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Industria Textila 6 2018 SWOT analysis of Pakistan’s textile and clothing industry SEHER KANAT DOI: 10.35530/IT.069.06.1488 SADAF AFTAB ABBASI MAZHAR HUSSAIN PEERZADA TURAN ATILGAN REZUMAT – ABSTRACT Analiza SWOT a industriei textile și de îmbrăcăminte din Pakistan Industria textilă și de îmbrăcăminte din Pakistan este unul dintre jucătorii importanți ai comerțului global de textile și îmbrăcăminte, fiind, de asemenea, o piatră de temelie pentru economia națională. Deși industria textilă și de îmbrăcăminte din Pakistan posedă resurse abundente de materii prime (bumbac) și de forță de muncă ieftină și abundentă, aceasta s-a confruntat cu multe probleme în ultimii ani. În acest moment, analiza SWOT este una dintre metodele care pot fi utilizate pentru analiza situației curente. Acest studio urmărește să prezinte situația actuală a industriei textile și de îmbrăcăminte din Pakistan prin analiza SWOT. Astfel, poate fi completat un decalaj în care studiile academice sunt inadecvate. În plus, studiul contribuie la dezvoltarea strategiei companiilor pakistaneze de textile și îmbrăcăminte și a oficialilor guvernamentali. În conformitate cu scopul cercetării, au fost determinate în primul rând punctele forte și dezavantajele industriei textile și de îmbrăcăminte din Pakistan. Ulterior, au fost analizate oportunitățile și amenințările comerțului național și internațional cu produse textile și de îmbrăcăminte. În cele din urmă, datele obținute au fost analizate și evaluate și au fost elaborate sugestii pentru viitorul industriei. Cuvinte-cheie: industria textilă și de îmbrăcăminte din Pakistan, analiza SWOT, competitivitate, comerțul cu produse textile și îmbrăcăminte SWOT analysis of Pakistan’s textile and clothing industry Pakistan’s textile and clothing industry is one of the significant players of global textile and clothing trade as well as being a corner stone for its national economy. Although Pakistan’s textile and clothing industry possesses abundant raw material resources (cotton) and cheap and abundant labour, it has confronted with many issues in recent years. At this point, SWOT analysis is one of the methods which can be used for the analysis of current situation. This research aims to reveal the present situation of Pakistan’s textile and clothing industry with SWOT analysis. Thus, a gap can be filled in which academic studies are inadequate. Besides, the study contributes to the strategy development of Pakistan’s textile and clothing companies and government executives. In accordance with the aim of the research, the strengths and weakness of Pakistan’s textile and clothing industry are determined primarily. Afterwards, opportunities and threats, which can be faced within national and international textile and clothing trade are analyzed. Finally, the obtained data are analyzed and evaluated and suggestions are made for the future of the industry. Keywords: Pakistan’s textile and clothing industry, SWOT analysis, competitiveness, textile and clothing trade INTRODUCTION earnings. Textile industry is the single largest deter- Asian countries have recently become the rising stars minant for the economic growth of the country due to its share in the economy as well as its contribution to of global textile and clothing trade. Pakistan, which is exports, employment, foreign exchange earnings, one of these countries, is a leading global textile investment and revenue generation [1]. Textile and exporter. Pakistan textile and clothing industry, which clothing industry approximately constitutes 62% of is a locomotive of Pakistan economy, attracts atten- Pakistan’s exports by 2016 (table 1). tion with increasing export ratios. However, the aca- Pakistan’s textile industry provides approximately demic studies within the literature, which analyze and %40 of industrial labour force, 40% of manufacturing scrutinize Pakistan’s textile and clothing industry, sector’s banking credits, 8% of gross domestic prod- which is one of the significant actors of global textile uct. According to the International Cotton Advisory and clothing trade, in all aspects, are inadequate and Committee, Pakistan is the fourth largest cotton pro- lack of current information. Therefore, a current situ- ducer and third largest cotton consumer in the world. ation evaluation study, which can analyze the current In addition, Pakistan is the world’s second largest situation of Pakistan textile and clothing industry and cotton yarn exporter and third largest cotton cloth which can be helpful for developing future strategies, manufacturer and exporter [3]. is needed. In this context, primarily, current situation Easily available cheap labour and basic raw material of Pakistan’s textile and clothing industry is analyzed (cotton) has played a primary role in the growth of in detail. Pakistan’s textile industry. Pakistan’s textile industry, As known, textile is the basic industry of Pakistan. It which is the leading sector of industrial manufactur- is accorded as the backbone of Pakistan’s economy ing, is based on abundant supply of indigenous cot- as it is the remarkable source of Pakistan’s export ton. In other words, it depends on cotton agriculture. industria textila˘ 502 2018, vol. 69, nr. 6 Table 1 SHARE OF TEXTILE AND CLOTHING INDUSTRY IN PAKISTAN’S GLOBAL TRADE (MILLION US DOLLAR) [2] 2011 2012 2013 2014 2015 2016 Pakistan’s total exports 25,383 24,567 25,121 24,706 22,188 20,435 Pakistan’s textile and clothing exports 13,632 12,919 13,890 14,068 13,255 12,783 Share of textile and clothing in exports (%) 53.71 52.59 55.29 56.94 59.74 62.55 Pakistan’s total imports 44,012 44,105 44,647 47,434 44,219 47,155 Pakistan’s textile and clothing imports 1,332 1,148 1,313 1,631 1,724 1,821 Share of textile and clothing in imports (%) 3.03 2.60 2.94 3.44 3.90 3.86 Therefore, whatever affects the cotton crop is likely to In spite of these disadvantages, Pakistan’s share in affect the performance of the textile industry [4]. global textile exports is %2,7 by 2016 and it is the- Today, Pakistan has an integrated textile industry seventh biggest textile exporter of the world [8]. which comprises cotton spinning, cotton weaving, Textile and clothing export and import figures of cotton fabric, fabric processing, home textiles, tow- Pakistan and its shares within world textile trade are els, hosiery, knitwear and clothing. These are manu- shown in table 2. factured both on large scale units and small and Textile and clothing exports of Pakistan according to medium cottage units [5]. The major concentration of product segments are shown in table 3 whereas the the industry is in the Karachi, Hyderabad, Multan, imports figures according to product segments are Lahore, Gujranwala and Faisalabad [1]. shown in table 4. As it can be seen, Pakistan mostly Since 2000, Government of Pakistan has been exports cotton (fibre, yarn and fabric), other made-up emphasizing the value added production in textile textile articles, knitted apparel and clothing acces- industry. For this purpose, comprehensive Textile sories and woven apparel and clothing accessories. Vision-2000 policy was formulated in order to bring The biggest shares within cotton belong to cotton innovations, implement market driven strategies and yarn other than sewing thread (containing >= 85% encounter the challenges of World Trade Organization. cotton by weight) and woven fabrics of cotton (con- However, the progress of value added production in taining >= 85% cotton by weight and weighing > 200 weaving and spinning has not been satisfactory [6]. g/m²), whereas lion’s share within other made-up tex- In the mid of 2000s, Pakistan’s textile production has tile articles belongs to bed linen, table linen, toilet seen a sharp increase in investment, which coupled linen and kitchen linen of all types of textile materials. with Pakistan’s pool of inexpensive labour. It has If the imported textile and clothing items of Pakistan attracted global brands, particularly in the manufac- are analyzed, it can be seen that Pakistan mostly ture of sportswear. Nevertheless, the industry’s perfor- imports cotton (fibre, yarn and fabric), man-made fil- mance has been undermined recently by increased aments (fibre, yarn and fabric) and man-made staple international competition, particularly after the phase- fibres (fibre, yarn and fabric). The lion’s share within out of the Multifibre Agreement in December 2004. In cotton belongs to neither carded nor combed cotton, addition, numerous infrastructure bottlenecks, partic- whereas the biggest shares within man-made fila- ularly in the energy sector, crippled textiles produc- ments and staples belong to synthetic filament yarn tion and squeezed the profit margins of textile and (including synthetic monofilaments of < 67 decitex) clothing producers [7]. and artificial staple fibres (not carded or combed). Table 2 2011 2012 2013 2014 2015 2016 World textile export 293,844 283,430 303,503 313,621 290,519 284,064 Pakistan’s textile export 9,082 8,705 9,341 9,077 8,232 7,680 Pakistan’s share in world textile export 3.09 3.07 3.08 2.89 2.83 2.70 World textile import 311,299 301,950 324,505 335,258 308,108 303,934 Pakistan’s textile import 1,245 1,077 1,245 1,545 1,621 1,716 Pakistan’s share in world textile import 0.40 0.36 0.38 0.46 0.52 0.56 World clothing export 418,523 421,554 462,005 490,168 453,894 444,444 Pakistan’s clothing export 4,550 4,214 4,549 4,991 5,023 5,103 Pakistan’s share in world clothing export 1.09 1.00 0.98 1.02 1.11 1.14 World clothing import 438,190 457,034 502,610 525,977 498,525 468,793 Pakistan’s clothing import 87 71 68 86 103 105 Pakistan’s share in world clothing import 0.02 0.02 0.01 0.02 0.02 0.02 industria textila˘ 503 2018, vol.
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