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1.    Introduction A rise in the Textile industry of Pakistan expansion in cotton production has been magnificent since 1947. Cotton-bales expand from 1.1 million bales in 1947 to 10 million bales by 2000. Addition in a number of mills was made from 3 to 600.  It hires 50% of industrial labor and justifies 65% foreign exchange of total exports. Expertise feels that Pakistan has the textile industry of massive size and 60%-70% of machines need a substitution for the quality production of products. But regrettably, it does not have any facility for manufacturing of textile machinery in textile mills. Nevertheless, the cause of the failure is energy crises, law and order situation, shortage of industries and the leading factor is a failure of agriculture. In 1998 India gained the first position, leaving Pakistan second. In 1992, a foreign counselor was engaged by the government to look into the stagnating conditions in the local textile industry. One of the surveys of the foreign advisor was ‘Pakistan has failed to make real progress in the international market and is being overtaken by many of the neighboring competitor countries. Exporters of textile commodities have found the target of US$ 10.4 billion set by the government for the year 2002-2003. The textile sector which composed 69% of total export during 2001-2002, accepts that magnifies quota by the European Union and Turkey would make this possible to collect US$1 billion this year. In Pakistan 2010 to 2011 the situation of the country was that they could not attain their foreign orders due to an insufficiency of cotton then they imported 14 million bales of cotton from India.Pakistan’s knitwear industry is almost totally export-oriented. The products made in Pakistan include T-shirts, jogging suits, jerseys, sports shirts, children wear, gloves, tracksuits, sweaters, socks etc. This is the second most commonly used procedure of fabric construction. The accepting of knitting has grown massively in the freshly years. The use of hosiery has increased due to its low price. Qualities like softness, coolness, sweat-absorbent, and durability have made its competitive advantage. This earns more foreign exchange compared to per kilogram cotton after it’s converted into finished garments. Since four decades this industry has made massive progress. In 1949 there was two to three machine which was producing vests and socks. Currently, this industry contains 3500 large, medium and small units. 85% which were small enterprises, 10% medium ventures, and only 5% largely integrated factories. 60% contains jersey, knitted fabric, T-shirts, sweatshirts, polo shirts, jogging suits, track suits and children outwear. Good results are produced as the government announces incentives in the textile package in 2014-2015 and some 992 knitwear units have been registered in the year 2013-2014. There were 369 units in Karachi, 180 in Lahore, 267 in Faisalabad and 176 in Sialkot. Textile package carried four essential incentives including removal of local taxes, easy finance, long-term financing facility and the tariff on the imports of machinery. Local taxes were given to exporters to enhance their exports. In easy finance category, mark up rate for export refinance scheme of State Bank of Pakistan (SBP) declined from 9.4% to 7.5% from July 01, 2014. In the long term financing, the industry unites in the value-added sector were provided long-term financing for better technology at the rate of 9% for the time period of 3-10 years. The fourth one was the duty-free import of textile industry for two years. (Dr. Noor Ahmed Memon, Professor KASBIT, 2015)1.1.    Exports of hosiery industryThe products exported from Pakistan to European, American, and UAE markets are well-known for its good quality. The most export items are 100% cotton T-shirts, vests, children’s pajama suits, sports shirts knitted garments, undergarments and flat fabrics. Main items in knitwear export are men’s T-shirts, fancy T-shirts for ladies, night shirts for ladies, men’s pajama sets and sportswear. New techniques have been developed to make it to the next level. In 2014 exports were up to 21.434 million dozens worth US$ 1426.826 million. During the first three-quarters of 2015 readymade garments increased to 8.51%. The country produced 22.843 million dozen items worth US$ 1548.282 million. Hosiery industry showed 7.54% growth and export of US$ 1791.789 million. The machines are imported or locally made and assembled. The production depends on the orders directly or indirectly. These orders have risen in terms of value but fluctuated in terms of quantity.Table 1: Export of KnitwearYear    Quantity (000 Doz)    Value (US $ Million)2009-10    108,669    1,7652010-11    197,144    2,3062011-12    98,716    1,9832012-13    97,921    2,0432013-14    116,389    2,294 Source: Trade Development Authority of Pakistan.Table 3: Country-wise Export of Knitwear (Hosiery)           (Value in $ 000)Country    2013-14    2012-13 U.S. America    1,065,623    1,072,314 United Kingdom    335,331    267,972 Germany    137,662    103,463 Netherlands    120,986    112,705 Spain    117,205    73,810 Belgium    106,157    70,900 Finland    47,962    34,110 Italy    46,965    31,662 Canada    44,996    44,568 U.A.E    43,590    41,650 Sweden    15,793    14,484 Australia    12,454    12,037 Denmark    10,678    7,838 China    10,343    5,238 Brazil    9,294    6,505 Russain    9,152    4,218 Japan    9,038    6,464 Poland    8,345    3,748 All others    142,094    129,272 Total    2,293,668    2,042,958 Source: Trade Development Authority of Pakistan.1.2.    Comparison with other developing countriesThe compact share of Pakistan’s textile exports in the world total is the result of expanding world competition. Their performance is in sharp contrast to that of other Asian exporters particularly in Southeast Asia, advanced textile exporters like China, South Korea, and Hong Kong. What is remarkable for these countries is the increase in their world market share in the presence of institutional restraints like, MFA (multi-fiber arrangements). It can be seen from 1980 to 1997 (Table 3 and Table 4), Pakistan’s share in world textile trade has increased by 1.1 percent. Comparatively, the share of countries like Hong Kong, China, and South Korea has increased quite substantially, by 5.6, 3.5, and 3.8 percent respectively. At the same time, a recognizable feature is the decreasing share of Japan, U.S.A, France, U.K., Netherlands, and German In other words, decrease in the world share of textile.1.3.    Issues Many of the hosiery units are working in an unorganized sector like in Karachi and Faisalabad. Unorganised sector is fulfilling Pakistan’s local requirements, especially for undergarments that are made from the leftover of export industry and 100% units in Lahore are export-oriented. Pakistani exporters are not strong enough to invest the huge amount to store their products in warehouses and sell them after putting it on display. This industry suffered the shortage of gas and electricity for past few years. As a result, cost of production increased, and production declined. China, India, Korea, Bangladesh, Sri Lanka and Kenya are the major competitors. Due to lack of facilities, small units face more challenges. Due to the high inflation rate, the cost of doing business would become restrictive, and the goods of the country would be uncompetitive. Pakistani units were playing the role as facility provider for foreign companies and brands. Whereas, none of the Pakistani exporters have developed any brands, which is one of the main issues. Branding is the only way to be recognized as exporters. Foreign buyers were turning towards competitors and Pakistani exporters were losing export.1.4.    Purpose of the studyTo identify the SWOT analysis of the hosiery industry of Pakistan. As the reader will get to know about the following of hosiery industry.?    Strength ?    Weakness?    Opportunity?    Threat1.5.    Scope of the studyThe SWOT analysis makes us understand strengths, weaknesses, opportunities, and threats.  This is done to find alternative solutions and remedies to make the textile industry competitive and efficient against challengers.?    Strengths •    Raw material base Pakistan has high self-sustenance in raw material and is the fourth largest producer of cotton. Plentiful use of cotton resources has made the textile industry move towards industrialization. •    LaborThe backbone of Pakistan’s economy has always been cheap labor. Cheap labor strengthens the industrial and agricultural sector. About 39% of the labor force works in the textile sector.•    Domestic marketThe shift of population from agriculture society to urban areas increased income level and growth of population raised the demand for domestic. This means more factories, more supply which requires more labor.?    Weaknesses •    Research and DevelopmentDeveloped countries are using technology to increase the quality and quantity of their cotton production. They grow colored cotton, organic cotton, and several different varieties. In Pakistan research is done on small scale by private companies. No efforts are being made by APTMA in R&D to boost the quality of products, upgrade technology used. Due to the low quality of the cotton crop, profit decreases and farmer switches to the other crops.•    Labor productivityOther then the plentiful supply of labor, productivity is low. According to a study by Federal Advisor, the regional competitors of Pakistan take 75 minutes to compete and produce one piece of cloth whereas we take 133 minutes. We waste 30% in finishing and 12% in washing. •    Poor infrastructure A continuous supply of water, electricity, and gas are basic requirements for the development of an industry. Whereas, on the other hand, the company faces an increase in charges of the energy sector, which leads to an increase in the cost of production. This makes it difficult to compete with competitors.?    Opportunities •    Collaboration with foreign companiesThrough interaction with foreign companies, can learn so much in terms of system orientation, supply chain and easy to import the latest technology. Costs can also be reduced, following the international standards, add value to our products, improved labor and thus catching up with our regional competitors.•    Marketing To target, unexplored markets with the help of sales and marketing pave the way for the textile growth. If we make an investment in our sales force and train them in the fine art marketing textile products. •    Producing high-value products To export yarn is better than raw cotton. Similarly, it is better to export finished fabric than to export raw fabric. It is very easy to export readymade garments than to only fabrics. This increases in per unit price.?    Threats •    New competitors Competitors are always threat. New competitors are such as Bangladesh, Malaysia, Thailand, Vietnam, and Turkey. Though competition cannot be ignored we can always stay ahead of them through our strategies. •    Fashion life cycleAs trend varies almost every day. Media plays an important role in our lives that we adapt ourselves as it wants us to. This has resulted in shortening the fashion lifecycle thus increasing the fashion risk. Customers prefer to buy from neighboring countries even at higher cost to get their products rather than to wait weeks or months.1.6.    Sources and methodsWe consulted current articles for the background information. To see where hosiery industry of Pakistan lye’s and to identify its SWOT analysis. The interviews were conducted on the basis of SWOT analysis of exports of hosiery industry. The interview was conducted by Dr. Khurram (Anwar Khawaja Industry).  2.    ConclusionsIt’s all based on the finding we concluded during the study, as conducted by interviews and survey. We draw the following conclusions.?    Hosiery industry is the backbone of the Pakistan economy, as its seriously necessary to analyze the drawbacks and positive elements of the industry to make it more competitive against all rivals.?    The best Raw material for hosiery products is manufactured in Pakistan with the best manpower for the finishing the hosiery products. The lacking of innovation and RND becomes the major cause for the less export of Pakistan. ?    As there are many problems which are creating a mess for hosiery industry exporter like shortage of electricity and gas which forces the exporters not to take orders because not fulfill the orders on time, as the government of Pakistan is not serious in resolving problems.?    There is no diversification either in quality nor in direction of trade. As Europe and North America are the most important spot for the export from Pakistan as its covering 50% of export of hosiery products.

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