Trade Policy targets $25bn textile exports by 2011-12: Daily Times

KARACHI: The textile policy, formulated for three years envisions the export of the textile products to reach $25 billion in next three years, Rana Farooq Saeed Khan, Minister for Textile Industry has said.

Speaking at dinner meeting hosted in his honour by Tariq Saud Vice Chairman All Pakistan Textile Mills Association (APTMA) on Friday night he said that the government is determined to address the problems of textile industry.

Minister said that the Textile Policy has been finalised and would be issued soon. He further informed that the policy has been formulated for next three years in such a manner so that the export of textile sector may achieve a target of $25 billion in next three years.

The policy will address the issues of up-gradation of machinery, provide infrastructure facilities and skill development of human resource of this industry so that they can compete in international market with their competitors.

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Pak textiles relocating to Bangladesh: The News

Industrialists lured by duty free access to EU, 40pc cheaper electricity in BD

Thursday, July 16, 2009
By Salman Siddiqui

KARACHI: A number of Pakistani textile houses are relocating their businesses to Bangladesh due to continuous hardship here, The News learnt on Wednesday.

Around four major Pakistani textile giants are in Bangladesh these days to shift their business so that they could furbish their exports orders in time, said one textile exporter of Pakistan on phone from Bangladesh.

“Towellers, a leading name in Pakistan’s home textile industry, is about to shift its business to Bangladesh,” informed Farrukh Maqbool, Chairman of Towel Manufacturers’ Association of Pakistan (TMAP) in a press statement and added that Towellers COO Pervaiz Kazi is travelling to Dhaka this week to meet with the Bangladesh Board of Investment (BoI) officials and finalise the company’s relocation strategy.”

Textile exporters had already warned the Pakistani authorities that they would move their businesses to Bangladesh when they were highlighting the anomalies in budget 2009-10 at PHMA House last month. These businessmen were included S M Obaid and Rafiq Habib Godil.

The reasons behind shifting their business to their competitor country i.e. Bangladesh are that the cost of doing business is continuously rising in Pakistan while country’s bureaucracy was formulating unnecessary regulations, said Syed Usman Ali, Former Chairman of TMAP.

He maintained that the law & order situation, on the other hand, was not allowing them to do their business tension free here. Owing to this law & order situation, the buyers did not come to Pakistan and they have to go to the buyers’ country or any other third country.

So that travelling to buyers’ country was an additional burden on our balance sheets, he added.

The frequent protest strikes, electricity outage and red tape and law and order altogether did not allow exporters to ship orders in time to the buyers, he elaborated. On the contrary, the Bangladesh was offering a number of incentives to its textile-exporting sector. According to rough estimates, doing textile business in Bangladesh is about 30-50 per cent cheaper than Pakistan, it was learnt.

Under the label of Least Developed Country (LDC), the Bangladesh enjoys zero rated exports to European Union, Australia and Canada, while Pakistan pays these levies range from 11-20 per cent, said Former Chairman of TMAP.

He compared that the electricity in Bangladesh was 40 per cent cheaper than Pakistan and 60 per cent cheaper in India as compared with Pakistan, he added. He maintained that the labour in Bangladesh was also available on low salaries. The maximum salary over there is 3,600 taka, while they in Pakistan have to pay Rs6,000/- plus 15 per cent salaries here.

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Pakistan to bag $25 billion through textile policy: YNFX

Textile policy will help Pakistan to bag $25 billion during first five years through cultivation of BT Cotton and optimum values addition to cotton chain, the Federal Minister for Textile Industry, Rana Mohammad Farooq Saeed Khan said.

Addressing a certificate distribution function for the successful participants of the stitching machine operators training (SMOT) programme of the ministry of the textile industry at Chenab Limited. He said, 'Pakistan has huge potential to develop its cotton chain, but we failed to exploit it because of inconsistent policies.'

He said that textile policy would cover the entire cotton chain rights from growers to the export of fashion garments. We are consulting with all stakeholders to make this policy a result oriented, he added. He was critical of the agriculture scientists and said that they failed to give any high yielding and pest resistant cotton variety during the last 5-6 years.

He said that BT Cotton has the potential to double the cotton production without any additional expenses or inputs and sugarcane crop, being water intensive, has become less profitable. Further, he said that growers should cultivate BT Cotton to get maximum financial benefit in addition to doubling our cotton production and the product has the potential to give at least 60 to 70mound per acre yield.

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Textile exports drop creating fear of big layoffs: Dawn

By Mubarak Zeb Khan

ISLAMABAD: The export of non-textile products soared by 24.5 per cent in the first seven months of the current fiscal year to $5.062 billion as against $4.066 billion over the last year mainly on the back of massive export of rice.

Though the export of these traditional products are on the higher side but exports on the whole decelerated sharply owing to decline in export of carpets and leather products during the period under review, suggested data of federal bureau of statistics.

The upward trend in the export of non-textile products has been witnessed since July 2008 indicating a natural diversification of the export base, owing to the highest ever depreciation of Pak rupee, which was highly concentrated in a few textile-based products.

But the export proceeds of carpets and leather products have witnessed a declining trend since December 2008 owing to higher cost of doing business and high competition from Chinese and Indian exporters.

The data released here revealed that the textile and clothing exports dipped by 3.79 per cent to $5.827 billion in July-January this year as against $6.056 billion over last year despite depreciation of rupee, which should have made Pakistan’s textile and clothing products more competitive.

It is also clear (from the fact that the import of textile machinery also dropped by over 41 per cent during the period under review over last year) that textile tycoons were not making any investment to improve the competitiveness of their products.

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EU garment-makers eye Pakistan for joint ventures: The News

By By our correspondent

KARACHI: Federal Textile Adviser Dr Mirza Ikhtiar Baig, on his return from European Union countries, has said EU garment manufacturers are seriously looking to Pakistan to form joint ventures for supplying products to their chain of stores. The interest was prompted by current recession and increasing cost and wages, he said.

According to a spokesman for the adviser, during the visit Baig met Senior Executive Werner International Nice (France) Nicola Monti. It was one of the largest and renowned textile consultants of the world having more than 40 years of experience in dealing with textile and apparel industry of Pakistan, India, China and 65 other countries.

Monti told Baig that EU garment units were moving from the US and Europe to China and India and brand manufacturers were looking for more routes for supplies and were interested to have joint ventures in Pakistan.

Baig said Pakistan had achieved high growth in textiles and apparels but had a low share in the international market. China topped the US market with a share of 36 per cent followed by Bangladesh 21 per cent, India 18 per cent, Morocco 19 per cent and Pakistan 13 per cent. South Korea has lost 20 per cent of the US market.

In the European market, China topped again with a share of 29 per cent, Vietnam 28 per cent, India 19 per cent and Pakistan only 1.5 per cent while the Philippines had lost 11 per cent of the market.

Monti informed Baig that Pakistani garment manufacturers could cut their cost up to 45 per cent in sewing by improving efficiency.

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Value of textile exports plunge during 1HFY09: Alibaba

The value of local textile products fell sharply in the first half of current fiscal year primarily because of economic slowdown in the world particularly in USA and Europe-the top export markets of Pakistan.

During July-December 2008-09, the volume of the textile products export rose substantially, however, due to the eroding purchasing power of the consumers in the west, the value of these products nose-dived compared to the corresponding period of previous year.

"The financial crisis in USA and Europe has a spiral impact and Pakistani textile products are no exception to this global issue," Federal Textile Commissioner, Mohammad Idris remarked and said that even India and China saw the value of their products plunging during the period under review.

However, it is heartening to note that domestic products were able to keep their share in these market, he pointed out and stated: "It is now more about keeping the share in these markets intact than the value because of the gloomy situation, which appears to continue for the next two years."

On the other hand, exporters also blame the economic crisis in the western world as the prime factor for fetching less unit price of these products. However, the rupee depreciation helped the local exporters to make-up for the losses.

A glance on the values of the textile products showed that almost all the categories suffered in terms of a fall in their values.

The value of raw cotton plunged by 9.25 percent by fetching $975.4 per metric tonne during first six months of current fiscal compared to $1074.71 per metric tonne in the corresponding period previous year.

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Export of textile, food items increases: The News

ISLAMABAD: Textile exports during the month of November 2008 witnessed increase of 1.22 percent as compared to exports of October 2008. Textile exports during November were recorded at $838 million as against exports $828 million registered in October 2008, according to data released by Federal Bureau of Statistics. However, as compared to the textile exports of the same month of last financial year, exports during November 2008-09 witnessed decrease of 7.2 percent. Textile exports during November (2007-08) were recorded at $903 million.

As compared to October 2008, the export of raw cotton during the month under review was increased by 23.15 percent however, cotton yarn witnessed decrease of 11.02 percent while export of cotton cloth witnessed decline of 3.57 percent. Export of carded cotton was decreased by 56.03 percent, yarn other than cotton yarn by 23.65 percent, towels by 8.77 percent and madeup articles export declined by 8.30 percent.

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350 textile units closed in two years: The News

By Shahid ShahKARACHI: The sun of Pakistan’s textile sector is now setting. After a long battle with regional competitors - one of the largest job providers - the textile sector has closed around 350 factories in two years eliminating hundreds of thousands of jobs.The textile sector contributes more than 60 per cent to the country’s total exports, has a share of 46 per cent in total manufacturing and employs 38 per cent of the total workforce. It has a share of 8.5 per cent in the GDP.The textile ministry has acknowledged closure of 90 big units in 2008 alone. Each company employed a minimum of 1,000 workers. “Hundreds of thousands have lost jobs,” Federal Adviser on Textile Dr Mirza Ikhtiar Baig, told The News.According to the minister, these factories were closed in sub-sectors like hosiery and knitwear, polyester filament, spinning, garments, denim and silk and rayon.Baig said that the higher mark-up rates, energy crises, law and order situation and the global recession were the major reasons behind job cuts from textile sector.

A company cannot sustain itself if the production units are shut 15 days a month due to power outage, he said.The import of readymade garments from China has also affected the local manufacturer. “It started from shoes, pencils and ballpoint pens and now happening with the garments,” Baig said.The record of Pakistan Hosiery Manufacturers Association (PHMA) shows closure of 245 companies from the hosiery and knitwear sub-sector alone in last five years. Of which 99 units were closed in 2008 alone. These units employed 100 to more than a few thousand workers each.The 99 factories that closed down in 2008 seven were in Karachi, 78 in Faisalabad, six in Sialkot, two in Islamabad and one factory was operating in Kasur. Before that up to 2007, another 146 mills had shutdown in Karachi. Most of these mills were knitwear manufacturers.

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Pakistan - 181 percent surge in cotton export: Yarns and Fibers

The country's cotton exports registered a healthy growth of 181 percent during the five months of the current fiscal year mainly due to better quality and low prices, market sources said. They said that exporters are getting export orders of huge quantities on the back of on-time availability of cotton, low prices, slow demand by millers and expected better cotton crop as compared to last year. Following international market rates, cotton prices in the country have also reduced by some 35 percent during last few months and at present average quality cotton prices stand at around Rs 3,100 per maund as compared to Rs 4,200 per maund in August. As per crop assessment committee projection, the country is likely to get a cotton crop of over 12 million bales during current fiscal year as compared to 11.6 million bales in last fiscal year.

Official statistics show that cotton export has increased by 181.32 percent during the July-November period of current fiscal year, exporters said. During July-November of current fiscal year, the country has exported cotton worth $48.943 million as compared to $17.404 million during the same period of 2007-08, depicting an increase of 31.539 million dollars during the first five months of the current fiscal 2008.

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India buys 10,000 cotton bales from Pakistan: Daily.pk

Indian spinners have purchased around 10,000 cotton bales from Pakistan at 75 cents per lb for urgent delivery.

As enquiries were pouring in from Indian importers, the local prices of cotton rose by Rs100 to Rs4,100 per maund on Monday.

Higher raw cotton prices in India, which are ranging between 82 to 84 cents per lb, have forced Indian spinning industry to approach Pakistani cotton exporters to procure cotton at cheap rates.

Naseem Usman, cotton broker and analyst, told Dawn that if the current pace of booking by Indian spinners continued the local prices would go further higher that would have an adverse impact on the domestic textile industry.

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'Pakistan Apparel Forum' to represent whole apparel sector: Fibre2Fashion

Mr. Bilal Mulla, Central Chairman PRGMEA in a statement has said that Pakistan Readymade Garments Manufacturers & Exporters Association (PRGMEA), Pakistan Hosiery Manufacturers Association (PHMA), Pakistan Knitwear and Sweater Exporters Association (PAKSEA) and Pakistan Cotton Fashion Apparels Manufacturers & Exporters Association (PCFA) are the real stakeholders of the apparel sector who have jointly established a forum "PAKISTAN APPAREL FORUM", which is the real body to represent the whole apparel sector of Pakistan, and the apparel sector of the country shall only accept such proposals which meet the expectation of real stakeholders and it is submitted that before finalization of any proposal the real stakeholders viz "PAKISTAN APPAREL FORUM" should be invited and consulted in the matter.

He further said that out of all Textile Sectors, Apparel is the only sector which has shown consistent growth from about 2.2 Billion US $ in 2003 to about 3.3 Billion $ in 2007 but still Pakistan's market share in global apparel market is least among its competitive countries.

Pakistan has only 1.3% in Global apparel market, compared to Bangladesh which has 2.8% market share, India at 3.3% and China at 31%.

The significance and importance of Value Added sector can be evaluated by the fact that 1 Cotton Bale exported earns 238 $ in foreign exchange, while on other hand clothing made and exported from 1 Bale of Cotton earns the foreign exchange of 1,600 $.

During the period of July till Mar 2008 exports of Textile declined by 4.7% due to Political instability, deteriorating law & order conditions, judiciary turmoil, negative travel advisory, worsened energy crisis and other such factors.

But Woven Garment sector showed an increasing trend. Its export has increased by 7.3% during the same period.

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