Apparel and Knitwear

Knitwear industry play vital role in value addition by Dr. Noor Ahmed Memon, Professor KASBIT.

Abstract suits, jerseys, sport shirts, children wear, Presently hosiery and knitwear industrial gloves, tracksuits, sweaters, socks etc. network comprised 3,500 large, medium The global industry is Knitting is the second most frequently and small units, 85% of which were small growing at a fast rate and numerous used method of fabric construction. The enterprises, 10% medium ventures and only technological innovations contribute to popularity of knitting has grown 5% large integrated factories. the success of the knitwear industry. tremendously in the recent years because About 12,000 circular knitting Today, knitwear is also synonymous with of the increased versatility of techniques, machines, 10,000 flat knitting and trendy, fashionable wear for casual, the adaptability of many new man-made 18,000 socks knitting machines spread all sportswear as well as smart casual work fibres and the growth in the consumer over the country and the capacity wear. Pakistan knitwear (hosiery) industry demand for wrinkle resistant, stretchable, is playing a vital role in value addition of utilization is approx. 70%. Out of total snug fitted garments, particularly in sector. In the export field, the production, 60% comprises jersey, greatly expanding areas of sportswear hosiery knitwear industry of Pakistan has , T-shirts, sweat shirts, polo and other casual wear-segments. managed to make a big name in many shirts, jogging suits, and track suits and countries of the world. This paper The use of knitwear (hosiery) has children outer wear. focused on the development of hosiery increased primarily due to its low price, as The incentives announced in the knitwear, because Pakistan's knitwear compared to cotton and blended shirts, Package in Budget 2014-15 by industry is almost entirely export- it’s convenient, and easy-to-wash nature. the government has produced good oriented. The paper also highlights the Inherent qualities like softness, coolness, results and some 992 new knitwear units problems and challenges that knitted- sweat-absorbent and durability have have been registered in the fiscal year textile industry is facing in terms of made knitted garments popular especially 2013-14. District wise break up of new manufacturing process and the reasons in developed countries. registered knitwear units said that there behind these problems. The share of this industry in the were some 369 units in Karachi, 180 in value-added in the manufacturing sector Lahore, 267 in Faisalabad and 176 in Introduction is obviously small although it earns far Sialkot. Textiles Package in Budget 2014- Pakistan's knitwear industry is almost more foreign exchange compared to per 15 carried four major incentives including totally export-oriented, however kilogram cotton, after being converted withdrawal of local taxes, easy finance, domestic use of garments such as vests into finished garments. long term financing facility and tariff on and underwear are common in all urban During the past four decades machinery imports. In the withdrawal of groups. The organised sector exports Pakistan's Knitwear industry has made local taxes category, local taxes and levies almost all its products, with the local tremendous progress, thereby making an were given to exporters of textile consumption standing at only around impressive monetary contribution. In products on FOB values of their 15%. Often these are brought into the 1949 there were hardly two or three enhanced exports on an incremental basis local market because they have either units, which were producing vests (basic if increased beyond 10% over previous been rejected quality controllers of the T-shirts/undergarments) and socks. The year’s exports. In easy finance category, firm, for which they are manufacturing production of socks was more than the mark up rate for export refinance scheme or, because orders have been cancelled or vests. Entire production was being of State Bank of Pakistan (SBP) was due to over-production. The products consumed locally in the Western part of reduced from 9.4% to 7.5% from July made in Pakistan include T-shirts, jogging Pakistan. 01, 2014.

35 PAKISTAN TEXTILE JOURNAL - January 2015 Apparel and Knitwear

In the long term financing facility (LTTF) clause, textile industry units in the Table 1:Import of Knitwear and value added sector were provided long Embroidery Machines term financing facility (LTFF) for up Quantity : Number gradation of technology from SBP at the Value : Rs. Million rate of 9% for 3-10 years duration. Tariff 2012-2013 2013-2014 on machinery imports category, duty free Machines import of textile machinery for the period Quantity Value Quantity Value Circular Knitting Machines (Dia of two years were allowed. 430 740.0 304 428.0 - 165 mm) Import of Knitting Machines Circular Knitting Machines (Dia 172 239.4 466 433.7 > 165 mm) The machinery used in the knitting Flat Knitting Machines (Stitch 213 196.8 433 203.7 sector, especially for circular and flat is Bonding) Multi-Head embroidery largely imported from Europe, Japan and 588 274.3 527 273.4 China. Major portion of the country's Machines Other Circular Knitting entire production of knitwear, valued at 2,421 3,397.4 2,820 3,727.8 nearly US$ 2.29 billion in 2013-14, is Machines exported. Due to low-investment Total 3,824 4,847.9 4,550 5,066.6 involvement this industry is very easy to Source: Pakistan Bureau of Statistics, Government of Pakistan. install, as some of the machines and parts are also manufactured locally. It is also decades. Previously, knitwear’s used to be creation of knit structures, knit design true that this industry is highly labour- processed manually, but now different simulations etc. intensive. This industry also does not technologies are available for producing Since knitwear exports are limited and create any pollution problem or health good quality products to compete seasonal, most exporters entered the local hazards. In fact it is one of the neatest internationally. Technological market to ensure continuity in production and cleanest industry by every advancements have brought automation as garments in knits were more suited to environmental and health standards. and Computer Aided designing and also a tropical climate with a year round Pakistan imported mainly automatic manufacturing. The use of modern demand. Where knitwear scores in the flat and circular knitting machines of consoles such as display panels on the export and local markets is in children's different brands. Import of various types machine, digital control systems, wear section. Cotton knitwear is the ideal of circular knitting, embroidery machines centralized lubrication systems, thread fabric for children worldwide because of in Pakistan decreased from Rs 4.85 billion break stop motions are few of the its comfort and easy styling. in 2012-13 to Rs 3.73 billion in 2013- common features available nowadays. 2014, thus showing decline of 23%. On This helps in better interaction between Exports the other hand import of flat knitting the man and machine along with the efficiency and quality improvement. Knitwear goods exported from machines increased from Rs 197 million in Pakistan are known for their fine quality Electronic design and preparation of 2012-13 to Rs 204 million in 2013-14, in European, American and UAE markets. pattern, pattern selection and striping are thus showing an increase of 4%. Import It is highly value-added item, earning also nowadays available. Further of knitting and embroidery machines in much valuable foreign exchange per kg reduction in the manual attention Pakistan is given in Table-1 cotton converted into finished garments. involved is possible due to the present Technology Development use of microprocessors. New features A series of new processes include additional desktop icons for easier have been incorporated with improved There have been many changes in the access to functions, direct screen access shades, texture and lustre. Some of the knitwear industry during the last few to the colour palette, and expanded bulk export items, which have gained patterning possibilities for transfer knits. popularity, are 100% cotton T-shirts, vests, slips, children's pajama suits, sports Table 2: Export of Knitwear During the last decade, the hosiery shirts, undergarments, bathing suits, Value industry also became dependent on CAD. Quantity knitted garments and knitted tabulator or Year (US $ Today, IT gives the designer various (000 Doz) flat fabrics. Million) options without actually wasting time, money and efforts towards expensive The main items of export in knitwear 2009-10 108,669 1,765 sampling. Value addition can now be from Pakistan are elegant men's T-shirts, fancy ladies T-shirts with exquisite 2010-11 197,144 2,306 achieved through innovative designs both embroidery and sequined work, night 2011-12 98,716 1,983 in the fabric and garment processes to meet consumer demands which make it shirts for ladies and men's pyjamas sets 2012-13 97,921 2,043 imperative for a garment supplier to and sportswear and jogging suit and 2013-14 116,389 2,294 invest in garment manufacturing tools. boxer sets. Techniques of designing, printing, embroidery and of the Source: Trade Development Authority of Design software for knits allows the Pakistan. fabric have become well developed.

36 Export of Knitwear (Hosiery) Knitwear exports suffered shortage of increased from US $1.76 billion in 2009- gas and electricity for the past few years. Table 3: Country-wise Export of 10 to US $2.29 billion in 2013-14, thus Resultant effect was decline in production Knitwear (Hosiery) showing an average increase of 17.5% and increase in cost of production (Value in $ 000) per annum. Export of knitwear is given in rendering Pakistani knitwear Table-2. uncompetitive in international markets. Country 2013-14 2012-13 In knitwear, the US market alone China, India, Sri Lanka, Vietnam, U.S. America 1,065,623 1,072,314 Bangladesh, Korea, Bangladesh, Jordan accounted for 46.5% of total knitwear United Kingdom 335,331 267,972 with exports of $1.07 billion in 2013-14. and Kenya are among major competitors About 32% of knitwear exports went to in the industry. Small units face more Germany 137,662 103,463 EU, while the share of rest of the world challenges, as they get no facilities with Netherlands 120,986 112,705 regards to electricity services and was only 21.5%. USA, UK, Germany, The Spain 117,205 73,810 Netherlands, Spain, Belgium, France, Italy financing. On the other hand high mark- Belgium 106,157 70,900 and Canada are the top nine trade up rate on bank credit would retard partners for Pakistan. industrial activity and textile exports from Finland 47,962 34,110 the country. Due to high inflation rate, Pakistan primarily exports robes made Italy 46,965 31,662 the cost of doing business would become of cotton that constitutes 70% of total prohibitive, and the country's goods Canada 44,996 44,568 quantity exported in the category. The would be rendered uncompetitive in U.A.E 43,590 41,650 remaining 30% exports of Pakistan are in international markets. robes made of synthetic material. Sweden 15,793 14,484 Country-wise export of knitwear is given The foreign buyers were turning Australia 12,454 12,037 towards our competitors and Pakistani in Table-3. Denmark 10,678 7,838 exporters were losing export earning on Problems one hand, while losing their credibility China 10,343 5,238 due to non-fulfilment of export Brazil 9,294 6,505 Hundreds of hosiery units are working commitment in international market. in unorganised sector, especially in the Russain Fedration 9,152 4,218 cities like Karachi and Faisalabad. The Conclusion Japan 9,038 6,464 unorganised sector is fulfilling Pakistan's Poland 8,345 3,748 local requirements, especially dealing in According to the study majority of the under garments that are made from the Pakistani knitwear units are producing All others 142,094 129,272 leftover of the export industry and all the knitted fabrics, knitwear and hosiery Total 2,293,668 2,042,958 fabrics by using the local raw material units in Lahore are 100% export-oriented. Source: Trade Development Authority of and old machinery and still the growth Pakistani units were also acting as Pakistan. rate is increasing every year. facility provider for foreign companies and brands and none of the Pakistani In this situation, if attention is given References: exporters have developed any brands, to this area a marked improvement in which is one of the major hurdles in the knitwear hosiery industry can be 1. Ahmed Yasin- Report on textile industry of Pakistan-Horizon growth of the industry. Branding is the expected. Other specifications about the Securities (SMC-PVT ) Ltd. only way to be recognised as exporters in fibre, yarn, count, and variation of knit the true sense. The small hosiery units are found to be similar in almost all 2. Pakistan Bureau of Statistics, would have no other way to survive industries. Electricity and gas problems Government of Pakistan are big issues in the hosiery knitwear except to become the sub-units of the 3. Pakistan Economic Survey- 2013-14, bigger units. industry. Ministry of Finance, Government of Pakistani exporters are not financially Pakistan’s knit wear and hosiery Pakistan. strong enough to invest a huge amount industry needs special attention and 4. Pakistan Knitwear & Sweater to store their products in big warehouses support of government and latest Exporters Association (PAKSEA) technology is greatly required for high and sell them after putting it on display in 5. Trade Development Authority of value addition. the shopping malls and shopping plazas. Pakistan. 

37 PAKISTAN TEXTILE JOURNAL - January 2015