| |
|
|
| |
|
Textile could be termed as the backbone
of Pakistan's economy. it is not only the largest
industry in the country but it is the greatest source of
foreign exchange earnings in Pakistan. it provides
employment to 38 percent of overall labour force of the
country and accounts for 27 percent of value addition in
the manufacturing sector. |
| |
|
The Textile sector critically depends
on the supply of raw material from agriculture sector
and therefore, whatever happens to cotton crop is
likely to affect the performance of textile sector.
The size of the cotton crop is not only higher (10.7
million bales), but it exceeded the current year's
target (9.7 million bales). The low market prices
prevalent throughout last year have created
environment, which is conducive for reinvestment in
BMR of the existing units and expansion of the
capacity. |
|
 |
|
| |
|
The inflow of foreign direct investment (FDI)
almost doubled from $2.1 million in July-March 1999-2000 to
$4.0 million in July-March 2000-01. The government has
announced a "Cotton Policy" last year and textile vision 2005
to ensure the availability of cotton in the future and
promotion of textile as an important industry. |
| |
The profile of various components of the
textile industry are given below:
Performance of Ancillary Textile Industry. |
| |
|
|
|
Textile Vision 2005 |
| |
|
Realizing the importance of
Textile Industry the Government constituted a working group.
The group has identified Industry export targets that have
been adopted with in the Trade Policy for the year 2003-2004.
The specially appointed committee approved Textile Vision
2005, salient features of which are as under: |
| |
|
An open, market ariven,
innovation & aynamic textile sector, which is:- |
|
|
|
- Internationally Integrated.
- Globally competitive.
- Fully equipped to exploit the opportunities created by
the Multi Fiber. |
| |
|
Agreement (MFA) and enables
Pakistan to be amongst the Top Five Textile Exporting
Countries in Asia. |
| |
|
Three different seenarios low
Road, Do-able, High Road secnarios have been estimated for the
strategy. These along with the underlying assumptions are
discussed below: |
| |
|
In the low
road scenario, Pakistan will maintain its historic growth
rates of textile Exports, and can reach a figure of $7.4
billion by the year 2005. Pakistan's rank in Asia will improve
from 8th to 7th. To achieve textile export target, investment
of Rs. 151 billion is required. It will be increased to Rs.
280 billion in Do-able and to Rs. 333 billion in High Road
Scenario. In order to move towards the higher value added
exports, highest priority has been given to apparel sector,
both woven & knitting, so, that all the sub-sector are
developed in a balanced approach & become supportive to each
other. Sectoral strategies for each sub sector viz Cotton,
M.M.Fibres, Spinning, Weaving, Textile Processing, Knitting
and Woven Garments have been suggested in the report. |
| |
|
In the
Do-able scenario, Pakistan will reach a textile export target
figure of $10.6 billion placing it in 6th position. In this
scenario, garment and made ups will constitute 47% of total
textile export with garment contributing 28% and made-ups 19%.
Total textile export growth rate will be 12%. |
| |
|
In the High
Road scenario, emphasis has been placed upon the high
value-added products i.e. garments and made-ups. The growth
rates are taken as 20% and 21% for the two categories,
respectively. In this scenario, Pakistan's total textile
export will be $ 13.8 billion. The share of garments in the
total textile exports will be 29% and all made-ups will be
60%. A massive investment plan has been suggested in Textile
Policy to meet the industry's requirement of B.M.R and
expansion. Recommendations for quality standards of cotton
yarn & hedge marketing of yarn have been suggested. These
measures are destined to prepare the industry for the
competitive environment, likely to emerge by 2005. |
| |
|
In order to
implement the recommendations of "Textile Vision 2005" the
Government has set-up a high level "Federal Textile Board"
Under the Chairmanship of Minister for Industries & Commerce. |
| |
|
The Textile
Board will continuously monitor progress for investment in
Spinning and import of machinery under BMR. |
| |
|
Efforts will be made to revive closed spinning
units. The CIRC is considering the cases of individual units
for revival on merit under monitoring of Textile Board. |
| |
|
Technology up-gradation would be sought in the
Weaving sector. |
| |
|
