Textile Industry of Pakistan

Presented to:
» Miss Amna Naveed

Presented by:
» Junaid Tariq
» Madeeha Muneer
» Tahir Manzoor
» Nabeeha Sana

1
Textile Industry of Pakistan

Presented to:
»Miss Amna Naveed
Lecturer Comsats
Defence road lahore

Presented by:
» Junaid Tariq
BBA/FA09-058
» Madeeha Muneer
BBA/FA09-063
» Tahir Manzoor
BBA/FA09-094
» Nabeeha Sana
BBA/FA09-103

Date: May 4, 2010

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 Acknowledgement
We express our sincere gratitude to respected Prof. M.Ibrahim
Abdullah faculty of Comsats institute of information and
technology who has helped us to clarify our concepts by sharing
his valued experiences, which has thereby become an
unconscious part of our ideas and thoughts while analyzing the
facts and other documents necessary for this project.

Without his sincere help and guidance, the project report would have
not been accomplished.

Lastly we would like to give our sincere thanks to library and

computer lab who had given us the opportunity to use all the
resources available.

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Table of Contents:
Executive summary...............................................................5
Letter of Authorization…………………………………………..6
Letter of Transmittal……………………………………………..7
Textile……………………………………………………………..8
Textile Industry…………………………………………………...8
Significance and Uses…………………………………………...9
Sources……………………………………………………………9
Types of Textile…………………………………………………..10
Production Method……………………………………………….11
History……………………………………………………………..12
Key Historical Aspects…………………………………………...13
APTMA…………………………………………………………….14
Role of APTMA…………………………………………………...14
Economic and GDP contribution………………………………..15
Textile institute………………………………………………….....17
Textile Units………………………………………………………..17
Important industry…………………………………………………17
Established Capacity……………………………………………..18
Global scenario……………………………………………………19
Govt. Policy………………………………………………………..19
Problems and Opportunity……………………………………….20
Suggestion…………………………………………………………22
Glossary……………………………………………………………23
Bibliography……………………………………………………….24

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 Executive Summary
Textile industry is the industry which is connected with the
manufacturing of clothes. It is one of the oldest professions of
man. Man is using textile from very early period of this world.
Textile is every where in our homes in our bed rooms in our cars
and even in our cell phones. Sources of textile are plant, animals
and minerals. In Pakistan from 1947 the average position of textile
industry is better then other countries. APTMA is association
which makes frame work for the textile industry of Pakistan. In
Pakistan textile plays a biggest part in GDP. There are world class
institutions and industry of textile in Pakistan. Established capacity
of Pakistan’s textile industry is better then other countries of Asia.
Now a days there are many problems that are decreasing the
established capacity of textile.

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Letter of Authorization:
Department of Management Sciences
Comsats
Defence road
Lahore

April 4, 2010

Dynamitx
BBA 12B (B)
Comsats Lahore

Dear Dynamitx,

I am pleased to inform you that you have selected for preparation of a report regarding
“Textile Industry of Pakistan”. In this report you have to give the contribution of textile
in the GDP of Pakistan further more you have to mention the problems and suggested
way to come out of it.

You will get every assistance necessary for the research, if you find any difficulty in your
way feel free to let me know.

I’ll appreciate if you submit your findings with in 15 days.

Sincerely

Amna Naveed
Lecturer
Letter of Transmittal:

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BBA 12B (B)
Comsats
Defence road
Lahore

May 4, 2010

MS Amna Naveed
Lecturer Comsats
Defence road
Lahore

Dear MS Naveed,
As you requested here is our report on “Textile Industry of Pakistan”. In the preparation
of the report we have strictly followed all your instruction and requirements.

This is a general report on textile of Pakistan and includes GDP contribution along with
problems and solution.

I am certain that the report will be very informative and help you to enable the
importance and current standing of textile industry in Pakistan. We are very thankful to
you that you have assigned us this task. If you find any problem in this report please let
us know.

Sincerely

Junaid Tariq
BBA/FA09-058
Madeeha Muneer
BBA/FA09-063
Tahir Manzoor
BBA/FA09-094
Nabeeha Sana
BBA/FA09-103
Textile:

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 A textile is a flexible material consisting of a network of natural or
artificial fibres often referred to as thread or yarn. Yarn is produced by
spinning raw wool fibres, linen, cotton, or other material on a spinning wheel to produce
long strands.

Textile Industry:
The textile industry includes every business involved in
growing or producing fibers, such as sheep farmers and cotton growers; those who make
the fiber into thread; those who make the thread into cloth; and those who dye, bleach
and finish the cloth. The textile industry also includes chemical companies that make
synthetic fibers and all the resultant products. Then there are the wholesalers and retailers
of all these textiles, and the products that are made from them.

Significance and Uses:

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 The textile industry affects every
aspect of our lives. There are textiles in our cars, on our furniture, hanging at our
windows, in the carpeting on the floors in our vehicles, homes and workplaces, and in the
clothing on our backs. We dry ourselves with towels and sleep on sheets made by the
textile industry. There are even textiles in the bag that carries your laptop computer from
place to place.

Sources:
Textiles can be made from many materials. These materials come from
four main sources:

Animal:
From animals textile industry gets Wool and Silk which are wildly used in
textile industry
Plants:
From plants textile industry gets flax, jute and cotton remember cotton is
very strong element of textile industry.
Mineral:
Minerals like asbestos are also part of textile industry and play important
role in its efficiency.
Synthetic:
From Synthetic textile industry gets nylon, polyester and acrylic.

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Types of Textile:
There are different types of textile that are given below.

Animal Textile:

Animal textiles are commonly made from hair or fur. Wool refers to
the hair of the domestic goat or sheep, which is distinguished from other types of animal
hair in that the individual strands are coated with scales and tightly crimped, and the wool
as a whole is coated with a wax mixture known as lanolin (aka wool grease).

Plant Textile:

Grass, rush, hemp, and sisal are all used in making rope. In the first
two, the entire plant is used for this purpose, while in the last two; only fibers from the
plant are utilized. Coir (coconut fiber) is used in making twine, and also in floor mats,
doormats, brushes, mattresses, floor tiles, and sacking.

Minerals Textile:

Asbestos and basalt fiber are used for vinyl tiles, sheeting, and
adhesives, "transite" panels and siding, acoustical ceilings, stage curtains, and fire
blankets. Glass Fibre is used in the production of spacesuits, ironing board and mattress
covers, ropes and cables, reinforcement fibre for composite materials, insect netting,
flame-retardant and protective fabric, soundproof, fireproof, and insulating fibres.

Synthetic Textile:

All synthetic textiles are used primarily in the production of

clothing. Polyester fibre is used in all types of clothing, either alone or blended with
fibres such as cotton. Aramid fibre (e.g. Twaron) is used for flame-retardant clothing,
cut-protection, and armor. Acrylic is a fibre used to imitate wools, including cashmere,
and is often used in replacement of them. Nylon is a fibre used to imitate silk; it is used in
the production of pantyhose. Thicker nylon fibres are used in rope and outdoor clothing.
Spandex (trade name Lycra) is a polyurethane fibre that stretches easily and can be made
tight-fitting without impeding movement. It is used to make active wear, bras, and
swimsuits.

Production Method:

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1) Weaving is a textile production method which involves interlacing a set of longer
threads (called the warp) with a set of crossing threads (called the weft). This is done on a
frame or machine known as a loom, of which there are a number of types. Some weaving
is still done by hand, but the vast majority is mechanised.

2) Knitting and crocheting involve interlacing loops of yarn, which are formed either on
a knitting needle or on a crochet hook, together in a line. The two processes are different
in that knitting has several active loops at one time, on the knitting needle waiting to
interlock with another loop, while crocheting never has more than one active loop on the
needle.

3) Braiding or plaiting involves twisting threads together into cloth. Knotting involves
tying threads together and is used in making macramé.

4) Lace is made by interlocking threads together independently, using a backing and any
of the methods described above, to create a fine fabric with open holes in the work. Lace
can be made by either hand or machine.

5) Carpets, rugs, velvet, velour, and velveteen, are made by interlacing a secondary yarn
through woven cloth, creating a tufted layer known as a nap or pile.

6) Felting involves pressing a mat of fibres together, and working them together until
they become tangled. A liquid, such as soapy water, is usually added to lubricate the
fibres, and to open up the microscopic scales on strands of wool.

History:
Textiles have been around almost as long as humankind itself. Early
humans wore animal skins and clothing woven from leaves and grasses. As humans

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evolved, so did the textiles they used in their daily lives and the processes by which they
were made. As time passed industrial revolution came and textile became the most
important part of GDP in any country because our topic is about Pakistani textile so we
will focus on the history of Pakistan textile.

1947:
It was the year of independence for the peoples of Pakistan. Textile
Processing Sector has been operative virtually since the very inception of Pakistan in
1947. Increase in the cotton production and expansion of textile industry has been
impressive in Pakistan since 1947. There were only 2 major textile mills in Pakistan at
the time of independence and there were 80,000 spindles and 3,000 looms at that time.

1950’s:
It was the year when Pakistan was in the position of doing something there
was also need of doing something to make Pakistan stable. The organized development of
cotton textile mills was started in late 50’s. One can say that 1952 was the lucky year for
the textile industry of Pakistan because PIDIC (PAKISTAN INDUSTRIAL
DEVELOPMENT CORPORATION) was established in that year. It is the organization
with the many efforts in textile development. 1953 was also important in the development
history because Vatika Textile Mill was established in Karachi.

1960’s:
In the mid of 60’s there were about 180 units of textile bleaching, printing
and processing units. It means the growth rate of textile industry was 400% at that time
which was a great sign for the economy of Pakistan. A number of spinning units
comprising of only 12,500 spindles were set up. Newly established mills were based
upon imported technology but there was lack of technical staff and shortage of capitals
but it was not a big deal because PIDIC was there to help.
1970’s:
By 70-71 there were 113 textile units & the industry had 2,605 spindles
and 30 thousands looms. After the separation of East Pakistan, Cotton Export
Corporation of Pakistan was established which meant that most of the private sector was
taken over by the state. The textile industry suffered heavy looses because the export
cotton controlled by CEC, and the import of machinery was made difficult due to
shortages of foreign exchange. 1970’s was the time of decline of Pakistan textile
industry.

1980’s:

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 After the bad era of 70,s the 80’s brought a relief to the textile industry of
Pakistan There was a rapid growth in spinning sector. Till 1980-81 spinning continued to
expand to 4033 thousand spindles in 203 spinning units, and working capacity amounted
to 2833 thousand spindles.

1990’s:
Machinery for producing garments and made-ups was also freed from
import duty. As a result, a huge expansion in the spinning sector took place in the first
five years of the 1990s. World demand for good quality, wide width fabrics grew and
replacement and a modernization process started. With these developments, production
and export value-added items such as bed-sheets and home furnishing started. Structural
changes with the replacement of obsolete machinery and modernization in the industry
still continued in view of world competition.

Key Historical Aspects:

• 1960 our domestic cotton requirements increased to I.45 million bales

• In 1970 to 2.58, in 1980 to 2.354, in 1990 to 6.563 in 2000 to 10.048, in 2002 to

11.264 million bales in 2007-2008 total domestic consumption of cotton is
between 15.5 and 16.0 million.

• The worst failure of cotton crop was seen in 1983-84 when its production was at
2.777 million bales against last year 1982-83 crop of 4.658 million bales

• In 1991-92 Pakistan produced a record high crop of 12.8 million bales

• In 2000-2001, Pakistan's cotton production and consumption was almost equal

around 10.45 million bales

All Pakistan Textile Mills Association (APTMA):

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 All Pakistan Textile Mills Association (APTMA) is the premier national trade
association of the textile spinning, weaving, and composite mills representing the
organized sector in Pakistan. APTMA emerges as the largest association of the country as
it represents 396 textile mills out of which 315 are spinning, 44 weaving and 37
composite units. These spinning mills have production facilities of texturing, mercerizing
and dyeing of yarns; weaving mills have sizeable number of air-jet looms, and the
composite mills have manufacturing facilities from spinning to finished textile products
under one roof. The total installed capacity of APTMA member mills accounts for
9,661,366 spindles, 61,608 rotors, 10,452 Shuttleless/Airjet Looms and 1897
conventional looms. The Association's members produce spun and open-end yarn, grey,
printed dyed fabrics and bed linen.

The Role of APTMA:

As per charter and by-laws, aims and objectives of the Association are;
1. To encourage friendly feeling and unanimity amongst Textile Mill owners on all
subjects connected with their common good.
2. To secure good relations between members of the Association.
3. To promote and protect the trade commerce and manufactures of Pakistan in general
and of the cotton trade in particular.
4. To consider questions connected with the trade commerce and manufactures of its
members.
5. To collect and circulate statistics & information classify relating to the trade,
commerce and manufactures of its members.
6. To take all steps which may be necessary for promoting, supporting or opposing
legislative and other measures affecting the trade, commerce or manufactures of its
members.
7. To make representation to local, provincial and central authorities on any matter
connected with the trade, commerce and manufactures of its members.
8. To arbitrate in the settlement of disputes arising out of transactions, piece goods, yarn
and other manufactured goods between parties willing or agreeing to submit to arbitration
in accordance with the Arbitration Rules of the Association.

Economic and GDP contribution:

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 The share of textile industry in the
economy along with its contribution to exports, employment, foreign exchange earnings,
investment and value added makes it the single largest manufacturing sector for Pakistan.
It contributes around 8.5 percent to GDP, employs 38 percent of the total manufacturing
labor force, and contributes between 60-70 percent to total merchandise exports. Indeed,
with exports reaching about $8.6 billion in 2004-05, Pakistan is one of the largest textile
exporters in the world. The variety of products ranges from cotton yarn to knitwear.
Garment made-ups and bed wear are the most important export products with an export
value of about $1.35 billion each. Knitwear, ready made garments and cotton yarn also
have important shares in total exports. Overall, the US and the EU are Pakistan’s largest
trading partners accounting for 25 percent and 20 percent share of Pakistani exports
respectively. Other major importers include China, UAE and Saudi Arabia. Textile trade
is classified into two broad categories i.e. textile which include yarn, fabric and made-
ups, and clothing which represents readymade garments.

Some important contributions:

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 1) The contribution of textile in Pakistan’s exports is 55 % OF TOTAL EXPORTS
(10.62 billion US dollars). It means textile contributes a big part of Pakistan’s exports
and our country earns most of its foreign exchange from this industry. This points
also shows the value of Pakistani textile in international market.

2) The contribution of textile in Pakistan’s manufacturing is 46% OF TOTAL

MANUFACTURING. It shows the importance of textile in manufacturing sector
of our country.

3) 38% OF TOTAL LABOUR FORCE (More than 19 Million) works in textile

industry of Pakistan. It means textile industry is also a major source of
employment in Pakistan.

4) Textile industry contributes 8.5% OF TOTAL GDP of Pakistan.

5) The total Investment in textile sector of Pakistan is US $ 6.4 BILLION which is a

relay big amount.

6) Total Exports $20.62 billion (.june07 –july08) 55 % share = 10.2 billion.

7) Previous Year 60 % share 11.2billion.

8) Total Labour forces 50.58 million (2008)

38 % share which is more than 19 million people is employed under the textile
sector.

Textile institute in Pakistan:

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 There are 3 major institute of textile education
in Pakistan. These institutes are among one of the finest institutes of textile of the word.

• National Textile University -NTU (Faisalabad)

• Textile Institute in Pakistan-TIP (Karachi)
• BAHAUDDIN ZAKARIYA University-BZU (Multan)
These institutes are contributing a lot in the development of textile sector but it is not
enough as technology is key of successes in these days so they have to obtain some
technical staff to promote this sector.

Textile Units:
Pakistan's textile industry has about 50 large and 2500 small
garment manufacturing units. Moreover, it also houses around 600 knitwear-
producing units and 400 towel-producing units.

IMPORTANT TEXTILE INDUSTRIES OF PAKISTAN:

These are the important and rich textile mills of Pakistan which are contributing in textile
sector a lot.

i. Gul Ahmed

ii. Al-Karam Industries

iii. Lakhani Textile Mill
iv. Afrooz Textile Mill
v. Vaneeza textile Mill
vi. Orient Textile Mill

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 ESTABLISHED CAPACITY:

The textile industry of Pakistan has a total

established spinning capacity of 1550 million kgs of yarn, weaving capacity of 4368
million square meters of fabric and finishing capacity of 4000 million square meters

Some important point:

 The textile industry of Pakistan has a total established spinning capacity of 1550
millions kgs of yarn.
 Weaving capacity of 4368 millions square meter of fabric.
 Finishing capacity of 4000 millions square meters.
 The industry has production capacity of 670 million units of garments.
 400 million units of knitwear and 53 millions kgs of towel.
 The industry has total of 1221 units engaged in ginning.
 443 units engaged in spinning.
 There are around 124 large units that undertake weaving and 425 small units.
 There are around 20600 power looms in operation in the industry.
 The industry also houses around 10 large finishing units and 625 small units.
 Pakistan textile industry has about 50 large and 2500 small garment
manufacturing units.
 It also houses around 600 knitwear producing units.
 400 towel processing units

GLOBAL SCENARIO:

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 • Pakistan's share in the current trade volume is 2.4% per cent. India has 4 per cent
and China 26 per cent share.

• Asia's share in the world textile trade would increase from the current level of 54
per cent to about 75 per cent by 2014.

• Global textile trade in the world is estimated to be around $400 billion currently
and industry experts predict that by 2014 it would reach to $800 billion

• This scenario provides an opportunity to Pakistan to excel in the sector and its
share could reach to the level of 4 per cent to 5 per cent.

• The share of developing countries in world textile exports improved from 15 to 50

per cent.

Govt. Textile Policy 2009-14:

Federal Cabinet Wednesday approved textile policy in a meeting at Prime Minister

Secretariat here with Prime Minister Yousuf Raza Gilani in chair. The cabinet in the
five-year textile policy has set the textile exports target at 25 billion dollars. The
cabinet also decided to take steps to boost the production in textile sector. Prime
Minister Gilani also formed a ministerial committee to monitor the enforcement of
the textile policy. Prime Minister Syed Yousuf Raza Gilani said the Textile Policy
aims at incorporating the strategies that are essential to address the challenges
confronting this sector on a sustainable basis besides meeting the expectations of the
industry. Addressing the Special Cabinet meeting convened to consider the Textile
Policy 2009-14 at the PM Secretariat, the Prime Minister said for the first time in the
history of the country, the government was adopting a five-year Textile Policy, which
would give the vision that was needed for the textile sector.

Problems and Opportunities of Pakistan Textile:

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The Pakistan textile industry contributes more than 60 percent to the country’s total
exports that sum around 5.2 billion US dollars. The industry contributes
approximately 46 percent to the total output produced in the country. In Asia,Pakistan is
the 8th largest exporter of textile products. The contribution of this industry to the total
GDP is 8.5 percent. Moreover, it provides employment to38 percent of the work force
in the country, which amounts to a figure of 15 million.
However, the textile industry currently faces massive challenges. The All Pakistan
Textile Mills Association (APTMA) needs to enhance the quality of its products,
upgrade the technology used, and encourage effective Research and Development
(R&D) in order to compete internationally. However, APTMA argues other factors such
as high interest rates and cost of inputs, non conducive government policies, and non-
guaranteed energy supplies hinder their competitiveness.
Critics argue that the indolent attitude of the industrialist in the 1990s has led up to the
current crisis. If the textile industrialist had worked with the government towards
implementing policies that prepared for the current international scenario, Pakistan textile
industry would have boomed. Instead, the industry suffers from ‘severe technological
obsolescence,’ insufficient R&D, falling cotton crop, and an unclear path forward.
The lack of R&D in the cotton sector of Pakistan has resulted in low quality of cotton in
comparison to rest of Asia. Because of the subsequent low profitability in cotton crops,
farmers are shifting to other cash crops, such as sugar cane. In Punjab alone, the cotton
area sown this season was less by 1.14 percent as compared to the last year. Textile
owners argue that although the Cotton Vision 2015 targets 20 million bales till 2015, it
is an ambitious target as in reality cotton production is decreasing each year. It is the lack
of proper R&D that has led to such a state. They further accuse cartels, especially the
pesticide sector, for hindering proper R&D. The pesticide sector stands to benefit from
stunting local R&D as higher yield cotton is more pesticide resistant.
Moreover, critics argue that the textile industry has obsolete equipment and machinery.
The inability to timely modernize the equipment and machinery has led to the decline of
Pakistani textile competitiveness. APTMA has highlighted that the Pakistan textile
industry faces tough competition from the Indian, Bangladeshi and Chinese textile
industries and local policies have resulted in Pakistani textiles facing a critical condition.
For instance, Bangladesh, India and China enjoy comparatively low interest rates than
Pakistan. The prevailing rates are as following, 8.5 to 9.0 per cent in Bangladesh, 5.25

20
per cent in India (market rate is 10.25 per cent, however exemption of 5 percent is
provided to the textile industry) and 5.58 per cent in China. Meanwhile, in Pakistan, the
last three to four years has seen the interest rates to have risen more than 150 percent, to
13.25 percent. The increase has essentially crippled the small time textiles owner, while
seriously hindering growth of the textile tycoons. This has led to textile owners accusing
the government and banks for maintaining detrimental policies. I believe that it is
imperative that the new government takes actions that have a positive impact on the
industry as textile provides employment to approx 38 per cent of our working class. A
coherent plan should be devised by the Pakistani government that allows some sort of
exemption/concession such as in India; the Export-Import Bank was set up for the
purpose of financing and facilitating the industries, especially textile.
Industrialists also argue that the non-guaranteed supply of power by WAPDA(Water and
Power Development Authority) is another problem that negatively affects the textile
industry. Although, some textile units have built their own energy generating plants to cut
cost (these units run on gas), small units production depends entirely on the electricity
supply of WAPDA. The textile industry suffered heavy financial losses in Dec, Jan and
Feb quarter, because of the inconsistent electricity supplies. The lack of production
subsequently resulted in the industry not meeting its target for the quarter, massive
financial losses were borne by textile owners and sadly, it hit the most vulnerable:
workers on daily wages. Their frustration was observed recently, when the WAPDA and
MEPCO (Multan Electricity Power Company)offices in Multan, were torched by daily
wage workers, . Textile owners as well as workers passionately assert that the
inconsistent supplies have and are destroying business across Pakistan. They also
highlight that the high cost of the utilities has making Pakistani textile uneconomical in
the international market.All things considered, it is apparent that the Pakistani Textile
Industry is facing an uncertain environment. The increase in input cost of minimum wage
by 50 percent, increasing interest rates, non-guaranteed energy supplies, lack of R&D and
reduction in cotton production has had a negative impact on the industry’s
competitiveness internationally. In order to sustain the Textile Industry, the new Pakistani
government has a tough task ahead and needs to urgently implement a suitable long-term
strategy that provides a level-playing field against their regional competitors.

Suggestions:

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 The Pakistan textile industry is currently facing several challenges. According to
experts, there is a need for the industry to improve the quality of its products. After
doing research and this project our group is able to give these suggestions.

1) Govt. should provide electricity in every condition to the looms and textile
industry.
2) There is lack of capital in textile industry. Govt. banks and APTMA has to
provide loans on low rate of return.
3) Govt. should do something to for the improvement of textile products because
China, India and Bangladesh are strong competitors.
4) There is lack of knowledge about global trends in textile sector. So there should
be a magazine in which knowledge about trends and fashion should be given.
5) Sector should focus on the emerging trend of the value additions because it is the
need of the day.
6) Technological use should be upgraded in order to improve product quality.
7) There should be a proper training process for labour force.
8) Govt. should give some support to small textiles because there are many small
textiles working in the streets of our country.
9) SNGPL should introduce some healthy packages for textile sector because gas is
an important part of textile industry.
10) Govt. should decrease import duty on the import of new and modern machinery.

Glossary:

1) APTMA: All Pakistan textile mills association.

2) BZU: Baahudin Zikria University.

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 3) CEC: Cotton Export Corporation.
4) GDP: Gross domestic product(total value of goods produced in
a country)
5) MEPCO: Multan electric power company.
6) NTU: National Textile University
7) PIDC: Pakistan industrial development corporation.
8) Spindles: Bundels

9) WAPDA: Water and power development authority.

Bibliography:

www.google.com

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 www.aptma.org.pk

www.wikipedia.com

www.dawnnews.com

Prof. Ibrahim Abdullah

Prof. Syed Muhammad Taqi Zaydi

Prof. Nasir Malik

Prof. Adeel Tariq

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