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Transcript of Textiles and Clothing Trade - :: RDA Cell Ministry of ...€¦ · Textiles and clothing have...
Report: 2.
Revised 01, January 26
Textiles and Clothing Trade
2002
Ministry of Textile
Research, Development and Advisory Cell
H.627, Street 95, I
PAKISTAN
Ph: +92 51 9259179
Fax: +92 51 9257321
Email: [email protected]
Website: http://www.rdacell.com
Report: 2.OTR-08/02- 5YTA
Revised 01, January 26, 2008
Textiles and Clothing Trade
2002-07
Textile Industry
Research, Development and Advisory Cell
H.627, Street 95, I-8/4 Islamabad
Ph: +92 51 9259179
Fax: +92 51 9257321
http://www.rdacell.com
Textiles and Clothing Trade
Disclaimer
All data represented in this study is provided by Federal Bureau of Statistics except some for which the
sources are indicated.
MINTEX is not responsible for the correctness of the data source. The representation of the data is
solemnly for analysis purpose. It is not intended to provide any focused derivations favoring or
otherwise individual or group.
This Data, Research and Analysis are the intellectual property of Research, Development and Advisory
Cell of MINTEX. The usage of such data and analysis in other reports would require prior permission
from the Secretary, Ministry of Textiles Industry.
Contact:
2nd Floor, FBC Building
G-5/2, Islamabad
PAKISTAN
Email: [email protected]
Phone: +92 51 9203346
Fax: +92 51 9203345
ISLAMABAD
Contents
1 Foreword ............................................................................................................................................... 1
2 Introduction ........................................................................................................................................... 3
3 Pakistan’s Top Export Destinations and Products ................................................................................. 6
3.1 Export Products ............................................................................................................................. 6
3.2 Average Unit Price ......................................................................................................................... 7
3.3 Export Destinations ....................................................................................................................... 7
4 Imports .................................................................................................................................................. 9
5 Category-wise Performance ................................................................................................................ 11
5.1 Raw Cotton .................................................................................................................................. 12
5.1.1 Trade Flow and Product Mix ............................................................................................... 13
5.2 Cotton Carded or Combed .......................................................................................................... 14
5.2.1 Exports ................................................................................................................................. 14
5.2.2 Imports ................................................................................................................................ 15
5.3 Yarn ............................................................................................................................................. 15
5.3.1 Exports ................................................................................................................................. 15
5.3.2 Imports ................................................................................................................................ 19
5.4 Yarn Other than Cotton ............................................................................................................... 20
5.4.1 Product Mix ......................................................................................................................... 20
5.4.2 Trade Partners ..................................................................................................................... 21
5.5 Cotton Cloth ................................................................................................................................ 22
5.5.1 Exports ................................................................................................................................. 22
5.5.2 Export Mix ........................................................................................................................... 24
5.5.3 Imports ................................................................................................................................ 25
5.6 Synthetic Textiles and clothing .................................................................................................... 26
5.6.1 Regional Diversification ....................................................................................................... 26
5.6.2 Top Traded Commodities .................................................................................................... 27
5.7 Knitwear ...................................................................................................................................... 28
5.7.1 Export Destinations ............................................................................................................. 30
5.7.2 Imports ................................................................................................................................ 31
5.8 Readymade Garments ................................................................................................................. 32
5.8.1 Export destinations ............................................................................................................. 32
5.8.2 Export Mix ........................................................................................................................... 33
5.8.3 Imports ................................................................................................................................ 34
5.9 Bed-wear ..................................................................................................................................... 35
5.9.1 Exports ................................................................................................................................. 35
5.9.2 Imports ................................................................................................................................ 37
5.10 Towels ......................................................................................................................................... 37
5.10.1 Exports ................................................................................................................................. 37
5.10.2 Imports ................................................................................................................................ 39
5.11 Tents, canvas and Tarpaulins ...................................................................................................... 39
5.11.1 Exports ................................................................................................................................. 39
5.11.2 Imports ................................................................................................................................ 40
5.12 Other Made-ups .......................................................................................................................... 41
5.12.1 Exports Destination ............................................................................................................. 42
5.12.2 Imports ................................................................................................................................ 43
5.13 Other Textiles and clothing Materials ......................................................................................... 44
5.13.1 Regional Diversification ....................................................................................................... 45
5.13.2 Top Traded Products ........................................................................................................... 45
6 Conclusion ........................................................................................................................................... 48
7 Recommendations .............................................................................................................................. 49
7.1 Raw Materials .............................................................................................................................. 49
7.2 Spinning ....................................................................................................................................... 49
7.3 Weaving ....................................................................................................................................... 49
7.4 Processing .................................................................................................................................... 50
7.5 Apparels and Made-ups .............................................................................................................. 50
Textiles and Clothing Trade 2002-07
Foreword 1
1 Foreword
Pakistan’s exports have been dominated by cotton and cotton based textiles and clothing. This historical
dependence on textiles and clothing as the major export earning sector was highlighted even in the
Pakistan Trade Policy review conducted by the World Trade Organization (WTO) in January 2008. The
report notes that “Pakistan still lags behind in export diversification, still depending heavily on textiles
and clothing, which account for two thirds of total exports. This sector now faces stronger competition
in major markets”.
While export diversification is a pre-requisite for economic growth and expansion and is the focus of the
Export Plan already approved by the Government, textiles and clothing will continue to remain the
single most important sector to sustain export earnings and facilitate investment for diversification.
There is the need, therefore, for an even sharper focus on the health of the textiles and clothing
industry to face competition and the ever-growing challenges posed by the integration of the textiles
and clothing trade into the General Agreement on Tariffs and Trade (GATT) 1994.
The transition of this sector from the restrictive quota regimes under the Short Term Arrangement and
the Long Term Arrangement of the 60s and the Multi Fiber Arrangement from 1974 to 1994, to another
ten years under the WTO Agreement on Textiles and clothing (ATC) has been painful and exacting for
countries like Pakistan. The quota regimes effectively restricted the growth potential based on the
comparative advantages of home grown cotton, an abundant supply of labor and cheaper cost of
production.
Several reports produced by international organizations, including the WTO, categorized Pakistan as one
of the major winners in post quota scenario. However the elimination of quotas in 2005 opened the
trade to fierce competition.
To be able to secure and expand market share some countries were positioning themselves through
investment in technology, increasing production base and productivity. Exporters attaining overall
competitive edge from investments and those who gained form lower costs, either through increased
productivity or excellence in craftsmanship, marketing, designs, brands and better supply chain
management came out as winners.
Textiles and Clothing Trade 2002-07
Foreword 2
It is in this backdrop that the Ministry of Textile Industry created a Research, Development and Advisory
Cell to undertake analyses of the Textiles and clothing sector, receive feedback from the stakeholders
and advise the Ministry on policy options. Accordingly, the second report being released now shows
trends of Pakistani textiles and clothing exports during the last five years. (An analysis of the Research
and Development Support for the textiles and clothing sector introduced in 2005, has already been
prepared and released to the industry).
It is our hope that the reports will be carefully analyzed by the stakeholders. Their feedback will greatly
facilitate the Ministry and the Government to tackle some of the serious issues confronting the sector in
the overall context of the export-led growth strategy.
Secretary, Ministry of Textile Industry
Textiles and Clothing Trade 2002-07
Introduction 3
2 Introduction
Textiles and clothing continue to represent the most important manufacturing sector of Pakistan. The
increase in export earnings has been directly proportionate to the growth of this sector. Investment
incentives and export facilitation has also focused on this sector.
Global environment of textiles and clothing trade has undergone radical changes from a highly
restrictive quota regime. Spanning over more than half a century, the trade is now under regular GATT
1994 disciplines.
This report intends to analyze Pakistan’s export during the last three years of quota regime (2002-2005)
and trends emerging with elimination of quantitative restrictions i.e. 2006-07. As demolition of quota
regime is changing characteristics of international trade patterns, this report will focus on Pakistani
textiles and clothing exports and imports and their characteristics in terms of product diversification,
regional diversification and value addition.
To place these trends in their correct perspective, it would be essential to look at a thumb nail sketch of
trends in some of the major textiles and clothing producers in the region and their share in global
markets.
Following table gives an overview of the global and regional textiles and clothing trade including
Pakistan.
Table 1: Comparison with Asian Competitors for Textiles and clothing Exports (US$ Million)
2002 2003 2004 2005 2006 Total
Growth
Share in
2006
Rank in
2006
World
362,011
408,699
456,110
483,106
530,004
46.41%
100.00%
China
61,864
78,961
95,284
115,213
144,071
132.88%
27.18%
1
India
12,065
13,471
13,641
17,674
19,522
61.81%
3.68%
4
Pakistan
7,018
8,521
9,151
10,691
11,376
62.10%
2.15%
10
Bangladesh
4,580
5,480
6,893
8,447
9,850
115.07%
1.86%
13
According to WTO statistics1 Pakistan has been able to increase its share in global trade from 1.94% to
2.15% in textiles and clothing trade in volumes. Pakistan also improved its ranking from 14th to 10th with
a compound growth of 12.84% per annum. However the market share decreased to this level after
achieving 2.21% in the preceding year which was quota protected. China, which is the largest exporter
of textiles and clothing, in spite of the quotas imposed by the European Union and the United States
between 2002 and 2006, gained an additional 10 per cent and now accounts for 27 per cent of the world
1 To have similar time periods for comparison, data from WTO has been used.
Textiles and Clothing Trade 2002-07
Introduction 4
Raw Cotton, 0.47%Cotton
Carded/Combed, 0.15
%
Cotton Yarn, 13.24%
Yarn Other Than
Cotton, 0.62%
Cotton Cloth, 18.78%
Synthetic
Textiles, 3.89%
Bedware, 18.50%Towels, 5.58%
Knitwear, 18.17%
Readymade
Garments, 12.84%
Tents/Canvas, 0.64%
Other Made-
ups, 4.37% Other Textiles, 2.75%
textiles and clothing exports. The increase in volume was impressive i.e. more than 24% compound
growth per annum.
Bangladesh compound growth per annum was more than 21% in the same period and it jumped 8
places from 21 to 13 in world ranking.
India with a compound growth rate of 12.78% per annum went up from 8th to 4th while Turkey which
ranked 6th in 2002, improved its standing to 5th with a compound growth of 12.17% per annum. Their
share in 2006 was 3.68% and 3.67%, respectively.
As far as product mix is concerned; China, India and Bangladesh had 64%, 52% and 91% share of clothing
respectively in their product mix whereas Pakistan’s share was below 32% for clothing in overall textiles
and clothing exports.
With high percentage of low value added products in the product mix, Pakistan has not been able to
diversify destination-wise as well. Pakistan’s textiles and clothing exports have traditionally targeted the
Quad markets, including America, Europe and Canada. The high dependence on these destinations was
basically because of the large market size, the comparative advantage that Pakistan had and the
introduction of Quantitative restrictions (QRs or Quotas) in these markets mostly through the Multi
Fiber Arrangement (MFA). In comparison, Pakistan’s exports to non-quota, nontraditional markets did
not show substantial growth till the early 90s.
Figure 1: Product Mix of Pakistan 2006-07
Textiles and Clothing Trade 2002-07
Introduction 5
In the backdrop of our traditional export pattern, North America and Europe have remained our top
export destinations, and their combined share has increased from about 64% to more than 72% in the
last 5 years.
Figure 2: Export Destinations Region-wise
Exports to Europe, North America and South America grew at a compound rate of 13.54%, 37.14, and
13.56% per annum, respectively. However exports to Asian, African and Oceania destinations have
remained almost stagnant. However exports towards Asia, Africa and Oceania have remained almost
stagnant.
The dip during 2006-07 in North American markets is an evidence of increasing competition after
dismantling of quotas.
Textiles and clothing have maintained a share of over 60% in Pakistan’s total exports. The transition to a
quota free regime notwithstanding, the value of textiles and clothing exports has increased consistently
during 2002-07 as reflected by the table below;
Table 2: Pakistan’s Textiles and clothing Export (Million US$)
2002-03 2003-04 2004-05 2005-06 2006-07
Million US$ 7,378.03 8,079.08 9,005.39 10,195.00 10,901.25
Change from Last Year 9.50% 11.47% 13.21% 6.93%
Share in Pakistani Total Exports 63.89% 63.43% 60.49% 61.97% 64.08%
0
500
1000
1500
2000
2500
3000
3500
4000
4500
2002-03 2003-04 2004-05 2005-06 2006-07
North America
Europe
Asia
Africa
South America
Oceania
Textiles and Clothing Trade 2002-07
Pakistan’s Top Export Destinations and Products 6
3 Pakistan’s Top Export Destinations and Products
3.1 Export Products
It is interesting to note that despite the overall growth in exports of textiles and clothing during period
under review, a dip in growth and/or the growth rates is evident in almost all categories for the year
2006-07.
Cotton Cloth has remained the top export category during the last five years. Bedwear and Knitwear
have maintained 2nd and 3rd rank, respectively. Readymade Garments, the most value added category
has grown with a compound rate of 7.06% per annum however it has lost its 4th rank to the basic textiles
and clothing industrial commodity i.e. cotton yarn and is ranked 5th despite of having R&D support of 6%
in major countries.
Figure 3: Trade Volume Category Wise
0
500
1,000
1,500
2,000
2,500
2002-03 2003-04 2004-05 2005-06 2006-07
Cotton Cloth
Bed wear
Knitwear
Cotton yarn
Readymade Garments
Towels
Other Made-ups
Synthetic Textiles
Other Textile Materials
Tents/Canvas
Other yarns
Cotton
Cotton Carded/Combed
Textiles and Clothing Trade 2002-07
Pakistan’s Top Export Destinations and Products 7
An important characteristics of Pakistan’s textiles and clothing exports and the destinations is that our
competition consumes bulk of the raw material exports whereas higher value added finished products
have a niche in the developed importing countries. Europe with its strong processing base also remained
a major destination for certain types of fabrics etc. The following table highlights this trend;
Figure 4: Regional Share for 2006-07
3.2 Average Unit Price
Table 3: Average Unit Price (US$/Square Meter Equivalent)
2002-03 2003-04 2004-05 2005-06 2006-07 Representation
Average (Category wise) 0.624 0.658 0.727 0.739 0.810 88%
Average (Tariff line wise) 0.801 0.901 0.701 0.772 0.708 41%
The above table reflects random average unit values and does not intend to analyze the values of each
category and its sub category on individual actual export price.
3.3 Export Destinations
As far as diversification by country is concerned, more than 71% of our textiles and clothing exports are
limited to 10 destinations only. The share of these countries has increased from about 64% during last 5
years.
0102030405060708090
100
Africa
Oceania
South America
North America
Europe
Asia
Textiles and Clothing Trade 2002-07
Pakistan’s Top Export Destinations and Products 8
Table 4: Top 10 Export Destinations (Value in Million US$)
COUNTRY 2002-03 2003-04 2004-05 2005-06 2006-07
United States
2,271.23
2,576.87
3,059.25
3,850.17
3,874.39
United Kingdom
582.83
702.45
642.36
658.47
745.79
Hong Kong
423.20
471.66
463.49
568.91
527.29
Germany
399.59
412.93
458.21
487.30
520.38
Italy
217.33
281.45
365.62
434.77
483.66
China
159.44
203.39
219.29
326.10
400.01
Spain
152.84
206.53
246.46
314.58
356.73
Turkey
114.44
186.19
218.00
250.78
325.26
Netherlands
188.09
237.51
244.31
267.81
293.27
Belgium
164.78
184.65
235.21
244.64
291.41
The United States is the largest export market and during last five years, exports to United States have
increased at the compound rate of 14%. However the growth was only 0.6% in post quota year.
Textiles and Clothing Trade 2002-07
Imports 9
4 Imports
Trade balance for textiles and clothing products has always remained in favor of Pakistan. However, in
the past few years imports have increased with a compound growth of almost 29% per annum.
Table 5: Total Textiles and clothing Imports (US$ Million)
2002-03 2003-04 2004-05 2005-06 2006-07
Million US$ 595.00 987.87 1,064.26 1,322.47 1,631.23
66.03% 7.73% 24.26% 23.35%
Import of raw materials has been growing to meet the supply & demand gap and increasing
consumption of our expanding textiles and clothing industry. Pakistan is the fourth largest producer of
cotton; however the consumption of our spinning industry has surpassed local production. Our cotton
crop is also deficient in long and extra long staples, which is the basic requirement for value added
products. Pakistan’s Man Made Fiber manufacturing base is also narrow and many varieties of Man
artificial fibers are also not produced locally.
Two varieties of cotton top the chart of imported textiles and clothing commodities. The combined
share of these two varieties is more than 38% and they have double digit compound growth of 36% and
20% during the last four years respectively.
Table 6: Top 10 Imported Commodities
2002-03 2003-04 2004-05 2005-06 2006-07 Share Growth
OTHER COTTON 132.80 343.24 244.06 247.97 454.10 27.84% 241.95%
COTTON, AMERICAN 84.32 154.45 233.84 87.24 174.27 10.68% 106.67%
ART-STA FIB VIS RAYON N-
CRD/CO
45.19 51.40 72.23 101.88 81.26 4.98% 79.84%
FILAMENTS YARN OF POLYESTERS 17.50 28.13 34.12 72.25 70.93 4.35% 305.45%
WORN CLOTHING&OTH WORN
ARTICLE
36.83 34.91 39.80 47.61 56.12 3.44% 52.37%
SYN FIB NOT CRD/COM<2.22DECX 0.00 0.00 4.77 54.77 55.15 3.38% #DIV/0!
OTH S-YARN,POLYE 50
TURNS/MTR
21.49 25.80 30.13 63.17 49.98 3.06% 132.57%
OTH JUTE&OTH TEXTILES AND
CLOTHING BAST FIB
10.45 19.41 29.28 32.10 36.76 2.25% 251.60%
OTH Y/S UN-TWST VISCOSE
RAYON
10.45 12.40 13.53 27.82 32.00 1.96% 206.19%
OTH FAB 85% OR MORE DYED 6.57 13.48 10.74 34.69 29.60 1.81% 350.73%
The top 10 commodities have a share of more than 63% of our total import bill for textiles and clothing
products, 95% of which are raw materials.
Asian countries are the main source of import of raw materials, fiber (Cotton and MMF) and chemicals.
Textiles and Clothing Trade 2002-07
10
Table 7: Imports of raw materials (US$ Million)
2002-03 2003-04 2004-05 2005-06 2006-07 Share Growth
Asia 327.3909 530.3648 487.3777 848.7956 1062.235 65.12% 224.45%
North America 120.4871 195.2939 274.7618 126.6155 222.5713 13.64% 84.73%
Europe 91.87173 132.6525 111.7397 138.4245 155.6799 9.54% 69.45%
Africa 37.34867 92.5887 120.6345 98.19943 107.7153 6.60% 188.40%
South America 1.811767 5.087617 46.50797 92.42325 64.29432 3.94% 3448.71%
Oceania 16.0936 31.8815 23.23702 18.013 18.73015 1.15% 16.38%
China and India are the top suppliers; the China-Pakistan Free Trade Agreement provides added
incentives for import of raw materials from China.
Table 8: Top 10 Import Sources (US$ Million)
COUNTRY 2002-03 2003-04 2004-05 2005-06 2006-07 Share Growth
China 43.83 59.46 80.80 226.40 326.64 20.02% 645.31%
India 1.37 63.16 22.21 59.72 245.23 15.03% 17776.42%
United States 112.63 186.20 260.91 112.72 209.13 12.82% 85.68%
Other Asian Countries 43.83 45.84 48.08 68.95 64.38 3.95% 46.90%
Brazil 0.87 4.31 44.27 91.26 62.37 3.82% 7038.68%
Thailand 27.95 39.38 50.88 112.20 60.55 3.71% 116.61%
Korea, Republic of 38.94 48.90 42.95 80.33 54.24 3.32% 39.28%
Bangladesh 20.19 28.55 37.66 42.39 49.09 3.01% 143.10%
Indonesia 31.76 28.37 35.91 64.82 47.78 2.93% 50.45%
Egypt(U.A.R.) 13.86 14.41 47.88 46.29 33.98 2.08% 145.17%
Textiles and Clothing Trade 2002-07
Category-wise Performance 11
5 Category-wise Performance
Textiles and clothing products comprising 884 product lines have been placed in 13 major groups. The
report uses this criterion for trade analysis of textiles and clothing items. The description of the groups is
as follows:
1. Raw Cotton: This category includes three 8 digit HS Codes i.e. 52010010, 52010020 and
52010090.
2. Cotton, Carded and/or Combed: This category includes only one tariff line i.e. 52030000
3. Cotton Yarn: This category comprises of ‘46’ 8-digit HS codes all of which fall under Chapter 52.
4. Yarn other than Cotton: This category comprises of ‘77’ 8-digit HS codes which fall under
Chapter 50, 51, 53, 54 and 55
5. Cotton Cloth: This category comprises of ‘86’ 8-digit HS codes most of which fall under Chapter
52 while few under Chapter 58.
6. Synthetic Textiles and clothing: This category is also called Art, Silk and Synthetic Textiles and
clothing however it only includes fabric of man-made fiber and filament. The category comprises
of ‘110’ 8-digit HS codes which fall under Chapter 54, 55 and 58.
7. Knitwear: This category comprises of ‘116’ 8-digit HS codes most of which fall under Chapter 61.
It includes one tariff line of Chapter 62 i.e. “62101000 Garments made up of fabrics of heading
56.02, 56.03 (nonwovens)”.
8. Readymade Garments: This category comprises of ‘127’ 8-digit HS Codes most of which fall
under Chapter 62. However it includes 4 tariff lines of Chapter 61 i.e. 61171000, 61172000,
61178000 and 6117900 (Other made up clothing accessories, knitted or crocheted; knitted or
crocheted parts of garments or of clothing accessories)
9. Bed wear: Bed-wear category falls under Chapter 63 and comprises of ‘18’ 8-digit HS Codes
10. Towels: This category only includes mill-made towels which are traded under one 8-digit HS-
Code i.e. 63026010
11. Tents, Canvas and Tarpaulin: This category falls under Chapter 63 and comprises of ‘14’ 8-digit
HS Codes
12. Other Made-ups: This category includes made-ups other than towel and bed-wear. The category
comprises of ‘35’ 8-digit HS Codes most of which fall under Chapter 63. Nine(9) of the product
lines fall under chapter 56 which include sanitary towels and tampons; napkins; nappies, diapers
and other articles of wadding; and textiles and clothing flock and dust.
13. Other Textiles and clothing Products: This category includes rest of all textiles and clothing items
traded under Chapter 50-63 excluding Chapter 57 (Carpets and other textiles and clothing floor
coverings). This category comprises of ‘250’ tariff lines.
Textiles and Clothing Trade 2002-07
Category-wise Performance 12
5.1 Raw Cotton2
On 14th August, 1947, Pakistan inherited a small industrial base. The share of textiles and clothing sector
was nearly non-existent. Though the areas following with Pakistani borders produced about 1.1 million
bales of cotton, the industrial consumption was only 78,000 bales. By default, therefore, Pakistan
became a major cotton exporting country with 90% of its production finding markets abroad. India, on
the other hand, was consuming around 4.4 million bales, importing nearly 50% of its requirement.
The Government of Pakistan introduced several policy measures for the industry providing incentives of
soft loans, relaxation in taxation, availability of cheaper cotton by levying export duties on raw cotton
etc. for establishing spinning units to increase cotton consumption and producing cloth and other value
added textiles and clothing products.
Resultantly, the spinning capacity increased over the years and, from 1.45 million bales in 1960, it grew
to 11.2 million in 2002. In 2007-08 total domestic consumption of cotton is estimated to be in between
15 to 16 million 170 kgs bales.
To meet the growing demand of the spinning sector, new farm technologies were adopted and
production of cotton also increased however the production of long and extra long staple varieties of
cotton continued to elude Pakistani agriculture.
The demand for long and extra long staple Pakistan was met through imports since 1993-94 but since
2001 Pakistan is importing cotton variety of shorter staple as well due to the increased gap between
local consumption and farm production. To keep up with the growing demands Pakistan has now
become a net importing country of cotton which is evident from the following table.
Table 9: Exports/Imports of Cotton3
2002-03 2003-04 2004-05 2005-06 2006-07 Growth
Quantity Exported (Million KG) 55.1 37.31 117.08 62.66 45.07 -18%
Quantity Imported (Million KG) 188.5 385 387.74 346.39 461.11 145%
Net Trade Flow (Million KG) -133.4 -347.69 -270.66 -283.73 -416.04 212%
Exports (Million US$) 47.88 45.69 109.15 68 50.8 6%
Imports(Million US$) 226.87 507.76 515.79 372.92 653.89 188%
Net Trade Flow (Million US$) -178.99 -462.07 -406.64 -304.92 -603.09 237%
2 The trade of raw cotton has been analyzed using three 8 digit HS Codes i.e. 52010010, 52010020 and 52010090.
3 Cotton trade share in Pakistan’s export mix has declined from 0.65% to 0.47% during 2002-03 and 2006-07 while
has increased in import mix from 38.13% to 40.09% during the same time period.
Textiles and Clothing Trade 2002-07
Category-wise Performance 13
In 2004-05, Pakistan had a bumper production of 14.3 million bales of cotton, more than the demand of
the local spinning industry due to which the net flow improved however, the gap increased again in
2006-07 due to increased demand and lesser production.
5.1.1 Trade Flow and Product Mix
Pakistan’s export destination for cotton is mainly Asian markets which account for more than 99% with
Indonesia, Bangladesh, and Thailand being the major importers during the last 5 years.
Table 10: Raw Cotton exports (Value in Million US$)
Country 2002-03 2003-04 2004-
05
2005-
06
2006-07 Change in Last 5
Years
Share in Total Raw
Cotton Exports
Indonesia 12.55 12.39 25.76 19.17 19.36 54% 38%
Bangladesh 20.36 14.91 20.64 27.87 18.37 -10% 36%
Thailand 2.87 8.06 24.24 4.23 5.34 86% 11%
Other Asian
Countries
1.87 4.04 11.80 3.10 3.64 95% 7%
Viet Nam 0.39 0.75 7.92 1.46 2.67 582% 5%
Pakistan meets 84% of its import requirement from Asia, North America and Africa while South America
is also edging in as a supplier of raw cotton.
Table 11: Raw Cotton Imports (US$ Million)
2002-03 2003-04 2004-05 2005-06 2006-07 Growth Share
Asia 50.78 155.31 67.97 73.15 288.77 469% 44%
North America 92.68 164.69 234.98 81.84 163.91 77% 25%
Africa 36.44 91.10 117.21 90.79 99.03 172% 15%
South America 0.43 3.68 44.26 90.63 61.19 13984% 9%
Europe 36.41 69.18 37.96 26.92 29.96 -18% 5%
Oceania 10.12 23.81 13.41 9.60 11.04 9% 2%
The bulk of imports are in long and extra long staple cotton with India and the United States being the
major sources.
Table 12: Top 5 Import Sources for Cotton (US$ Million)
2002-03 2003-04 2004-05 2005-06 2006-07 Growth Share
India 0.04 53.66 14.93 39.56 236.58 561635% 36.18%
United
States
92.46 164.52 233.06 80.57 163.33 77% 24.98%
Brazil 0.42 3.38 43.48 90.55 61.19 14559% 9.36%
Egypt(U.A.R.) 13.70 14.13 45.85 39.90 26.62 94% 4.07%
Mali 1.23 13.95 25.84 2.76 25.02 1940% 3.83%
Textiles and Clothing Trade 2002-07
Category-wise Performance 14
After India and United States, Brazil has also become an important source as their cotton is
contamination free and in-addition give higher yield and better quality of yarn, although their cotton
length and physical properties are similar to Pakistani cotton.
Table 13: Top Imported Varieties of Cotton (Cotton US$ Million)
HS CODE 2002-03 2003-04 2004-05 2005-06 2006-07 Growth
52010090 OTHER COTTON 132.80 343.24 244.06 247.97 454.10 242%
52010010 COTTON, AMERICAN 84.32 154.45 233.84 87.24 174.27 107%
52010020 COTTON, EGYPTIAN 9.76 10.07 37.89 37.72 25.53 162%
Egyptian cotton is widely used in medium counts for the production of shirting fabrics and carries the
highest cost per unit of US$ 2.3 per Kg compared with US$ 1.13 per Kg unit price of Pakistani cotton.
5.2 Cotton Carded or Combed4
5.2.1 Exports
Pakistan is exporting semi process cotton which is used mostly for the open end industry of our
competitors along with the medical use. This is a small category and our exports have only reached a
maximum of US$ 15.9 million per year uptill now.
Table 14: Export Performance of Cotton (Carded or Combed) from Pakistan5
2002-03 2003-04 2004-05 2005-06 2006-07
Quantity (Million KG) 0.49 2.71 6.19 61.07 18.24
Value (Million US$) 0.37 2.69 5.69 10.32 15.93
Average Unit Price (US$/KG) 0.76 0.99 0.92 0.17 0.87
4 This category includes only one tariff line i.e. 52030000.
5 Trade share of this category in Pakistani Export mix has increased from 0.01% to 0.15% during 2002-03 and 2006-
07 while it has negligible share in import mix.
Textiles and Clothing Trade 2002-07
Category-wise Performance 15
Export destination is limited to the few countries of Asian and European region which are also shown in
the following table.
Table 15: Top partners in Cotton (Carded or Combed) exports from Pakistan (Value in Million US$)
Country 2002-03 2003-04 2004-05 2005-06 2006-07 Change
in Last 5
Years
Share in
2006-07
Other Asian Countries
0.01
0.43 0.83 2.82 3.40 23,812% 21%
Italy
0.16
0.89 1.62 1.46 3.30 1,945% 21%
China - 0.63 0.21 1.48 2.49 0% 16%
Belgium - 0.11 0.63 0.72 1.73 0% 11%
France - 0.12 0.55 0.48 1.37 0% 9%
5.2.2 Imports
We have almost no imports of carded/combed cotton.
5.3 Yarn6
When Pakistan came in to being there were only two textiles and clothing mills, since then Pakistan is
now the third largest exporter of cotton yarn.
In 1970 there were 2.8 million spindles in Pakistan, in 1980 this figure increased to 4 million, in 1990 to
5.6 million, in 2000 increased to 8.8 million, in 2005 to 10 million and in 2007 the number of spindles
were 11.2 million along with the 250,000 rotor spindles.
Progress of the spinning industry was mainly dependant on the Government policies which favored
investment in the sector. From 1999 to 2006, 4 billion USD were invested by the textiles and clothing
sector out of which 50% were invested in the spinning sector.
5.3.1 Exports
The category of cotton yarn ranked 5th in our export mix in 2002-03 with a share of 12.27% and now has
13.24% share and has over passed the exports of readymade garments which is now at 12.84%.
This category had a compound growth of 12.17% in last 4 years by volume and has fetched better
average price per unit for the country as well.
6 This category comprises of ‘46’ 8-digit HS codes which fall under Chapter 52.
Textiles and Clothing Trade 2002-07
Category-wise Performance 16
Table 16: Export Performance of Cotton Yarn from Pakistan
2002-03 2003-04 2004-05 2005-06 2006-07
Quantity (Million KG) 519.33 499.07 504.72 671.70 665.52
Value (Million US$) 905.23 1,080.85 1,045.82 1,379.91 1,443.13
Average Unit Price (US$/KG) 1.74 2.17 2.07 2.05 2.17
5.3.1.1 Product Mix
As Pakistani cotton is of short staple, the spinning industry is mainly producing coarser yarn. According
to the International Textiles and clothing Manufacturing Federation (ITMF) statistics 2005, Pakistan had
9.5 million short staple spindles and 3.5 hundred thousand long staple spindles7. Resultantly most of the
yarn which spinning industry is exporting is of coarser count.
Table 17: Top sub-categories of Cotton Yarn exports from Pakistan to World (Value in Million US$)
HSCODE COMMODITY 2002-03 2003-04 2004-05 2005-06 2006-07
52051200 S-COT.YARN UCF.D-232.56-714.29 415.39 540.96 517.49 515.27 427.84
52053200 MUL/CAB C/Y ULF.232.56-714.29D 71.49 78.28 66.74 334.57 370.70
52051100 SIN.COT.YAR.U.COM.FIB.D-714.29 51.02 66.77 98.88 153.32 161.84
52052200 S/C YARN LF.DX.232.56-714.29 214.86 223.36 193.56 161.08 160.28
52053100 MUL/CAB.C/Y.ULF.>714.29DECITEX 2.30 5.69 7.57 53.11 93.28
52051300 S-COT.YARN UCF.D-192.31-232.56 31.93 40.22 41.20 26.37 46.87
52052300 S/C.YARN LF.DX.192.31-232.56 32.09 31.79 30.61 25.68 37.66
52052400 S/C YARN COM.FIB.125-192.31-DX 11.68 15.81 23.50 24.48 25.12
52054200 MUL/CAB.C/Y CF.232.56-714.29DX 12.75 8.03 5.94 5.02 24.44
52052100 S/C YARN COM.FIB D-714.29/MORE 17.00 21.63 32.39 34.07 20.19
Average unit price depends on the quality of the yarn, Uster Statistics results, and the value addition in
the yarn i.e. finer counts, singed yarn, compact yarn and dyed yarn etc,. The coarser counts have lesser
value and hence our overall average export price per unit of cotton yarn has hovered around US$ 1.74-
2.17 per Kg.
7 In short spindle capacity, Pakistan is ranked third behind China and India. In long staple capacity Pakistan was
ranked 11th
along with the Malaysia. In open end spinning capacity Pakistan is ranked fourth after China, India and
Uzbekistan.
Textiles and Clothing Trade 2002-07
Category-wise Performance 17
Another major factor which affects the average unit is the price of international cotton. In 2005-06 when
the world observed bumper crop, average unit price had a decline which is also shown in the following
table for top export varieties.
Table 18: Top export Products (AUP Cotton Yarn US$/KG)
HSCODE COMMODITY 2002-03 2003-04 2004-05 2005-06 2006-07 Growth
52051200 S-COT.YARN UCF.D-232.56-714.29 1.63 2.07 2.01 1.96 2.03 24%
52053200 MUL/CAB C/Y ULF.232.56-714.29D 1.84 2.26 2.18 2.07 2.22 20%
52051100 SIN.COT.YAR.U.COM.FIB.D-714.29 1.52 2.02 1.89 1.87 1.96 29%
52052200 S/C YARN LF.DX.232.56-714.29 1.89 2.33 2.16 2.26 2.30 22%
52053100 MUL/CAB.C/Y.ULF.>714.29DECITEX 1.90 1.99 2.24 2.24 2.31 21%
5.3.1.2 Export Destination
Asia has always remained the major export destination of our yarn and constitutes almost 73% of our
cotton yarn exports; however the share has declined from 78% in last 4 years.
Table 19: Regional Diversification of Exports (Cotton Yarn US$ Million)
Exports 2002-03 2003-04 2004-05 2005-06 2006-07 Growth Share
Asia 704.50 796.50 777.75 1022.48 1063.78 51% 73.7%
Europe 100.72 134.00 115.75 165.93 210.75 109% 14.6%
North America 80.63 124.32 121.79 154.45 109.75 36% 7.6%
Africa 13.90 19.04 21.88 22.12 30.16 117% 2.1%
South America 3.04 4.91 7.30 12.89 27.03 791% 1.9%
Oceania 1.88 1.69 1.05 1.18 1.36 -28% 0.1%
On the contrary our exports are increasing with higher growth rates in East European, South American
and African markets. The reason behind is that the spinning industry from developed countries has
started shifting towards the low cost countries in their neighborhood countries and as these countries
require in-put mainly yarn and fabric to produce apparels, that is why Pakistani yarn has high demand
and export of cotton yarn is increasing.
Textiles and Clothing Trade 2002-07
Category-wise Performance 18
Table 20: Top partners in Cotton Yarn exports from Pakistan (Value in Million US$)
COUNTRY 2002-03 2003-04 2004-05 2005-06 2006-07 Change in Last 5
Years
Share in Total
Cotton Yarn
Exports
Hong Kong 284.16 338.90 324.64 420.56 403.77 42% 28%
China 104.96 142.61 148.27 264.12 332.80 217% 23%
Korea, Republic of 128.07 118.66 83.19 109.52 89.96 -30% 6%
United States 63.33 106.86 105.31 127.28 82.08 30% 6%
Portugal 25.22 39.97 36.66 56.75 74.06 194% 5%
Bangladesh 20.71 53.24 58.95 74.15 68.10 229% 5%
Turkey 27.26 45.12 35.25 41.99 50.50 85% 3%
Italy 19.12 19.42 21.59 37.93 49.79 160% 3%
Japan 51.30 52.07 57.50 49.89 49.66 -3% 3%
Other Asian
Countries
37.14 20.01 27.04 21.85 27.55 -26% 2%
Hong Kong and China are our major export destination and the fact behind is that during the last decade
China has doubled its textiles and clothing exports requiring large quantities of yarn to meet its value
added sector requirements. Bangladesh, Portugal and Italy are also growing as export destination for
Pakistani cotton yarn.
There is a threat however as China is establishing its spinning base to meet the demand of its local
industry. In 2005 China installed 7.2 million spindles, while in 2006 more investment was done for
procurement of 6.9 more spindles.
Bangladesh has a disadvantage as it has to import cotton to produce yarn, even then its spinning
industry is flourishing as total yarn produced is consumed locally and also Government is giving 5%
subsidy for consuming locally produced yarn.
Bangladesh has also installed approximately 0.5 million spindles along with 6000 rotors in year 2005.
Turkey has installed 0.31 spindles in 2005 and 0.19 spindles in 2006. India has installed 1.43 million
spindles in 2005 and approximately doubled the figure in 2006 which is 2.8 million spindles.
Textiles and Clothing Trade 2002-07
Category-wise Performance 19
5.3.2 Imports
Pakistan has sufficient production of cotton yarn; however as Pakistan has less number of long staple
capacities, there is seasonal demand for the finer counts, which is met by imports8.
Table 21: Total Cotton Yarn Imports
2002-03 2003-04 2004-05 2005-06 2006-07 Growth
Quantity (Million KG) 0.44 4.34 2.56 3.60 1.58 261%
Value (Million US$) 0.84 11.40 7.71 13.85 5.09 506%
Average Unit Import Cost(US$/KG) 1.91 2.63 3.01 3.85 3.21 68%
The higher average unit import cost as compared to our exports is showing that we are importing yarns
of higher quality and higher counts. This fact is also illustrated in the following table.
Table 22: Top Import Commodities (Cotton Yarn US$ Million)
HS CODE 2002-03 2003-04 2004-05 2005-06 2006-07 Share in Last
Year
52061100 S/C YARN UN COM.
FIB>714.29 DX
0.00 0.00 0.15 0.79 1.59 31%
52052700 S/C YARN COM.FIB.106-36-
125-DX
0.00 3.18 3.12 8.50 1.23 24%
52054800 MUL/CAB.C/Y COM.FIB.<
83.33.DX
0.06 0.15 0.12 1.85 0.58 11%
52063100 MUL/CAB C/Y UNF >14.29 DX 0.03 0.35 0.77 0.23 0.52 10%
52053200 MUL/CAB C/Y ULF.232.56-
714.29D
0.00 0.03 0.05 1.34 0.46 9%
As far as sources of imports are concerned, 94% of our cotton yarn is imported from Asian countries
while India is the only major partner.
Table 23: Top 5 Import sources for Yarn (US$ Million)
2002-03 2003-04 2004-05 2005-06 2006-07 Growth Share
India 0.84 8.09 5.16 10.31 3.90 364% 77%
Indonesia 0.00 0.21 0.77 1.07 0.57 11%
Bahrain 0.00 0.00 0.01 0.00 0.18 4%
Spain 0.00 0.11 0.02 0.00 0.12 2%
Italy 0.00 0.00 0.10 0.00 0.08 1%
8 Cotton yarn imports had a share of 0.14% in our textiles and clothing import mix in 2002-03 and have increased
to 0.31% in 2006-07.
Textiles and Clothing Trade 2002-07
Category-wise Performance 20
5.4 Yarn Other than Cotton9
Pakistan spinning industry is mostly producing cotton yarn and has limited base for the production of
other varieties of yarns and hence Pakistan is a net importer of MMF yarns and filaments, silk yarn, wool
yarn and other vegetable yarns.
Table 24: Trade of Yarn other than Cotton10
2002-03 2003-04 2004-05 2005-06 2006-07 Growth
Export Quantity (Million KG) 28.25 17.23 15.39 17.27 30.78 8.96%
Import Quantity (Million KG) 61.28 71.42 74.27 135.84 123.51 101.55%
Net Trade Flow (Million KG) -33.03 -54.19 -58.88 -118.57 -92.73 180.74%
Export Value (Million US$) 46.88 33.72 30.58 36.92 67.9 44.84%
Import Value (Million US$) 93.73 118.27 138.22 250.62 270.45 188.54%
Net Trade Flow (Million US$) -46.85 -84.55 -107.64 -213.7 -202.55 332.34%
The MMF sector is underdeveloped in Pakistan and one of the reasons behind it is that as our local PSF
and PFY plants couldn’t compete with the international prices. To support the underdeveloped sector,
fiscal protection was given to the MMF sector, and hence prices of MMF became high as compared to
international market and hence subsequent sectors are not developed to produce value-added apparels.
5.4.1 Product Mix
Internationally the use of MMF has surpassed the cotton consumption for the production of textiles and
clothing products. After the post quota regime, our apparel sector has also started manufacturing MMF
apparels and hence Pakistani weaving and knitting industry has started importing MMF yarn for sub
sequent processing for further value addition. This category although includes silk and wool yarn
however the varieties of MMF top the chart for our top 5 import commodities for this sub-section.
9 This category comprises of ‘77’ 8-digit HS codes which fall under Chapter 50, 51, 53, 54 and 55
10 The trade share of yarn other than cotton has declined from 0.64% to 0.62% in our export mix in last 5 years
however has increased from 15.8% to 16.6% in the import mix during the same time period.
Textiles and Clothing Trade 2002-07
Category-wise Performance 21
Table 25: Top Import Commodities (Yarn other than Cotton US$ Million)
HS CODE 2002-
03
2003-
04
2004-
05
2005-
06
2006-
07
Growth Share
54023300 FILAMENTS YARN OF
POLYESTERS
17.50 28.13 34.12 72.25 70.93 305% 26%
54024300 OTH S-YARN,POLYE 50
TURNS/MTR
21.49 25.80 30.13 63.17 49.98 133% 18%
54033100 OTH Y/S UN-TWST
VISCOSE RAYON
10.45 12.40 13.53 27.82 32.00 206% 12%
54024910 ELASTOMERIC
YARN,COMP POLYURET
9.86 19.43 22.39 18.96 29.47 199% 11%
54024100 OTH YARN, SINGLE,
UNTWISTED<50/M
4.58 2.78 3.17 9.12 9.55 108% 4%
Although MMF yarn and filaments are cheaper than cotton yarn, there is an Increase in average unit
cost due to surging prices of oil as it is one of the by-products.
Table 26: Top Import Commodities (AUP Yarn other than Cotton US$/KG)
HS CODE 2002-03 2003-04 2004-05 2005-06 2006-07 Growth
54023300 FILAMENTS YARN OF POLYESTERS 1.10 1.13 1.34 1.48 1.64 49%
54024300 OTH S-YARN,POLYE 50 TURNS/MTR 1.13 1.17 1.31 1.40 1.57 39%
54033100 OTH Y/S UN-TWST VISCOSE RAYON 2.15 2.11 2.20 2.40 2.81 31%
54024910 ELASTOMERICYARN,COMP
POLYURET
8.09 8.34 7.66 7.66 7.70 -5%
54024100 OTHYARN,SINGLE,UNTWISTED<50/M 1.47 1.96 2.02 2.08 2.20 49%
5.4.2 Trade Partners
Initially Europe was the central place for MMF manufacturing but now China and Taiwan has taken the
top slot. Pakistan is sourcing most of its imports for this category from Asia i.e. more than 91% while
China is our leading import source.
Table 27: Top 5 Import sources (Yarn Other than Cotton US$ Million)
2002-03 2003-04 2004-05 2005-06 2006-07 Growth Share
China 11.31 16.22 30.13 74.81 114.23 910% 42%
East Timor 13.34 22.99 27.38 41.59 27.26 104% 10%
Falkland Is. Malvinas 8.16 9.72 12.48 26.08 25.58 214% 9%
Georgia 9.68 12.08 11.39 15.01 19.24 99% 7%
Guatemala 17.83 11.64 12.67 23.37 14.39 -19% 5%
Textiles and Clothing Trade 2002-07
Category-wise Performance 22
As far as exports are concerned, 42% of it was directed towards Asian countries in 2006-07 however
Portugal is our major export destination for last five years maintaining more than 20% share in our
exports.
Table 28: Regional diversification of Exports (Yarns other than Cotton US$ Million)
Exports 2002-03 2003-04 2004-05 2005-06 2006-07 Growth Share
Asia 19.78 13.03 8.72 11.85 28.51 44% 42.1%
Europe 18.57 13.45 14.18 14.94 24.27 31% 35.8%
South America 2.15 1.38 2.72 4.40 7.62 255% 11.3%
North America 5.60 4.92 3.87 4.62 5.03 -10% 7.4%
Africa 0.63 0.84 0.94 0.82 2.25 256% 3.3%
Oceania 0.14 0.04 0.03 0.10 0.03 -77% 0.0%
We were only exporting polyester yarns till 2005-06 however in the last year other varieties majorly
acrylic yarn was exported as well.
HSCODE COMMODITY 2002-03 2003-04 2004-05 2005-06 2006-07 Share in last Year
54023300 FILAMENTS YARN OF
POLYESTERS
32.56 24.83 10.88 15.93 25.06 39.35%
55095300 OTH YRN OF POLYESTER
MIX COTTN
10.88 2.82 7.43 13.24 19.7 30.94%
5.5 Cotton Cloth11
Along with the development of the spinning industry in Pakistan, weaving industry had a mushroom
growth and small units equipped with hand looms were installed which were later on converted to
power looms. Now Pakistan have about 35,000 shuttle less looms, and 3,00,000 power looms
approximately producing 8 billion sq meter of fabric.
Shuttle less loom sector is in organized sector, but the power loom sector is having average unit size of
20 looms. Power loom sector has a limitation of producing coarser quality fabric of short width, high
wastages and non-economies of scale are the other limitations.
5.5.1 Exports
Most of this fabric is used locally for the manufacturing of value added products however 30% of it is
exported to other countries. The commodity has remained 2nd top category in our textiles and clothing
exports during last 5 years with a share of 17.7% and 18.8% in 2002-03 and 2006-07 respectively.
11
This category comprises of ‘86’ 8-digit HS codes most of which fall under Chapter 52 while few under Chapter 58
Textiles and Clothing Trade 2002-07
Category-wise Performance 23
Table 29: Export Performance of Cotton Cloth from Pakistan
200
2-03
200
3-04
200
4-05
200
5-06
200
6-07
Quantity (Million SQM) 2,03
6.32
2,40
9.41
2,39
7.65
2,63
3.98
2,21
1.73
Value (Million US$) 1,31
1.09
1,64
2.37
1,84
2.98
2,10
3.26
2,04
7.72
Average Unit Price (US$/SQM) 0.64 0.68 0.77 0.80 0.93
The average unit prices had a steady growth over the last five years however cotton cloth exports have
gone down in post-quota era. Pakistani exports were hit hard in US, UK and Hong Kong with fierce
competition and also many processing plants along with the apparel sector from North America has
been closed or relocated to Asian countries, which has ultimately affected the export of fabric from
Pakistan to North America.
Table 30: Regional Diversification of Exports (Cotton Cloth US$ Million)
Exports 2002-03 2003-04 2004-05 2005-06 2006-07 Growth Share
Europe 364.06 568.69 640.86 767.73 841.66 131% 41.4%
Asia 416.02 469.94 567.46 659.07 661.27 59% 32.5%
North America 344.80 387.93 372.98 376.72 265.92 -23% 13.1%
Africa 108.26 127.99 153.57 169.71 157.18 45% 7.7%
South America 33.64 46.70 65.32 87.13 88.12 162% 4.3%
Oceania 31.94 29.05 24.62 23.77 19.89 -38% 1.0%
Europe by far is the largest importer of our fabric and is processing it to convert it manufacture high
value added products. Eastern Europe is also establishing its apparel Industry with the foundation of
shorter lead times and hence is attractive export destination for Pakistani cotton cloth.
In Asian markets, many countries do not have the complete back ward integration and they have started
their career as apparel manufacturers, and thus are importing fabric from Pakistan.
Turkey has over passed US as our top export destination for our cotton cloth exports. Italy, Bangladesh
and Srilanka are also growing market for Pakistani cotton cloth.
Textiles and Clothing Trade 2002-07
Category-wise Performance 24
Table 31: Top partners in Cotton Cloth exports from Pakistan (Value in Million US$)
COUNTRY 2002-03 2003-04 2004-05 2005-06 2006-07 Change in
Last 5
Years
Share in
Total
Cotton
Fabric
Exports
Turkey 58.91 112.78 141.93 172.09 218.77 271.38% 11%
United States 283.69 319.86 288.95 305.15 194.77 -31.34% 10%
Italy 53.51 79.77 92.99 119.26 133.02 148.60% 6%
Bangladesh 30.82 65.31 70.35 113.22 120.43 290.78% 6%
Sri Lanka 24.44 40.32 54.18 87.34 107.78 341.00% 5%
Hong Kong 115.71 104.52 108.66 124.36 98.31 -15.04% 5%
Spain 30.91 59.34 65.40 75.22 78.79 154.92% 4%
Germany 33.05 51.74 49.94 66.85 71.73 117.03% 4%
Belgium 33.46 37.93 49.96 50.65 61.65 84.27% 3%
United Kingdom 55.93 79.48 65.87 73.37 57.85 3.44% 3%
5.5.2 Export Mix
Woven griege fabric is the top exporting commodity which shows that Pakistan has the raw material but
is not converted to the processed fabric and then further not utilized for the apparel or made up
industry.
Table 32: Top sub-categories of Cotton Cloth exports from Pakistan to World (Value in Million US$)
HSCODE COMMODITY 2002-03 2003-04 2004-05 2005-06 2006-07
52081900 OTHER WOVEN COTTON FAB UN-BLH 414.89 499.67 353.26 489.83 321.93
52103100 COT WOV FAB MX-MMF200G/Million SQM DYE 15.88 47.61 152.82 216.97 214.78
52105100 W-FAB COT MIX,MF W200G/Million SQM PRI 188.41 262.10 283.45 319.48 174.21
52121300 OTH COT W-FAB DYED W 200G/Million SQM 189.49 181.84 223.07 272.15 161.86
52085900 OTH COT WOV FAB 200G/Million SQM PRINT 104.18 88.63 69.38 101.38 114.75
52102100 W-FAB COT MIX-MMF WT 200G/Million SQM 28.39 109.73 127.86 118.07 102.72
52094200 COTTON WOV FAB DENIM>200G/Million SQM 18.79 41.68 64.59 72.93 93.22
52091100 WOV FAB COT WT>200G/Million SQM UNBLAC 0.17 0.61 7.36 36.65 70.16
52083900 OTH COTON WOV FAB<2000/Million SQM DYE 1.53 1.03 41.03 24.91 69.37
52121100 OTH COT W-FAB UN-BL W 200G/Million SQM 2.05 67.45 50.50 38.47 61.26
Export prices have gone up, blended fabric observed more increase compared to the cotton clothes.
Dyed and printed fabric prices experienced 16 and 17% raise in last five years.
Textiles and Clothing Trade 2002-07
Category-wise Performance 25
Table 33: Top Exported Products (AUP Cotton Cloth US$/SQM)
HSCODE COMMODITY 2002-03 2003-04 2004-05 2005-06 2006-07 Growth
52081900 OTHER WOVEN COTTON FAB UN-BLH 0.76 0.80 0.90 0.92 0.98 30%
52103100 COT WOV FAB MX-MMF200G/Million
SQM DYE
0.55 0.63 0.69 0.71 0.82 49%
52105100 W-FAB COT MIX,MF W200G/Million
SQM PRI
0.43 0.47 0.52 0.52 0.60 40%
52121300 OTH COT W-FAB DYED W
200G/Million SQM
1.03 0.98 1.11 1.21 1.21 17%
52085900 OTH COT WOV FAB 200G/Million
SQM PRINT
0.84 0.85 0.94 0.96 0.98 16%
5.5.3 Imports
Pakistan is also importing cotton cloth which has increased almost 3 times in last 5 years however the
share in our import mix has only been 1.49% and 1.55% in 2002-03 and 2006-07 respectively.
Table 34: Total Imports of Cotton Cloth
2002-03 2003-04 2004-05 2005-06 2006-07 Growth
Quantity (Million SQM) 8.89 38.33 28.10 15.23 22.67 155%
Value (Million US$) 8.86 35.84 31.12 17.94 25.22 185%
Average Unit Import Cost(US$/SQM) 1.00 0.94 1.11 1.18 1.11 12%
Asia has remained our major import source for the procurement of cotton cloth. The origin for the
cotton cloth has although changed from Bahrain after 2004-05 in the favor of China and Bangladesh.
Table 35: Regional Diversification of Imports (Cotton Cloth US$ Million)
2002-03 2003-04 2004-05 2005-06 2006-07 Growth Share
Asia 7.57 30.62 29.50 15.27 22.32 195% 89%
Europe 0.97 4.56 1.49 2.29 2.33 140% 9%
North America 0.22 0.41 0.00 0.30 0.51 130% 2%
Africa 0.10 0.21 0.07 0.00 0.06 -39% 0%
Oceania 0.00 0.04 0.05 0.08 0.00 -89% 0%
South America 0.00 0.00 0.00 0.00 0.00 #DIV/0! 0%
Textiles and Clothing Trade 2002-07
Category-wise Performance 26
5.6 Synthetic Textiles and clothing12
Internationally Synthetic textiles and clothing are getting fame over cotton, as synthetic textiles and
clothing products have more product life, better wash and wear properties and brighter colors. Different
blended fabrics can be manufactured by using different fibers and according to the application.
Pakistan textiles and clothing industry is cotton based industry and share of synthetic textiles and
clothing in production is below 25%. The fact is reiterated by the share of this commodity in Pakistani
textiles and clothing trade which has remained below 8% during the last 5 years.
Although Pakistan has a small base of synthetic raw materials however it has remained a net exporter of
this category but the gap has shrunk.
2002-03 2003-04 2004-05 2005-06 2006-07 Growth
Export Quantity (Million KG) 787.93 654.61 402.28 289.45 533.81 -32%
Import Quantity (Million KG) 34.9 54.04 57.18 130.23 123.02 252%
Net Trade Flow (Million KG) 753.03 600.57 345.1 159.22 410.79 -45%
Export Value (Million US$) 558.9 451.89 296.87 199.84 424.38 -24%
Import Value (Million US$) 27.11 41.69 39.83 111.06 107.53 297%
Net Trade Flow (Million US$) 531.79 410.2 257.04 88.78 316.85 -40%
The share of synthetic textiles and clothing has declined from 7.6% to 3.9% in export mix and has
increased from 4.6% to 6.6% in import mix which shows that local processing and downstream industry
is catching up with the international trend.
5.6.1 Regional Diversification
Pakistan’s export destinations are well diversified in this category however Europe is the major buyer for
the Pakistani synthetic fabric.
Table 36: Regional Diversification of Exports (Synthetic Textiles and clothing US$ Million)
Exports 2002-03 2003-04 2004-05 2005-06 2006-07 Growth Share
Europe 139.28 142.95 84.12 79.56 145.48 4% 34.6%
Asia 225.56 175.35 104.50 54.83 100.53 -55% 23.9%
Africa 89.15 58.57 56.70 34.82 76.36 -14% 18.2%
North America 92.41 60.48 42.03 21.10 55.76 -40% 13.3%
South America 7.33 9.12 6.15 6.94 40.03 446% 9.5%
Oceania 3.68 3.71 2.43 1.26 2.31 -37% 0.5%
12
This category is also called Art, Silk and Synthetic Textiles and clothing however it only includes fabric of man-
made fiber and filament. The category comprises of ‘110’ 8-digit HS codes which fall under Chapter 54, 55 and 58.
Textiles and Clothing Trade 2002-07
Category-wise Performance 27
Asia is the leading import source in synthetic textiles and clothing imports and Pakistan is sourcing 97%
of its synthetic fabric from Asian countries mainly China which constituted 71% of our total synthetic
fabric imports in 2006-07.
Table 37: Top Import sources (Synthetic Textiles and clothing US$ Million)
2002-03 2003-04 2004-05 2005-06 2006-07 Growth Share
China 6.92 17.57 22.35 70.97 76.13 1000% 71%
Other Asian Countries 4.93 5.07 3.12 6.88 4.88 -1% 5%
Thailand 1.18 1.70 2.77 3.24 4.87 311% 5%
Korea, Republic of 6.89 5.41 4.06 7.75 4.83 -30% 4%
United Arab Emirates 0.00 0.00 1.41 1.01 3.93 #DIV/0! 4%
5.6.2 Top Traded Commodities
Exports of Synthetic fabric of manmade fiber has increased from 1 million USD to 71 million USD in last
five years, the export of other synthetic textiles and clothing also increased, but the export of filament
fabric has declined in last five years.
Table 38: Top Exported Products (Synthetic Textiles and clothing US$ Million)
HSCODE COMMODITY 2002-03 2003-04 2004-05 2005-06 2006-07 Growth
55134100 WOV FAB POLY STAP FIB
PRINTED
1.239817 14.9537 0.496017 12.88087 71.60062 5675%
55131100 W.FAB SYN STA FIB MX COT
170G
0.844767 19.69315 15.41038 13.77588 66.54105 7777%
55134900 O/W-FAB SYN STAP FIB MIX
COTON
0 0.067867 0.464483 0 51.1167 #DIV/0!
54077400 OTH WOV FAB SYNTH FIL
PRINTED
302.9649 186.2202 104.4689 114.5137 34.0117 -89%
55132100 W-FAB SYN STA FIB MX COT
DYED
0.177417 2.891533 4.546 5.977333 27.42932 15360%
Similar to the above trend, filament fabric is the tops imported commodity and its imports have
increased manifolds as well.
Textiles and Clothing Trade 2002-07
Category-wise Performance 28
Table 39: Top Imported Commodities (Synthetic Textiles and clothing US$ Million)
HS CODE 2002-03 2003-04 2004-05 2005-06 2006-07 Growth Share
54074200 OTH FAB 85% OR MORE
DYED
6.57 13.48 10.74 34.69 29.60 351% 28%
54075200 OTH W.FAB TEXTUR POLY
DYED 85%
1.31 1.85 2.94 6.66 8.42 542% 8%
54076900 OTH FAB POLY FIL TEXTILES
AND CLOTHING MAT
0.72 2.44 3.58 5.16 7.73 979% 7%
54075100 OTH W.FAB TEXTURED POLY
U-BLEA
5.63 4.13 1.97 11.54 7.32 30% 7%
54071000 WOV FAB HI-TENACI YRN
NYLON PO
2.60 3.01 2.88 23.31 6.65 156% 6%
5.7 Knitwear13
Pakistan has a very strong base in Knitwear with heavy presence of Vertically Integrated Units (VIUs).
Pakistan's knitting industry is primarily based on indigenous cotton yarns and is ranked 3rd amongst top
exported categories of Pakistani textiles and clothing. The share of this category in the export mix has
increased from 15.14% to 18.17% volume-wise during last 5 years.
Table 40: Total Exports
2002-03 2003-04 2004-05 2005-06 2006-07 Growth
Quantity (Million DOZ) 52.12 66.36 70.99 84.71 97.95 87.9%
Value (Million US$) 1,117.23
1,400.25
1,614.66
1,747.32
1,981.28 77.3%
Average Unit Import Cost (US$/DOZ) 21.436 21.099 22.745 20.628 20.227 -5.6%
This table indicates that AUV has declined over the period and reason behind it can be deteriorated
average unit prices or increased weightage of lower value added products in the export mix.
13
This category comprises of ‘116’ 8-digit HS codes most of which fall under Chapter 61. It includes one tariff line
of Chapter 62 i.e. “62101000 Garments made up of fabrics of heading 56.02, 56.03 (nonwovens)”.
Textiles and Clothing Trade 2002-07
Category-wise Performance 29
Table 41: Top Exported Products (Knitwear US$ Million)
HSCODE COMMODITY 2002-03 2003-04 2004-05 2005-06 2006-07 Growth
61051000 MEN/BOYS SHIRTS COTTON
KNI/CRO
485.7721 540.5504 390.6005 559.2949 533.1642 10%
61091000 T-SHIRT,SINGLETS,VEST COT
K/CR
80.64333 149.5553 140.9457 231.018 262.5949 226%
61152010 SOCKS FULL/KNEE LENGTH 53.63587 83.30447 111.5484 183.1235 206.6893 285%
61059000 MEN/BOYS SHIRTS O/TEXTILES
AND CLOTHING K/CR
4.35475 13.36607 176.5916 50.40502 170.3759 3812%
61061000 W/GIRL SHIR/BLOUSES COT
KN/CRO
88.36173 112.9716 50.0397 69.37485 80.50823 -9%
Cotton based shirts and t-shirts for men, women and boys are the top most export commodities in
Knitwear. However there is also huge growth in the exports of MMF based men and boys shirts and
socks which had a compound growth of 150% and 40% per annum respectively.
Table 42: Top Exported Products (AUP Knitwear US$/DOZ)
HSCODE COMMODITY 2002-03 2003-04 2004-05 2005-06 2006-07 Growth
61051000 MEN/BOYS SHIRTS COTTON KNI/CRO 41.19 40.80 42.16 42.96 42.56 3%
61091000 T-SHIRT,SINGLETS,VEST COT K/CR 31.51 32.45 35.40 37.29 39.29 25%
61152010 SOCKS FULL/KNEE LENGTH 4.32 4.73 4.97 4.80 4.87 13%
61059000 MEN/BOYS SHIRTS O/TEXTILES AND
CLOTHING K/CR
40.40 40.91 39.60 40.18 40.96 1%
61061000 W/GIRL SHIR/BLOUSES COT KN/CRO 33.56 34.26 36.59 37.01 38.16 14%
The average unit prices for top 5 commodities by value has not decline however there was a huge
increase in the share of socks in our export mix quantity wise i.e. 23.8% in 2002-03 to 43.3% in 2006-07
which is a low value added product. This increase has resulted in the decline of average unit price of the
whole category.
Textiles and Clothing Trade 2002-07
Category-wise Performance 30
5.7.1 Export Destinations
North America with 67% share and Europe with 30% share are the major destinations for the Pakistani
exports of Knitwear products.
Table 43: Regional diversification of Exports (Knitwear US$ Million)
Exports 2002-03 2003-04 2004-05 2005-06 2006-07 Growth Share
North America 722.66 845.76 956.58 1131.99 1332.85 84% 67.3%
Europe 325.95 478.50 547.59 544.10 592.97 82% 30.0%
Asia 48.44 49.25 74.30 49.03 34.32 -29% 1.7%
Africa 11.62 17.28 23.78 11.68 11.78 1% 0.6%
Oceania 7.02 6.88 5.97 4.80 4.33 -38% 0.2%
South America 0.45 0.76 2.76 2.28 2.86 535% 0.1%
In last 5 years knitwear exports to North America and Europe has increased with a compound growth
rate of 16.54% and 16.51% respectively whereas there is a decline towards Asian countries. The reason
behind this shift can be the R&D support of 6% which favors the export to EU Countries, United States,
Canada, Australia, Japan, and Switzerland most of which are also our major export destinations for
Knitwear exports.
Table 44: Top Export destinations (Knitwear US$ Million)
COUNTRY 2002-03 2003-04 2004-05 2005-06 2006-07 Growth Share
United States 682.42 808.01 917.86 1084.99 1274.24 87% 64.3%
United Kingdom 98.99 150.45 151.70 160.20 191.37 93% 9.7%
Netherlands 41.63 71.67 72.93 71.06 82.04 97% 4.1%
Italy 26.78 43.71 65.60 80.86 75.83 183% 3.8%
Germany 66.82 84.93 86.74 76.82 65.38 -2% 3.3%
Textiles and Clothing Trade 2002-07
Category-wise Performance 31
5.7.2 Imports
Import of knitwear garments is insignificant however few retail chain stores have started importing
knitwear garments. The share of this category in import mix of textiles and clothing products has
increased from 0.43% to 1.01% during 5 year time.
Table 45: Total Imports of Knitwear
2002-03 2003-04 2004-05 2005-06 2006-07 Growth
Quantity (Million DOZ) 0.08 0.39 0.29 0.76 1.77 2109%
Value (Million US$) 2.58 5.58 4.81 11.60 16.53 542%
Average Unit Import Cost (US$/DOZ) 32.14 14.31 16.82 15.31 9.34 -71%
Almost 90% of these imports are sourced from Asia while China, Thailand and Hong Kong are our major
import sources.
Table 46: Top Import sources (Knitwear US$ Million)
2002-03 2003-04 2004-05 2005-06 2006-07 Growth Share
China 0.93 2.25 2.14 5.81 9.67 935% 59%
Thailand 0.53 0.90 0.98 2.57 2.22 321% 13%
Hong Kong 0.16 0.31 0.14 0.22 1.47 811% 9%
Italy 0.08 0.16 0.03 0.13 0.41 404% 2%
United States 0.26 0.21 0.20 0.12 0.38 47% 2%
41% of these imports constitutes of babies garments which is a highly value added product and Pakistani
entrepreneurs can exploit the opportunity for investment.
Table 47: Top Imported Commodities (AUP Knitwear US$/DOZ)
HS CODE 2002-03 2003-04 2004-05 2005-06 2006-07 Growth
61119000 BABY GARMENT OF OTH TEX KNI/CR 120.31 114.30 141.13 146.34 156.26 30%
61169300 GLOVE,MITTENS ETC KNIT SYN FIB #DIV/0! 1.85 1.37 2.19 2.23 #DIV/0!
61099000 T/SHIRT,OTH TXT KN/CR 18.79 17.80 12.99 20.76 19.98 6%
61069000 W/GIRL SHIR/BLOU OTH TEXMATK/C 18.77 12.38 13.99 17.41 21.33 14%
61161000 GLOV,MITTEN,ETC PCAS/RUBER K/C 2.64 4.58 4.00 7.56 2.70 2%
Textiles and Clothing Trade 2002-07
Category-wise Performance 32
5.8 Readymade Garments14
Readymade garments are the most value added export category and it has shown a compound growth
of 7.06% per annum value-wise from 2002-03 to 2006-07. There is also an increase in average unit price
which indicates shift towards more value addition. However the share of this category in overall
Pakistani textiles and clothing exports has declined from 14.44% to 12.84% in last five years.
Table 48: Total Exports RMG
2002-03 2003-04 2004-05 2005-06 2006-07 Growth
Quantity (Million DOZ) 35.27 26.33 33.24 35.89 39.20 11%
Value (Million US$) 1065.02 953.43 1076.89 1306.88 1399.20 31%
Average Unit Export Earnings(US$/DOZ) 30.19 36.20 32.40 36.42 35.70 18%
5.8.1 Export destinations
The trend in export destination is like-wise Knitwear and Europe and North American markets
accumulated more than 92% of Pakistani readymade garments exports.
Table 49: Regional Diversification of Exports (RMG US$ million)
Exports 2002-03 2003-04 2004-05 2005-06 2006-07 Growth Share
Europe 437.50 454.75 476.39 623.11 733.83 68% 52.6%
North America 365.37 343.18 391.41 540.39 559.25 53% 40.1%
Asia 230.88 132.92 179.76 110.04 77.39 -66% 5.5%
Africa 24.32 15.35 20.61 16.47 13.43 -45% 1.0%
Oceania 4.56 5.67 5.48 8.74 9.11 100% 0.7%
South America 0.58 0.59 0.71 1.82 2.70 366% 0.2%
Effect of R%D support is also evident in the shift towards these markets with a huge decline in Asian and
African markets.
Top Trading Partners for this category is also EU countries and US which have remained our major
export destinations since quota regime.
14
This category comprises of ‘127’ 8-digit HS Codes most of which fall under Chapter 62. However it includes 4
tariff lines of Chapter 61 i.e. 61171000, 61172000, 61178000 and 6117900 (Other made up clothing accessories,
knitted or crocheted; knitted or crocheted parts of garments or of clothing accessories)
Textiles and Clothing Trade 2002-07
Category-wise Performance 33
Table 50: Top Export destinations (RMG US$ Million)
COUNTRY 2002-03 2003-04 2004-05 2005-06 2006-07 Growth Share
United States 337.01 322.06 372.03 519.62 539.38 60% 38.5%
Germany 117.10 105.66 110.85 148.32 180.71 54% 12.9%
United Kingdom 108.75 110.36 107.18 121.35 143.84 32% 10.3%
Spain 22.09 31.33 43.47 69.57 78.34 255% 5.6%
Italy 30.28 42.28 48.56 67.73 74.40 146% 5.3%
5.8.2 Export Mix
Trousers top the chart in this category. Cotton based men trousers have remained the leading export
product for last five years. However Men/Boys shirts who were 2nd in the list in 2002-03 have dropped
to 5th while cotton based women trouser have taken over its rank with trouser of Man Made Fiber now
ranked 3rd in 2006-07.
Table 51: Top Exported Products (RMG US$ Million)
HSCODE COMMODITY 2002-03 2003-04 2004-05 2005-06 2006-07 Growth
62034200 OTH TROU BIB M/BOY COTT
N/KNIT
333.4489 360.5534 337.0137 518.4958 568.0922 70%
62046200 TROUSER W/GRL COTTON
Million DOZT KNIT
87.84732 83.25817 93.69292 205.2938 250.7383 185%
62046900 TROUSER W/GRL TEX MAT
Million DOZT KNIT
0.174083 0.770467 12.93773 52.79775 59.29157 33959%
62079100 BATHROB ETC MEN COTTON
N/KNIT
48.4094 52.77672 39.23935 55.03705 52.77837 9%
62052000 SHIRTS MEN/BOYS OF COT
N/KNIT
89.52125 69.02223 80.878 63.08393 47.06825 -47%
The Average unit prices of these top products have shown a dismal picture in last year which depicts the
increased competition in post quota era.
Textiles and Clothing Trade 2002-07
Category-wise Performance 34
Table 52: Top Exported Products (AUP RMG US$/DOZ)
HSCODE COMMODITY 2002-03 2003-04 2004-05 2005-06 2006-07 Growth
in 5 years
62034200 OTH TROU BIB M/BOY COTT
N/KNIT
41.08 42.83 41.61 42.11 41.22 0%
62046200 TROUSER W/GRL COTTON Million
DOZT KNIT
40.15 40.16 41.35 41.72 42.40 6%
62046900 TROUSER W/GRL TEX MAT Million
DOZT KNIT
38.54 39.34 38.34 39.85 41.33 7%
62079100 BATHROB ETC MEN COTTON
N/KNIT
463.92 467.23 474.41 483.58 475.57 3%
62052000 SHIRTS MEN/BOYS OF COT N/KNIT 38.66 39.21 39.78 41.30 40.63 5%
5.8.3 Imports
Like-wise knitwear, Pakistan has a negligible share of readymade garments in import mix. The share
however has increased from 0.77% to 0.95% in last five years.
Table 53: Total Imports of Readymade Garments
2002-03 2003-04 2004-05 2005-06 2006-07 Growth
Quantity (Million DOZ) 0.41 0.63 0.57 0.81 1.25 206%
Value (Million US$) 4.56 4.77 5.45 9.35 15.43 238%
Average Unit Import Cost (US$/DOZ) 11.17 7.55 9.56 11.48 12.35 11%
75% of these imports are sourced from Asian countries while China, UK, and Thailand are our top three
import sources.
Table 54: Top Import sources (RMG US$ Million)
2002-03 2003-04 2004-05 2005-06 2006-07 Growth Share
China 1.66 1.94 2.75 4.49 8.38 404% 54%
United Kingdom 0.09 0.17 0.09 0.18 1.52 1536% 10%
Thailand 1.33 0.65 0.82 1.55 1.24 -7% 8%
United States 0.12 0.06 0.15 0.18 0.99 737% 6%
Indonesia 0.35 0.18 0.23 0.20 0.40 14% 3%
Baby’s garments and Men suit of other textiles and clothing materials are the top importing commodity
in this category and the reason behind is costlier manufacturing of Made Fiber based woven garments in
Pakistan due to expensive raw material.
Textiles and Clothing Trade 2002-07
Category-wise Performance 35
Table 55: Top Imported Commodities (RMG US$ Million)
HS CODE 2002-03 2003-04 2004-05 2005-06 2006-07 Growth Share
62099000 BABIE GAR&CLOTH TEX MAT
N/KNIT
2.20 1.24 1.16 2.59 3.04 38% 20%
62031990 SUIT MEN/BOYS TEX MAT
NOT KNIT
0.00 0.03 0.13 0.28 2.34 93692% 15%
62052000 SHIRTS MEN/BOYS OF COT
N/KNIT
0.28 0.31 0.43 1.08 1.17 312% 8%
62121000 BRASSIERES 0.17 0.31 0.25 0.44 0.71 317% 5%
62160010 GLOVES OF TEXTILES AND
CLOTHING FABRICS
0.01 0.63 0.24 0.25 0.52 9186% 3%
5.9 Bed-wear15
Bed ware is one of the strength of Pakistani Textiles and clothing Industry and it has enjoyed 2nd rank in
Pakistani export mix of textiles and clothing during last five years. Lot of investment has been done by
the processing industry in wider width machines to increase its exports as well.
5.9.1 Exports
The category had an impressive compound growth of 16.2% during 2002-03 and 2005-06 however had a
decline of 0.81% in the last year i.e. 2006-07.
Table 56: Total Exports Bed-wear
2002-03 2003-04 2004-05 2005-06 2006-07 Growth
Quantity (Million KG) 241.89 244.21 264.44 375.17 366.96 52%
Value (Million US$) 1293.88 1327.77 1434.40 2033.30 2016.77 56%
Average Unit Export Earnings(US$/KG) 5.35 5.44 5.42 5.42 5.50 3%
This decline is basically faced in North American markets where China has put up a strong competition
after quota abolition. Figures in the following table illustrate the same.
Table 57: Regional Diversification of Exports (Bed-wear US$ Million)
Exports 2002-03 2003-04 2004-05 2005-06 2006-07 Growth Share
North America 359.81 435.31 621.59 1092.65 1001.26 178% 50.0%
Europe 546.59 606.40 583.61 718.79 799.28 46% 40.0%
Asia 278.79 199.43 137.52 93.74 83.49 -70% 4.2%
Oceania 48.07 45.29 46.02 54.31 51.80 8% 2.6%
Africa 48.79 28.99 26.72 33.57 40.00 -18% 2.0%
South America 6.17 5.67 8.95 17.71 24.80 302% 1.2%
15
Bed-wear category falls under Chapter 63 and comprises of ‘18’ 8-digit HS Codes.
Textiles and Clothing Trade 2002-07
Category-wise Performance 36
Despite of facing antidumping duty, Pakistan has been able to maintain its growing trend in European
markets however there is a continued decline in Asia which depicts that we have not remain cost
effective enough to sell our products in underdeveloped and/or developing countries. China again
seems to be the major factor behind this trend.
USA was the major export destination with 47% of the share in 2006-07, however the value has declined
in the last year which corresponds to the earlier explanation.
Table 58: Top Export destinations (Bed-wear US$ Million)
COUNTRY 2002-03 2003-04 2004-05 2005-06 2006-07 Growth Share
United States 328.21 411.38 589.43 1044.38 951.31 190% 47.2%
United Kingdom 183.13 203.33 152.37 159.37 189.86 4% 9.4%
Germany 102.94 90.75 98.73 113.97 120.01 17% 6.0%
Netherlands 56.44 67.85 68.97 87.09 85.26 51% 4.2%
France 75.16 83.27 79.80 87.58 84.86 13% 4.2%
As far as various varieties of bed-wear is concerned, mill-made bed sheets of cotton is the top exported
commodity of this category, however, it has observed a sharp decline in the last year.
Table 59: Top Exported Products (Bed-wear US$ Million)
HSCODE COMMODITY 2002-03 2003-04 2004-05 2005-06 2006-07 Growth
63023110 BED SHEETS OF COTTON MILL-
MADE
785.5685 776.918 648.3107 727.2614 514.6846 -34%
63023190 OTH BED LINEN OF COTTON 178.1173 170.4309 140.158 199.6616 274.816 54%
63021010 BED SHEETS, KNITTED/
CROCHETED
23.9829 96.21375 160.0403 153.994 239.0176 897%
63023200 OTH BED LINEN OF MAN-MADE
FIB
63.16065 92.06593 130.0594 358.7473 209.5737 232%
63023990 BED LINEN OTH TEX MAT
Million DOZT/KNIT
106.511 38.99517 50.32903 102.9983 144.19 35%
Textiles and Clothing Trade 2002-07
Category-wise Performance 37
Rest of varieties has lesser share but they are contributing with almost the same average unit value to
our bed-wear exports and all had increasing trend.
Table 60: Top Exported Products (AUP Bed-wear US$/KG)
HSCODE COMMODITY 2002-03 2003-04 2004-05 2005-06 2006-07 Growth
63023110 BED SHEETS OF COTTON MILL-MADE 5.55 5.55 5.57 5.55 5.51 -1%
63023190 OTH BED LINEN OF COTTON 5.26 5.62 5.62 5.64 5.97 13%
63021010 BED SHEETS,KNITTED/CROCHETED 4.47 4.94 5.21 5.27 5.20 16%
63023200 OTH BED LINEN OF MAN-MADE FIB 5.35 5.33 5.46 5.44 5.62 5%
63023990 BED LINEN OTH TEX MAT Million
DOZT/KNIT
4.94 5.06 5.32 5.40 5.46 10%
5.9.2 Imports
Bedware imports are almost negligible and had a minimal share of below 0.07% in our import mix during
the last five years.
Table 61: Total Bed-wear Imports
2002-03 2003-04 2004-05 2005-06 2006-07 Total Growth
Quantity (Million KG) 0.02 0.13 0.12 0.18 0.21 790%
Value (Million US$) 0.12 0.69 0.49 0.92 1.02 762%
Average Unit Import Cost (US$/KG) 5.10 5.48 3.96 5.10 4.94 -3%
5.10 Towels16
Towel is one of the main export commodity, and Pakistani cotton due to its inherent fiber properties
with short staple suits towel manufacturing. There are about ten thousand conventional looms and
about 700 shuttle-less looms dedicated for towel manufacturing. About 80% of the towel manufacturing
is in organized sector.
5.10.1 Exports
Towels had a share of 4.94% in textiles and clothing export mix in 2002-03 and this share has increased
to 5.58% in last five years. Exports of towels have increased with an impressive compound growth rate
of 13.94% while there was a slight increase in average unit price as well.
16
This category only includes mill-made towels which are traded under one 8-digit HS-Code i.e. 63026010
Textiles and Clothing Trade 2002-07
Category-wise Performance 38
Table 62: Total Exports Towels
2002-03 2003-04 2004-05 2005-06 2006-07 Total Growth
Quantity (Million KG) 100.59 101.81 139.17 158.78 159.47 59%
Value (Million US$) 364.61 387.27 515.00 586.33 608.76 67%
Average Unit Export Earnings(US$/KG) 3.62 3.80 3.70 3.69 3.82 5%
Just like other major value added products, North America and Europe have remained our top export
destinations for Pakistani towels as well and their combined share has risen from about 75% to above
86%.
Table 63: Regional Diversification of Exports (Towels US$ Million)
Exports 2002-03 2003-04 2004-05 2005-06 2006-07 Growth Share
North America 164.37 204.15 272.01 344.06 355.86 116% 59.0%
Europe 108.52 108.67 151.65 163.15 167.97 55% 27.9%
Asia 62.43 45.15 56.20 31.46 38.14 -39% 6.3%
Oceania 12.01 16.14 13.79 20.19 17.54 46% 2.9%
Africa 9.39 6.47 10.83 11.80 15.28 63% 2.5%
South America 3.73 2.34 4.72 5.34 8.33 123% 1.4%
Our exports to Asia has also declined in this category and reason behind is the rising prices of cotton and
cotton yarn in Pakistan and increased competition from China and India.
US, UK and Germany are the major export destinations for Pakistan in this category as well.
Table 64: Top Export destinations (Towels US$ Million)
COUNTRY 2002-03 2003-04 2004-05 2005-06 2006-07 Growth Share
United States 149.37 185.57 252.69 324.82 339.95 128% 55.8%
United Kingdom 21.02 24.74 27.79 34.55 42.63 103% 7.0%
Germany 16.82 14.58 28.81 23.92 22.76 35% 3.7%
Spain 6.63 7.96 16.07 17.31 19.64 196% 3.2%
United Arab Emirates 0.00 0.00 13.99 0.95 16.69 #DIV/0! 2.7%
Textiles and Clothing Trade 2002-07
Category-wise Performance 39
5.10.2 Imports
Pakistan has negligible imports of towels and we cannot specify any country as a permanent source.
Table 65: Total Imports Towels
2002-03 2003-04 2004-05 2005-06 2006-07 Growth
Quantity (Million KG) 0.01 0.03 0.00 0.07 0.05 647%
Value (Million US$) 0.03 0.16 0.00 0.24 0.17 487%
Average Unit Import Cost (US$/KG) 4.00 5.79 2.67 3.36 3.14 -21%
5.11 Tents, canvas and Tarpaulins17
Pakistani cotton is of short staple, and it suits best for the manufacturing of tents, canvas and tarpaulins.
Most of the manufactured products however are consumed locally.
5.11.1 Exports
Share of this category in our textiles and clothing export mix was 0.97% in 2002-03 which had a
continued decline with increasing average unit prices afterwards.
Table 66: Total Exports Tents/Canvas
2002-03 2003-04 2004-05 2005-06 2006-07 Growth
Quantity (Million KG) 32.21 31.92 26.44 17.15 25.86 -20%
Value (Million US$) 71.22 71.72 65.85 38.84 69.80 -2%
Average Unit Export Earnings(US$/KG) 2.21 2.25 2.49 2.26 2.70 22%
Steep decline however came in 2005-06 when Pakistan was hit by a huge earthquake on the October 8th,
2005 and Government imposed ban on exports of tents to support the victims.
Tents of cotton top the chart for this category and had a share of 85% in the export mix of this category
in 2002-03. The share and value however has declined to 67%. Rest of products have shown a steady
growth except in 2005-06 but their values are still meager.
Table 67: Top Exported Products (Tents/Canvas US$ Million)
HSCODE COMMODITY 2002-03 2003-04 2004-05 2005-06 2006-07 Growth
63062100 TENTS OF COTTON 60.76665 55.40447 52.19083 27.65363 46.64043 -23%
63061110 TARPAULINS, OF COTTON 7.8298 13.4619 6.702833 5.945683 8.475567 8%
63062900 TENTS OF OTH TEX MATERIAL 0.948717 0.926417 1.222033 0.353483 7.074117 646%
63069100 OTH,CAMPING GOODS OF
COTTN NES
0.073383 0.138683 0.24495 0.037083 2.522717 3338%
63061290 OTH AWNING/SUNBLIND OF
SYN FIB
0.047083 0.041883 0.051367 0.32775 1.353133 2774%
17
This category falls under Chapter 63 and comprises of ‘14’ 8-digit HS Codes
Textiles and Clothing Trade 2002-07
Category-wise Performance 40
Asia is the major export destination for this category constituting more than 73% in last five years and
hot countries of Middles East are our major export destinations.
Table 68: Top Export destinations (Tents/Canvas US$ Million)
COUNTRY 2002-03 2003-04 2004-05 2005-06 2006-07 Growth Share
Saudi Arabia 18.62 35.62 19.03 16.85 28.25 52% 40.5%
Kuwait 14.51 11.53 8.78 4.07 8.79 -39% 12.6%
United Arab Emirates 0.00 0.00 1.92 0.30 3.97 #DIV/0! 5.7%
Libya 0.50 0.30 1.46 0.75 2.87 475% 4.1%
United States 0.85 1.46 0.74 0.93 2.13 151% 3.1%
5.11.2 Imports
Pakistan had negligible imports for this category however as mentioned earlier, the tragic event of
earthquake increased the demand for tents and other camping products for the victims as well as for
the support organization that started their operations in the earthquake hit area.
Table 69: Total Imports (Tents, Canvas and Tarpaulins)
2002-03 2003-04 2004-05 2005-06 2006-07 Growth
Quantity (Million KG) 0.22 0.02 0.10 2.85 1.70 690%
Value (Million US$) 3.50 0.06 0.34 9.39 6.75 93%
Average Unit Import Cost (US$/KG) 16.27 3.17 3.37 3.29 3.97 -76%
These tents and camping products were mostly sourced from China, US and Canada.
Table 70: Top Import sources (Tents/Canvas US$ Million)
2002-03 2003-04 2004-05 2005-06 2006-07 Growth Share
United States 0.00 0.00 0.01 0.02 3.70 #DIV/0! 55%
Canada 0.00 0.00 0.00 0.06 1.47 #DIV/0! 22%
China 0.00 0.04 0.06 7.05 0.56 14023% 8%
Korea, Republic of 0.00 0.00 0.00 0.02 0.18 #DIV/0! 3%
Australia 0.00 0.00 0.00 0.00 0.17 #DIV/0! 3%
Textiles and Clothing Trade 2002-07
Category-wise Performance 41
Most of the imports were made of other textiles and clothing materials.
Table 71: Top Imported Commodities (Tents/Canvas US$ Million)
HS CODE 2002-03 2003-04 2004-05 2005-06 2006-07 Growth Share
63062900 TENTS OF OTH TEX
MATERIAL
0.64 0.00 0.00 3.08 5.68 794% 84%
63069900 OTH CAMPING GOODS
OTH TEX NAT
0.02 0.02 0.01 1.15 0.42 2519% 6%
63061290 OTH AWNING/SUNBLIND
OF SYN FIB
0.00 0.00 0.25 0.04 0.14 22558% 2%
63061190 OTH
AWANINGS/SUNBLINDS
COTTON
0.01 0.00 0.06 1.19 0.13 1653% 2%
63061900 TARPAULINS,AWNINGS
OF TEX MAT
1.04 0.00 0.01 0.31 0.12 -88% 2%
Others 1.80 0.04 0.01 3.62 0.26 -86% 4%
5.12 Other Made-ups18
Other made-up includes all made-ups except bed ware and towels. Share of this category in textiles and
clothing export mix has declined from 4.75% to 4.37% however there was a steady growth in export
value with a compound rate of 7.96% per annum.
Table 72: Total Exports Other Made-ups
2002-03 2003-04 2004-05 2005-06 2006-07 Growth in
5 years
Quantity (Million KG) 19.25 18.06 13.65 16.54 13.06 -32%
Value (Million US$) 68.27 79.21 56.58 73.00 57.84 -15%
Average Unit Export Earning (US$/KG) 3.55 4.39 4.14 4.41 4.43 25%
Quantity (Million DOZ) 74.77 79.25 70.89 79.54 97.14 30%
Value (Million US$) 282.32 320.61 404.04 343.86 418.46 48%
Average Unit Export Earning (US$/DOZ) 3.78 4.05 5.70 4.32 4.31 14%
Total Value (US$ Million) 350.59 399.82 460.62 416.87 476.30 36%
Products in this category have been divided into two major sub-categories on the basis of their unit so
as to evaluate their average unit prices separately. However it is clear from the above table that
products which are quantified in dozens share most of the export mix. Same is the reason behind the
18
This category includes made-ups other than towel and Bedware. The category comprises of ‘35’ 8-digit HS Codes
most of which fall under Chapter 63. Nine(9) of the product lines fall under chapter 56 which include sanitary
towels and tampons; napkins; nappies, diapers and other articles of wadding; and textiles and clothing flock and
dust.
Textiles and Clothing Trade 2002-07
Category-wise Performance 42
increase in total value in last five years although products in KG sub-category had a continued decline in
last five years.
The decline in 2005-06 in total export value of this category can be associated to other made-ups
articles (ranked 4th in this category) which plunged by 46% of its value in that year.
Table 73: Top Exported Products (Other Made-ups US$ Million)
HSCODE COMMODITY 2002-03 V 2003-04 V 2004-05 V 2005-06 V 2006-07 V Growth
63071020 WASH-CLOTH 71.14642 88.5692 70.17882 93.00808 118.8862 67%
63071040 BAR MOPS 36.05978 49.45562 34.76363 45.0359 65.47425 82%
63039110 CURTAINS OF COTTON
MILL-MADE
54.65798 67.75705 45.72247 61.37252 46.24265 -15%
63079090 OTHER MADE UP ARTICLES 44.9109 39.52442 65.83045 35.87523 37.98838 -15%
63071090 OTHER CLEANING CLOTH 8.404333 10.94438 20.94165 23.48905 35.51307 323%
Wash cloth, bar mops and other cleaning cloth had a positive steady growth and their combined share in
this category has increased upto 46% in 2006-07. Cotton curtains exports from Pakistan have declined
due to increased preference in international market for MMF based curtains. This product line is getting
highest unit value amongst the top exported commodities of this category.
Table 74: Top Exported Products (Other Made-ups AUP US$/DOZ)
HSCODE COMMODITY 2002-03 2003-04 2004-05 2005-06 2006-07 Growth
63071020 WASH-CLOTH 2.09 2.42 2.42 2.44 2.71 30%
63071040 BAR MOPS 1.98 2.37 2.55 2.75 2.61 32%
63039110 CURTAINS OF COTTON MILL-MADE 43.53 45.83 50.10 56.78 56.50 30%
63079090 OTHER MADE UP ARTICLES 12.70 16.82 16.67 22.03 22.32 76%
63071090 OTHER CLEANING CLOTH 2.30 2.75 2.58 2.60 2.91 26%
5.12.1 Exports Destination
Likewise other categories US and Europe as export destination constitutes the major chunk of other
made-ups exports. Their combined share has increased from 92% to more than 94% in last five years.
Table 75: Regional Diversification of Exports (Other Made-ups US$ Million)
Exports 2002-03 2003-04 2004-05 2005-06 2006-07 Growth Share
North America 213.61 237.62 250.66 250.83 297.96 39% 62.8%
Europe 110.58 132.83 171.41 141.47 150.82 36% 31.8%
Asia 17.08 16.66 21.11 10.66 12.42 -27% 2.6%
Oceania 4.96 7.81 7.13 7.84 7.16 44% 1.5%
Africa 3.10 3.56 6.97 4.82 5.19 68% 1.1%
South America 0.38 0.63 1.69 0.50 1.21 219% 0.3%
Textiles and Clothing Trade 2002-07
Category-wise Performance 43
United States and UK are the major import country of this category while exports other than their share
are fairly distributed amongst various countries.
Table 76: Top Export destinations (Other Made-ups US$ Million)
COUNTRY 2002-03 2003-04 2004-05 2005-06 2006-07 Growth Share
United States 203.61 230.83 238.75 242.34 289.10 42% 60.7%
United Kingdom 59.33 73.03 75.62 65.77 68.38 15% 14.4%
Italy 6.54 11.62 18.89 17.14 17.95 174% 3.8%
Germany 11.92 12.01 18.47 17.03 16.39 37% 3.4%
Belgium 6.41 6.43 7.95 6.94 9.22 44% 1.9%
5.12.2 Imports
There are negligible imports in this category and its share has remained below 0.23% in the textiles and
clothing import mix.
Table 77: Total Imports (Other Made-ups)
2002-03 2003-04 2004-05 2005-06 2006-07 Growth
Quantity (Million DOZ) 0.04 0.02 0.11 0.28 0.22 453%
Value (Million US$) 0.37 0.35 0.97 2.14 1.41 282%
Average Unit Import Cost (US$/DOZ) 9.09 16.78 8.42 7.74 6.28 -31%
Quantity (Million KG) 0.17 0.22 0.28 0.27 0.33 93%
Value (Million US$) 0.66 0.90 0.90 0.87 1.02 55%
Average Unit Import Cost (US$/KG) 3.83 4.14 3.25 3.17 3.08 -19%
Total Value (US$ Million) 1.03 1.26 1.87 3.01 2.43 137%
Import of made up articles in Pakistan is of small value and is not significant.
China, UK and US are the only countries which have remained source for the imports throughout last
five years.
Table 78: Top Import sources (Other Made-ups US$ Million)
2002-03 2003-04 2004-05 2005-06 2006-07 Growth Share
China 0.27 0.32 0.76 0.93 1.24 356% 51%
France 0.00 0.00 0.03 0.00 0.18 4093% 7%
United Kingdom 0.05 0.49 0.19 0.42 0.16 200% 7%
United States 0.10 0.13 0.23 0.14 0.16 50% 6%
Canada 0.00 0.00 0.00 0.01 0.13 8758% 5%
Textiles and Clothing Trade 2002-07
Category-wise Performance 44
5.13 Other Textiles and clothing Materials
This category includes rest of all textiles and clothing items traded under Chapter 50-63 excluding
Chapter 57 (Carpets and other textiles and clothing floor coverings). This category comprises of ‘250’
tariff lines which have no correlation amongst each other.
This category includes waste as well as value added products which did not have a big share in our
export mix.
We cannot make various conclusions out of this category however it is obvious from the following tables
that the trend has changed over last five years and we have become net importer since 2005-06.
Table 79: Total Exports Other Textiles and clothing Materials
2002-03 2003-04 2004-05 2005-06 2006-07 Growth
Quantity (Million KG) 312.41 185.80 196.18 160.39 5613.28 1697%
Value (Million US$) 126.00 163.85 203.09 153.36 152.48 21%
Average Unit Export Earning (US$/KG) 0.40 0.88 1.04 0.96 0.03 -93%
Quantity (Million DOZ) 1.73 1.87 1.72 1.40 1.91 10%
Value (Million US$) 56.98 59.13 52.06 50.97 68.29 20%
Average Unit Export Earning (US$/DOZ) 32.89 31.56 30.20 36.34 35.71 9%
Quantity (Million SQM) 20.52 43.60 210.89 47.06 55.22 169%
Value (Million US$) 62.16 58.63 251.72 62.91 78.52 26%
Average Unit Export Earning (US$/SQM) 3.03 1.34 1.19 1.34 1.42 -53%
Total Value (US$ Million) 245.13 281.61 506.87 267.23 299.29 22%
We did not have a steady growth in our exports however the imports have doubled in the last five years.
Table 80: Total Imports (Other Textiles and clothing Materials)
2002-03 2003-04 2004-05 2005-06 2006-07 Growth
Quantity (Million KG) 290.60 335.57 371.12 458.05 474.06 63%
Value (Million US$) 200.11 231.59 299.29 454.70 463.70 132%
Average Unit Import Cost (US$/KG) 0.69 0.69 0.81 0.99 0.98 42%
Quantity (Million DOZ) 0.01 0.03 0.02 0.30 0.19 2213%
Value (Million US$) 0.92 2.11 1.81 30.81 19.27 2003%
Average Unit Import Cost (US$/DOZ) 113.72 74.73 88.90 104.44 103.37 -9%
Quantity (Million SQM) 19.95 20.54 5.58 12.98 14.22 -29%
Value (Million US$) 16.85 16.78 7.40 19.23 23.47 39%
Average Unit Import Cost (US$/SQM) 0.84 0.82 1.33 1.48 1.65 95%
Total Value (US$ Million) 217.88 250.48 308.50 504.75 506.45 132%
Textiles and Clothing Trade 2002-07
Category-wise Performance 45
5.13.1 Regional Diversification
The exports are well diversified throughout the world and US is the only one which can be identified as
major export destination.
Table 81: Top Export destinations (Other Textiles and clothing US$ Million)
COUNTRY 2002-03 2003-04 2004-05 2005-06 2006-07 Growth Share
United States 62.61 56.98 149.01 68.24 74.76 19% 25.0%
Italy 11.45 12.25 28.88 12.07 14.85 30% 5.0%
United Kingdom 12.66 16.68 28.19 11.78 14.73 16% 4.9%
United Arab Emirates 0.00 0.00 26.73 0.76 14.46 #DIV/0! 4.8%
Hong Kong 3.16 3.99 8.53 10.77 13.13 315% 4.4%
Asian countries can be identified as major import sources as their combined share have always
remained more than 69% through out last five years. China is the major source of imports for these
textiles and clothing products.
Table 82: Top Import sources (Other Textiles and clothing Materials US$ Million)
2002-03 2003-04 2004-05 2005-06 2006-07 Growth Share
China 10.87 14.98 18.81 54.74 102.21 840% 20%
Bangladesh 20.11 28.37 37.45 41.68 48.01 139% 9%
Other Asian Countries 33.76 34.87 39.14 50.98 45.56 35% 9%
Korea, Republic of 19.14 22.87 23.30 51.25 35.17 84% 7%
United States 17.89 16.82 22.11 27.03 33.90 90% 7%
5.13.2 Top Traded Products
As far as top exporting products is concerned, they vary from cotton waste to value added products like
blankets. No single export commodity from this category can be identified as major one as no one has
shared more than 0.5% in the export mix in last 5 years.
Table 83: Top Exported Products (Other Textiles and clothing Materials US$ Million)
HSCODE COMMODITY 2002-03 2003-04 2004-05 2005-06 2006-07 Growth
60069000 OTH KNITTED CROACHED
FABRICS
34.20512 42.75265 31.6813 34.51785 23.60893 -31%
60062200 OTH KNIT/CRO FAB COTTON
DYED
1.61775 3.326483 1.065583 9.205683 22.98165 1321%
52029900 OTHER COTTON WASTE 31.20862 31.0917 32.088 30.13432 21.61815 -31%
52021000 YARN WASTE(INCL.THREAD
WASTE)
2.856933 4.68995 7.359333 11.86635 18.66898 553%
63013000 BLANKET/TRAVEL RUGS OF
COTTON
28.71422 23.04477 17.18932 19.45638 17.50772 -39%
Textiles and Clothing Trade 2002-07
Category-wise Performance 46
The average unit prices of these commodities are as follows which also cannot be compared with each
other.
Table 84: Top Exported Products (Other Textiles and clothing AUP US$/Unit)
HSCODE COMMODITY UNIT 2002-03 2003-04 2004-05 2005-06 2006-07 Growth
60069000 OTH KNITTED CROACHED
FABRICS
SQM 3.20 1.44 1.24 1.28 1.39 -57%
60062200 OTH KNIT/CRO FAB COTTON
DYED
SQM 2.74 1.36 1.23 1.45 1.48 -46%
52029900 OTHER COTTON WASTE KG 0.37 0.37 0.43 0.47 0.58 57%
52021000 YARN WASTE(INCL.THREAD
WASTE)
KG 0.51 0.54 0.42 0.63 0.62 23%
63013000 BLANKET/TRAVEL RUGS OF
COTTON
DOZ 44.62 50.41 55.55 60.84 62.13 39%
The top imported products include viscose rayon, worn clothing and synthetic not carded combed. All of
the top imported commodities have shown a steady growth in last five years.
Table 85: Top Imported Commodities (Other Textiles and clothing Materials US$ Million)
HS CODE 2002-03 2003-04 2004-05 2005-06 2006-07 Growth Share
55041000 ART-STA FIB VIS RAYON N-
CRD/CO
45.19 51.40 72.23 101.88 81.26 80% 16%
63090000 WORN CLOTHING&OTH
WORN ARTICLE
36.83 34.91 39.80 47.61 56.12 52% 11%
55032010 SYN FIB NOT
CRD/COM<2.22DECX
0.00 0.00 4.77 54.77 55.15 #DIV/0! 11%
53031090 OTH JUTE&OTH TEXTILES
AND CLOTHING BAST FIB
10.45 19.41 29.28 32.10 36.76 252% 7%
55020090 OTHER, ARTIFICIAL
FILAMENT TOW
9.97 14.10 20.46 23.99 29.19 193% 6%
It is important to note that we are importing more than 120 Million Kgs per annum of worn clothing at a
cheap rate of below US$ 0.36 per Kg.
Textiles and Clothing Trade 2002-07
47
Table 86: top Imported Commodities (AUP Other Textiles and clothing Materials US$/unit)
HS CODE 2002-03 2003-04 2004-05 2005-06 2006-07 Growth Unit
55041000 ART-STA FIB VIS RAYON N-
CRD/CO
1.28 1.38 1.80 1.71 1.89 48% KG
63090000 WORN CLOTHING&OTH
WORN ARTICLE
0.31 0.31 0.32 0.34 0.36 14% KG
55032010 SYN FIB NOT
CRD/COM<2.22DECX
#DIV/0! #DIV/0! 1.39 1.27 1.35 #DIV/0! KG
53031090 OTH JUTE&OTH TEXTILES
AND CLOTHING BAST FIB
0.26 0.26 0.32 0.43 0.43 63% KG
55020090 OTHER, ARTIFICIAL
FILAMENT TOW
3.54 3.51 3.64 3.82 3.98 12% KG
Textiles and Clothing Trade 2002-07
Conclusion 48
6 Conclusion
Pakistan’s textiles and clothing industry has remained the mainstay of our export earnings. From the
traditional exporter basic raw materials, yarn and fabrics, to the European and North American markets
the sector gradually graduated to higher value added textiles and clothing. The recent paradigm shift in
the developed countries due mostly to the closure of their textile and clothing industry has moved the
production to developing countries. Pakistani exports of raw material have also therefore, followed this
shift and are now finding markets in developing countries.
The textiles and clothing trade fell victim to the protectionist tendencies in the developed importing
countries which introduced and maintained quantitative restrictions on the developing country exports
for over a half a century.
During this protected quota regime, Pakistan textiles and clothing industry found it easier to export to
American and European markets for the obvious reason that the buyers were equally constrained to
source their requirements from different countries including Pakistan. As one of the largest producer of
cotton, ranking fourth, Pakistan continued to use this comparative advantage to meet the consumer
preference for cotton textiles and clothing in the US and EU markets.
With the elimination of quotas, quality, cost efficiency and lesser turnaround time became more
important and Pakistani exporters found it difficult to compete. The main reason being the lack of
preparation to take advantage of the quota free environment.
The textiles and clothing sector remained entrapped in vicious circle of producing low value added
products. The presence of semi finished categories at the top indicates that Pakistan’s value added
industry failed to increase its production base of invest in technology to make better use of the locally
available raw materials.
Though the overall performance of the textiles and clothing industry was satisfactory yet the target set
by the Government and the expectations of the business men were not met.
The main reasons for not achieving the targets included:
• Low value added products
• Low productivity
• More competitive prices by other countries
• Less concentration by our business men on apparels
• Lack of Availability of raw materials etc
Textiles and Clothing Trade 2002-07
Recommendations 49
7 Recommendations
It is necessary to upgrade our value added industry so as to take full advantage of our strong upstream
industry and home grown cotton. Government internal as well as external policies should be more tilted
towards value added industry.
To keep pace with the global competition, investments are required in infrastructure and human
resource development particularly in the value added sub-sectors.
Multilateral and bilateral trade agreements should also be designed in a manner to support product and
market diversification with the focus on value addition.
The following recommendations accordingly touch upon specific areas.
7.1 Raw Materials
After 2003, India started the production of certified BT cotton which has increased the yield and India
now has a surplus of four million surplus bales for export per annum. Pakistan should urgently launch an
extensive program to produce BT cotton.
Pakistan should also encourage production of contamination free cotton in the country through
promotion of better practices in farms and marketing, technological upgradation in ginning and strong
enforcement of laws and standards which were developed in 1960’s.
Pakistan needs to take appropriate actions immediately to fill the demand-supply gap by providing free
and easy access to international fiber supply chain.
7.2 Spinning
World demand has shifted towards increased use of MMF which comprises more than 61% of the entire
world fiber consumption by the global textile industry. Whereas the focus of our textile industry has
remained on production of yarn with more than 77% share of cotton.
To leverage our machinery base for economic use and to tap the huge potential that exists for MMF
products, Government has to take supportive measures to balance the value chain for future growth of
Textile Industry in line with the world trends.
7.3 Weaving
Most of the weaving sector is providing low value added fabrics and is not leveraging the cotton base of
the country for higher export earnings.
Technological up-gradation and better infrastructure provision is required for developing a strengthened
foundation of weaving sector for supporting the value added textile products.
Textiles and Clothing Trade 2002-07
Recommendations 50
7.4 Processing
The processing industry of Pakistan is mainly based on wider width capacity and supports bed-ware and
made-up industry of Pakistan in a proficient manner. It however, lacks capacity for proper support to the
garment industry.
Lack of professional and skilled manpower contributes to loss of expensive chemicals, which increases
the cost of operations. Untreated effluent also poses a big threat of import ban due to non-compliance
of international environmental standards.
To protect the industry from a ban on exports of textile value added products, we need to take all
necessary steps including investment by Government to ensure proper treatment of industrial waste.
7.5 Apparels and Made-ups
This sub-sector, which presently lacks sufficient investment and skilled human resource, holds the key to
the future of our upstream industry. Its development would have positive effects on the quality of yarn
and fabric manufacturing and also on the processing industry.
As lack of skills adversely affect the productivity, continued inaction in skill development would
accentuate the declining share of Pakistan in the global market.
Although we are providing R&D support at the rate of 6% on exports of this sector, it is a temporary
measure. Positive encouragement for productivity enhancement, diversification of production lines and
quality improvements would help this sector to go for high end of the market.
RESEARCH, DEVELOPMENT & ADVISORY CELL
Ministry of Textile Industry has established a Research, Development and Advisory Cell (RDA CELL) to
devise policy guidelines for the government to facilitate the growth and development of Textiles and
Clothing sector.
RDA CELL has a mandate to study and analyze existing textile policy and align it for the future drive of
the industry. It establishes benchmarks for textile policies of regional and intra-regional textile players of
the world. The Cell analyzes trade performance of different sub-sectors and thereby devise policies to
encourage investment in future growing textile businesses. The Cell further formulate frameworks to
enhance the human resource, technology and infrastructure of the textile industry of Pakistan. RDA CELL
publishes weekly, monthly, quarterly and yearly reports on various issues relating to trade and industry.
RDA CELL OFFICERS
Nasim Qureshi Director General
Phone: +92 51 925917
Fax: +92 51 9257321
Email: [email protected]
Arsalan Ghani Director Technology, Product ivity and
Skil l Development
Contact for issues relating to Machines ,
Technology management, Operations ,
Skil l developments , Trainings , etc .
Phone: +92 51 9235618
Fax: +92 51 9257321
Email : director .technology@rdacell .com
Kanwar M. Usman Director Research
&Development
Contact for Issues relating to
Branding , Marketing ,
International compliance etc .
Phone: +92 51 9235619
Fax: +92 51 9257321
Email : director .rd@rdacell .com
Syed Abbas Mehdi Manager Financial
Analysis
Contact for issues relating trade,
government regulations , f inancials ,
taxat ions , dut ies etc .
Phone: +92 51 9235621
Fax: +92 51 9257321
Contact manager .fa@rdacell .com
Adil Majeed Manager Information
Technology
Contact for Issues relating to
information, e lectronic
resources , Web technologies ,
B2B Portals etc .
Phone: +92 51 9235654
Fax: +92 51 9257321
Email : manager .it@rdacell .com
Website: http://www.rdacell.com
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