.
Pakistan’s $13.8 billion textile industry
is struggling to survive a critical
shortage of energy to run its plants.
2012
19. IMPORTANCE OF TEXTILE INDUSTRY IN
ECONOMIC SECTOR
• Pakistan’s economy relies heavily on its cotton
and textile sectors.
• The cotton-processing and textile industries
make up almost half of the country’s
manufacturing base, while cotton is Pakistan’s
principal industrial crop, supplying critical
income to rural households. Altogether, the
cotton-textile sectors account for 11 percent
of GDP and 60 percent of export receipts.
20. TEXTILE SECTOR’S CONTRIBUTION TO
THE ECONOMY OF PAKISTAN
• According to the economic survey of Pakistan
2008-09 the Pakistan textile industry
contributes more than 60% to the country
total exports, which amounts to around 5.2
billion US dollars.
• According to the 2012 Economic Survey of
Pakistan, issued by the finance ministry, the
textile industry itself constituted about 4% of
the total size of the economy.
21. TOP BUYERS OF PAKISTANI TEXTILE
GOODS ARE
• USA, EU, Gulf region, UK, Hong
Kong, Japan, Korea, Saudi
Arabia, Italy, Turkey, Germany, Norway, France
, Canada, Sweden, Australia, etc.
22. IMPORTANCE OF TEXTILE SECTOR
• In asia pakistan is the 8 largest exporter of textile
products
• Cotton is the basic Cash crop of Pakistan.
• Textile products are one of the essential and basic
human requirement next to food.
• Pakistan is the 3rd largest exporter of raw cotton
23. IMPORTANCE OF TEXTILE SECTOR
• Cheap labor and Raw cotton are available.
• It provides employment to 38% of the work force
in the country which amounts to a figure of 15
million. However, the proportion of skilled labour
is very less as compared to that of uskilled labour
• 2nd Largest supplier of cotton yarn with 26%
share of the international market.
24. FORWARD AND BACKWARD LINKAGE
BACKWARD LINKAGE
The backward
linkage of textile
sector is in
agricultural sector.
FORWARD LINKAGE
The forward linkage
includes finished
goods and like knitted
and readymade
garments
25. SECTORS OF TEXTILE INDUSTRY
• Spinning
• Weaving
• Processing
• Printing
• Garment manufacturing
• Filamen yarn manufacturing
26. FACTORS OF PRODUCTION
• Cotton is an economic asset of Pakistan, it is
a natural fiber used primarily as a raw material
in textile industry.
• The World cotton production is estimated at
118.8 million bales in 2007-2008.
27. COTTON
• Leading produces of cotton include USA,
China, India, Pakistan, Uzbekistan and turkey.
• Both Punjab and Sindh are the major cotton
growing provinces, where as N.W.F.P is not
known for growing cotton production.
28. FIBER
• Cotton was primarily used as a raw material in
yarn manufacturing but the growing demand
for blended yarn and fabrics has shifted the
raw material source towards the manmade or
synthetic fiber in Pakistan.
• Pakistan usage is currently at 74% cotton and
26% manmade fiber, whereas the world fiber
mix is 45% cotton and 55% non-made fiber.
29. SPINNING
• Spinning is the process of converting fibers
into yarn.
• The fibers maybe natural fibers such as cotton
or man made fibers such as polyester.
• Sometimes , the terms spinning is also used
for production of manmade yarn (that is not
made for fibers).
• What so ever is the case the final product of
spinning is yarn.
30. SPINNING CONSIST OF
• Blowing and mixing
• Carding
• Combining
• Drawing
• Simplex
• Ring Spinning
• Cone Winding
31. WEAVING
• weaving sector is one of the most important
textile sub sector.
• The exports of woolen fabrics and other
related woolen made-ups from a major
portion of textile exports from Pakistan.
• Weaving is a process which turns yarns into
cloth.
• The machine used for weaving is the loom
33. COTTON GINNING SECTOR
• Leading producers of cotton include
USA, china, India, Pakistan, Uzbekistan and turkey. The
current market share of cotton in 56 percent in all
fibers. Textile fibers are divided into three basic types
according to their sources such as cotton fiber, man
made fiber and wool.
• There are 1221 ginning factories in the country.
• Ginning industry has installed capacity of more than
one million bales on a single shift basis and total
capacity of around 20million bales on three shift bases.
34. COTTON SPINNING SECTOR
• Pakistan has the third largest spinning capacity in
Asia with a spinning capacity of 5% of the total
world and 7.6% of the capacity in Asia.
• Pakistan growth rate in this sector has been 6.2%
per annum.
• At present, cotton-spinning sector is comprised of
421 textile units (50 composite units and 471
spinning units) with 10.1 million spindles and 114
thousand rotors in operation with capacity
utilization of 89 percent and 60 percent
respectively, during July-Mar 2007-08
35. WEAVING & MADE-UP SECTOR
• There are three different sub-sectors in weaving
i.e, Integrated, independent Weaving Units, and
Power Loom Units.
• This sector is producing comparatively low value
added Grey Cloth of mostly inferior quality.
• However, the performance of cloth sector
remained far better than last year and charted a
growth of 12.6 % during July – March 2007-08 .
36. Textile Value Chain Process
• Cotton value chain starts from Ginning that adds value
to it by separating cotton from seed and impurities.
• But Spinning can rightly be called as the first process
of the chain that adds value to cotton by converting
into a new product i.e. conversion from ginned cotton
into cotton yarn.
• Since spinning is in the beginning of value chain, so all
the later value added processes of weaving, knitting,
processing, garments and made-ups manufacturing are
dependent upon it.
37. Textile Value Chain Process
• If spinning industry produces sub-standard yarn, its
effect goes right across the entire value chain.
• The spinning sector forms the heart of the textile
industry. This sector produces yarn for downstream
sectors, namely weaving, processing and knitting.
• Pakistan is the third largest player in Asia with a
spinning capacity of 5% of the total world and 7.6% of
the capacity in Asia.
• Pakistan’s growth rate has been 6.2% per annum and
is second only to Iran amongst the major players.
38.
39. TEXTILE NEWS
• Textile industry of Pakistan worst hit by
power cuts
“The energy crisis has forced the textile mills
to close their units, especially in Punjab the
industry is under severe pressure. Chairman
APTMA Punjab, Shahzad Ali Khan, said daily
electricity load shedding has increased to 12
hours.”
40. • “The Pakistan textile industry contributes
more than 60 percent (US $ 9.6 billion) to the
country’s total exports. However, currently this
industry is facing great decline in its
growth rate. The major reasons for this decline
can be the global recession, internal security
concerns, the high cost of production due to
increase in the energy costs etc.”
41. ‘’A spokesman for the All Pakistan Textile Mills
Association (APTMA) claimed that 60 to
70 per cent of the industry had been affected
and was unable to accept export orders coming
in from around the globe, as a result of gas
load shedding ‘’
42. PROBLEMS FACED BY TEXTILE
INDUSTRY
• Lack Of Research And Development In Cotton
Sector
• Lack of Modernize equipment
• Finance bill to burden industry further
• Increasing cost of production
• Internal issues Pose a Larger Threat for
Pakistan’s Textile Industry
• Effect of infaltion
43. PROBLEMS FACED BY TEXTILE
INDUSTRY
• Energy crisis
• Electricity crisis
• Gas shortage
• Tight monetory policy
• Removal of subsidy on textile sector
• Lack of new investment
• Raw material prices
• Export performance of textile sector
44. SPECIAL ORGANIZATION
• All Pakistan Textile Mills Association (APTMA) is
the chief organization that determines the rules
and regulations in the Pakistan textile industry.
• APTMA is the premier national trade association
of the textile spinning, weaving and composite
mills.
• APTMA represents 391 textile mills out of which
309 are spinning, 45 weaving and 37 composite
units
45. HUMAN RESOURCE
• The textile sector employs 45% of overall labor
force, with 38% of the manufacturing Workers
employed under textile sector.
• Pakistan has the advantage of cheaper labor as
compared to its competitors, but unfortunately
the labor productivity is very low.
• There are hardly any training programs to
develop the skills of labor hence, the craftsmen
entirely depend upon thier inherited skills with
no advancement and movement towards
technical knowledge.
46. CLIMATIC CONDITION
Although Pakistan has the ideal climatic
conditions for the growth of cotton providing a
factor advantage to the textile industry, but it is
also quite vulnerable to pesticides that can lower
the yield per hector.
The textile sector is largely dependent on the
supply of raw material of the agricultural sector
and hence whatever happens to the agricultural
sector like floods will adversely affect the textile
industry rendering it even more vulnerable to
environmental conditions.
47. TRAINING
• Limited availibility of trained technical staff to maintain and
run machinery at full efficiency is a constraint upon the
development of Pakistan’s textile industry.
• This shortfall is partly due to a lack of technical education
facilities.
• Some of the developments in the textile industry include:
Advances in ring spinning, computerized dyeing and
finishing, computer-aided designing , manufacturing and
developming retailing links hence, all these demand new
and greater skills and Pakistan lacks it.
48. EDUCATION
• Education is essential for the development of the
textile industry. Even if the basic factors are present,
unless value-addition is not done on them, they will
not be productive enough.
• Even if there is not enough production a country could
still manage through research and development.
• A recent survey shows technical manpower
requirement is 12,750 graduates whereas total number
of technical personnel available up tp 2003 was approx.
7,950, so there is a shortage of 4,800 graduates in
textile science.
49. Textile Industry Pros And Cons
Pakistan has the
advantage of cheap
labor as compared to
its competitors, but
unfortunately the
labor productivity is
very low
ADVANTAGE
There are hardly any
training programs to
develop on the skills
of these labors and
the craftsmen depend
upon their inherited
skills with no
advancement and
DISADVANTAGE
50. STRENGHTS
• Self reliance
• Manufacturing flexibility
• Abundance of raw material production 32
• Design expertise
• Availability of cheap labour
• Growing economy and domestic market
• Progressive reforms
51. WEAKNESSES
Research & Development (R&D)
Developed countries are using the technology of
biotechnology and genetic engineering to increase the quality
and quantity of their cotton production. In Pakistan, there is
very some research done on small scale by private companies.
Practically no efforts are being made by the APTMA in the
R&D of the textile industry to enhance the quality of its
products.
52. WEAKNESSES
• Highly fragmented sector
• High dependence on cotton
• Lower productivity
• Declining mill segment
• Technological obsolescence
• Non‐participants in trade agreements
53. WEAKNESSES
Poor quality standards.
Pakistan’s textile industry should focus on
latest material handling techniques and
should train workers. The inability to timely
modernize the equipment, machinery and
labor has led to the decline of Pakistani textile
competitiveness
54. THREATS
New competitors
Pakistan is facing new competitors in textile sector such as
Bangladesh, Vietnam and Turkey. Though we cannot avoid
competition but we can always stay ahead of them by
reforming our strategies and educating our entrepreneurs
so as to move one step forward in every aspect.
Phasing out of quota system
As the quota system is ruled out by WTO, there is a threat
by the Chinese and Indian manufacturers to gain most of
the market share. We have high costs, low labor
productivity and inefficient production processes.
55. THREATS
3. Fashion life cycle
Fashion changes day by day these days. Media has so much
penetrated in our daily lives that we easily adapt ourselves
as it wants us to. This has resulted in shortening the fashion
lifecycle thus increasing the fashion risk.
Now the buyer does not want to wait long for his
consignment because he is insecure that by the time it will
reach to him he will lost its demand due to change in
fashion. Therefore, they prefer to buy from neighboring
countries even at higher cost to get their products instantly
rather than to wait weeks or months for their consignments
to reach them.
56. • Stiff competition from developing countries;
especially China and India.
• Pricing pressure
• Locational disadvantage
• International labour and environmental laws
57. ENVIROMENTAL ISSUES
• Textile industry is associated with some
environmental issues some of them are:
• Large volumes of water.
• Usage of complex chemicals.
• Discharge of untreated effluent
• Water Pollution.
• Air Pollution.
• Labours concern.
58. RECOMMENDATIONS
• Remedy Though Foreign Direct Investment (FDI)
• Image Building Of Pakistan To Attract Foreign Direct
Investment (FDI)
• Focus On Value Addition
• Technology Up-gradation & Capacity Building
• Human Resources Development
• Subsidy Removal Should Be Taken A Back
• Interest Rate Should Be Low Down In Order To
Survive This Industry
• Electricity & Gas Tariff
59. RECOMMENDATIONS
• Removal of Energy Crisis
• Exploration of new Export Markets
• Reducing the cost of doing Business in Pakistan
• Need for Improving Textile Production
• Improvement in productivity
• Awareness of International Quality Standards
• Introducing concept of on-the- job-training
• Introducing efficient management techniques
60. CONCLUSION
Textile industry is the backbone of the Pakistan’s
economy. The textile industry of Pakistan plays an
important role in earning foreign exchange,
providing employment to the country. Pakistan’s textile
industry is going through one of the toughest periods in
decades. Our textile sector needs to capitalize on the
new emerging opportunities by adhering to global
best practices, adapting rapidly changing technologies,
better supply chain management while
trying to reach global value chains.
