By Alam, Syed Manzoor
Economic Review , Vol. 40, No. 9
Textile is an important industry in the country. This is only due to the production of cotton in the country, Considered as one of the top 10 textile exporting countries of the world, Pakistan is the 4th largest producer of cotton yarn and cloth and 3rd largest player in Asia with a spinning capacity of 5% of total world production. It also ranks 2nd in the export of yarn, 3rd in the export of cloth and contributes 3% to the total textile trade of the world.
The domestic textile industry has shown phenomenal growth during the past several years, contributing 8.5% to the GDP and 61.4% of the total exports and 38% of the manufacturing labor force and 3% of the total textile trade and production of cotton cloth 737,995 (000 sq. meters) for 2006-07.
The textile and garments are the largest industry and prestigious foreign exchange earner of the country. Its performance is directly dependent on cotton lint availability and its prices in the local and international markets. The share of textile industry in the country's economy along with its contribution to exports, in terms of GDP employment, foreign exchange earnings, investment and value added and revenue generation altogether placed the textile industry as the single largest manufacturing sector in the economic growth of the country. Pakistan's exports are heavily dependent on the textile sector and this is clearly evident from the fact that 68% of our exports are textile related products. Pakistan's share in world textile exports is observed to have been increased from 2.58% in 1990 to 3,45% in 2005. On the face of it, this appears to be a positive growth.
Pakistan is fast emerging as a hub for textile and garments trade in Asian region endowed with one of the largest textile and garment producing industries in the world. In agriculture sector, the availability of cotton contributes a lifeline of its economy, making textile and garment the largest industrial sector in the country. Pakistan is he fourth largest producer of cotton in the world. Cotton, the basic raw material for textile industry has played a pivotal and vantage role in the growth of the industry. Pakistan is the fourth largest cotton producer after China, India and USA. From among seven members of SAARC only two-Pakistan and India are cotton producers and are enjoying an edge of local raw material over the countries of the region. However, it is equally encouraging that cotton yield per acre in Pakistan is slightly more than India and with little more efforts on the part of the growers and the government control over the supply of spurious fertilizer and pesticides could mean a lot for much higher production per acre. So this is one area where, Pakistan will be having an advantage of local raw material. Attempts are made to increase the total land acreage, yield per acre apart from the technical support, research emphasis, public incentives etc.
The country's textile and garments industry has spent over US$ 6 billion on BMR and expansions during the last two years equipping the manufacturing capacities with state of the art machinery and technology. The very encouraging policies of the government and further strengthened by the enthusiastic support by leading international buyers from conventional and unconventional markets, have positioned Pakistan to allow additional international market access for the top producers and exporters from within and elsewhere that are in search of new avenues to fully strengthen their existence in the world.
Pakistan's exports performed strongly in 2006-07, a growth of 7% in textile products due to the phenomenal growth in yarn sector. Pakistan exported textile- clothing products worth $10,757 billion during this period compared to $10,218 billion in the previous year indicating a marginal increased of 5.27%. The slow growth in textile and clothing sector was recorded owing to decline in export of raw cotton, cotton cloth and bed wear during the year under review. …