Pakistan Textile Industry Hits Rough Patch


Pakistan has a diverse economy that includes textiles, chemicals, leather products, food processing, financial services, telecommunications, retail, automobile manufacturing, light and heavy armaments, agriculture and other industries. It is the 45th largest economy in the world in terms of official exchange rates ($144b) and 25th largest based on purchasing power parity ($410b PPP). Its service sector accounts for more than half of its GDP.

Pakistan’s textile industry is a major contributor to the national economy in terms of exports and employment. Pakistan holds the distinction of being the world’s 4th largest producer of cotton as well as being the 3rd largest consumer of the same. In the period July 2007 - June 2008, textile exports were US$ 10.62 Billion and accounted for 55% of the total exports.

As the economies in the US and Europe slow down, Pakistan's key exports of textiles and leather products are experiencing a slowdown in growth as well. According to APTMA, textile exports have declined by about 20 percent in 2008. The industry is bracing for more trouble ahead with continuing crises of electricity and gas, international market access, global economic slow-down,and adverse travel advisories.

According to Pakistan textile industry association, 90 percent of Pakistan's textile industry is losing money losses and facing closure. More than two months of production has been lost due to power cuts and gas shortages.

APTMA, Pakistan's textile industry Association established for the promotion and protection of the textile industry, says that the high cost of finance because of the nation's tight monetary policy has added to their continuing woes.

In order to pave the way for the IMF bailout, Pakistan's central bank raised its bank lending rate in early November by 2 percentage points to 15 percent. Since 2004 interest rates have risen dramatically. Kibor (Karachi Inter-Bank Offered Rate) has surged 261 percent. Likewise, the bank spread, on a weighted average basis, rose from 2 percent to an excessive 7.75 percent. This size of bank spread is among the highest in the world. These high rates were allowed as a policy to restrict money supply to satisfy the IMF conditions.

Federal Textile Adviser Dr Mirza Ikhtiar Baig told the News that Pakistan has a very low share of the international textile market. China tops 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 tops 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.

European buyers have told Baig that Pakistani garment manufacturers could cut their cost up to 45 per cent in sewing by improving efficiency.

“Labor productivity is very low,” said Baig. “Our regional competitors take 75 minutes to complete and produce one piece of cloth whereas we take 133 minutes for the same work. We also waste 30 per cent in finishing and 12 per cent in washing.”

According to a study of Pakistani textile and apparel sector conducted by Werner International, management consultants to the world textile, apparel & fashion industry, some of the garment units were over-staffed by 57 per cent. That was an internal negative factor whereas external factors included no duty-free market access to the EU and negative image and perception of Pakistan abroad.

Baig has asked Werner to submit a proposal for presenting a better image of the textile industry to global brands for achieving collaboration with them. In response, Werner is working on a three-year plan to help Pakistan garment manufacturers.

While Pakistan clearly needs to diversify and increase higher-value-added exports such as sophisticated machinery and high technology products and services, it is essential for it to maintain and enhance the current export levels of textiles, leather and other products for which there is an established export market. The export-oriented industries should get preferential treatment in getting access to necessary inputs of raw materials, financing and energy by government policies. Energy and communications infrastructure, in particular, need much greater focus to enable Pakistani exporters to continue to earn the much-needed hard currency.

Related Links:

Haq's Musings

Pakistan Textile Industry Report

Comments

Riaz Haq said…
Here's a recent report in the News about the murder of a textile mill owner in Lahore by his workers:

Friday, August 07, 2009
By Mansoor Ahmad

The murder of a leading industrialist who was unable to pay his workers for the last three months due to slow business has sent a wave of terror among the entrepreneurs most of whom are not update on their dues.

Najeeb Zafar a leather factory owner in the suburb of Lahore was killed by his factor workers and the manufacturing facility was also torched after exchange of hot words over the delay in payment of the salaries of the workers.

Najeeb was the scion of a leading industrialist family that runs textile mills and leather factories.

What has terrorised the entrepreneurs is that almost all of them are in such a financial crisis that they have not been able to pay salaries to their employees on time.

A large number of them are regularly liquidating their personal assets to keep the factories running. Many have reached the stage where they are left with no assets and have closed down after defaulting on all their liabilities including the salaries of their workers.

The wave of unemployment in the country is such that the workers tolerate long delays in their salaries in the hope that some payments would be received as the alternate is to leave the job and sit at home. New jobs are not available in the market.

The business activities in the city remained dull throughout the week.

The textile sector is eagerly awaiting the announcement of Pakistanís first textile policy which was expected in the first week of August.

The surviving textile units are pinning high hopes on the textile policy as after the closure of almost 35 per cent of the industry even the most efficient mills are finding it hard to pull on without some relief which they expect in the textile policy.

Trade bodiesí elections are on card and the activities in this regard have started. The elections of the Lahore Chamber of commerce and Industry are scheduled next month.

Rival groups are active in mustering support of LCCI members. They have now started visiting various markets and industrial concerns with the ruling alliance still commanding confidence of the members.

The engineering sector is busy gathering the details of the trade policy that has provided various incentives to this sector.

They are demanding that the execution of the facilities announced should be through the Engineering Development Board instead of Trade development Authority of Pakistan because the EDB have relevant engineering experts that the TDAP lacks.

Soaring rates of edibles two weeks ahead of the fasting month of Ramadan are indicators of another wave of inflation in the coming month.

The vegetable rates have already shot up to their historic high and are still rising. The sugar rates have touched Rs50 per kg, wheat flour rates have increased by another Rs15 per 20 kg bag.

There is pressure on milk rates. The rates of gram pulses are on the rise. The provincial and city district governments are planning to establish large number of Ramadan bazaars where they would try to ensure availability of essential daily use items at lower rates. The success of this exercise would depend on the governmentís ability to arrange more supplies than demand. No government in the past ten years has succeeded in this regard.

Last time when the rates in Ramadan were brought under firm control was in 1998 during the first tenure of the present chief minister Punjab. The intensity of load shedding remains the same, forcing most of the traders to install diesel generators that can be seen outside almost every shop in the shopping centres. These diesel run generators do illuminate the shops but cause pollution around the markets.

mansoor.malhr@gmail.com
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Riaz Haq said…
With rising cotton and yarn prices, Pakistan has the potential to export $50 billion in textiles, according to a report in Gulf Today:

KARACHI: Pakistan has a potential of at least $50 billion in value-added textile exports if human resource in this sector is fully developed, said Textile Commissioner Muhammad Idrees.

Addressing the closing ceremony of 9th round of apparel manufacturing and management training programme at the Readymade Garments Technical Training Institute, the official said that the present volume of exports was not at all satisfactory.

The stakeholders could easily double this volume by improving skills of workers and through compliance with the standards of buyers, he added.

The skills development programme comprised one-month training, which covered cutting, sewing, production management, industrial engineering and quality control. Experts and consultants from Technopak, a world renowned consultancy firm, were hired for the training.

Thirty-one master trainers or middle management professionals from Artistic Milliners, Naz Textiles, Rajby Industries and Selimpex International and Soorty Enterprises attended the ninth round of training project.

The training project has so far been successfully implemented in 30 factories in Sindh and has trained 279 master trainers/middle management professionals and 3,693 workers.

The project delivered complete training system, course curriculum, manuals and consulting guidelines to the factories. Training manuals are also translated into Urdu language to transfer appropriate knowledge and skills to workers.

Pakistan’s textile sector is optimistic about meeting the annual export target, as high cotton prices in domestic and international markets have caused an increase in prices of value-added textile products, industry people say.

The government had fixed the textile export target at $14 billion for the current fiscal year. Members of the textile sector are of the view that achieving the target is possible, as exports of highly value-added items such as knitwear and garments have increased in terms of value.

Statistics released by the Federal Bureau of Statistics (FBS) show the textile sector has performed well in the first half (July to December) of the current fiscal year, as its exports increased by 25.79 per cent as compared to the corresponding period of the previous year.

The industry, however, believes they would need to import up to five million bales of cotton because the 11 million bales produced so far in the country will not meet the requirements as some of the crop has been destroyed by flood.

The industrialists also expressed reservations about gas shortage in the country that has already caused a huge loss to the industry, particularly in Punjab. All Pakistan Textile Processing Mills Association Chairman Maqsood Ahmad Butt stressed that cotton prices reached Rs13,000 per maund (37.324 kg) and the sector may face a shortage of cotton in June if India did not lift the ban on exports.

“There is a possibility that exports will cross $14 billion target if cotton shortages are met and gas supply is restored,” he opined.
Riaz Haq said…
Here's a Dawn-AFP story about a modest job recovery in Pakistan's textile sector with rising exports:

KARACHI: After a year of unemployment and wondering if his family would be better off if he died, Pakistani textile worker Murad Ali has got the spring back in his step.

One of thousands laid off by textile bosses last year, the father of four is now back at work and one of those to benefit from a surge in Pakistani exports in the current fiscal year, which ends on June 30.

Experts say rising global commodity prices, a government decision to prioritise power supply to industry and currency devaluation that has made Pakistani products more competitive, have fired an export boom.

Compared with the same period last year, the Trade Development Authority of Pakistan says textile exports such as silk rose 25.8 per cent and agricultural produce, such as basmati, rose 6.2 per cent from July to February 7, 2011.

The textiles sector is one of the key drivers of the Pakistani economy, accounting for 55 per cent of all exports and 38 per cent of the workforce, according to official figures.

Bosses have rehired staff who were laid off, but Ali is only getting a third of the salary as a skilled garment worker that he used to command.

“I’m earning less than last year. It is difficult to live a better life due to price rises, but I’m happy,” Ali said.

He has re-enrolled his sons at school but his wife will continue to work as a maid. Money is too tight for her to go back to being a housewife.

“The situation has drastically changed in the favour of the country’s economy,” said textile tycoon Mirza Ikhtiar Baig, who employs more than 2,000 workers and predicts exports will rise 10 per cent for the fiscal year 2010 to 2011.

“Now with demand for Pakistani products rising internationally we are employing more workers.

“Our exports are getting healthier because of an increase in international commodity prices and the government’s will to give top priority to the country’s economy,” said Baig, an advisor to Prime Minister Yousuf Raza Gilani.

The Asian Development Bank forecasts GDP growth for Pakistan of 2.5 per cent for fiscal year 2011 despite pressures from unprecedented floods in 2010, with a relatively modest rebound to 3.7 per cent for fiscal year 2012.
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Pakistan suffers from a profound electricity crisis that restricts production to around 80 per cent of its needs — a situation that will only worsen as the temperatures crawl higher in the coming months.

The budget deficit has grown to 5.5 per cent of GDP, above a 4.9 per cent target for the current fiscal year to June 30.

To fund the shortfall, the government borrowed $4.4 billion from the central bank from July 1 to February 28, a move that worsened inflation, rather than raise taxes and cut spending as the IMF and World Bank would like.
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Mohammad Sohail, head of the Karachi-based Topline Securities research and brokerage house, said the export boom would contribute to economic recovery, yet warned the gains were minimal.

“It is very fragile because the fiscal deficit is much higher than the target of 5.3 per cent because of the government’s heavy borrowing from the central bank,” he said.
----------
“Furthermore, the overall security situation in Pakistan is very uncertain, which is making the foreigners and local investors wary all the time.” Independent economist A.B. Shahid said rising international oil prices had hit the country’s economy hard, adding $4 billion to the oil bill.

Pakistan could have benefited more from 8-9 per cent export growth, he said, by exporting cloth in its value-added forms rather than raw cotton and yarn.

While Ali is content with life, he is also wary of uncertainties ahead.

“Life has become too insecure. Everyone is ill at ease. Let’s just wait and see.” – AFP
Riaz Haq said…
Pakistani textile industry moving to Bangladesh, according to News reports:

Pakistani entrepreneurs plan to relocate their textile manufacturing units to Bangladesh in a bid to reap advantages given to least developed countries (LDC) of duty-free markets in the European Union.
clearpxl

The manufacturers blame Pakistan for rising costs of production, power shortages, higher taxes and poor market access to developed countries, former textile minister Mushtaq Ali Cheema told Pakistan's Daily Times newspaper.

Bangladesh offered lucrative incentives, including uninterrupted power supply and tax-free status for the first 10 years and tariff-free access to markets in the European Union.

In September, a Pakistan business delegation held parleys with Bangladesh trade bodies and expressed their eagerness to relocate their textile industries to Bangladesh.

The exporters and manufacturers are disappointed with the Pakistan government for its poor business vision, which left the Pakistan textile industry in tatters, said Cheema.

Cheema said the cost of textile production is very high in Pakistan, while labor costs in Bangladesh are cheaper and the workers are more efficient.

Already several Pakistani entrepreneurs have invested in composite textile units in Bangladesh. The entrepreneurs argue that several facilities give way to profit margins an average 30 percent higher for textile exporters than in Pakistan, Cheema added.

International buyers and retail giants are reluctant to place orders with exporters because of unpredictable breakdowns in the supply chain, said the official.


Read more: http://www.allheadlinenews.com/articles/90064529?Pakistan%20textile%20producers%20to%20relocate%20in%20Bangladesh#ixzz1dQ40f67l
Riaz Haq said…
Huntsman Textile Effects (TE) opened its 13th new 4,000-square-meter Formulation and Distribution Center (FDC) in Karachi, Pakistan, according to Specialty Fabrics Review:

The facility, located at the Landhi Industrial Area, provides a production platform in one of the pioneer industrial states in Pakistan and gives Huntsman further competitive advantage through convenient access and infrastructure. Pakistan represents a fast-growing, dynamic market of increasing importance for Textile Effects, and the launch of this FDC strengthens TE’s commitment to this textile market.

“With the opening of our new, low-cost production facility in Karachi for formulated chemicals, we will considerably increase our competitiveness and flexibility in textile chemicals in this key Asian textile market,” said Mr. Paul Hulme, president of Huntsman Textile Effects. “Our well-established partner, Swisstex, will continue to provide enhanced sales activities enabling us to concentrate on all formulation and production aspects, using our cutting-edge technology to develop innovative products and technologies.”

With Swisstex as its sole distributor, Huntsman Textile Effects has been aggressively extending its global reach in Pakistan to support the challenges facing the textile industry and to be the driving force for the fourth largest cotton producer of the world.

Huntsman Textile Effects is developing more competitive, locally sourced, formulated products for the local market, and will work with distributor partner Swisstex in order to maximize growth with key textile customers, especially in the home textiles and specialty chemicals areas.

Huntsman Textile Effects is a global provider of high-quality dyes and chemicals to textile and related industries. It operates in 110 countries and 14 primary manufacturing facilities in 12 countries (China, Columbia, Germany, Guatemala, India, Indonesia, Mexico, Pakistan, Switzerland, Thailand, Turkey, USA).

Huntsman is a global manufacturer and marketer of differentiated chemicals. Its operating companies manufacture products for a variety of global industries including chemicals, plastics, automotive, aviation, textiles, footwear, paints and coatings, construction, technology, agriculture, health care, detergent, personal care, furniture, appliances and packaging.

http://specialtyfabricsreview.com/articles/121911_huntsman_textiles.html
Riaz Haq said…
Here's a Daily Times story on Karachi Textile Expo 2012:

The textile sector is likely to fetch more than $45 million export orders during three-day 9th Textile Asia 2012 International Exhibition, textile experts said Saturday.
During previous international event in 2011, Pakistan fetched more than $31 million worth of orders for different categories of textile products, they added.
Adviser to Prime Minister on Textile Dr Mirza Ikhtiar Baig inaugurated the 9th Textile Asia 2012 event at Karachi Expo Centre.
It is the largest annual textile and garment machinery show of textile industry of Pakistan.
This year more than 276 exhibitors from 39 countries representing 369 international brands are participating in the event.
Besides a large number of textile sector’s representatives along with 271 foreign delegates are attending the exhibition.
The demand for textiles in the world is around $18 trillion, which is likely to be increased by 6.5 percent. China is the leading textile exporter of the world’s total exports of $400 billion.
Export of China stands at $55 billion, Hong Kong $38 billion, Korea $35 billion, Taiwan $16 billion, and Indonesia and Pakistan $14 billion.
Pakistan has emerged as one of the major cotton textile product suppliers in the world market with a share of world yarn trade of about 30 percent and cotton fabric about 8.0 percent, having total export of $13.8 billion, which accounts for only 1.2 percent of the overall share. Out of this cotton fabric is 0.02 percent, made-ups 0.18 percent and garments is 0.15 percent.
Textile sector is the backbone of the country’s economy having 56 percent of total exports and 38 percent job creation in the manufacturing sector. Nearly all the world-renowned brands are manufactured in Pakistan keeping high standard of international quality and competitiveness.
Pakistan is the fourth largest producer of cotton yarn and cloth in the world after China, which is number one besides, Pakistan ranks second in export of yarn and third in export of cloth and fourth largest producer and consumer of raw cotton.
The textile sector in 2011 has registered an impressive growth of 38 percent and it was expected after European Union’s (EU) duty free export of 75 products from Pakistan out of which 65 are textile products, the sector would fetch more than $25 billion export target. The EU facility is initially for two years, extendable for third year after which Pakistan would quality for Generalised System of Preferences (GSP) plus status to export duty free to EU as per revised criteria agreed with EU.


http://www.dailytimes.com.pk/default.asp?page=2012\03\11\story_11-3-2012_pg5_12
Riaz Haq said…
Cotton availability in Pakistan rises 25% YoY, reports fiber2fashion:

There has been a substantial increase of more than 25 percent in arrival of cotton in Pakistan markets this season compared to last season.

Besides, there has also been a significant rise of 77 percent year-on-year in cotton exports from Pakistan this season.

Citing figures from Pakistan Cotton Ginners Association (PCGA), Mr. Muhammad Azam, Secretary-General and Chief Operating Officer of All Pakistan Textile Mills Association (APTMA), told fibre2fashion, “Compared to total arrivals of 11,502,408 cotton bales of 170 kg each during 2010-11 season up to March 1, 2011, a total of 14,378,962 bales have arrived in market this season up to March 1, 2012. Thus, there has been an increase of 2,876,534 bales or 25.01 percent over the previous season.”

Informing about the number of cotton bales pressed by various ginneries across Pakistan, he says, “Up to March 1, 2012, this season, 14,301,516 bales were pressed at various ginneries. In comparison, 11,467,821 bales were pressed during the same period in 2010-11 season. Thus, 2,833,695 bales or 24.71 percent more bales have been pressed this season.”

Talking about cotton exports, he says, “The exports have boomed 77.89 percent this season. Pakistan exported 920,706 bales up to March 1 this season, against exports of 517,567 bales registered during the same period last season. Thus, 403,139 more bales have been exported this season.”

“The textile mills in Pakistan have consumed only 17.68 percent or 1,871,840 more bales this season compared to previous season. Up to March 1, 2012, textile mills in Pakistan purchased 12,462,112 cotton bales, against their purchase of 10,590,272 bales during the same period in 2010-11 season,” he mentions.


http://www.fibre2fashion.com/news/textile-news/newsdetails.aspx?news_id=109064
Riaz Haq said…
Here's Fiber2Fashion report on value-addition by Pakistani yarn spinners:

everal cotton spinning companies in Pakistan are investing in value-addition as well as in compact yarns to beat the economic downtrend and to survive.

The excessive power and gas shortages is also forcing the high power consuming spinning industry to go for innovative value-added products that consume less energy.

Mr. Abid Farooq, Managing Director of Ali Akbar Spinning Mills and former chairman of APTMA, told fibre2fashion, “A lot spinning units are investing hugely into compact spinning nowadays and every conventional non-compact spinning mill is investing some money in compact yarns.”

Explaining the reason, he says, “Pakistan has a certain share in world yarn market, which is not likely to increase in near future. There is too much competition and the spinners cannot increase their capacity to export as the yarn export market is limited.”

“On the other hand, there is still a lot of room for the value-added yarn products to get higher market share compared to yarn. So, that is one reason for several spinners diversifying into manufacturing of downstream products. They have invested in value-addition to get a greater share in the Chinese and the European markets,” he adds.

Pakistan is facing a huge shortage of power, electricity and gas, which prevents addition of new capacities in spinning industry. Spinning machines require a lot of energy, so spinners are moving into value-added areas that need less energy.

As Mr. Farooq says, “Making new investments for manufacturing of value-added downstream products is another form of survival for the Pakistan spinning industry because spinning in itself is a very competitive industry and it is very technical. So, most of the new investments are going into value-addition.”

Talking about the knitwear sector, he avers, “The knitwear sector is coming back to life from a very bad slump a few years ago. Several knitwear units that had closed down are being revived again. The increase in dyeing and finishing capacities is also helping the sector.”


http://www.fibre2fashion.com/news/textile-news/newsdetails.aspx?news_id=110648
Riaz Haq said…
Here's Fiber2Fashion story on Pak textile manufacturers diversifying into retail brands:

For long, several globally renowned apparel brands have been sourcing their fabric and clothing requirements from Pakistan. But, there have been very few Pakistani companies with brands of their own.

However, some companies that are engaged in export-oriented textile manufacturing are now diversifying into retailing through setting up their own apparel brands.

One such example is the Karachi-based ZK Industries, which ventured into retailing of its own branded garments four years ago.

Explaining the reason for his company’s diversification into retail segment, Mr. Younus Muhammad Bashir, Managing Director of ZK Industries, told fibre2fashion, “When we manufactured for others, we were just vendors. As time passed, competition increased and we thought that when we can manufacture for other brands we can have our own brand as well.”

“Till 2008, we were just vendors and we entered into the retail business in January 2009 by opening our first outlet in Karachi. Today, we have seven outlets – six in Pakistan and one in Dubai – and there are few more stores coming up soon,” he informs.

ZK Industries’ retail business is doing well and the company plans to launch more new products. Although the firm’s main business is fabrics, it is venturing into retailing of ready-to-wear garments.

Comparing manufacturing with retail, Mr. Bashir says, “Manufacturing business has a big volume while retail does not have such a volume. Manufacturing has a limited market and you meet limited set of people, and there is no direct interaction with the end consumers.”

“On the other hand, retail has its own charm. Whatever you sell in retail, you are paid immediately in cash for it. Moreover, being in the market and meeting new people everyday aids better idea generation. Being in direct touch with the consumers gives a better understanding of the consumer choices and preferences. The emergence of social media has made retailing even more interesting,” he concludes.


http://www.fibre2fashion.com/news/textile-news/newsdetails.aspx?news_id=110938
Riaz Haq said…
Here's Express Tribune of disproportionate impact of energy crisis on small textile mills:

The energy crisis has hit Pakistan’s textile industry badly, but not all textile companies are hurt: the largest players are doing just fine, relying on a combination of the advantages of their economies of scale but also government-sanctioned privileges not available to smaller industrial players.

At least part of the reason why the bigger companies are doing better than the smaller ones appears to be the natural advantages that come with being a larger player, such as having a vertically integrated business model.

Kamal Yousaf, CEO of the Kamal Group of Industries, a textile conglomerate based in Faisalabad, says that part of his group’s advantage over smaller rivals in their ability to harness synergies within the group. The weaving, processing and dyeing, garment manufacturing, and trading arms all work as a unit, helping the group weather price hikes in raw material or other issues.

The Nishat Group, meanwhile, benefits from the fact that it owns the fourth-largest bank in the country – MCB Bank – allowing it to avoid cash flow issues and raise capital for efficiency improvement projects. Nishat Textile, therefore, never has a problem in paying wages to its employees and was able to raise Rs1 billion to invest in a 6.2-megawatt power generation unit that runs on biomass. Electricity produced in this manner is expected to be about 6% more expensive than that provided by the grid, but is far more reliable at a time when Punjab’s industry is especially hampered by severe power outages that last several hours a day.

And many larger textile mills are able to purchase large stocks of raw materials that insulate them from price shocks. More than half the cost of producing a piece of clothing is often still the cost of cotton, even for some of the largest players.

Yet at least part of the advantage appears to be built in by the government. One of the biggest reasons why larger textile mills, particularly in Punjab, have been able to do well is that most have installed captive power plants that – despite operating at one-third the efficiency of the grid’s power station – are getting gas supplies to produce power at a marginally lower cost than what they would get from the grid.

However, these captive plants have been getting gas even at the expense of the rest of the grid, meaning that even while the largest and richest textile exporters save a few pennies on their production costs (power accounts for 3% of all costs for the larger firms), all of Punjab is going through massive power outages because the power plants that supply electricity to ordinary citizens and smaller industries are getting less gas, sometimes even no gas.

Meanwhile, smaller textile players have less reliable power from the grid, a supply that is made more intermittent by the fact that the fuel for the grid’s power goes to their larger textile rivals. At the same time, banks charge the smaller players higher interest rates, since they are viewed as bigger risks for not having their own captive power supply.

“The smaller guys cannot afford to run their factories on diesel generators,” said Muzammil Aslam, managing director at Emerging Economics Research....


http://tribune.com.pk/story/426553/while-small-players-get-squeezed-textiles-big-guns-are-doing-just-fine/
Riaz Haq said…
Pakistan-based International Textile Ltd (ITL) has deployed SAP’s business software solutions by entering into a partnership with SAP, to bring technology-driven success across its international textile manufacturing.

To support Pakistan’s Ministry of Textile Industry’s goal of reaching US$ 25 billion in textile exports by 2014, ITL has deployed SAP across finance, controlling, materials management and sales and distribution.

Adnan Khan, the director of ITL, said that in addition to improving ITL’s visibility and decision-making, SAP solutions have also helped ITL progress in vertical integration operating strategy, and support Pakistan’s growing textile-based economy.

In today’s data-driven world, SAP solutions will enhance ITL’s sales, distribution, and materials management, empowering ITL to compete at the highest level in the global market, he added.

Gergi Abboud, the managing director of SAP in Gulf and Pakistan, said textiles are one of the most important industrial sectors in Pakistan and SAP is committed to supporting the country’s industrial economic growth and ITL international expansion.

ITL is a global business, which services in the US, Canada, the European Union, and other important international markets. The company operates four business divisions including terry textiles, Muratec Jet Spinning (MJS), garments and trading. The product lines include yarn, wide range of terry products and related goods, fabrics, a full line of hospitality and healthcare products.

SAP’s Solutions for mill products, implemented by Siemens, Pakistan are expected to bring higher standards of performance at ITL enhancing the company’s leadership position and drive its international market expansion, which already includes customers in United States, the European Union, and Australia.

Textiles comprise 40 percent of Pakistan’s industrial labour. The World Economic Forum ranked Pakistan in the 49th position in ‘capacity for innovation’ in the Global Competitiveness Report 2013-2014, highlighting the potential for business technology solutions in supporting economic growth.

Headquartered in Karachi, ITL has invested substantially in state of the art technology, including its ability to manufacture MJS Yarn and fabric. These products are manufactured on air jet spinning technology from Murata Japan. The company is acknowledged as having one of the largest MJS footprints in Asia. (GK)

http://www.fibre2fashion.com/news/textiles-technology-news/newsdetails.aspx?news_id=168814
Riaz Haq said…
ISLAMABAD: Ambassador of Pakistan to France Ghalib Iqbal said that Pakistani fashion industry had registered a growth of 79 per cent recently which was one of the largest industrial growth rates in the world.

He was speaking at a fashion show of high end Pakistani textile products. The show was organized as part of activities of 37th edition of Texworld being held in Paris, France, said a message received here Wednesday.

The ambassador announced that a more elaborate fashion show would be held in Paris next year to present high end Pakistani textile designs.

This year, a total of 35 Pakistani companies have set up their stalls in the Texworld, out of which 12 have been sponsored by the Trade Development Authority of Pakistan (TDAP) while others were participating on their own.

A total of 945 companies from 27 different countries are participating in the fair which is held twice a year in Paris.

President of the exhibition, Michal Scherppe welcomed and appreciated the participation of Pakistan in the fashion show organized as part of the event.

The show presented the designs created by Indus Valley School of Arts and Architecture and Sarena.

The colourful and highly imaginative designs were appreciated by the spectators.

Earlier, the ambassador visited the stalls set up by Pakistani exporters and discussed with them the prospects of business development in France and assured them of full support and cooperation. –APP

http://www.samaa.tv/arts-culture/2015/09/pakistan-fashion-industry-registers-79-growth-ambassador/

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