Pakistan textile exports expected to touch $13bn

[BHarwana]

Pakistan’s textile exports have been going up steadily since the start of the current fiscal year in a positive sign that raises expectations that full-year proceeds will touch $13bn after a hiatus of two years. Textile shipments jumped 7.66% year-on-year to $5.51bn in the first five months (July-November) of the current fiscal year, driven primarily by a surge in value-added textile exports.

Internews/Islamabad

Pakistan’s textile exports have been going up steadily since the start of the current fiscal year in a positive sign that raises expectations that full-year proceeds will touch $13bn after a hiatus of two years.
Textile shipments jumped 7.66% year-on-year to $5.51bn in the first five months (July-November) of the current fiscal year, driven primarily by a surge in value-added textile exports.
In a review of the industry’s performance in the outgoing year 2017, Pakistan Textile Exporters Association (PTEA) chairman Shaiq Jawed said in a statement that textile shipments had been on an upsurge since the start of 2017-18 in July following a continued fall in the previous fiscal year.
After hitting the peak at $13.73bn in 2013-14, textile exports dropped to $13.47bn in 2014-15 and $12.44bn in 2015-16. Afterwards, they inched up 0.04% at $12.45bn in 2016-17, but were still lower by more than a billion dollars than the peak.
Propped up by cash incentives under the prime minister’s trade package, textile exports took off, but challenges were still there that should be addressed to further ramp up growth, Jawed said.
Pointing to the industry’s lack of competitiveness both in domestic and international arenas, he called the high cost of energy a serious concern as the textile sector heavily banked on energy supplies to run its operations smoothly.
In Pakistan, he said, the industrial gas tariff was almost 100% higher and electricity price was about 50% higher compared to regional competitors.
Punjab-based industries are compelled to consume high-priced regasified liquefied natural gas (RLNG) in winter, which puts them at a disadvantage compared to industrial units in other provinces.
“The liquidity stuck in the tax refund system is another stumbling block; exporters are waiting for the release of billions of rupees blocked in sales tax, income tax and customs duty rebate claims, which has sparked severe liquidity crunch,” Jawed said. “If these payments are released, the exporters can spend the money on trade expansion.” Technological advancement is another area where Pakistan has trailed its competitors. “Not enough investment has been made in technology because of which productive capacity of the sector has remained stagnant,”
he said.

http://www.gulf-times.com/story/576483/Pakistan-textile-exports-expected-to-touch-13bn

 

[Viking 63]

They need to target at 25 billion per year.

 

[somebozo]

Textile has become an industry for Bangladesh and extremely poor countries of Africa..Pakistan needs to transition out of textiles..or at-least Pakistani textiles need to transition out to foreign markets..China progressed from making cloth to finished products to finally exiting the market..

 

[Syed1.]

Textile has become an industry for Bangladesh and extremely poor countries of Africa..Pakistan needs to transition out of textiles..or at-least Pakistani textiles need to transition out to foreign markets..China progressed from making cloth to finished products to finally exiting the market..

What kind of exit it is when they exported 250 billion worth of textiles in 2016?

 

[ziaulislam]

They need to target at 25 billion per year.

note that exports only started todrop after 2014

contray to popular believe, power is not the only reason for low exports

high taxation, poor policies, lack of rebates, slightly more labour cost, in effeicent systems , trasnport, poor quality cottton, etc etc

 

[FuturePAF]

note that exports only started todrop after 2014

contray to popular believe, power is not the only reason for low exports

high taxation, poor policies, lack of rebates, slightly more labour cost, in effeicent systems , trasnport, poor quality cottton, etc etc

With the CPEC investments, Pakistan needs to finally cut the red tape and create a business focused environment for not only Chinese special economic zones, but the whole country.

 

[sbmc27]

I think it should be quite opposite.
Textile, as a Labour intensive sector , can employ millions of workers. Only peer could be agriculture in aspect of employment.
Pakistan has the added advantage of available raw materials(Bangladesh produce only 2% of total cotton it consume). It's a great opportunity for Pakistan to catch up ASAP.
Regards.

Textile has become an industry for Bangladesh and extremely poor countries of Africa..Pakistan needs to transition out of textiles..or at-least Pakistani textiles need to transition out to foreign markets..China progressed from making cloth to finished products to finally exiting the market..

What kind of exit it is when they exported 250 billion worth of textiles in 2016?

 

[bananarepublic]

''surge in value-added textile exports''
seems like our policy makers are guiding the textile industry in the right path.

 

[Arsalan]

''surge in value-added textile exports''
seems like our policy makers are guiding the textile industry in the right path.

The exports are not increasing volume wise if not decreasing. It is not much different value wise with only slight growth due to stronger $ (NOTHING TO DO WITH OUR PERFORMANCE).
PLUS, the value added garment exports are almost DEAD anyway, in garments, DENIM remains our strength whereas tops are GONE! In home textiles, we are still in the game but only barely! Terry towels and Jersey clothing that used to be our strength, we are even losing that now.


NEED SOME SERIOUS EFFORT from MANUFACTURERS, exports and government to get things back on right track.

 

[bananarepublic]

The exports are not increasing volume wise if not decreasing. It is not much different value wise with only slight growth due to stronger $ (NOTHING TO DO WITH OUR PERFORMANCE).
PLUS, the value added garment exports are almost DEAD anyway, in garments, DENIM remains our strength whereas tops are GONE! In home textiles, we are still in the game but only barely! Terry towels and Jersey clothing that used to be our strength, we are even losing that now.


NEED SOME SERIOUS EFFORT from MANUFACTURERS, exports and government to get things back on right track.

Value added exports is the only way we should go ... U are right our manufacturers and government should do more

 

[ziaulislam]

With the CPEC investments, Pakistan needs to finally cut the red tape and create a business focused environment for not only Chinese special economic zones, but the whole country.

Pakistan has the highest cooperate taxation in the world
highly inefficient and costly power system(that became more costlier)
and expensive unskilled labor due to the above

 

[FuturePAF]

note that exports only started todrop after 2014

contray to popular believe, power is not the only reason for low exports

high taxation, poor policies, lack of rebates, slightly more labour cost, in effeicent systems , trasnport, poor quality cottton, etc etc

we have a huge young labor force, but the expertise and capital investments need to be facilitated via cut in red tape and taxes to add increased efficency and thereby output from textile and agricultural industries

Pakistan has the highest cooperate taxation in the world
highly inefficient and costly power system(that became more costlier)
and expensive unskilled labor due to the above

you made a huge point; inefficient production and expensive unskilled labor
what other problems do you see with the following scenario:
A company of expat Pakistanis planned to invest one billion into making factory farms to make bigger chickens and European levels of milk per cow with technology investments

 

[武成王]

Pakistan need UPGRADE its textile industry, not reduction. Pakistan has rich cotton and jute etc, and a decent labor and skill base for textile industry, it's mandatory to UPGRADE the technology to reduce cost and increase productivity, Pakistan should have the ambition to made textile and cloth for 1.6 billions Muslims.

This requires new investment for advanced textile machinery, large scale factories, not small family based production.

 

[raahaat7]

Pakistan has a huge demand for ready made garments inside its borders. All it needs to do is to open some high calibre fashion designing institutes in its major cities. In due course this will translate into the big garment orders that we are looking for. Pak has a potential to earn $30-35b from this sector.