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Importance of The Textile Industry in Pakistan

Textiles are not just apparel and home furnishing but find a huge presence in high-end applications, like fire-fighting suits, sutures, conveyor belts, sports packing, etc. Textiles are products that are formed by interlacing interloping fiber yarns.


A Textile is a material made of natural or synthetic fiber. We are blessed to have a strong textile industry in Pakistan.


Textile product passes through several processes in their manufacturing before it becomes wearable these processes include spinning weaving knitting to garment manufacturing.


They also have other significant uses like in bags,  baskets, carpeting, furnishings window shades, towels covering tables, and beds art pieces.


Textile products are also used in industrial and scientific processes such as filtering belts. Their miscellaneous uses include flags, backpacks, tents, nets, handkerchiefs, cleaning rags,s transportation devices such as balloons sales parachutes, etc.


So, you Ever think where our world would be today without the existence of the textile industry?


Fabrics are created using a variety of procedures like knitting, felting, weaving, and dyeing. In addition to creating garments and other items, the textiles also manufacture yarn, thread, and much more.


The textile industry significantly lifts the global economy and provides employment for a large number of individuals worldwide. To know about oil Refinery in Pakistan click here.


1. Textile industry in Pakistan

The majority of  Pakistan’s textile industry is concentrated in Faisalabad. It is the largest textile center in Pakistan. Faisalabad is Pakistan’s textile center also known as the Manchester of Asia although, there are several textile factories in Lahore, Karachi, Sialkot, and other major towns.


The biggest textile company in Pakistan is Nishat Mills Ltd. It is based in Lahore. The Nishat Group’s primary business, Nishat Mills, was founded in 1951. The textile industry in Pakistan is one of the largest contributors to the country’s economy, accounting for over 60% of its exports. It is Pakistan’s biggest, most advanced, and vertically integrated textile enterprise.


All these textile mills are very important in Pakistan with respect to the economic growth rate.


2. Importance of The Textile Industry in the Economy of Pakistan


The volume of the textile industry in Pakistan is estimated by the fact that it has extensive production and the capability to add value at every stage of processing (fig. 1)



Importance of The Textile Industry in Pakistan

The industry takes part in 8.5% of GDP and employs roughly 40% of the workers around the country. The average percentage of textile items in national exports has remained at around 62%, excluding seasonal and cyclical variations.


Importance of The Textile Industry in Pakistan

The textile sector contributes around 8.5 percent of the GDP and it also contributes around 60 % of export earnings.


Out of the total labor force of the country, it currently contributes to 40 % of the labor force is employed in this sector. It is equivalent to 19 million workers and among the manufacturing sector, in the value addition chain, it makes up 29 %.


The importance of the textile industry in Pakistan’s economy is measured by the fact that directly and indirectly 25 million individuals are linked to this sector the livelihood of 25 million individuals is linked with this sector so there’s no doubt textile industry is very important in Pakistan for economic growth (fig 2).



3. Statistical Data on the Importance of the Textile Industry in Pakistan


According to published research, the textile industry is the most important in Pakistan for economic growth. The textile industry in Pakistan contributes around 65% of our national exports, 46% of industrial production, 38% of industrial employment, and 9%of the Gross National Product.


As of today, the textile industry in Pakistan has successfully transitioned from the Multifiber Agreement to the WTO’s quota-free system. Recent statistics show that Pakistan’s textile sector produces more than 60% of the nation’s overall exports of about 5.2 billion dollars. Around 46% of the nation’s overall production is contributed by the sector.


Pakistan exports its textile products mainly to the US, UK, China, Germany, and Spain.

In July and March of 2021-2022, Pakistani textile exports recorded $14,242.623 million, a rise of 25.43% as compared to the previous years.


Importance of The Textile Industry in Pakistan

4. Subsectors of the Textile Industry


The textile value chain consists of multiple industrial sub-sectors. The value chain is quite long starting from cotton picking to a finished garment of the latest fashion. The end product of one sub-sector is the raw material for the other. Each sub-sector in the value chain contributes to value addition and employment generation.


Several industrial subsectors make up the textile value chain. It is Starting with cotton plucking and ends with a finished product of the newest trend. The finished garment of one subsector serves as the starting point for another. The sub-sectors of Pakistan’s textile industry are listed:


• Spinning

• Weaving

• Finishing

• Dyeing

• Printing

• Pressing and Fashion designing


Importance of The Textile Industry in Pakistan

4.1 Spinning


 Fibers are turned into yarn by the process of spinning. These might be synthetic fibers like polyester or natural fibers like cotton. The creation of synthetic filament yarn is also referred to as spinning. Yarn that is not manufactured from fibers is known as man-made filament yarn.


4.2 Weaving


Weaving is the technique of turning two sets of threads over and under one another to create cloth, carpets, blankets, and other items. One of the most significant sub-sectors of the textile industry is weaving. The majority of Pakistan’s textile exports are made up of woven textiles and other associated woven manufactured goods.


4.3 Finishing


One of the most important arts in the textile sector is finishing cloth. A product’s appearance is frequently of the utmost importance, and the finishing techniques heavily influence the appearance of any cloth.


4.5 Dyeing


The technique of dying clothes and other materials is quite easy. It doesn’t require much effort, and the amount of effort required frequently varies depending on the color used.


4.6 Printing


 Clothes may be printed with various designs and patterns using the printing process.


4.7 Pressing and Fashion designing


 Pressing involves pressing the fabric.  Creating clothing Fashion design is the applied art that focuses on the creation of apparel and accessories for the modern lifestyle under the influence of a particular era’s cultural and social norms.


5. Importance of the Cotton Textile Industry in Pakistan


The cotton and textile industries of Pakistan are important to the country’s economy. Pakistan is known for producing high-quality cotton, which is a key raw material for the textile industry. Cotton is Pakistan’s main industrial crop, providing vital income to rural people.


The cotton processing and textile sectors account for about half of the nation’s manufacturing base. Together, the cotton and textile industries provide 11% of the GDP and 60% of export revenue.


Fig 4 shows the raw material and fiber consumption trend from the year 2018 to 2021.


Importance of The Textile Industry in Pakistan

 The spindles capacity & looms capacity remained the same at 13.41 million and 9,084 respectively in 2020-2021.


The yarn production increased from 3.049 billion Kgs in 2019-20 to 3.441 billion Kgs in 2020-2021.


6. Growth of Pakistan’s Textile Industry


In the most recent financial year, Pakistan exported textiles worth $19.329 billion, the largest amount ever. Exports began to fall in October 2022 after registering a gain of a single digit over the first three months of the current fiscal year as a result of the textile sector’s inability to maintain the trend of positive development.


(fig. 5 and 6) According to the data, the growth in textile exports in July, August, and September 2022 was just 1%, 8%, and 9%, respectively. Yet, in October, November, December, and January 2022 respectively, exports horrifyingly fell by 15%, 18%, 15%, and 12%.


According to the Pakistan Bureau of Statistics, the textile export contributed 61% to the total volume of exports of $31.8 billion during the previous year.


The export of knitwear increased by 34.32% and reached $5.12 billion in the financial year 2021-22 as compared to $3.81 billion in the preceding fiscal.


Importance of The Textile Industry in Pakistan

According to the Pakistan Bureau of Statistics, the $31.8 billion in exports made up 61% of all exports in the preceding year. In the fiscal year 2021–2022, knitwear exports climbed by 34.32% to $5.12 billion from $3.81 billion in the year before.


Importance of The Textile Industry in Pakistan

6.1 Current Situation of Pakistan’s Textile Industry


The textile sector has been suffering for the past two to two decades due to power shortages and governance issues etc. Still, recently textile sector has outperformed during the current pandemic and recorded a 10.7% growth in exports in January 2021 and this can be partially attributed to the originally competitive energy tariff introduced by the government in late 2018.


6.2 The Decline of Pakistan’s Textile Industry


 Cotton consumption in Pakistan is predicted to be at its minimum and lowest as compared to the last 20 years, expected to down 700,000 bales in December 2022 to 9.0 million, decreasing over 2.0 million as compared to the year 2021 mostly due to decreased supply (fig 7).


Importance of The Textile Industry in Pakistan

6.3 Survival Challenge of the Pakistan textile industry


The year 2022 has been recorded as Pakistan’s year of instability by the foreign policy journal, for its economic situation. The unfortunate news that many top and large textile mills in Pakistan had partially shut down their production as a result of the ongoing economic crisis marked the end of 2022. In addition to the political and financial instability, Pakistan faced several issues as it approached 2023.


They included a high rise in debt, limited foreign exchange reserves, and an energy shortfall. In the fiscal year 2023, it is expected to repay more than $26 billion in terms of foreign debt. The textile sector has a lot of room to grow and develop if it wants to attract international investment and produce revenue.


Conclusion


Pakistan is known for producing high-quality cotton, which is a key raw material for the textile industry. With 60% of the nation’s exports coming from the textile industry, Pakistan’s economy is significantly impacted. To thrive in the extremely competitive global world of today, the textile industry must modernize its supply chain, boost productivity, and enhance value-addition. The goals of the Textile Industry Division are to create plans and strategies that will help the textile industry overcome these obstacles and become competitive on a worldwide scale. Despite facing challenges such as power shortages and competition from other countries, the textile industry in Pakistan remains a vital sector for the country’s economic development.


References


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