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12 OCTOBER 2018 / HOMETEXTILESTODAY.COM
Pakistan Overcomes Odds to Keep Textile Sector Moving Ahead
Challenges such as high energy costs and reduced investment in technology has stymied, but not broken, Pakistan’s leading industry.
By Joanne Friedrick
Pakistan, which has been going through some governmental growing pains over the past sev-eral years, is still a significant player in the textiles industry. Even with concerns about the reliability of its power grid and the cost of electricity, gas and water, Pakistan continues to produce cotton and its home-oriented byproducts, such as bed wear and towels.
According to an article in Pakistan Today in July, the Pakistan textile industry combined is the 8th largest manufacturer in Asia and employs about 45% of the country’s total labor force, with most of that being attributed to manufacturing.
Cotton dominates the scene: Pakistan is the 4th largest producer of cotton with the third largest spinning capacity in Asia, reported Pakistan To-day, with only China and India ahead of it. When the article was written in mid-July, textiles were responsible for 62% of Pakistan’s national exports.
On its website, the Towel Manufacturers’ As-sociation of Pakistan reported that for July-August 2018, exports of textiles totaled $2.26 billion, which was up 3.7% over the same period a year ago. Towels on their own experienced a volume increase of 9.3% and a value increase of 7% over
the same period a year ago.Looking at the different categories that make
up the total textiles picture for Pakistan, knitwear accounted for 22% of the export market during the July-August period, followed by ready-made garments, 18%; bed wear, 18%; cotton cloth, 16%; cotton yarn, 9%; and towels, 6%. The remainder is made up of tent, canvas and tarps; art-silk and synthetic textiles; made-ups; and others.
While Pakistan’s exports were up in July-August, its business with the United States in bedding and was unsettled over the previous year. According to information from the Department of Com-merce’s Office of Textiles and Apparel (OTEXA), U.S. imports of towels from Pakistan were down about 8.5% and pillowcases were also down about 4%. Sheets were up slightly at 1.5% and bedspreads and quilts also saw an uptick, rising by 4% over 2017.
For the most part, Pakistan ranks second or third to India and China in overall U.S. imports in bedding and towels. It garnered a 21% share of the cotton terry and other pile towel market for the year ended July 2018, with only India and China ahead of it and fourth place Turkey far
behind at about 7%. In bedspreads and quilts, Pakistan was second with a 16.7% share.
Although Pakistan is a significant exporter of textiles, The Express Tribune reported in September that All Pakistan Textile Mills Association (APTMA) figures show sales within the country for 2106-2017 still outpace exports. APTMA reported that of the combined local and foreign sales of $26 billion, exports accounted for $12.3 billion and local sales, $13.7 billion.
And even that figure was below potential, the report said, because it constituted just 32% of all textile items bought by consumers in Pakistan. Imported goods (44%), the newspaper reported, account for the majority of textiles sold.
APTMA cited several reasons for Pakistan’s tex-tile industry challenges, ranging from investment in new technology to increased competition from India and Bangladesh to the cost of utilities.
Yet Pakistan’s textile industry continues to seek ways to improve. In an article from the Business Recorder in mid-September, a delegation from Faisalabad visiting the embassy in Sweden talked about collaborating with Sweden on ways to modernize its textile sector. HTT
Cotton is the prime crop of Pakistan, making the textile industry the most significant in the country.
The spinning industry is worth about $5 billion.
In 2016-2017, Pakistan produced 1.8 billion metric tons of cotton.
In 2016-2017, Pakistan used 2.2 billion metric tons of cotton.
The Pakistan textile industry invested $1 billion in machinery in 2005-2006. Since that time, investment has declined 44%, with just $560 million invested in 2016-2017.
The textile industry contributes 8.5% to Pakistan’s total economic output of $300 billion.
Pakistan’s textile industry provides 9% of global textile needs and ranks 10th in the world among textile producers.
Faisalabad contributes 60% of the total textile exports of Pakistan.
Fast Facts
Sources: Pakistan Bureau of Statistics; All Pakistan Textile Mills Association; Faisalabad Chamber of Commerce & Industry
Pakistan Textile Exports from July - August 2017 - 2018
Export of Towels and Made-ups to World
Source: Pakistan Bureau of Statistics
Source: Pakistan Bureau of Statistics
Knitwear22%
ReadymadeGarments
19%
Made-ups(Other Textiles)
5%
Art-Silk &Synthetic Textiles
2%
Other TextileProducts
3%
Bed Wear22%
Towels6%
Cotton Cloth15%
Cotton Yarn10%
130,000
125,000
120,000
115,000
110,000
105,000
100,000July to August 2017-2018
125,195 116,978
111,043 109,192
Towels
Made-ups(Other Textiles)
July to August 2016-2017
S P O N S O R E D C O N T E N T
C O U N T R Y S P O T L I G H T/ PA K I S TA N
1. What is your group’s role in promoting Pakistani textiles to the American market and what services do you offer to customers in the U.S.?The Trade Development Authority of Pakistan (TDAP) is the
first place American companies looking to do business with the Pakistani home textiles industry should turn to. We are a trusted, reliable source of information with access to a broad base of suppliers in Pakistan and we can match up your needs with the capabilities of these resources to everyone’s benefit.
This is more important than ever as Pakistan becomes a more important resource for the American market.
As the premier trade promotion organization of Pakistan, devoted to broadening of the export base through innovative and proactive marketing and promotional efforts in coordination with public and private sector stakeholders we can help in improving market access for exporters in an advisory role to the Government, and promote business image of Pakistan in the key export markets.
Textiles is the most important manufacturing sector of Pakistan with an elaborate production chain contributing nearly one-fourth of industrial value addition and generating about 60% of export revenue for the country. As the U.S. is the largest export market for Pakistani products, the TDAP role is even more important for American importers.
TDAP is represented by commercial offices in the Consulates of Pakistan located at New York, Los Angeles, Houston and Chicago, which offer matchmaking services, arrange business meetings and factory visits and facilitate business delegations to and from the U.S. These offices also help U.S. customers in attending TEXPO/ EXPO, the largest exhibition organized by TDAP in Pakistan.
2. What are the strengths of the Pakistani home textiles industry, particularly as they pertain to the needs of importers, wholesalers and retailers in the U.S.?A cotton rich country, Pakistan is the fourth largest producer of cotton in the world. Indigenous cotton has been central to the success of the Pakistani textile industry. The country offers a vertically integrated industry from ginning, spinning and weaving to stitching and embellishing units. This provides it the flexibility and expertise to cater to differing demands of international customers. The availability of cutting edge technology allows the country to compete globally on price and quality.
Pakistan has a diverse range of products to offer: bath and kitchen towels
and linen, bed sheets, duvets, quilt covers, pillow and cushion covers, curtains, table covers, napkins and rugs. Pakistan is already the third largest exporter of home textiles products to the United States, and has the capacity to supply increasing quantities of
these products to the US market.
3. What recent factors in the global sourcing business – tariffs, raw material costs, shifting national manufacturing priorities – are setting the stage for increased business opportunities for home textiles suppliers from Pakistan?With rising trade tensions on the international stage having the potential of engulfing textile imports from China, U.S. buyers are looking for alternate secure source of supplies. China is also shifting its manufacturing focus to production of high value goods. In this scenario, Pakistan naturally comes out to be the least risky option in home textiles sourcing as in addition to possessing a well established industrial infrastructure, it is sufficiently endowed in the major raw material and therefore insulated from external price fluctuations.
4. What are some recent advancements and new developments amongst the Pakistani home textiles suppliers that U.S. customers will see in 2019?The past decade has seen expansions and upgrades in machinery as well as investment in research and development, which has led us to produce better quality goods. The world has acknowledged the progress and now you see more brands that proudly display “Made in Pakistan” labels.
There is a lot of focus and development on various yarns, which will help advance the kind of home textile products made with them. 2019 will be an exciting year for Pakistan as more retailers will start to take notice of the quality being produced and the design and technology that will be showcased in international trade shows.
5. What will the recent change in government in Pakistan mean for the country’s industries and will this new government be more focused on helping manufacturers in their export initiatives?The new government in Pakistan has come into power in August 2018 with the promise of making Pakistan business-friendly, facilitating rapid growth of small to medium-size enterprises and strengthening of international trade, thus leading to inclusive economic growth. Its focus is on increasing ease of doing business through process improvement, greater use of IT, improvements in logistics infrastructure, bringing transparency, and establishing special courts for commercial contracts
enforcement. This government is thus fully committed to further promoting industrial and commercial sectors of Pakistan, which would be translating into increased exports.
6. What is the outlook for business in North America for 2018/2019?The textile import market in North America is showing growth both in terms of quantity and value, a positive sign for our home textiles industry. Additionally, the recent changing trade patterns and re-alignments brighten prospects for exporting companies of Pakistan. Keeping these factors in mind, TDAP is giving more attention to the North American market for its trade promotion activities, so that increasing number of U.S. importers, wholesalers and retailers turn to Pakistan for sourcing of home textiles products.
R A F E O B A S H I R S H A H
A C T I N G S E C R E TA R Y
TRADE DEVELOPMENT AUTHORITY OF PAKISTAN (TDAP)KARACHI, PAKISTAN
As the fourth largest grower of cotton in the world Pakistan always has a steady reliable source for raw materials for products like towels.
Changing global economics, particularly the Chinese tariff situation, combined with a new pro-business government in Pakistan and major investment in the country’s manufacturing base are making Pakistan a much smarter choice for American importers right now.
Home textiles, including sheets and top-of-the-bed, represent the largest export category for Pakistan, giving the business special attention in the country’s industrial structure.
Consulate General of Pakistan:
12 East 65th StreetNew York, NY 10065
Headquarters: Karachi, Pakistan
