1. 1 Pakistan’s Garment Sector: An Overview Compiled & presented by: PRGMEA

2. 2 Textiles and Exports: Source: TDAP

3. 3 Textile’s share in Pakistan economy: Textiles is the premier industry & backbone of Pakistan’s economy: Generates 54 % of exports Constitutes 46 % of Manufacturing Industry Employs 38 % of country’s working force Contributes 8.5% to the total GDP Drives Banking, Shipping,Transport,Insurance, Machinery, Dyes/Chemicals, Printing/Packaging & Other allied sectors. Source: TCO

4. 4 Sectors’ share in textile exports: Source: TDAP

5. 5 Textile sector’s exports progress: Source: TDAP

6. 6 Average Unit Price Trend: Source: TDAP

7. 7 Garment Sector in the current year: Source: TDAP

8. 8 Pakistan’s Garment Exports by Region: Source: Trade Map Garment Exports in 2007

9. 9 Apparel Exports to countries: Pakistan exported HS Code # 61 & 62 (Articles of apparel and clothing accessories, knitted and woven) to about 146 countries in the year 2008. Sources : ITC calculations based on COMTRADE statistics.All values in USD ‘000 List of importing markets for garments exported by Pakistan Importers20042005200620072008 United States of America 1,210,314 1,562,230 1,740,706 1,672,330 1,637,803 Germany 203,165 210,869 235,663 250,527 288,860 United Kingdom 274,048 272,459 317,724 329,937 334,845 Spain 68,592 102,768 135,972 131,735 134,299 France 102,990 91,808 100,673 105,071 107,917 Netherlands 120,807 125,500 119,799 131,623 127,817 Belgium 74,865 88,089 89,808 89,108 102,764 Canada 54,810 54,943 68,390 65,925 59,564 Italy 120,150 107,321 154,876 157,214 98,470 United Arab Emirates 118,381 98,617 58,130 66,718 77,947

10. 10 Categories of Apparel Exports: Pakistan exported in following major categories of HS Code # 61 & 62 (Articles of apparel and clothing accessories, knitted and woven): Sources : ITC calculations based on COMTRADE statistics.All values in USD ‘000 List of products exported by Pakistan CodeProduct label20042005200620072008 '6203 Men's suits, jackets, trousers etc & shorts 389,972 596,441 632,495 708,291 785,802 '6105Men's shirts, knitted or crocheted 622,306 617,066 697,991 606,631 569,003 '6204 Women's suits, jackets,dresses skirts etc&shorts 157,192 290,858 382,880 326,636 334,668 '6109 T-shirts, singlets and other vests, knitted or crocheted 146,383 216,396 279,260 284,349 293,319 '6103 Men's suits,jackets,trousers etc&shorts, knit/croch 92,266 140,484 158,330 209,067 243,707 '6115 Panty hose, tights, stockings & other hosiery, knitted or crocheted 124,442 164,234 218,045 203,073 243,677 '6106 Women's blouses & shirts, knitted or crocheted 81,671 63,140 91,766 93,492 106,489 '6104 Women's suits,dresses,skirt etc&short, knit/croch 73,512 71,028 90,902 99,961 100,532 '6116 Gloves, mittens and mitts, knitted or crocheted 36,559 28,603 41,805 57,379 74,016 '6207 Men's singlets, briefs, pyjamas, bathrobes etc 50,894 71,976 72,810 66,103 64,928

11. 11 Applicable import duties on Apparel: Import duties on Cat 6203 (Men's suits, jackets, trousers etc & shorts) Duty rates shown are total ad valorem equivalent tariff (estimated) USAEUBrazilAustraliaCanada Pakistan10.85%9.6%35%*10%17.46% China 10.85%12%35%17.5%17.46% Bangladesh 10.85%0%35%0% Vietnam 10.85%9.6%35%17.5%17.46% Cambodia 10.85%0%35%0% India 10.85%9.6%35%17.5%17.46% Sri Lanka 10.85%0%35%17.5%17.46% * WEF 1/1/2010Source: International Trade Centre (UNCTAD/WTO)

12. 12 Why Garment sector is essential: Employment: Garment sector is the largest employment creating sector in Pakistan with around 2 million people directly employed. An additional million dollars invested creates: Garment SectorSpinning/Weaving Additional Jobs46034 Additional exportsUS$ 3.2 millionUS$ 0.27 million Value Addition: A bale of cotton exported earnsUS$ 238 Clothing made & exported of one bale earnsUS$ 1,600

13. 13 Investment in Textiles: Total investment = US$ 7.5 Billion ( 1999-2009) Spinning50.20 % Weaving15.23 % Textile Processing17.08 % Knitwear +Garments7.02 % Made Ups4.71% Synthetic Textiles5.76% Source: TCO

14. 14 Value Addition: Source: Trade Map data Cotton Knitted Garments US$ 46.85 per kg Cotton Woven Garments US$ 38.88 per kg Cotton Fabric (Heavy) US$ 8.15 per kg Cotton Bed Linen US$ 6.50 per kg Cotton Yarn US$ 2.61 per kg Raw Cotton US$ 1.35 per Kg Products AUP 2008 (USD/Kg) Value Addition 520100 Cotton, not carded or combed $1.35- 5205 Cotton yarn (not sewing thread) 85% or more cotton, not retail $2.6193% 630221 Bed linen, of cotton, printed, not knitted $6.50381% 5209 Woven cotton fabrics, 85% or more cotton,weight over 200 g/m2 $8.14503% 620342 Mens/boys trousers and shorts, of cotton, not knitted $38.882780% 610510 Mens/boys shirts, of cotton, knitted $46.853370%

15. 15 Value Addition: Source: Trade Map data If Pakistan's entire crop of 12 million bales are exported at the above prices, it would generate…. Products Value in USD Billions 520100 Cotton, not carded or combed $3.53 5205 Cotton yarn (not sewing thread) 85% or more cotton, not retail $6.81 630221 Bed linen, of cotton, printed, not knitted $16.99 5209 Woven cotton fabrics, 85% or more cotton,weight over 200 g/m2 $21.27 620342 Mens/boys trousers and shorts, of cotton, not knitted $101.58 Raw Cotton US$ 3.53 billion Cotton Yarn US$ 6.81 billion Cotton Bed Linen US$ 16.99 billion Cotton Woven Fabric US$ 21.27 billion Cotton Woven Garments US$ 101.58 billion Cotton Knitted Garments US$ 122.42 billion

16. 16 Textile Exports of Selected Economies: Source: WTO (Million dollars and percentage) Value Share in economy's total merchandise exports 199020002006200720082000 2008 a World 104,354 157,295 220,367 240,364 250,1982.51.6 Bangladesh b, c 343 393 1,494 884 1,0906.27.1 China d 7,219 16,135 48,678 55,961 65,2566.54.6 India 2,180 5,570 8,909 9,667 10,26713.15.8 Pakistan 2,663 4,532 7,469 7,371 7,18650.235.4 Sri Lanka c 25 244 154 176 1884.52.2 Turkey 1,440 3,672 7,585 8,942 9,399 13.2 7.1 Viet Nam c... 299 1,058 1,321 1,6392.12.6 a Or nearest year. b Figures refer to fiscal year. c Includes Secretariat estimates. d Includes significant exports from processing zones.

17. 17 Garment Exports of Selected Economies: Source: WTO (Million dollars and percentage) Value Share in economy's total merchandise exports 199020002006200720082000 2008 a World 108,129 197,722 309,142 345,830 361,8883.12.3 China d 9,669 36,071 95,379 115,233 119,97814.58.4 Bangladesh b, c 643 5,067 8,318 8,855 10,92079.371.1 India 2,530 5,960 9,499 9,786 10,85414.16.1 Viet Nam c... 1,821 5,579 7,400 8,97112.614.3 Pakistan 1,014 2,144 3,907 3,806 3,90623.819.2 Cambodia c... 970 2,513 3,491 3,64569.884.8 Sri Lanka c 638 2,812 3,046 3,283 3,46051.840.9 a Or nearest year. b Figures refer to fiscal year. c Includes Secretariat estimates. d Includes significant exports from processing zones.

18. 18 Existing Market - USA: Sources : ITC calculations based on COMTRADE statistics.All values in USD ‘000 Existing trade between United States of America and Pakistan Produc t code Product label Pakistan's exports to USAUSA's imports from worldPakistan's exports to world 200620072008200620072008200620072008 '620342 Mens/boys trousers and shorts, of cotton, not knitted 202,713 234,174 238,734 5,550,775 5,461,354 5,390,716 526,323 580,434 609,917 '610510 Mens/boys shirts, of cotton, knitted 426,566 345,503 275,203 1,995,625 2,107,015 1,783,983 553,222 442,825 355,388 '610910 T-shirts, singlets and other vests, of cotton, knitted 152,919 164,937 194,372 3,877,210 3,645,942 3,971,235 261,911 258,266 266,334 '620462 Womens/girls trousers and shorts, of cotton, not knitted 99,096 78,846 83,251 6,101,518 6,095,207 5,845,705 242,385 217,348 244,109 '610610 Womens/girls blouses and shirts, of cotton, knitted 56,190 44,516 47,472 1,087,956 1,125,877 970,096 79,749 71,983 77,513

19. 19 Existing Market - UK: Sources : ITC calculations based on COMTRADE statistics.All values in USD ‘000 Existing and potential trade between United Kingdom and Pakistan Product code Product label Pakistan's exports to UKUK's imports from worldPakistan's exports to worldIndicative potential trade 200620072008200620072008200620072008200620072008 '610910 T-shirts, singlets and other vests, of cotton, knitted 21,42819,87421,7352,109,4952,323,2102,174,378261,911 258,266 266,334240,483238,392244,599 '611020 Pullovers, cardigans and similar articles of cotton, knitted 2,5413,3823,375935,3911,100,4881,342,99151,64438,66529,50649,10335,28326,131 '611030 Pullovers, cardigans and similar articles of man-made fibres, knitted 68 57 151 1,101,5681,167,8881,317,9831,101 3,5353,2471,0333,4783,096 '620462 Womens/girls trousers and shorts, of cotton, not knitted 22,96019,52423,0141,108,669 1,142,5491,226,178242,385 217,348244,109219,425197,824221,095 '620342 Mens/boys trousers and shorts, of cotton, not knitted 64,37871,30070,8181,012,6291,074,9411,113,934526,323 580,434609,917461,945509,134539,099 '620520 Mens/boys shirts, of cotton, not knitted 5,28617,505 1,601 625,712 715,410 698,520 60,624 100,683 15,02755,33883,17813,426

20. 20 Existing Market - Germany: Sources : ITC calculations based on COMTRADE statistics.All values in USD ‘000 Existing and potential trade between Germany and Pakistan Product code Product label Pakistan's exports to Germany Germany's imports from world Pakistan's exports to world Indicative potential trade 200620072008200620072008200620072008200620072008 '610910 T-shirts, singlets and other vests, of cotton, knitted 9,758 6,881 4,473 2,421,0322,620,078 2,773,528 261,911 258,266 266,334 252,153 251,385 261,861 '620342 Mens/boys trousers and shorts, of cotton, not knitted 72,938 76,767 78,9472,112,619 2,323,4132,682,264 526,323 580,434 609,917 453,385 503,667 530,970 '611020 Pullovers, cardigans and similar articles of cotton, knitted 734 649 110 1,484,8701,649,160 2,044,215 51,644 38,665 29,506 50,910 38,016 29,396 '620462 Womens/girls trousers and shorts, of cotton, not knitted 45,499 47,720 64,9031,666,8841,804,6791,836,069 242,385 217,348 244,109196,886 169,628 179,206 '611030 Pullovers, cardigans and similar articles of man-made fibres, knitted 32 10 541,470,6761,327,8811,452,515 1,101 3,535 3,247 1,069 3,525 3,193

21. 21 Existing Market - Spain: Existing and potential trade between Spain and Pakistan Product code Product label Pakistan's exports to Spain Spain's imports from worldPakistan's exports to worldIndicative potential trade 200620072008200620072008200620072008200620072008 '610910 T-shirts, singlets and other vests, of cotton, knitted 6,877 3,129 3,971 1,112,745 1,297,499 1,349,335 261,911 258,266 266,334 255,034 255,137 262,363 '611020 Pullovers, cardigans and similar articles of cotton, knitted 1,170 1,340 1,424 591,286 763,396 1,047,294 51,644 38,665 29,506 50,474 37,325 28,082 '620462 Womens/girls trousers and shorts, of cotton, not knitted 23,241 20,510 25,632 784,319 969,696 1,034,922 242,385 217,348 244,109 219,144 196,838 218,477 '620342 Mens/boys trousers and shorts, of cotton, not knitted 27,582 27,970 27,495 702,801 868,289 1,004,616 526,323 580,434 609,917 498,741 552,464 582,422 '611030 Pullovers, cardigans and similar articles of man- made fibres, knitted 52 55 - 414,973 438,755 584,010 1,101 3,535 3,247 1,049 3,480 3,247 '620520 Mens/boys shirts, of cotton, not knitted 1,853 1,445 703359,723490,539515,115 60,624100,683 15,02758,771 99,23814,324 Sources : ITC calculations based on COMTRADE statistics.All values in USD ‘000

22. 22 Potential Market - Brazil: Existing and potential trade between Brazil and Pakistan Product code Product label Pakistan's exports to Brazil Brazil's imports from worldPakistan's exports to worldIndicative potential trade 200620072008200620072008200620072008200620072008 '620343 Mens/boys trousers and shorts, of synthetic fibres, not knitted 8 15 10 38,259 51,137 63,423 8,887 15,936 18,196 8,879 15,921 18,186 '620342 Mens/boys trousers and shorts, of cotton, not knitted 23 24 73 18,806 34,898 47,834526,323 580,434 609,91718,783 34,874 47,761 '611030 Pullovers, cardigans and similar articles of man-made fibres, knitted - - - 19,459 24,349 27,982 1,101 3,535 3,247 1,101 3,535 3,247 '620520 Mens/boys shirts, of cotton, not knitted 14 - - 10,291 17,377 27,450 60,624 100,683 15,027 10,277 17,377 15,027 '620462 Womens/girls trousers and shorts, of cotton, not knitted 104 - - 14,661 17,774 25,282242,385 217,348244,109 14,557 17,774 25,282 '620530 Mens/boys shirts, of man-made fibres, not knitted - - 63 11,843 14,256 22,684 10,438 3,490 2,818 10,438 3,490 2,755 Sources : ITC calculations based on COMTRADE statistics.All values in USD ‘000

23. 23 Potential Market - China: Existing and potential trade between China and Pakistan Product code Product label Pakistan's exports to China China's imports from worldPakistan's exports to worldIndicative potential trade 200620072008200620072008200620072008200620072008 '620462 Womens/girls trousers and shorts, of cotton, not knitted 38 31 27 151,696 195,772 168,468 242,385 217,348 244,109 151,658 195,741 168,441 '611020 Pullovers, cardigans and similar articles of cotton, knitted 5 33 - 187,924 195,843 166,110 51,644 38,665 29,506 51,639 38,632 29,506 '620342 Mens/boys trousers and shorts, of cotton, not knitted 13 179 106 84,809 112,192 138,970 526,323 580,434 609,917 84,796 112,013138,864 '610910 T-shirts, singlets and other vests, of cotton, knitted 4 43 3 92,633 97,690 122,639 261,911 258,266 266,334 92,629 97,647 122,636 '620520 Mens/boys shirts, of cotton, not knitted 5 - - 111,239 115,544 119,600 60,624 100,683 15,027 60,619 100,683 15,027 '611030 Pullovers, cardigans and similar articles of man-made fibres, knitted - - - 120,225 114,547 81,019 1,101 3,535 3,247 1,101 3,535 3,247 Sources : ITC calculations based on COMTRADE statistics.All values in USD ‘000

24. 24 Potential Market - Japan: Existing and potential trade between Japan and Pakistan Product code Product label Pakistan's exports to Japan Japan's imports from worldPakistan's exports to worldIndicative potential trade 200620072008200620072008200620072008200620072008 '611030 Pullovers, cardigans and similar articles of man- made fibres, knitted - - 3 1,641,726 1,852,305 2,082,289 1,101 3,535 3,247 1,101 3,535 3,244 '611020 Pullovers, cardigans and similar articles of cotton, knitted 6 2 - 1,439,971 1,417,637 1,484,415 51,644 38,665 29,506 51,638 38,663 29,506 '610910 T-shirts, singlets and other vests, of cotton, knitted 23 32 92 1,104,650 1,080,600 1,217,869 261,911 258,266 266,334 261,888 258,234 266,242 '620462 Womens/girls trousers and shorts, of cotton, not knitted 17 53 194 1,198,837 1,150,590 1,150,513 242,385 217,348 244,109 242,368 217,295 243,915 '620342 Mens/boys trousers and shorts, of cotton, not knitted 42 33 81 694,217 683,386 711,246 526,323 580,434 609,917 526,281 580,401 609,836 '620311 Mens/boys suits, of wool or fine animal hair, not knitted - - - 558,491 558,211 602,069 188 25 21 188 25 21 Sources : ITC calculations based on COMTRADE statistics.All values in USD ‘000

25. 25 Potential Market – Russian Federation: Existing and potential trade between Russian Federation and Pakistan Product code Product label Pakistan's exports to Russian Federation Russian Federation's imports from world Pakistan's exports to worldIndicative potential trade 200620072008200620072008200620072008200620072008 '621600 Gloves, mittens and mitts, of textile materials, not knitted 51 103 460 4,568 6,093 8,133 28,910 20,319 18,251 4,517 5,990 7,673 '620462 Womens/girls trousers and shorts, of cotton, not knitted 13 492 152 86,770 174,395 247,379 242,385 217,348 244,109 86,757 173,903 243,957 '620342 Mens/boys trousers and shorts, of cotton, not knitted 65 389 133 69,659 138,679 203,122 526,323 580,434 609,917 69,594 138,290 202,989 '620432 Womens/girls jackets, of cotton, not knitted - 104 94 15,364 25,389 24,942 10,488 7,107 3,783 10,488 7,003 3,689 '620333 Mens/boys jackets and blazers, of synthetic fibres, not knitted - 1 76 2,505 4,547 6,111 13,632 7,930 8,679 2,505 4,546 6,035 '620319 Mens/boys suits, of other textile materials, not knitted - 29 58 2,836 7,409 9,890 7,468 8,847 12,018 2,836 7,380 9,832 Sources : ITC calculations based on COMTRADE statistics.All values in USD ‘000

26. 26 Competitors: CodeProduct label Pakistan 2008 China 2008 India 2008 Bangladesh 2008 Cambodia 2008 Sri Lanka 2008 Vietnam 2008 '620342 Mens/boys trousers and shorts, of cotton, not knitted 609,917 3,585,168 493,736 2,086,297 274,468 243,004 238,270 '610510Mens/boys shirts, of cotton, knitted 355,388 1,143,169 424,209 476,545 105,128 73,013 149,162 '610910 T-shirts, singlets and other vests, of cotton, knitted 266,334 5,522,681 1,471,257 2,655,403 228,077 276,935 576,437 '620462 Womens/girls trousers and shorts, of cotton, not knitted 244,109 5,344,290 310,645 1,104,683 379,029 212,732 307,031 '611530 Women''s full-length or knee-length hosiery, knitted or crocheted, mea 134,137 54,210 - - 283 '610610 Womens/girls blouses and shirts, of cotton, knitted 77,513 450,352 321,206 214,350 103,753 22,897 97,150 '611510 Graduated compression hosiery [e.g., stockings for varicose veins], of 73,061 887 - 18 6 '620349 Mens/boys trousers and shorts, of other textile materials, not knitted 69,583 272,808 43,262 18,138 1,209 37,331 338,074 '620791 Mens/boys bathrobes, dressing gowns, etc of cotton, not knitted 48,989 64,965 10,766 11,668 4,980 263 2,337 '610332 Mens/boys jackets and blazers, of cotton, knitted 45,985 819,499 28,696 1,964 1,176 8,487 6,221 '610349 Mens/boys trousers and shorts, of other textile materials, knitted 41,383 83,732 7,625 1,293 139 8,227 54,001 '610462 Womens/girls trousers and shorts, of cotton, knitted 39,199 5,344,290 95,772 180,746 205,486 74,752 110,995 Sources : ITC calculations based on COMTRADE statistics.All Values in USD ‘000 Data based on the partner reported data (Mirror data) are shown in Blue

27. 27 Average Unit Prices: CodeProduct label Pakistan 2008 China 2008 India 2008 Bangladesh 2008 Cambodia 2008 Sri Lanka 2008 Vietnam 2008 '620342 Mens/boys trousers and shorts, of cotton, not knitted 38.88 17.6621.1438.88 '610510Mens/boys shirts, of cotton, knitted 46.8554.2846.8515.1923.5346.8546.86 '610910 T-shirts, singlets and other vests, of cotton, knitted 32.33 10.0441.3132.33 '620462 Womens/girls trousers and shorts, of cotton, not knitted 50.27 21.4227.1650.27 '611530 Women''s full-length or knee-length hosiery, knitted or crocheted, mea 41.35-----38.99 '610610 Womens/girls blouses and shirts, of cotton, knitted 39.9384.8739.9319.1031.0939.9439.93 '611510 Graduated compression hosiery [e.g., stockings for varicose veins], of 56.3688.89----- '620349 Mens/boys trousers and shorts, of other textile materials, not knitted 57.28-57.3222.6727.7657.3157.29 '620791 Mens/boys bathrobes, dressing gowns, etc of cotton, not knitted 22.0648.6522.0615.3715.3320.7122.02 '610332 Mens/boys jackets and blazers, of cotton, knitted 43.5123.4643.5115.3534.1143.5143.40 '610349 Mens/boys trousers and shorts, of other textile materials, knitted 31.8898.1931.8417.3825.5431.9331.88 Sources : ITC calculations based on COMTRADE statistics.All Prices are in US Dollars per KG Data based on the partner reported data (Mirror data) are shown in blue

28. 28 Labor Cost Comparison 2008: Direct Wages * Other Costs Paid to Operator * Other Costs paid by Company * Total Cost per Hour * Exchange Rate (a) Total Cost in US$ Pakistan 34.187.312.4144.0078.680.56 Bangladesh 19.080.901.2021.1868.550.31 India 31.344.545.0940.9748.410.85 China – Coastal 8.930.783.0612.776.791.88 China – Inland 6.740.742.339.816.791.44 Vietnam 7,8127001,4009,91217,3890.57 Average cost per operator hour: * Local Currency (a) Exchange rate on December 30, 2008 Source: Werner International