KARACHI:President, Pakistan Businesses Forum (PBF), Mian Usman Zulfiqar said in a statement on Tuesday that the government should make it compulsory for the large spinning units having more than 30,000 spindles to grow their own cotton to manufacture cotton yarn and extend full support to them because country’s textile exports could not be enhanced without increasing the area under cotton cultivation and yield.
Usman said: “Currently our textile industry is running on its full capacity and it’s not only Pakistan, all supplier countries are loaded with orders because stores are empty.” We have to draw a certain mechanism to continue with this for a longer term.
As textile industry emerged as a major part of the industrialization process in Pakistan during the 1960s and there are about 1200 ginning factories in the country till date including 250 factories in Sindh and more than 720 factories in Punjab while remaining are running in other parts of the country.
Pakistan is an agrarian country, its textile industry is considered as the backbone of the national economy because this sector is not only contributing 8.5% share in GDP but also providing job opportunities to 40 percent of total labor force.
Similarly textile industry is also producing artificial silk which resembles silk but costs less to produce and about 90,000 looms are working on this product across the country. We are producing high quality fabric as compared to the fabric produced in other countries.
The 511 spinning mills are working across the country mainly in Punjab and Sindh with a capacity of 13.40 million spindles and 199,000 rotors. This industry is mainly focusing on spinning of coarse and medium fineness yarns.
Total raw cotton consumption of this industry is about 1.1 million bales while the installed capacity was 13.414 million spindles and 187,259 rotors in 2015-16, 1.414 million spindles and 198,801 rotors in 2016-17, 13.410 million spindles and 198,801 rotors in 2017-18 and 13.409 million spindles and 198,801 rotors in 2018-19. These spinning units produced 3397.3 million kilograms yarn in 2015-16, 3428.1 million kg yarn in 2016-17, 3430.1 million kg yarn in 2017-18 and 3431.2 million kg yarn in 2018-19.
Also the weaving sector is divided into two sub-sectors including organized mills and unorganized mills but looms of both sectors have lack of capacity to convert whole yarn produced in spinning mills into fiber/cloth. Though The weaving sector is dominated by a large unorganized sector which roughly accounts for 90% of total weaving capacity. However, power looms have the largest share of output in cloth making.
However, there is a dire need of up-gradation of the textile sector to improve and increase its productivity by transforming it on value addition.
For this purpose, formulation of new strategies and programs are also imperative to enable this sector to face future challenges and compete in global markets with rival countries.
He also said textile industry in the country is still facing some setback due to various contemporary problems like COVID-19, reduction in cotton production, shortage of raw material, high cost of doing business and environmental hazards, yet its future is very bright if associated with value addition completely by adopting scientific lines including nanotechnology.
“80% units of textile industries belong to the SME sector but this sector is facing lack of Research and Development (R and D) facilities and other contemporary problems”
These problems are increasing cost of products and cost of doing business while the rival regional countries like India and Bangladesh are producing cheap products.
Therefore, tough competition in international markets is also hampering the growth of the textile industry in Pakistan. On the other hand, the unwillingness of small unit owners to innovate is also a great tragedy for the textile industry.
Despite the fact experts keep introducing new ideas and products for the textile industry. But unfortunately, the industrialists are not showing much interest in adopting new ideas.
Further, the incumbent government has taken various steps for revival of economic activities in the country which may help not only survival but also flourishing of the textile industry.
In this regard, establishment of garment cities shall play a dynamic role in survival of the textile industry and China Pakistan Economic Corridor (CPEC) project will also prove a ray of bright future for textile industry because quick shifting of consignments and their in-time delivery to the buyers in global markets.
Usman who was a also former Chairman of FPCCI Standing Committee on Textiles even stated that the industrial sector was facing severe energy problems due to high rate of power tariff, however the government announced a cut in electricity rate for industrial and SME sectors which would spur manufacturing activities in the textile industry and enhance the pace of economic development.
He appreciated the industrial friendly steps of the government and said that these steps ould also offset ill impacts of coronavirus on the textile sector. He demanded of the government too to revisit all duties on the import of cotton yarn and polyester yarn for a shorter term so that the value added textile sector could be saved from collapse till we are self sufficient in cotton production.