An Overview of the Textile and Fabrics Industry in Pakistan by Dr

An overview of the textile and fabrics industry in Pakistan by Dr. Noor Ahmed Memon, Professor KASBIT.

Innovations resulting from technological Table 1: Category-Wise Production of Cloth (Mill - Sector) advancements represent an ideal strat- (Million sq meters) egy for success in the increasingly com- petitive textile industry. Although the Dyed & Year Blended Grey Bleached Total share of the fabric production is signifi- Printed cantly large, yet the value added finish- 2009-10 59 566 86 298 1,009 ing to fabrics and textiles offer higher 2010-11 61 573 87 299 1,020 rate of return in the current market sce- 2011-12 60 568 87 308 1,023 nario. The concept of eco-friendly prod- 2012-13 60 571 88 310 1,029 ucts and processess have received 2013-14 58 531 86 461 1,136 significant attention worldwide in terms Source: (i) All Pakistan Textile Mills Association. of textile processing and finishing meth- (ii) State Bank of Pakistan Annual Reports. ods. The legislation and public enforcement in developed countries is another meters in 2009-10 to 1,036 million eco-friendly products has been imperative important aspect, when it comes to mar- square meters in 2013-14, thus showing for those products which directly come keting. These compliance issues and an average increase of 0.54% per into contact with the skin for prolonged enforcement have also contributed to annum. Out of total production of cloth period. the growth and development of conven- during 2013-14 in mill sector, 51% The global textile chemicals market tional fabrics and textiles processing in produced in grey form, 35% dyed and accounted for more than 30% of the developing countries, where low-wage printed, and 14% blended and bleached. global market volume in 2013, out of work force and reduced environment Production of cloth (mill-sector) is given which home furnishing was the largest controls are somewhat prevalent. in Table-1. application segment of the global textile Import of dyes and pigments chemicals market in 2013, due to rising Production of cloth demand from the residential construction Textile chemicals are generally defined industry. The textile sector of Pakistan plays a as compounds, intermediates and Finishing agents and chemicals is central role in the economy of the chemicals used in processing and expected to be the fastest growing country. Increase in the cotton production manufacturing of textiles. Textile segment of the global textile chemicals and expansion of textile industry has chemicals improve and optimize the market in the next few years. Increasing been impressive since its inception in manufacturing process endowing the demand for these types of textile 1947. At present independent processing final products with a specific function or a chemicals can be ascribed to the demand units are working in and around particular desirable appearance. for better-finished fabrics. Additionally, Faisalabad, Gujranwala and Karachi with According to a market research apparel segment is estimated to be the complete finishing facilities. These report, Asia Pacific represents the world’s fastest growing application segment of integrated units have complete finishing largest as well as fastest growing region the global textile chemicals market in the facilities i.e. bleaching, mercerizing, in textile printing. Asia Pacific accounts next few years. Increasing demand for dyeing, calendaring and printing. These for more than half of the world’s textile apparels in developing regions is likely to units procure the cloth from the power printing production with China and India, drive the demand for textile chemicals in loom sector and after processing, the the two most populous countries in the the apparels application segment in the fabrics are marketed under own brand world. The rapid growth of organic next few years. names or sold to apparel manufacturers. textiles sales may be due partly to the Asia Pacific dominated the Global The weaving and made-up sectors introduction of organic lines by popular Textile Chemicals Market, accounting for have three different subsectors in retailers such as Target, Ralph Lauren more than 50% of the total market weaving viz. integrated, independent Home and Bed Bath & Beyond. volume in 2013. Rising demand for textile weaving units and power loom sector. Therefore, by responding to consumer chemicals in apparels and industrial Cloth is being produced in both mill and demand for organic goods, these players textiles segments is likely to drive the non-mill sectors. The fabric range from have helped increase awareness and textile chemicals market in Asia Pacific in coarse to super fine varieties. There are a distribution of these products to the the next six years. Furthermore, factors large number of vertically integrated market. In this context, apparel such as steady economic recovery in the units, where production is controlled from represents the largest fabric usage U.S. and Europe and higher demand for fibre to the end products, and marketed segment, as nowadays end consumers textile chemicals are also anticipated to directly through inhouse merchandizing are more concerned about the green boost the global textile chemicals market departments or through buying houses. manufacturing and choose products that in near future. The production of cloth (mill sector) are non-toxic and cause no harm to Many chemicals used in the textile increased from 1,009 million square humans and environment. This trend for industry cause environmental and health

50 PAKISTAN TEXTILE JOURNAL - April 2015 Table 2: Import of Dyes and Pigments in Pakistan Quantity:(Tonnes) Value: (Rs. Million) Table 3 shows import of organic and 2013-14 2012-13 non-organic chemicals in Pakistan. It is Dyes / Pigments important to note that pigment-based Quantity Value Quantity Value inks do not need to go through a fixation Disperse Dyes 2,184 249 4,550 1,193 process using steam to ensure that the Acid Dyes Premetalise 2,919 1,658 2,461 986 ink adheres to the fabric. This makes Basic Dyes 1,538 689 1,334 480 pigment-based printing more economical Direct Dyes 1,385 310 1,117 223 in terms of running costs. Moreover, textiles, which have been colored with Vat Dyes indigo blue 3,581 2,294 3,522 2,090 pigment-based inks have higher levels of Other vat Dyes 511 930 447 671 weather fastness and light fastness, than Reactive Colors 1,618 894 1,230 5,169 those colored with dye-based inks. Pigments Prep 3,162 2,379 2,850 2,192 Import of finishing machinery Dyes Sulphur 4,966 952 4,182 783 Other Dyes synthetic 318 180 354 181 Textile policy 2014-19 allows various Total 22,182 10,535 22,047 13,968 incentives including concessional Source: Pakistan Bureau of Statistics, Government of Pakistan. financing to encourage capital investment in value added textile sector. The problems. Some of these problems occur EU and several other developed government of Pakistan has also nations have formed laws restraining during the production process, with withdrawn customs duty and sales tax on exposure to these harmful amines, which respect to emissions or occupational import of textile plant and machinery by health problems. Whereas, other means that Azo dyes emitting aromatic the manufacturing industries. Over the problems caused by these chemicals amines cannot be used for dyeing textile last ten years textile sector has invested appear due to their presence in the final and leather goods that get into direct more than USD 7.5 billion in product. However, worldwide contact with skin. modernization and higher value addition. environmental problems associated with During the past few the textile industry are typically those decades the awareness Table 3: Import of Chemicals in Pakistan associated with the water pollution regarding environmental (USD Million) caused by the discharge of untreated problems has increased effluents and those because of use of considerably and has become Organic Inorganic toxic chemicals especially during an important issue in the Year Total processing. Last, but not the least, these textile trade due to various chemicals chemicals chemicals can also cause harm to the environmental and health 2009-10 1,603 341 1,944 consumer if retained on the fabrics. legislations. In this context, Import of organic and non- 2010-11 1,966 457 2,423 Import of dyes and pigments in organic chemicals in Pakistan Pakistan decreased from Rs 10.53 billion 2011-12 2,207 503 2,710 increased from USD1.94 in 2012-13 to Rs 13.47 billion in 2013- billion in 2009-10 to USD 2012-13 2,128 523 2,651 14, thus showing decline of 25%. 2.66 billion in 2013-14, thus Statistics regarding the import of dyes 2013-14 2,271 391 2,662 showing an average increase and pigments in Pakistan are shown in of 7% per annum. Source: State Bank of Pakistan-Annual Reports. Table 2.

51 Dyeing, Printing and Finishing

Import of textile dyeing, drying, Table 4: Import of Textile Finishing Machines bleaching and finishing machines Quantity: Numbers increased from 782 number valued Rs Value: Rs. in Million 1.34 billion in 2012-13 to 791 numbers 2013-2014 2012-2013 Machines valued Rs 1.82 billion in 2013-14, thus Quantity Value Quantity Value showing an increase of 36% in terms of Drying Machines 346 318 318 221 value. However, due to withdrawal of Bleaching Machines 2 73 38 226 custom duties and taxes, with an Dyeing Machines 369 1192 327 780 introduction of concessional financing and LTFF on the import of textile Coating or Laminating Machines 63 156 75 30 machinery in New Textile Policy 2014-19, Dressing Finishing Machines 11 84 24 83 the new investment in the textile sector Total 791 1,823 782 1,340 has started coming in. Import of textile Source: Pakistan Bureau of Statistics, Government of Pakistan. printing and finishing machinery into Pakistan is given in Table 4. Table 5: Category-Wise Production of Fabrics Table 5 and Table 6 respectively show (Quantity: 000 sq meters) category-wise production and export of cotton fabrics from Pakistan. Dyed & The textile industry of Pakistan is Year Blended Grey Bleached Total Printed likely to contribute up to USD 13.8 billion 2001-01 67,474 277,931 19,939 124,820 490,164 to the national exchequer after approval of the trade package from the European 2001-02 77,039 317,247 18,281 155,869 568,436 Union. On the other hand Pakistan 2002-03 92,612 295,791 32,227 161,51 582,145 offered the lowest unit price for its textile 2003-04 101,687 332,361 43,841 205,503 683,392 and clothing products even lesser than 2004-05 51,453 498,095 82,381 292,743 924,672 Bangladesh, India, and China in 2005-06 52,273 504,899 78,354 279,730 915,256 international markets. 2006-07 61,100 582,819 71,681 297,318 1,012,918 Sources:

2007-08 54,737 561,695 73,311 326,647 1,016,390 1. All Pakistan Textile Mills Association. 2008-09 56,093 553,551 78,201 331,838 1,019,683 2. Finishing (textiles) - Wikipedia, the free Encyclopedia. 2009-10 59,441 566,020 86,127 297,999 1,009,587 3. State Bank of Pakistan-Annual Report 2010-11 60,671 572,575 87,292 309,134 1,029,672 2013-14. 2011-12 59,830 568,585 86,805 309,060 1,024,280 4. Trade Development Authority of Pakistan. Source: Textile Commissioners Organization. 5. Pakistan Bureau of Statistics, Government of Pakistan.

Table 6: Export of Cotton Fabrics from Pakistan Quantity Unit Value Value Year (000 Sq. (USD/ Sq. (000 USD) Mtrs.) Mtr) 2006-07 2,211,843 2,026,547 0.92

2007-08 1,920,268 2,010,611 099

2008-09 1,898,540 1,955,289 1.02

2009-10 1,787,659 1,800,055 1.01

2010-11 2,337,804 2,623,195 1.12

2011-12 1,971757 2,442,743 1.24

Source: Trade Development Authority of Pakistan.

52 PAKISTAN TEXTILE JOURNAL - April 2015