Sectors of manufacturing Presented By: Nisha Dil Muhammad Roll # 08

Manufacturing sector: Pakistan ranks fifty-fifth worldwide in factory output. Pakistan's manufacturing sector accounts for about 24% of GDP. The manufacturing sector posted a growth rate of 3.56 percent during the current fiscal year July-March 2011-12 compared to 2.96 percent of the same period last year.

Major sectors of manufacturing: Textile industry Defense industry Auto mobile industry Leather industry Telecom industry Sport industry Cement industry Fertilizer industry Surgical industry Oil & Gas industry Sugar industry Chemical industry

Pakistan Textile Industry: Historically, Pakistan’s textile industry and clothing sector has always been a major contributor to the foreign exchange  earner and still contributes.

The term 'Textile' is a Latin word originating from the word 'texere' which means 'to weave‘ In Asia, Pakistan is the 8th largest exporter of textile products. The annual volume of total world textile trade is US$18 trillion which is growing at 2.5 percent. Out of it, Pakistan’s share is less than one percent.

Textiles is the premier industry & backbone of Pakistan’s Economy: Major Agrarian industrial sector. Generates about 55.6 % of exports Constitutes 32.6 % of Manufacturing Industry Employs 40 % of country’s working force in manufacturing sector Contributes 7.4% to the total GDP Drives Banking, Shipping ,Transport ,Insurance, Machinery, Dyes/Chemicals ,Printing/Packaging & allied sectors.

World ranking: 2nd largest exporter of cotton yarn 3rd largest exporter of fabric 4th largest grower of cotton after USA, China and India 3rd largest consumer of cotton 3rd largest exporter of cotton textiles 2nd largest supplier of cotton yarn with 26% share of the international market

Total Investment in Textile $ 7.5 Billion (1999-2010)

TEXTILE MACHINERY IMPORTS

EXPORT OF PAKISTAN TEXTILES

EMPLOYMENT IN TEXTILE INDUSTRY Employment Generated   2004-05 2005-06 2006-08 1 Spinning 15,000 14,000 2,000 2 Weaving 3,000 500 3 Processing 1,500 1,000 300 4 Hosiery 100 5 Garments 32,000 20,000 10,000 6 Bedwear 13,000 7,000 7 Embroidery 400 600 8 Towel Total: 66,700 48,000 20,600 1.M/o labour 2.TCO survey

Products: Wool fabrics Power loom products Scarf Blanket Winter shawls Hand embroidered shawls Textiles products Handicrafts

Sectors of textile industry: Spinning Weaving Finishing Dyeing Printing Pressing Fashion designing

Textile value chain:

There are 1,221 ginning units, 442 spinning units, 124 large spinning units and 425 small units which produce textile products.

Textile and clothing range: Cotton Yarn Grey fabric Bleached fabric Dyed fabric Printed fabric Knitted fabric Bed linen Home textiles Made ups Towels Industrial Uniforms Sportswear Baby wear Foundation Garments Woven apparel Knitwear Accessories

World Textile & Clothing Trade (US$.billion) 850 675 453 458 356.42 331 334 311 213 105

GOVT INITIATIVES: Federal Textile Board Contamination free cotton program. Textile City Garment Cities (Lahore-Faisalabad-Karachi). Compliant Labour laws. Textile Skill Development Board. Textile Training Institute Management Board. Tariff rationalization.

STRENGTHS: Availability of cheap labour. Good markets for products. Large domestic market. Industry Supportive Government Policies. Free Import of cottons is Allowed (which is used for development of special fabrics) Yarn dyed fabrics & high quality blends is increasing.

WEAKNESSES: Low productivity resulting in high labour costs Very limited experience in generating new products Pakistan’s image continues to be that of a low quality, low price, non consistent and unreliable supplier Average quality of products

Problems of Textile Industry: The largest problem that the industry faces today is the sales tax. Custom duty taxes. Load shedding of electricity. Interference of Govt. in industry. lectricity

Challenges to a Textile Industry: The Pakistan textile industry is currently facing several challenges: Need for the industry to improve the quality of its product. Need for greater value addition in its products. Need to undertake an up gradation in the technology used. Cost of power of competitors.

CHALLENGES TO BE ADDRESSED: Assist the Industry to sustain its existing market shares Synergise all policy initiatives to support the Industry to develop its competitiveness in the changing global environment Focus on Short Term Strategies with result oriented approaches to help companies progress Promotion of the Value Added products. This Sector has the possibility to create more than 1 million additional jobs – more than any other sector

Social compliance: Formation of Pakistan Compliance Initiative (PCI) by the private sector All Textile related Associations imparting awareness and training in benchmarking No child labour or sexual harassment Provision of transport to women workers

Environmental standards: Environment Protection Agency Trade Policy emphasis on process management and environmental concerns The Government subsidizing waste water treatment plants in all industrial clusters Imports of hazardous chemicals and dyes for textiles are either banned or strictly regulated