In the textile industry of Pakistan, the domestic commerce has exceeded the sector’s export figures, says so the given figure of APTMA.
Currently, in the local market, the textile sales stand at the amount of 13.7 billion dollars out of the net local and foreign sales of 26 billion dollars, revealed APTMA. For the year 2016-17, the textile exports stood at 12.3 billion dollars. According to APTMA the share of textile industry, in the local market, was below the potential as it constitutes only about 32% of the overall textile items bought by the customers. Informal or smuggled-24%- and that of imported goods- 44%- make up the rest of the textile products sold in Pakistan. The sector is underperforming both in domestic as well as in export markets because of several structural and external challenges.
The officials from APTMA said that; “Pakistan’s global market share had declined from 2.2% to 1.7%, a fall of 23% over the past few years. Regional competitors including India, Bangladesh, and Vietnam have, however, managed to increase their exports to $36.4 billion, $31 billion and $31.5 billion respectively by 2016 from $27.7 billion, $19 billion and $15.2 billion in 2010.”
Likewise, their share in global textile exports has increased proportionately to 4.9%, 4.2%, and 4.2% respectively. Apart from the said the textile sector is facing a number of other issues as well, said the APTMA representative. “The industry has lost 15% of the technological edge it had over its competitors,” said an APTMA member.
The textile sector saw an investment of $1 billion in machinery in 2005-06. Annual investments since then have come down with a mere $560 million invested in 2016-17, down 44% from 2005-06. India and Bangladesh, on the other hand, added 25 million and 4.29 million spindles respectively to their textile sector infrastructure between 2005 and 2015 along with 78,600 and 42,900 shuttles-less looms.
It is also said that the textile industry of Pakistan is also facing sustainability challenged because of the non-tariff barriers including compliance-related barriers to entry into major markets. Also, there are a number of globally taken measures that are restricting the entry of Pakistan good in different markets. Some of the said was; United Nations’ Sustainable Development Goals, modifications in World Trade Organisation rules on labor standards and compliance with 27 UN conventions for the EU’s GSP Plus status.
However, the representatives of APTMA are still optimistic about the abilities of export of the country and said that there is an estimate addition to the export capacity to about $3.9 billion subject to an enabling environment.
Source: Express Tribune
