Pakistan’s Textile Exports to Surge as Orders Move From Rivals

[Zibago]

and yet, during that violence, toyota, suzuki plants were still working, banks were still operational, IT companies were doing well, and so were pharma companies/factories. textile industry is one of the worst in terms of reliability. old machinery, old sethiya mindset, and an extreme aversion to adversity and competition.

They have protection bubble in Pakistan consumption driven industries dont fly away that easily but exporters always have a way out

 

[Bilal9]

and yet, during that violence, toyota, suzuki plants were still working, banks were still operational, IT companies were doing well, and so were pharma companies/factories. textile industry is one of the worst in terms of reliability. old machinery, old sethiya mindset, and an extreme aversion to adversity and competition.

I was under the impression that Pakistani spinning mills mostly use modern Swiss Ritter and Trutzschler carding and spinning machinery, and the weaving units use Toyoda and Hitachi air and waterjet looms. There are many Pakistani textile workers and experts working in Bangladesh spinning and weaving sector who are experts on these equipment. Of course this is meant for apparel sector.

Some of the home textile stuff can use older machinery (for drapes, bedding etc.)

 

[S.Y.A]

I was under the impression that Pakistani spinning mills mostly use modern Swiss Ritter and Trutzschler carding and spinning machinery, and the weaving units use Toyoda and Hitachi air and waterjet looms. There are many Pakistani textile workers and experts working in Bangladesh spinning and weaving sector.

some top companies use modern machinery. the rest are just plain horrible.

 

[Bilal9]

some top companies use modern machinery. the rest are just plain horrible.

I don't want to dispense unwanted unwelcome advice, but to compete in markets overseas, some investments in modern machinery probably needs to be made...and being capital equipment that stuff has to be the best of the best.

We were lucky in Bangladesh that when we invested in Textile backward integration some two decades ago, some very good EU machinery investments were made.

 

[Patriot forever]

Hope so, waiting for 2-3 years already.

To my knowledge the policy that was in circulation was aimed to increase textile exports to $20.8b by 2025. We will for sure cross this figure much earlier, we will be $18b+ by the end of this FY.

The incentives offered in the proposed textile policy are already in place for a year or so. On ground there is already a renogiated tariff for gas and electricity is also subsidized. The delay is in view of IMF programme and what kind of fiscal space gov has ( how much subsidies government can afford) , at what level the current energy prices will stabilise at.

There is nothing wrong with the textile sector apart from disruptions in gas supply ( $250m figure IMO is a preety good rough estimate) which will probably be over from March.
Our long term contracts are defaulting both Eni and Guvnor and the cost of replacing them with spot ( last I checked it was $30-40+/ mmbtu in Asian Market) will cost us more both in $ and also the amount of subsidies required to provide this spot LNG to textile is not feasible.

https://twitter.com/x/status/1488567679996907526

This is my assessment.

 

[Meengla]

What equipment dose Pakistani textile factories use? I am curious if we use up to date methods and equipment or not.

It was/is a 'processing' mill and I honestly didn't pay much attention--as kids we would just go there and swim in the mill's pool--which was 16 feet deep (we called it 'sola foot'), and which supplies water to the boiler. But I recall there was/is a 'stentor' machine which makes a fabric's width wider. Then there are 2-3 printers where grey fabric would be fed from one end and after going through several drums, the end product would be warm printed colorful and I think finished fabric. Then there were these 'jets' machines where I think dying was done. Then there were also 'raising machines' which would sort of pull fiber out to make the flannel fabric--you know, the colorful plaid shirt which are warmer. The American company 'Wrangler' which makes denim had opened a branch in the S.I.T.E area of Karachi and we got some business from them too. The last time I went there was for a few brief minutes in late 2019 and I think the technology still looked from the 50s! But, hey, it has raised several generations and employed tens of thousands for 70 odd years.
I also recall in the 1970s, with Bhutto's nationalization and 'socialism', there were new signboards on the property about employee rights and some other labor focused things. Perhaps like minimum wage. Those were good for the working class.
Then in the 1980s, the influx of Afghan refugees in Karachi brought some Afghan workers to the factory. I once saw a teenager and apparently hunch-backed worker carrying a bale of something on his back, in Karachi's humid heat, and I had felt terribly sorry for the boy. He was around my age. I think they were given Rs. 18/hour wage. Accidents of birth! Sitting in the air-conditioned office and looking toward that boy from a window, I begged my dad to increase his wage and my dad obliged. Not that I am so saintly, just recalling somethings from decades ago. We tend to be idealists when young.

 

[Pak Nationalist]

To my knowledge the policy that was in circulation was aimed to increase textile exports to $20.8b by 2025. We will for sure cross this figure much earlier, we will be $18b+ by the end of this FY.

The incentives offered in the proposed textile policy are already in place for a year or so. On ground there is already a renogiated tariff for gas and electricity is also subsidized. The delay is in view of IMF programme and what kind of fiscal space gov has ( how much subsidies government can afford) , at what level the current energy prices will stabilise at.

There is nothing wrong with the textile sector apart from disruptions in gas supply ( $250m figure IMO is a preety good rough estimate) which will probably be over from March.
Our long term contracts are defaulting both Eni and Guvnor and the cost of replacing them with spot ( last I checked it was $30-40+/ mmbtu in Asian Market) will cost us more both in $ and also the amount of subsidies required to provide this spot LNG to textile is not feasible.

https://twitter.com/x/status/1488567679996907526

This is my assessment.

Industrialists would only go for large-scale expansion once they have the policy in hand that promises some consistency for long periods. If quick-paced growth in exports that is of any consequence is desired policy has to be announced. Right now, these are ad-hoc benefits that are being given. Capacity enhancement due to these would be limited. An industrialist goes for expansion after factoring in long-term profitability. If tomorrow these ad-hoc measures are removed, the installed capacity would become a liability and the industrialist's capital would be wasted as well. That is why the textile policy is required to provide long-term confidence to the industrialists.

 

[Chakar The Great]

I don't want to dispense unwanted unwelcome advice, but to compete in markets overseas, some investments in modern machinery probably needs to be made...and being capital equipment that stuff has to be the best of the best.

We were lucky in Bangladesh that when we invested in Textile backward integration some two decades ago, some very good EU machinery investments were made.

You are right bro, back in Oct last year around US $ 5 Billion were invested in Textile sector via government scheme, this will further improve exports portfolio.

$5bln textile industry investment in pipeline: adviser​

This graph is just unbelievable,

Only in 3 years Textile exports have gone up from US $ 9 Billion to US $21 Billion this year and US $ 26 Billion next year. This is remarkable.

 

[RIP Pak LAW]

So in short, Imran Khan govt has managed to increase exports by $4 billions or more since 2018 ? right ?

 

[Chakar The Great]

So in short, Imran Khan govt has managed to increase exports by $4 billions or more since 2018 ? right ?

What?

Textile exports have increased from US 9 $ Billion in 2018 to 26 billion Dollars. You can do the math!!

 

[Crimson Blue]

It seems like Game Over now for Pakistan's textile export sector.

https://twitter.com/x/status/1537439294243373056

 

[Clutch]

Textile industry in Pakistan is collapsing again due to lack of fuel and energy crisis.

Well done imported government daddies the corrupt establishment

 

[Wood]

Textile industry in Pakistan is collapsing again due to lack of fuel and energy crisis.

You may know well that soaring fuel cost and energy crisis is a global issue. It is not something that ANY Pakistani gov. can control

 

[Flight of falcon]

It seems like Game Over now for Pakistan's textile export sector.

https://twitter.com/x/status/1537439294243373056

Someone ??? Really who the chaokidar??

 

[TheDarkKnight]

You may know well that soaring fuel cost and energy crisis is a global issue. It is not something that ANY Pakistani gov. can control

Exports based industries were provided subsidies as well. Plus PTI govt was planning to cover these subsidies by importing discounted energy from Russia.