Page 21 - July-August-2020

The textile sector of Pakistan will get a boost in
During the first phase of the FTA, local manufac-
exports to China as the second phase of the Free
tures complained about the unbalance in the
Trade Agreement (FTA) between China and
deal, especially the textile sector which raised
Pakistan will offer the same tariff concessions
concerns about the favours it granted the
enjoyed by the ASEAN countries.
Chinese textile industry. They believed that the
FTA was damaging the local industry and giving
The agreement covers 313 tariff lines of US $8.7
undue advantage to the Chinese. The govern-
billion Pakistan's overall exports and US $64
ment took note of the demands by the industry
billion of China’s global imports. Textile and
as they pointed out that during the first phase,
garments sector is at the forefront of this deal
tariffs were imposed on Pakistani textile exports.
and will help enhance the sector’s exports to
At the same time, they complained that the
China as it offers the same duty free access to
country’s competitors from the ASEAN had duty
ASEAN countries.
free access to the Chinese market.
The agreement is already bearing fruits as the
To fix this disparity, the Pakistani government held
Indian yarn exports dropped more than 38
several rounds of negotiations with their Chinese
percent for the first six months of the current
counterparts and now hope that the second
fiscal year. According to reports in the Indian
phase of the FTA would overcome the concerns
press, the cotton yarn exports between April and
of the local manufacturers and increase exports.
September of this year dropped from US $2.08
As a counter-measure, the sensitive list had been
billion to US $1.27 billion compared to the same
increased from 10% to 25%, totaling 1760 tariff
period from last year.
lines and covers 37% of Pakistan's imports from
China. This, the two sides hope, will give protec-
The Indian report cited the FTA’s second as a
tion to Pakistani industry from Chinese import,
major reason for the decline as it said that the
and the textile and garments sector is a major
beneficiary of this sensitive list. Whereas, the
India did not enjoy the same tariff free access to
the Chinese market, whereas India had to pay 3.5
tariffs from the industry had also been lifted to
to 5 percent tariffs.
increase the export of the sector. The Chinese
side also agreed to immediate market access on
its priority products, tariff reduction and measures
The full effects of the second phase of the FTA
for protection of the domestic industry on
could be gauged after the deal comes into effect
from December 1, which would boost the exports
Pakistan’s request.
of Pakistani products to the Chinese market.
The first phase of FTA between China and
Earlier in the month, Abdul Razak Dawood,
Pakistan was signed on November 24, 2006 and
Adviser to the Prime Minister for Commerce,
Textile, Industry & Production and Investment,
became operational in 2007. The negotiations for
announced that the second phase would come
the second phase began in 2011 and after eleven
into effect from December 1 and it was becoming
rounds, both sides signed the agreement in April
of 2019 in Beijing.
operational earlier than usual. He said that it
usually took a year to make such agreements
Now, the second phase is about to take effect
operational between countries but because of the
which is already showing some positive signs.
special relations enjoyed by both the countries.
20 72
Global cotton woven fabric
exports declining since 2013
collapsed to $26.60 billion in 2018 with 1.2% decline
Woven fabric is highly important in textiles and
PRGMEA Chief Coordinator Ijaz Akhtar Khokhar was Matrix Sourcing CEO Azfar Hassan spoke highly of
and anticipated to reach $26.11 billion in 2021 with
cotton woven fabric has been the largest exported
thrilled to host the event, saying, “This is the 35th the opportunities the event provided, “There’s been
group until 2015 because cotton is the largest
a CAGR of 0.62 per cent from 2018, according to
World Fashion Convention, held first time in a lot of interaction with the brilliant minds that have
sustainable and biodegradable fiber produced to
the data provided by TexPro.
Pakistan… The feedback and their compliments come here from the IAF, from the member group,
fulfil textiles product demands.
were extremely positive. I was not expecting this,
Textile Industries, Gerber Technologies, Matrix quite happy with the event, saying it checked all the people are so happy. We set a benchmark for the and from the business community of Pakistan.
China, Pakistan, India and Italy were the key
Sourcing, and several others. Keynote speakers right boxes, “We wanted to show the delegates from future events. He added that the convention had There’s been a lot of exchange of cutting edge ideas
exporters of cotton woven fabric comprising 70.35%
Export of woven fabric in 2006 was 28.2% at $69
of the total export until 2018 followed by Turkey,
The 35th IAF World Fashion Convention was held in retailers, and manufacturers from the fashion included Advisor to the Prime Minister on outside Pakistan what Pakistan has to offer achieved all the objectives of presenting Pakistan’s and we’ve explored the whole process of digitisation,
billion in the total global textile export of $244 billion.
Hong Kong and Germany.
Lahore on 12th and 13th of November, 2019. It was industry. The IAF World Fashion Convention is a Commerce Abdul Razzak Dawood, Li & Fung COO nowadays. The other objective was to bring Pakistani soft image, provide networking opportunities for of transparency, and sustainability… The exchange
In 2015, out of the total textile export ($315 billion),

co-organised by the International Apparel Federation unique fashion industry event, bringing the topics Wilson Zhu, Federal Secretary of Commerce Sardar and foreign manufacturers together and I think we local businesses with foreign counterparts, of knowledge was very useful and I think a lot of
woven fabric was 25% (78 billion). Cotton woven
Mainly cotton woven fabric was imported by China,
(IAF) and PRGMEA (Pakistan Readymade Garment that matter and the speakers that count together Ahmad Nawaz Sukhera; Hugo Boss MD Joachim have succeeded.” He was also very happy with the technological information transfer to local people have ideas that they are scared of trying out.
fabric was 37.1% at $29 billion of total woven fabric
Indonesia, Hong Kong, US, Italy and Germany at
Manufacturers and Exporters Association). This was from both the supply and demand side of the Hensch, Chairman Interloop Musadaq Zulqarnain, decision to hold the convention in Pakistan this year, manufacturers, and raising awareness among local In the conference they hear about people who have
export. The trade of cotton fabric is decreasing
34.68% of total import followed by Mexico, Sri
the first time the international convention was held in fashion industry. Each country and city that hosts the Cotton Council International Supply Chain Marketing “In my experience the Pakistani people from the textile manufacturers about global trends and succeeded with those ideas by being courageous,
since 2013 universally with a considerable com-
Lanka and Turkey. Highest import growth rate was
Pakistan. The theme of the convention was “Building IAF convention showcases the local aspect of the Director William Bettendorf, Matrix Group CEO Azfar industry are very friendly and open minded. They demands. He said, “This was a good opportunity for brave and innovative.” He was satisfied that Pakistan
pound annual growth rate (CAGR). The woven
achieved by Mexico(3.06%) and Sri Lanka(27.03%)
Competitive Supply Chains Together.” multi-faceted apparel industry. This was especially Hasan, Gerber Technology EMEA Marketing Director have the same issues that we have in Western our entrepreneurs to listen and to follow the rules has been presented as a leading sourcing
fabric trade was $26.93 billion in 2016 that
in term of value from 2013-2018.
presented with a fashion show based on recycled Yvonne Heinen-Foudeh, Sal Khokhar – the former that are the demand of the world.” destination for international brands.
More than 180 delegates from 15 countries attended materials by students of fashion and textile EVP for Ralph Lauren, Adidas, and Calvin Klein. Europe, for instance… The hospitality was great.
the event that showcased activities including institutions at the scenic backdrop of the historic Wonderful venue. PRGMEA did a wonderful job of
exhibitions, seminars, conferences, and a fashion Lahore Fort. The feedback from foreign delegates was hosting us here. So, I go back with a lot of positive
show focused on sustainability and featured clothing increasingly positive, saying that the event had feelings about this country.”
made from recycled materials. The convention’s highlights included numerous B2B exceeded all expectations and had set a benchmark
meetings, panel discussions on industry issues, for future events, as it had been the most vibrant and Hugo Boss Managing Director Joachim Hensch said
President of Pakistan Dr Arif Alvi inaugurated the workshops and seminars on sustainability and most well organised event in the 35 years of the IAF MoU to be inked for Faisalabad Expo Centre
event, saying that the improved security situation of smoothening of supply flow from vendors to textile organising these events. Previous events had been
the country and the availability of a huge workforce makers to the end consumer, and the Global held in several cities of Europe as well as Istanbul, A Memorandum of Understanding (MoU) for the construction of a state-of-the-art Faisalabad Expo Centre
has made Pakistan a prime destination for investors Fashion Award, etc. Mumbai, Hong Kong, Rio de Janeiro, Porto, is expected to be inked soon, said Zafar Iqbal Sarwar, Senior Vice President FCCI.
and business concerns. He said the country had Shanghai and Maastricht.
tremendous growth potential and welcomed the Global Fashion Award He had a detailed meeting with Provincial Secretary Industries, Muhammad Zafar Iqbal (PAS) to discuss
international attendees to enjoy the city life of the Creative designs by students of fashion were Speaking to TEXtalks, IAF President Han Bekke was the related issues. The meeting was also attended by Bilal Waheed Sheikh Vice President FCCI, Rafia
country as well as the scenic landscapes of the showcased at a fashion show at the Lahore Fort Syed, Additional Secretary (Commerce), Zia-ul-Mustafa CEO Pakistan Expo Pvt Ltd Company, Amir
northern areas. He also invited them to explore the under the IAF Global Fashion Award. The top 10 Saleemi, CEO FIEDMC.
business opportunities that the country has to offer. contestants from renowned institutes of fashion
Dr Alvi added that Pakistan has always been one of design from across the country were selected to The meeting discussed various modes for the construction of Faisalabad Expo Centre and it was decided
the biggest clothing exporters in the world and display their designs at a festive fashion dinner and in principle that it would be completed on the model of Lahore and KPK expo centres.
foreign investors’ interest in the growing Pakistani their creations were displayed at the fort. The show
market is increasing in the wake of vast business was organised by the Walled City of Lahore Authority his experience had been very pleasant and he saw
and entrepreneurship opportunities. The president (WCLA). huge potential for investment and business in
also lauded the employment opportunities that the Pakistan. He said, “Visiting this conference was a
country’s apparel industry gave for women and Speakers very inspiring journey. I met a lot of very friendly and
special people. Every year, high quality speakers including industry very open minded people. I could sense the wish
leaders speak at the conventions. This year was no and the energy to actually rise, and move, and
Acknowledging that new technology is changing the different featuring speeches, presentations, and improve. I think there is a lot of potential here.”
industry, the convention brought together brands, workshops by the chiefs of the IAF, Hugo Boss
July/August 2020
November/December 2019