The extent of value addition can be assessed by analyzing the split of processed and unprocessed fabrics. It was hoped that investment in the mill sector would enable it to have economies of scale and focus on quality uppermost. Nevertheless, this did not take place. Over 50 percent of the total fabric production is of greige fabric. This is unprocessed gray cloth that has to be subjected to much more processing to make it usable in the product cycle. takes many forms, for it must be adapted to the kind of and used in the fabric and most importantly to its end use, and the products become more specialized.18 Given this, one can then understand why the industry has taken the unprocessed cloth route; it enables them to reduce risk and have a larger market. Their focus on unprocessed products also reflects the gap in their marketing abilities to go into more specialized products. The marketing wing of the weaving mills is very rudimentary. Any change in the amount of greige cloth means that the marketing of the product must become a specialized aspect of the organization. This involves cost. Furthermore, despite the fact that there has been massive investment at subsidized rates, capital intensity has not been very successful at improving quality. However, there is an increase in shuttles , and the new mills that have come up have substantially reduced labor intake. Table 4.20 presents Pakistan export markets for cloth/fabric. Almost one-fifth of its exports go to the U.S. market. Pakistan’s exports of fabric reflect its production pattern. About 40 percent of the exports is unbleached fabric, which is 22 percent of the world trade. Bleached fabric accounts for about 15 percent of Pakistan’s exports. Bleaching does not significantly increase the value added. In the global trade, Pakistan’s share is 20 percent and the market is considerably limited.

Table 4.20. Major country destination of exports of cloth from Pakistan Countries 2003–2004 2004–2005 United States 19.5 15.7 Turkey 6.9 7.7 Hong Kong 6.4 5.9 United Arab Emirates 3.7 5.2 Italy 4.9 5.0 Bangladesh 4.0 3.8 Spain 3.6 3.5 United Kingdom 4.8 3.6 Sri Lanka 2.5 2.9 China 3.1 2.8 Others 40.8 43.8 Total 100 100 Source: Export Promotion Bureau.

More highly processed printed fabrics comprise 29 percent of Pakistan’s exports, a 15 percent share of the total world market. The quality of the fabric printed on power looms suffers due to low- category technology; but printing masks defects, whereas dying accentuates defects. The dyed fabrics have a 14 percent share of Pakistan’s exports. Pakistan’s exports approximated $195 million of the total world market of $4.14 billion. An argument that is well taken is that wherever quality fabric is required, developing countries are weak in that area. and calendared fabric are only a small share of Pakistan’s exports. This

18 Finishing may change the appearance of the fabric, its feel, its serviceability, and its durability. Even the factor of thread count, so important in the evaluation of fabric can be changed by the kind and amount of finishing. Cotton can be given the soft touch for such fabrics as , nainsook, and lawn, the napped finish required for flannelette, the hard stiffened finish typical for and , or the lustrous effect of . The types of processing are so numourous that that would call for a separate study.

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