Zahrah Khan - The textile industry of Pakistan is one of the most important industries of the country. It is the second largest employment generating sector in Pakistan. This industry contributes immensely to the GDP and provides employment to about 15 million people. Pakistan is the 4th largest producer of cotton in the world; next to China, India and USA, with the third largest spinning capacity in Asia after China and India. At present, there are 1,221 ginning units, 442 spinning units, 124 large spinning units and 425 small units which produce textile products. Pakistan is the 8th largest exporter of textile products in Asia and also the world’s largest exporter of yarn.
Textile shields our bodies and brings comfort to our homes. Textile products thus cater to a basic human need, they are among the most important goods fabricated and traded by mankind and have thus played a central role in history. The industry, apart from catering to the basic need of clothing, has been earning substantial revenue through export ever since the inception of Pakistan.
At the time of independence in 1947 there were only 3,000 looms installed in the mills sector. Now the installed looms are around 16,000 in the mills sector and 300,000 in power looms sector. The cloth processing facilities have also been increased with the increase in production of cloth. It is based on locally available raw cotton, it employs 40% of total industrial labour force and contributes 27% of industrial value addition, with approximately 60% share in total exports of the country.
Textile production comprises of cotton, cotton yarn, cotton fabric, fabric processing (Gray-dyed-printed), home textiles, towels, hosiery & knitwear and ready-made garments. With the recent inclusion in the EU GSP Plus scheme, immense benefits in terms of increase in exports are up for grabs as the GSP Plus status means there will be zero duties on over 90% of all products that are exported to the bloc of 27 nations.
 Prime Minister Nawaz Sharif at the time had congratulated the nation and said that, “The award of GSP Plus status shows confidence of the international markets on the excellent quality of Pakistani products.”
Gaining access to European markets had been the top-most priority of the government as part of the economic development agenda. The GSP plus status will enable Pakistan to export more than $1 billion worth of products to the international markets each year. Increase in exports would resultantly facilitate economic growth and help in the generation of additional employment.
The rising income in Asian countries has seen an increase in the consumption of textiles and apparel. This increasing demand has created the need for increasing textile and apparel value addition along with increasing spinning and weaving capacity to counter both domestic and global yarn and fabric shortage. As textile is a highly labour intensive industry, developed nations have already lost their cost competitiveness and big firms in developed countries are trying to re-locate their activities in low cost countries like Pakistan, Bangladesh, Vietnam and India. In Pakistan the textile industry possess a unique position as a self-reliant industry, from the production of raw materials to fabric and fashion; and plays a major role contributing to the national economy.
There is a need to transform the national cotton and textile industry into a global leader in manufacturing of yarn, fabric, clothing and garment, apparel products and fashion industry with a policy focused to work on 4 different segments of the value chain. These are: modernizing our farming, adding value to fiber produced, strengthening our fabric, garment and fashion Industry and having export intensive and pro-export policies to generate foreign exchange.
The Prime Minister has already launched a youth loan scheme which will allow entrepreneurs to add to the economic growth of the textile industry. In the same spirit of things the government can develop programs where incentives on export of any valued product may be provided. Special economic zones already exist for trade opportunities and the government can further motivate district level governments with awards of “City of Export Excellence” for their good work.
Beside all this we can also focus on “MULTAN-SADIQABAD CORRIDOR” and “THAR-THATTA CORRIDOR” for export excellence and development of export oriented industries with available cheaper raw material and best source of self-power generation in same corridors. With government backing much needed foreign direct investment can be brought into these areas to develop and strengthen economic front of nation.
Improvement in the lot of the farmer by way of better price realization will enable them to withstand the ambiguous price fluctuation of cotton both in domestic and international markets; and to strengthen the whole value chain of the textile and apparel industry across the nation. Similarly, in the synthetic and non-cotton textile front, Punjab and KPK, specifically MARDAN - RAWALPINDI and SARGODHA-LAHORE Corridor, can be developed to create largest producers of man-made and filament fabric manufacturers in the country, capturing the need of domestic and international market. However, a significant need is felt to make this sector internationally competitive by way of value addition and technology up gradation at all levels from yarn to garment production.
The Federal Minister for textile industry Abbas Khan Afridi has suggested that the next financial year, 2014-2015 should be declared as textile year in order to enhance textile sector growth in the country. He reiterated the views of the Prime Minister that this sector has enormous potential. The federal minister has assured the representatives of the textile sector that the present government will go to any extent to facilitate this sector. He also said that that the government was aware of the problems faced by the textile industry and in order to protect GSP plus status it will go for any out of the box solutions.
 The present business friendly government encourages entrepreneurship, facilitates investment and understands that only joint contributions towards economic growth by the government and the business community can bring the country further laurels. This is the right time to strike vis a vis the textile industry as Pakistan is all set to accelerate its economic growth. As we focus on economy the existing industries will be relied on to provide the necessary boost and the textile industry must lead the way. Since it has enormous potential it only needs to proactively showcase its prospective achievements. Both the government and the consumer are setting high expectations and if the textile industry will rise to meet them then we can be assured of a thriving future.