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Dr. Noor Ahmed Memon, Dadabhoy Institute of Higher Education

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Dr. Noor Ahmed Memon, Dadabhoy Institute of Higher Education Weaving Cotton weaving industry: Constant decline of average unit price in international markets by Prof. Dr. Noor Ahmed Memon, Dadabhoy Institute of Higher Education. Competition is on the rise in the global Table 1: Import of Weaving Machines apparel and textile markets. Countries like Quantity: Numbers Vietnam, Cambodia and Sri Lanka are Value: Rs. Million vying to get a bigger share of the global textile pie. The stakes are even higher for 2017-18 2016-17 Machines Pakistan especially in light of the China Pak Quantity Value Quantity Value Economic Corridor (CPEC). Weaving Machines (Shuttleless) 3,026 7,203 3,451 10,935 The export of cotton fabrics from Pakistan decreased from US$ 2.77 billion in Weaving Machines (WD >30CM) 40 16 173 41 2013-14 to US$ 2.20 billion in 2017-18, Power Looms Weaving (Esceed 30CM) 13 20 4 3 due to decline average unit price in the Other Weaving Machines (Looms) 402 941 771 1,249 international markets from US$ 1.25 per Total 3,481 8,180 4,399 12,228 sq. metre in 2014-15 to US$ 0.98 per sq. metre in 2017-18, thus showing a decline Source: Pakistan Bureau of Statistics of 20%. At present, the industry consists of a set up either as independent units or The textile industry is the major large scale organised sector as well as together with spinning or processing industrial sector which plays an important highly fragmented cottage/small scale units. Some of the clothing units are in role in the economic growth of the sector. The organised sector is essentially process of backward integration while on country. It continues to be the largest the integrated textile mills large number the other hand, spinning units are in the industry of Pakistan based on the local raw of spinning units and a very small number process of developing weaving, finishing material and commands the strongest of shuttles looms units. The downstream and making up facilities to complete the comparative advantages in the resources industry, which involves weaving, chain. However, both textile and clothing utilisation. It is a labour-intensive industry finishing, garment, towels and hosiery, sectors are complementing each other and offers entry-level jobs for unskilled which has a great export potential, exists and are horizontally or vertically labour, especially in the clothing sector in the unorganized sector. Some units integrated either under same which has been particularly suitable for have well grown to the international management. female workers who had limited income scale. The pattern of cloth production is opportunities. Pakistan offers various kinds of fabrics different from the spinning sector and The industry has expanded significantly which include the famous grey fabric as there are three different sub-sectors in since the country’s independence in 1947, well. Cotton grey fabric is an important weaving industry: Integrated, and has developed into one of the intermediate product that is used to make Independent Weaving Units and Power strongest export based industrial sub- many different types of textiles. The Loom Units. The investment in the sectors. Since the raw cotton production spinning sector has grown with export shuttle-less looms, both in integrated and has potential to increase therefore, there is demand and cotton production. The independent weaving sector has great potential for horizontal and vertical weaving and processing sectors have increased gradually and this trend is likely expansion in the domestic production of followed. Air-Jet weaving units have been to continue. textile and textile goods. 26 PAKISTAN TEXTILE JOURNAL - June 2019 Weaving The weaving sector is comprised of Table 3: Exports of Cotton Fabrics two types of setups. One is the organised mill sector and the other is the Quantity Value Unit Price Year unorganised non-mill sector. Major (Million Sq. Mtr) (US$ Million) ($/ Sq. Mtr) known power loom clusters are in Faisalabad, Gujranwala, Gujrat, Multan, 2013-14 2,520 2,770 1.10 Karachi, Kasur and Jhang. However, 2014-15 1,963 2,453 1.25 Faisalabad is the biggest cluster in Pakistan. There are a substantial number 2015-16 2,106 2,214 1.05 of small units in this sector, which have 2016-17 2,049 2,136 1.04 50 to 100 looms in single premises as one 2017-18 2,250 2,204 0.98 unit. The organized sector seemingly made a shift towards cotton spinning Source: Trade Development Authority of Pakistan rather than make efforts to develop and in the unorganized sector. The weaving increase in area under cultivation in the modernize the weaving sector. capacity of the mill sector has shrunk cotton belt of Punjab. Furthermore, the The textile industry of Pakistan has from 26,000 in 1978-79 to only 9,000 in farmers’ confidence grew as the domestic time and again proven its strength in the 2017-18, the working looms were market remained substantially shielded global markets. Weaving companies are reported to be only 6,000. Thus, the from cotton imports. In case of Sindh, adapting to the new standards and norms organised sector seemingly made an all- cotton production also rose due to of the emerging global market by out shift towards cotton spinning and productivity gains of 9.2% in FY18, applying high-quality standards and latest almost completely gave up efforts to despite reduction in cultivable area due to machines. The weaving sector is one of develop and modernise the weaving water shortages in early sowing period, the most important textile sub-sectors in sector; the exception in this context is the especially in lower part of the province. Pakistan. The world demand for textiles is denim weaving sector which had shown The high yield owed to better awareness rising, due to which there is a greater exponential growth. and application of pesticides. opportunity for a rise in exports from Pakistan is now the 4th largest cotton Import of machinery Pakistan. grower in the world behind China, USA The power loom sector is producing and India. The local availability of basic Pakistan textile industry comprises of comparatively low value added grey cloth raw material is considered to be an added 517 textile units (40 composite units and advantage for the success 477 spinning units). There are 28,500 Table 2: Production of Weaving Cloth of any export led industry, shuttles looms and 375,000 conventional (Million Sq. Mtrs.) being a key factor in looms. At present Pakistan's textile sector reducing the cost of doing has made considerable advances in Mill - Non - production capacity and capability during Year Total business. It is encouraging Setor Mill Setor that Pakistan ranks as the last few years. A remarkable progress of 2013-14 1,36 8,089 9,125 3rd largest yarn spinner. the power looms sector was seen and setting up of shuttle-less machines has 2014-15 1,037 8,090 9,127 Cotton production resulted in high growth in fabric increased to 11.9 million 2015-16 1,039 8,120 9,159 production and later on processing. At bales in FY18 compared to 2016-17 1,043 8,126 9,170 present, the shuttle-less weaving sector is 10.7 million bales last year. 2017-18 1,044 8,127 9,171 believed to be the largest consumer of This improvement was Source: Textile Commissioner Organisation, cotton yarn in Pakistan. largely attributed to an Government of Pakistan 27 Weaving Import of textile weaving machines square metres worth Table 3: Country-wise Export of into Pakistan decreased from Rs 12.23 US$ 2.77 billion in billion in 2016-17 to Rs8.18 billion in 2013-14 to 2.25 billion Cotton Fabrics 2017-18, thus showing decline of 33%. square metres worth Value: (US $ 000) The imports of textile weaving machines the US $ 2.20 billion in Country 2017-18 2016-17 2015-16 into Pakistan are given in Table 1. 2017-18, due to Bangladesh 479,254 442,598 488,390 Production of cloth decline average unit price in the China 122,449 116,794 154,364 The total production of cloth (Mill international markets Italy 163,869 152,468 152,209 and Non-mill sectors) increased from 9.12 from US$ 1.25 in Turkey 182,608 91,700 102,601 billion square meters in 2013-14 to 91.17 2014-15 to US$ 0.98 billion square meters in 2017-18. per sq. metre in 2017- Germany 98,956 96,356 99,781 However non-mill loom sector accounts 18, thus showing a USA 90,042 90,537 82,572 more than 89% of the total fabric decline of 22% in Sri Lanka 79,169 76,125 78,353 production. As a result, the non-mill terms of value. The sector weaving capacity continues to export of cotton fabrics U.K 56,130 69,621 62,217 occupy the predominant position. The from Pakistan are given Spain 85,955 86,932 78,368 growth of shuttleless weaving machines in Table 3. Belgium 58,936 61,022 55,572 capacity in this sector has resulted in high Major markets for Netherland 69,860 60,958 62,273 growth in fabric production. The shuttle Pakistan's cotton less weaving is believed to be the largest fabrics are Bangladesh, Egypt 49,835 50,772 64,505 consumer of cotton yarn in Pakistan. The China, Italy, Turkey, Portugal 86,869 74,476 72,610 non-mill weaving sector, although quite Germany, USA, and the Korea Republic 35,283 37,230 43,258 large, contributes to the exports by way Sri Lanka. The country- South Africa 41,021 45,696 37,567 of the production of low-quality sheeting wise exports of cotton fabrics.
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