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Pakistani textiles take a hit, orders drop 50%

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Pakistani textiles take a hit, orders drop 50%
By Imran Rana
Published: February 3, 2016
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PHOTO: AFP

FAISALABAD: The global economic slowdown is taking its toll everywhere,

Pakistan, the 4th largest exhibitor at the Heimtextil Fair Germany, received almost half the number of order this year compared to the previous year.

We represent the entire textile industry

Heimtextil is a mega event for all textile millers and exporters of the world, where this year around 220 Pakistani exhibitors participated under the Trade and Development Authority of Pakistan (TDAP) umbrella at the Pakistan pavilion.

“Pakistani exporters have seen a massive drop in international orders lately, due to the energy crisis and the slowdown of global economy,” noted an exhibitor at the Heimtextile Fair and Ayesha Textile Mills CEO Abdulla Kamal, while talking to The Express Tribune.

“One of the main reasons behind receiving fewer orders has been the exporters’ inability to dispatch consignments in time due to energy shortages,” he added.

“Despite the advantages of having cheap labour and producing better cotton, the exporters’ expectations could not be met due to the energy and worsening law and order situation.”

Textile industry in its worst patch in history

He said international buyers were moving away from Pakistani market due to delay in shipments. “On the other hand, China is very good in timely delivery.

“This year China has got the edge over all other participants; the first to take full advantage of the exhibition,” he added.

The global economic slowdown has also played a key role in keeping buyers away from the recent exhibition. “Europe is passing through a low-growth phase,” remarked Kamal. He said during the peak textile season, the government severs the gas supply. This time, though, the situation was better since the government cut supply to domestic consumers in order to facilitate the industries.

Moreover, he said the law and order situation in the country was another major hurdle in grabbing orders. “The recent terrorist attacks on schools and colleges have dented Pakistan’s reputation internationally. Buyers are frightened to even come visit us, let alone give orders,” he added.

Japan to step up textile imports from Pakistan

“Even the old ones are not visiting Pakistan due to which we have to fix meetings abroad,” he lamented, adding that this time India and Bangladesh got a far better response compared to Pakistan.

Another hurdle, identified by Kamal, was the shortage of gas, “the textile mills need steam for processing the fabric.”

He was of the view that the Liquefied Natural Gas (LNG) was not an alternative.

“This winter is the first season when we are running our mills on LNG, which is very expensive. It is 25% more expensive than natural gas (CNG). That, of course, increases the cost of production.”

While requesting the government to take up the issues of energy and gas seriously, he said the country had very good production capacity and machineries and if only the internal issues were resolved, the textile sector could again reach its potential capacity of $25 billion exports, compared to the current figure of $13.9 billion.

Published in The Express Tribune, February 3rd, 2016.
 
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we will get over this pretty quickly once these energy project become active in 2017.
 
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Depends...loosing customer base and then winning them back is not easy....
you are right mate retaining customers is much cheaper then getting new one but it is what it is we are trying our best to provide our textile mills with much needed power but we cant do it before 2017.
 
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Issue is we are focusing on low end textiles but when we will see a desiger company like Gucci, Prada, etc? we have the talent but.. why there is no companies?
 
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Make textile industry tax free for one years to take maximum benefit out of GSP+ and to bring it back to its glory days
 
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we will get over this pretty quickly once these energy project become active in 2017.
50% reduction in cotton crop from Punjab this year and will likely not bounce back due to financial murder of farmers by this government.

People who wanted to remian in textile business moved to better places like Bangladesh and China. Rest are selling machinery and making housing schemes at their places.

Keep dreaming to revive it back
 
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Global market is also not supportive. Export is in decline everywhere. Companies are going to more cheaper destination like BD and other countries where more benefits are available with political stability.
Again, one can't just stay into same business for too long. You need to start moving up in food chain. China is moving towards more sophisticated and service oriented export. India is pushing same way where textile was prominent 20-15 years ago but not anymore. New countries will take place as they can provide cheaper alternatives.
 
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the slowdown has affected nearly every country, you can't force people to buy goods they just can't afford. its one of those things no one has control over.
 
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People made fun of me when I told you guys how supply chain is now becoming a point of competitive advantage especially in textile and fashion industry ! This was around 2 months back. People here rejected me citing low cost argument which simply doesn't hold anymore (in fashion)

You guys go search to which vendors orders are being placed now. They are european and US manufacturers depending on where the customers are. FACT.

People buy less and more frequently when it comes to fashion/apparels.

I wish well to bangladesh/indian/pak textile manufacturers but reality is dynamics is shifting to reactive and flexible supply chains especially since the fashion cycle across a year is getting fragmented from 2/3 to around 5/6 seasonal peaks ! Unless the low cost manufacturers get a grip around this fact they would literally crumble.
 
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you are right mate retaining customers is much cheaper then getting new one but it is what it is we are trying our best to provide our textile mills with much needed power but we cant do it before 2017.
well i wish Pakistan all the best...the textile mills employ lot of people that too right from the lower income group..so it is very important to revive it.
 
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People made fun of me when I told you guys how supply chain is now becoming a point of competitive advantage especially in textile and fashion industry ! This was around 2 months back. People here rejected me citing low cost argument which simply doesn't hold anymore (in fashion)

You guys go search to which vendors orders are being placed now. They are european and US manufacturers depending on where the customers are. FACT.

People buy less and more frequently when it comes to fashion/apparels.

I wish well to bangladesh/indian/pak textile manufacturers but reality is dynamics is shifting to reactive and flexible supply chains especially since the fashion cycle across a year is getting fragmented from 2/3 to around 5/6 seasonal peaks ! Unless the low cost manufacturers get a grip around this fact they would literally crumble.
Finally some sense.
 
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