Pakistan takes an important place in international garment industry for its strong ability in weaving production. According to a garment processing district report of the UN, Pakistan can survive and develop well in WTO system relying on its cotton output and processing.
Located in the northwest of Indian subcontinent, under subtropical monsoon climate having the distinctive feature of dry season and rainy season, equipped with gargantuan irrigation system, all these advantages make Pakistan one of the 4 largest cotton producers in the world. Possessing abundant skillful and cheap labor force is another advantage for Pakistan. In recent years, the government also supports the industry greatly in policy by offering multiple preferential tax policies to encourage the export of garment, and supplies funds to research and new products, skill training and information updating. At the same time, a lot of foreign investment has been attracted due to quota-free policy for fabric in Pakistan. All these made market in Pakistan is potential and prospective.
Textile and garment enterprises in Pakistan are made up of spinning ,weaving, processing and finishing, knitting and readymade and so on. There are 450 large scale industries of weaving and around 50 enterprises are multi-functional ( spinning, weaving and readymade of garments) and the other 300 are the ones mainly dealing with knitting ,weaving separately. Besides, there are thousands of small factories focused on various textile producing.
Textile is the main export industry and the export amount reached USD8.568 billion between 2004 and 2005. The trade amount lined in top 6 in the world and contributed a lot to world fabric trading. Cotton as the raw material and semi-finished products dominate a lot in international textile trade and the market for which is mainly EU and USA.
But there is a big incipient fault with the fast development. Mr. Tariqi Kram, Chairman of TDAP said a critical situation bored its textile exporting due to various factors. So he appealed for the whole industry to be positive to come over the difficulty. Export of textile between 05 and 06 increased by 17% which was far below the prospecting of professionals and the total amount of textile export has decreased to 60% which was caused by increased cost and lacking of technology and new equipment.
World Bank had emerged Pakistan to improve its production efficiency or it’ll lost a lot in post quota times. Officials of Pakistan Government admitted the most difficult problem in garment industry was low in production efficiency and weak in sales. It’s said that the government has decided to improve the competency and employ foreign consultants from China, Korea, Japan and Germany to improve its technoghy.
The future of Pakistani garment industry depends a lot on its steps of reforming.
By Marketing Department of SGMZ |