India Pakistan Trade Unit

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High Value Added Consumer Products sector Reviews


Definition and scale of sector

Why the sector was chosen in the West Midlands

Textile Sector review from Asia Invest

The textile sector is the backbone of the Pakistan's Economy. Over the years it has grown to cover the full range of the production process for cotton prod-ucts, from the farming and growing stage up to the garment industry as well as retailing of the finished products. Non-cotton textile such as synthetic fibre remains small compared to the cotton industry (about 20% in terms of volume), while the growth of the polyester fabric is significant. It is the largest industry in the country, while Pakistan is ranked first in the world, as per the World Bank Balassa index, in terms of competitive advantage.

Textile Engineering Sector review from Asia Invest

The Pakistan's textile engineering sector is under-developed and under utilised. The major engineering developments in the past years have been concentrated into:

The sector currently caters for spares, components for modernisation and parts for machines used in cottage or small-scale enterprises.

The rate of investment in the textile industry is the highest for Pakistan (in Asia) mainly in the spinning and weaving sectors. Most of the new investments went into replacement of old machinery rather than enhancing capacity

Textile Sector review from EPB

Textile could be termed as the backbone of Pakistan's economy. It is not only the largest industry in the country but it is the greatest source of foreign exchange earnings in Pakistan. It provides employment to 38 percent of overall labour force of the country and accounts for 27 percent of value addition in the manufacturing sector. The textile sector critically depends on the supply of raw material from agriculture sector and therefore, whatever happens to cotton crop is likely to affect the performance of textile sector.

The size of the cotton crop is not only higher (10.7 million bales), but it exceeded the current year's target (9.7 million bales). The low market prices prevalent throughout last year have created environment, which is conducive for re-investment in BMR of the existing units and expansion of the capacity. The inflow of foreign direct investment (FDI) almost doubled from $2.1 million in July-March 1999-2000 to $4.0 million in July-March 2000-01. The government has announced a "Cotton Policy" last year and textile vision 2005 to ensure the availability of cotton in the future and promotion of textile as an important industry.

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