Textile Industries of Pakistan

[Pak Nationalist]

However, export growth is not fully reflecting in the first two months of FY22. According to the industry, container shortages are delaying shipments; exporters claim that their warehouses are full of inventory ready for export. Textile exports stood at $3 billion during 2MFY22, which translates into $18 billion or 20 percent increase on annualized basis.

The reason why PNSC needs investment, so we can reduce our reliance on third-party shipping to ship our exports in a timely manner.

 

[ghazi52]

Pakistan's textile exports surged to an all-time high of $6.04 billion in the first four months (July-October) of this fiscal year (2021-22) led by the value-added sector, as per the latest figures of the Pakistan Bureau of Statistics (PBS) and All Pakistan Textile Mills Association (APTMA).

The country’s textile exports stood at $4.76 billion in the July-October period of last fiscal year, according to a report published.

The export of textile products registered 25.6% growth in October in the fiscal year 2021-22 compared to the corresponding month of last fiscal year, whereas export of textile goods posted a growth of almost 9% against $1.49 billion export in the preceding month of September of the current financial year.

ATPMA, the largest representative body of textile mills in the country, attributed the phenomenal growth in the export of textile goods to subsidized energy tariffs, which provided a big relief to the textile sector on account of cost.

“The concessions on energy tariff helped textile sector post high growth in exports”, Asif Inam, Chairman APTMA (South Zone) told.

 

[Pak Nationalist]

Pakistan's textile exports surged to an all-time high of $6.04 billion in the first four months (July-October) of this fiscal year (2021-22) led by the value-added sector, as per the latest figures of the Pakistan Bureau of Statistics (PBS) and All Pakistan Textile Mills Association (APTMA).

The country’s textile exports stood at $4.76 billion in the July-October period of last fiscal year, according to a report published.

The export of textile products registered 25.6% growth in October in the fiscal year 2021-22 compared to the corresponding month of last fiscal year, whereas export of textile goods posted a growth of almost 9% against $1.49 billion export in the preceding month of September of the current financial year.

ATPMA, the largest representative body of textile mills in the country, attributed the phenomenal growth in the export of textile goods to subsidized energy tariffs, which provided a big relief to the textile sector on account of cost.

“The concessions on energy tariff helped textile sector post high growth in exports”, Asif Inam, Chairman APTMA (South Zone) told.

Encouraging signs. Government should be petitioned to give long term energy subsidy to export industries (5 years) instead of the yearly one in effect now that gets extended. This coupled with cheap credit availability (TERF) would encourage across the board investment in increasing the productive surplus via capacity expansion. It's aslightly bitter pill to swallow for the short run (slightly bigger budget deficit), but the dividends in the medium to long term are unparalleled. Increased capacity would absorb more power from the system and reduce the burden on our finances due to the capacity trap we find ourselves in (overcapacity/excess power in system, take or pay agreements with IPPs). If exports and business profits grow, so would the tax collection, new jobs would be created and livelihoods improve. Not a bad idea to give a 5 year fixed power (gas + electricity) rate to industry.

 

[Ghessan]

The reason why PNSC needs investment, so we can reduce our reliance on third-party shipping to ship our exports in a timely manner.

this is not correct, shipping is not done this way that if you have your own shipping line it would benefit, it would not.

 

[silverox]

It is right to vigorously develop the textile industry. The industrial revolution in Britain and the economic development of Asia all started with the development of the textile industry.

 

[Pak Nationalist]

this is not correct, shipping is not done this way that if you have your own shipping line it would benefit, it would not.

I am sorry, I did not get your point.

It is right to vigorously develop the textile industry. The industrial revolution in Britain and the economic development of Asia all started with the development of the textile industry.

The lowest rung of industrialization is the textile industry. It is perfect for reducing joblessness and elevating the purchasing power of population groups due to its highly labor-intensive structure. Pakistan is blessed to have an existing infrastructure from ginning industry to the garments/apparel industry. Many large units are vertically integrated.

 

[Maula Jatt]

I am sorry, I did not get your point.

The lowest rung of industrialization is the textile industry. It is perfect for reducing joblessness and elevating the purchasing power of population groups due to its highly labor-intensive structure. Pakistan is blessed to have an existing infrastructure from ginning industry to the garments/apparel industry. Many large units are vertically integrated.

we were a powerful textile nation for what like decades and decades and decades

led us nowhere cause we had no plan on where to go next - after some hiccup its going up again
what's next? this is more important imho

 

[ghazi52]

It is only the beginning of November, yet volume of cotton bale arrivals (at ginning factories) has already surpassed full year FY21’s arrivals. According to fortnightly statistics from Pakistan Cotton Ginners Association (PCGA), cumulative arrivals for the ongoing marketing season by end of October have touched 6.26 million bales (of 170kg), which is 81 percent higher than same period last year!

But of course, FY21 is a poor indicator, as national cotton output during that season had collapsed to a 40-year low, due to devastating rains, locust attacks, and poor germination rate. Although it is improbable that chronic challenges such as seed quality could have fixed themselves in one season, favourable weather seems to have helped yield positive results.

On national basis, cotton arrivals seem to be on track to achieve revised target (by Central Cotton Assessment Committee) of 9.37 million bales, which would be 33 percent greater than official estimate for FY21; and not 75 percent higher, as has been incorrectly claimed by SAPM on Food Security. Official documents from GoP claimed national output of 7.064 million bales during FY21, which was 25 percent greater than PCGA’s cotton arrivals for the season. At the time, GoP failed to explain why its official estimate did not reconcile with PCGA’s figures, but lately seems to be relying on PCGA’s estimate for last year in its official communication (refer to PM’s latest speech, televised yesterday, which claimed cotton output in FY22 is higher by 81 percent).

Either way, national cotton output is significantly higher over last year, which is good news for the textile industry and farm incomes, as cotton prices have rallied locally post-harvest in line with international commodity market. Earlier estimates of cotton import bill during FY22 have also been thrown into a flux, as import requirement may now reduce significantly, yielding much-needed foreign exchange savings.

Although it is hard to conclude what truly turned the tide of cotton production in the ongoing season, some clues are now becoming apparent. Using PCGA’s arrivals as proxy, it appears that per acre yield in Punjab may clock in at roughly 650 kg per hectare, 20 percent higher than last year (assuming 60 percent seasonal arrivals received in Punjab, to date).

Meanwhile, yield in Sindh may touch 1,300kg per hectare, close to highest ever, even if it is assumed that the province has already recorded over 75 percent of total seasonal arrivals. If correct, cotton yield in Sindh during FY22 shall be twice of last year. Recall that cotton growing districts of Sindh were worst affected by late monsoon rains last year, which led to provincial cotton output declining to its lowest in 25 years.

Moreover, it may be useful to remember that at 1.3 million hectares, area under cotton in Punjab during current season is lowest since at least 1970s. If per acre yield in Punjab remains rangebound close to 10-year average, provincial output may underperform, clocking in at 5 million bales – same as last year.

Which would mean that the bulk of improvement in cotton output in FY22 shall come from Sindh, which ostensibly has not been a part of Kissan Card and other farm support packages by federal government. Pakistan may very well claim victory in the battle against cotton decline, but maybe give credit where its due?

 

[Pak Nationalist]

we were a powerful textile nation for what like decades and decades and decades

led us nowhere cause we had no plan on where to go next - after some hiccup its going up again
what's next? this is more important imho

That "power" image was also a myth it seems. The global textile market today is around 800 billion USD and we might hardly get an 18 billion dollar share out of it this year.

 

[F86 Saber]

It is only the beginning of November, yet volume of cotton bale arrivals (at ginning factories) has already surpassed full year FY21’s arrivals. According to fortnightly statistics from Pakistan Cotton Ginners Association (PCGA), cumulative arrivals for the ongoing marketing season by end of October have touched 6.26 million bales (of 170kg), which is 81 percent higher than same period last year!

But of course, FY21 is a poor indicator, as national cotton output during that season had collapsed to a 40-year low, due to devastating rains, locust attacks, and poor germination rate. Although it is improbable that chronic challenges such as seed quality could have fixed themselves in one season, favourable weather seems to have helped yield positive results.

On national basis, cotton arrivals seem to be on track to achieve revised target (by Central Cotton Assessment Committee) of 9.37 million bales, which would be 33 percent greater than official estimate for FY21; and not 75 percent higher, as has been incorrectly claimed by SAPM on Food Security. Official documents from GoP claimed national output of 7.064 million bales during FY21, which was 25 percent greater than PCGA’s cotton arrivals for the season. At the time, GoP failed to explain why its official estimate did not reconcile with PCGA’s figures, but lately seems to be relying on PCGA’s estimate for last year in its official communication (refer to PM’s latest speech, televised yesterday, which claimed cotton output in FY22 is higher by 81 percent).

Either way, national cotton output is significantly higher over last year, which is good news for the textile industry and farm incomes, as cotton prices have rallied locally post-harvest in line with international commodity market. Earlier estimates of cotton import bill during FY22 have also been thrown into a flux, as import requirement may now reduce significantly, yielding much-needed foreign exchange savings.

Although it is hard to conclude what truly turned the tide of cotton production in the ongoing season, some clues are now becoming apparent. Using PCGA’s arrivals as proxy, it appears that per acre yield in Punjab may clock in at roughly 650 kg per hectare, 20 percent higher than last year (assuming 60 percent seasonal arrivals received in Punjab, to date).

Meanwhile, yield in Sindh may touch 1,300kg per hectare, close to highest ever, even if it is assumed that the province has already recorded over 75 percent of total seasonal arrivals. If correct, cotton yield in Sindh during FY22 shall be twice of last year. Recall that cotton growing districts of Sindh were worst affected by late monsoon rains last year, which led to provincial cotton output declining to its lowest in 25 years.

Moreover, it may be useful to remember that at 1.3 million hectares, area under cotton in Punjab during current season is lowest since at least 1970s. If per acre yield in Punjab remains rangebound close to 10-year average, provincial output may underperform, clocking in at 5 million bales – same as last year.

Which would mean that the bulk of improvement in cotton output in FY22 shall come from Sindh, which ostensibly has not been a part of Kissan Card and other farm support packages by federal government. Pakistan may very well claim victory in the battle against cotton decline, but maybe give credit where its due?

Still price of cotton is at a historical high of more than PKR 15000 per bail and unfortunately the segment benefitting from this is the Spinning sector which generates the lowest revenue. I wish Govt. takes some action and put duties on export of yarn so that our own value added sector grows further.

 

[ghazi52]

Pakistan Cotton Production Grew 81% to 6.2m in Jun-Oct

Pakistan cotton production grew to 6.2 million bales in the current season (June-Oct), recording the growth of 81.24% as compared to the corresponding period last year.

Total 578 ginning factories were operational in the country.

Exactly 736,721 cotton bales unsold stock was available in ginning factories.

According to the officials, this upsurge is owed to timely rains and better incentives to the farmers from the government of Pakistan.

According to Pakistan Cotton Ginners’ Association (PCGA), the Pakistan cotton production was only 3.45 million bales last year in the June-October period.

Rain timings played a huge role in the cotton output. Timely rain in September boosted the cotton harvest this year, said former PCGA Chairman, Jassu Mal Leemani.

“We expect a cumulative production of 7-7.2 million bales in current season 2021-22 and around 10 million bales in 2022-23,” said the former chairman.

In October Federal Minister for national food security & research Syed fakhar imam announce that Pakistan will surely meet the yearly target of cotton production and there were also chances of exceeding the target.

 

[Ghessan]

I am sorry, I did not get your point.

shipping is a complex business, very vast and not on regional basis.

yes it is true that we can develop our own shipping but cannot stick our exports to it.

shipping lines work on import export basis with vessels travelling certain routes and those vessels stick to that route touching ports on its way and return. now we cannot have our ships bound for those routes where our exports go, what if those routes are not profitable or PNSC could not succeed in getting business from those route/s due to competition etc. PNSC will go for the routes with its fleet of vessels which are workable and profitable that is why you will mostly see shipping lines are private and not national.

just to understand: for example we have our exports to Bangladesh, but Bangladesh has no direct vessel (mother vessel) which touches Chattogram port. rather feeder vessels load the unloaded containers from the main ports and carry to Bangladesh.

there are certain other factors but i think above is enough to understand how these shipping lines work.

 

[Darius77]

we were a powerful textile nation for what like decades and decades and decades

led us nowhere cause we had no plan on where to go next - after some hiccup its going up again
what's next? this is more important imho

You have made a very good observation. In the 90's I was working in the US and even somewhat up end stores like Macy's and Belks had very good quality Pakistani cotton garments. I bought a Docker's polo shirt which I still have and it looks new, even the colors have not faded after perhaps 50 washes. Now in most of the west, mostly Bangladeshi and Indian textiles are sold, and unfortunately they are not that good and don't last. Indian textiles, especially their linen men's shirts are very poor quality and fade with a few washes. Bangladeshi higher end stuff is not too bad, but in lower end stores the quality is poor. Pakistan should again look at revitalizing its texile exports to the region at least. The new FTA with Iran should open up the central Asian and Mid east markets.

 

[Ghessan]

we were a powerful textile nation for what like decades and decades and decades

led us nowhere cause we had no plan on where to go next - after some hiccup its going up again
what's next? this is more important imho

sorry but i would not agree with you. we were textile exporters but were not exporting value added goods and that is where we lack.

industrialists in Pakistan have a habit of playing safe, they do not think innovative, don't take some revolutionary steps. may be this attitude was also because of uncertain economic conditions ovr the decades.

we were exporters of raw material, cotton yarn and grey fabric and were exporting this raw material to the composite units producing value added goods in Vietnam, Hong Kong, Singapore, Cambodia, China and later Bangladesh.

we must have improve and shift from a raw material exporter to value added goods exporter.

 

[Pak Nationalist]

shipping is a complex business, very vast and not on regional basis.

yes it is true that we can develop our own shipping but cannot stick our exports to it.

shipping lines work on import export basis with vessels travelling certain routes and those vessels stick to that route touching ports on its way and return. now we cannot have our ships bound for those routes where our exports go, what if those routes are not profitable or PNSC could not succeed in getting business from those route/s due to competition etc. PNSC will go for the routes with its fleet of vessels which are workable and profitable that is why you will mostly see shipping lines are private and not national.

just to understand: for example we have our exports to Bangladesh, but Bangladesh has no direct vessel (mother vessel) which touches Chattogram port. rather feeder vessels load the unloaded containers from the main ports and carry to Bangladesh.

there are certain other factors but i think above is enough to understand how these shipping lines work.

Thank you. It was very enlightening. I see your point now and concede to it.