Page 74 - TEXtalks. November-December 2022

74 75
Pakistan and the

current global textile

scenario

The textile and clothing sector is under stress the markets are very small. The Chinese and Indian
world over as the major consuming countries are textile industries also suffer but their inhalation is
grappling with high inflation. The Pakistani textile checked by its large domestic markets.
sector is facing the additional pressures of political
instability and higher input costs. Textile production is mainly confined to Asia.
European, the United States, Australia, Canada, and
It has now been established that the majority of New Zealand are mainly consumers. Their textile
consumers the world over have been forced to production is limited to high-end products. The
reduce buying new clothing to spare their resources increase in energy costs has badly impacted
for other pressing needs. The vulnerability of different whatever production was left behind in these
textile exporting countries to global recession varies countries. But it is the high inflation in these regions
depending upon various factors. It includes the that have reduced the uptake of clothing and textiles during the same month in 2021. The decline in Europe, on the other hand, is under high pressure
availability of a complete value supply chain in the in these countries. This is impacting all textile and exports started in September when textiles and from currency rates and a growing energy crisis,
country. China is almost self-reliant in this regard. clothing exporters concentrated in Asia. clothing exports registered a decline of by31.9 which are likely to result in modest sales growth for
India produces over 80 percent of its supply chain percent in September according to figures released the luxury sector (projected to grow between
input internally. Bangladesh and Vietnam produce at In India, the exports are declining for the last five by Vietnamese Customs. There is panic among 3 and 8 percent).
least accessories like buttons, monograms, or zips in months. In November the decline was over 15 Indonesian clothing workers as the layoffs are
their country. Their reliance on inputs from outside is percent over the exports executed during the same increasing every day. More than 64000 workers have The report titled ‘Holding onto growth as global
60-70 percent. Pakistan is almost fully reliant on month last year (nearly the same as ours). According been shown the door in the past two months. clouds gather’, further predicts that, excluding the
supply chain inputs from China. This worked to the Indian Ministry of Commerce and Industry, the Chairman of the West Java Province Textile Product Fashion sector excluding the luxury sector, will
smoothly for years but the frequent lockdowns in fall in textiles and clothing exports from India started Entrepreneurs Association (PPTPJB) Yan Mei in a struggle to deliver significant growth in 2023. China
China have disrupted the regular supplies of inputs in July this year when exports declined by 17.4 virtual press conference revealed that, there have and the United States are expected to fare better,
that have added more pressure on our textile sector. percent, in August the fall reached19.5 percent, then been reports from 14 regencies and cities in West growing between 2 and 7 percent and between 1 and
to 28.5 percent in September, 35.4 percent in Java regarding termination of employment or layoffs 6 percent, respectively. These forecasts are reflective
The countries that depend more on their textiles and October and 15.6 percent in November. In from a number of textile companies. of inflation and are calculated in local currencies,
exporting exports include Bangladesh which exports comparison, Pakistan’s textile exports posted a meaning that the real impact for the sector could be
more negative than these figures suggest.
80 percent of the textiles they produce. Pakistan decline of 5.1 percent during the same 5 months. The fate of all textile exporting countries depends
exports almost 70 percent of its textile production. Going forward Indians are expected to recover in upon the share these economies can grab in the There are few textile economies that produce and
These two countries and to some extent Cambodia 2023 but Pakistani textile exports will remain under developed. The State of Fashion 2023 a research export high-end fashion garments. Vietnam,
are highly dependent on exports for the survival of stress. Bangladesh is a rare example that has report by Mckinsey & Company states it anticipates Bangladesh and China, and to some extent India
their textile sector. India and China have a robust weathered the current turmoil in the textile sector that the luxury sector will outperform the rest of the among the Asian economies make high-end
textile sector that is more dependent on domestic more prudently. Its exports are still on a growth industry, as wealthy shoppers continue to travel and garments. They might balance the decline in
consumption than exports. India for instance exports trajectory though at a slower pace. Still, there are spend, and thus remain more insulated from the low-cost garments exports with costly high-end
25 percent of the textile products it produces while 75 reports of retrenchments in garment factories whose effects of hyperinflation. Based on McKinsey’s fashion garments. But for Pakistan which is mainly
percent are consumed domestically. China disposes orders dried from overseas buyers. analysis of fashion forecasts, the luxury sector is into low-cost garment exports, it will be difficult to
of 65 percent of its textile products in its own expected to grow between 5 and 10 percent in 2023, stop the value decline in textile exports. The basic
domestic markets. In case of a high global recession Vietnam with textiles and garments exports of $2.8 driven by strong momentum in China (projected to textile sector is more vulnerable due to high energy
and a sharp decline in exports the textile industries of billion in the month of November 2022 posted a grow between 9 and 14 percent) and in the United costs the orders from overseas would continue to
Bangladesh and Pakistan crumble as their domestic decline of 8 percent compared with exports achieved States (projected to grow between 5 and 10 percent). decline more.
November/December 2022 November/December 2022