Pakistan was born in 1947 with a larger cotton crop of 1.1 million 170-Kg bales, a very small spinning capacity of 78,000 spindles (3 textile mills consuming 75,000 bales) and also a small weaving capacity of 3,000 handlooms. Later, due to Government's liberal and textile friendly policies, spinning capacity was increased by leaps and bounds with the establishment of new spinning units.
Simultaneously, cotton production was also increased and by the early ninety nineties, cotton production and cotton consumption matched each other. In 1992-93, production was 9.054 million 170-Kg bales and domestic cotton consumption was at 8.921 million 170-Kg bales (334 spinning mills with 6.86 million spindles). Till the end of 20th century, production and consumption remained matching with each other. With the start of 21st. century, cotton production started going down and consumption going up. In the last 8 years up to 2010-11, average of cotton production was 11.5 million bales with best of 14.25 million bales in 2004-05 and that of consumption 13.5 million bales with the best of 15.4 million bales in 2007-08.
To meet the shortfall in cotton consumption, Pakistan resorted to heavy import beyond 2.5 million bales annually (the highest import of over 4.8 million bales in 2007-08). Soon after start of 21st century, Pakistan reversed its position from prominent cotton exporting to prominent cotton importing country. Pakistan enjoyed the position of cotton exporting country for 50 years since 1947-48 with the life's highest export of 4.84 million 170-Kg bales in 1988-89. It is good that we went one step higher by consuming more cotton and converting it into yarn instead of exporting it.
Pakistan has great potential in increasing its cotton production and according to Government of Pakistan's Cotton Vision-2015, it is to be increased to 20.70 million with field yield of Kgs 1,060 per hectare of lint by 2015. Cotton consumption has also been projected at 20.10 million bales by 2015. This can be achieved even without increasing the area under cotton simply by adopting GM technology and improving conditions in irrigation, plant protection, and plant development. Our strategy should be to produce cotton crop at least 15 percent over our domestic requirements so that we may maintain our position of cotton exporting country. Here, we would be saving billions of dollars being cost of extra crop producing lint equal to 4.0 million bales and cottonseed equal to almost double of lint weight.
For staying competitive in world market, we should continuously update our ginning and spinning machineries, In 2005-06 season, our exports of cotton and textiles consisted of cotton cloth 22.0 percent, bed sheets 20.6 percent, hosiery 17.7 percent, cotton yarn 14.6 percent, garments 13.6 percent, towels 6.2 percent, other made-ups 4.2 percent, raw cotton 0.7 percent and canvas 0.4 percent.
Presently, we are producing roughly 3.00 million tons of yarn, of which about 80 percent is consumed by domestic weaving and knitting industries and balance 20 percent is exported. Previously, our yarn exports remained very high up to 49 percent of our production but on average it was around 30 percent. It is good that we are going another step up by increasing our domestic yarn consumption and reducing its exports from 30 to 20 percent. We have enough weaving and knitting capacity even to consume all our yarn production locally. By doing so, we can enhance our export potential and save billions of dollars every year.
About 40 year back in 1971-72, our total cloth production was 1.357 billion sq. meters of which about 70 percent was consumed locally and balance 30 percent was exported but by 2010 out total cloth production is estimated around 10.0 billion sq. meters of which about 80 percent is consumed domestically and about 20 percent is exported. It is very good that we are heading towards value-addition and have increased out domestic consumption of cloth and have reduced our cloth exports from 30 percent to 20 percent level. If we increase our domestic cloth consumption by 20 percent consuming all our 100 percent domestic cloth production, we may increase our export potential substantially and save billions of dollars every year.
Now, we come to the final step of producing apparel/garments and exporting the same. About half a century ago, garment industry flourished in non-cotton producing countries like UK, Japan, Thailand and Hong Kong and these countries earned good name in producing and exporting quality garments to countries of South Asia and Middle-east region. Because of increasing production cost specially the workers wages and competition from other low-waged countries, the location of garment manufacturing has been shifted to China, India, Pakistan and Bangladesh which are, except Bangladesh, well-stocked in raw materials including raw cotton, yarn and cloth beside enjoying the benefits of comparatively lower labour, power and financial costs.
Pakistan, being prominent cotton, yarn and cloth producing country in the region did not exploit its resources towards high value addition; garment manufacturing, while other countries of the region, which did not have enough backward process but made great strides in this direction. Their export performance in Ready Made Garments (RMG) is far better than that of Pakistan. If we look at our textile sector's performance of last 40 years (Table 1), we find that in 1970, our total exports was Rs. 1.892 billions of which share of textile exports was 80.51 percent and that of clothing 1.26 percent. After 10 years in 1979, our total export was Rs. 20.355 billions of which share of textile exports was 48.20 percent and that of clothing export 3.84 percent. Again after 10 years in 1989 our total exports were Rs.96.646 billions of which share of textile exports was 42.89 percent and that of clothing exports 15.34 percent. Again after 10 year in 1999, our total exports stood at Rs.399.329 billions of which export share of textile was 50.01 percent and that of export of clothing 22.99 percent. These figures largely contribute towards the idea that initially Pakistan was exporting raw material and semi-finished goods viz: raw cotton, yarn and other made-ups but the exports of clothing/garments was very negligible. However, in the 30 years period (1970-1999) Pakistan made some serious efforts to increase its exports of clothing/garments and increase was 18.216 times but even unsatisfactory.
On the domestic front, there appears good progress our textile sector has made in value addition but on world front, our progress is very poor. Please refer to Table 2. Pakistan, being a prominent exporting country of raw cotton, yarn, textile made-ups in the world could not perform well in textile and clothing exports in the last 30 years period 1970-1999, as its export share of textile and clothing in the world market increased from 2.66 percent to 3.68 percent ie an increase of 38.34 percent whereas expansion in world textile and clothing export was 1288 percent in 30 years. Thus, our export performance in textile and clothing in comparison with world exports remained very poor.
Table 3 gives comparative performance of textile and clothing exports of top 10 countries of Asia. In 1995, Bangladesh was on the top in securing highest share of 82.01 percent for export of clothing (RMG) in country's total textile and clothing exports then Turkey at 77.70 percent, Thailand at 72.11 percent, China at 63.34 percent and Hong Kong at 60.66 percent. Similarly, in 2007, in order of best performance; Bangladesh at 93.34 percent, Hong Kong at 68.19 percent, China at 67.31 percent, Turkey at 81.59 percent and Indonesia at 60.52 percent. In 1995, Pakistan's share of clothing in total exports of textile and clothing was 27.46 percent, which was enhanced to 34.05 percent in 13 years period (1995-2007) and by 2010 it is estimated around 35 percent. By securing highest percentage share of clothing (RMG), Bangladesh economy is getting boost resultantly more than 13 million people have reportedly been upgraded from poverty line, while in Pakistan millions of people have gone below poverty line. Bangladesh has so far lightened one million houses through solar energy and are planning to increase this number to 2.5 millions in next 2-3 years, while in Pakistan every day thousands of houses are going into darkness. Strong and vibrant RMG industry of Bangladesh has helped the country in reducing unemployment substantially, as some 3.5 million workers, mostly female workers are RMG workers. Clothing (RMG) industry is actually labour-oriented and labour friendly industry and requires lesser investment. In Bangladesh, this industry employs almost 100 percent female workers and also other textile sectors employ female workers in majority. Female workers give comparatively better performance at comparatively lower wages. Vibrant RMG sector of Bangladesh has ameliorated the condition of lower to middle class cadre people greatly and has brought great prosperity and relief to the people and the country. Pakistan has all the necessary resources like raw material, labour (specially female workers) and other infra-structure facilities but is lacking in power supply, training of workers, new technologies in garment stitching, latest design and fashions, export markets and entrepreneurship. These bottlenecks can be overcome by better planning and dedication and commitment with the economy. In 11 months period of Fiscal year 2010-2011, Pakistan's total exports were valued at $22.412 billions and in 12 month, our total exports may reach the record level of $25 billions and our total imports are estimated at $40.85 billions. In 2010-11, our total exports of textile and clothing are estimated at $13.5 billions (54 percent), while our exports of garments (knitted and woven) is only $4.5 billions. It means our exports of textile and clothing earn 54 percent share in total exports, which has come down from 81.77 percent in 1970-71. Bangladesh's exports of RMG in 2010-11 is expected at $17.7 billions out of total exports around $23.0 billions (77 percent) and total imports of 2010-2011 season may be equal to $28 billions. By 2015, Bangladesh exports of RMG may cross the level of $25 billions. Other countries of this region like Vietnam, Sri Lanka and Indonesia are growing fast in export of textile and clothing. Pakistan has to compete with China, India, Vietnam, Sri Lanka and Bangladesh to maintain its share in textile exports specially in garments otherwise these countries would grab our share. It is to be noted that exports of one kilogram of RMG fetches value 10 to 12 times higher than raw cotton. In 2006, Turkey got $18 per kilogram of garments, Sri-Lanka and India $15 per kilogram of garment, while Pakistan and Bangladesh got $7.0 per kilogram because of low quality garments and textiles.
Pakistan's textile sector specially the garment sector has great potential to boost the country's economy and condition of workers. To exploit the untapped resources of textile sector, Pakistan should make serious attempts and in the first instance establish a high power broad based commission consisting of all stakeholders including professionals and work out a plan for implementation. By making right planning and making available all necessary inputs, Pakistan may increase its textile and clothing exports easily to the level of $35.0 billions by 2015 with 2/3rd share going to garments and balance 1/3rd to textile goods.
Our cotton and textile sectors are very resourceful and it can easily bai-lout our economy in coming years.
Table 1 : Contribution of Textile and Clothing in the Total Exports of Pakistan
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Textile Exports Clothing Exports
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Textile Exports Clothing Exports
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Years Total Exports Value % Share of Value % Share of
(Rs Million) (Rs Million) Total Exports Rs Million) Total Exports
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1970 1892 1523 80.51 24 1.26
1971 2225 1338 60.12 38 1.71
1972 5776 2344 40.57 87 1.50
1973 9533 4396 46.11 168 1.77
1974 10970 3713 33.84 297 2.71
1975 10416 3742 35.93 307 2.95
1976 11552 4297 37.19 455 3.94
1977 11766 4524 38.45 535 4.54
1978 14605 5831 39.93 535 3.66
1979 20355 9811 48.20 782 3.84
1980 25923 8672 33.45 1020 3.93
1981 28538 12801 44.85 1346 4.72
1982 28275 11009 38.93 1706 6.04
1983 40320 17266 42.82 2965 7.35
1984 35994 14064 39.07 3442 9.56
1985 43645 15484 35.48 4078 9.34
1986 56336 21062 37.39 7709 13.68
1987 72583 32277 44.47 10562 14.55
1988 81348 32454 39.90 11214 13.79
1989 96646 41450 42.89 14830 15.34
1990 121345 57806 47.64 22011 18.14
1991 155398 76163 49.01 28775 18.52
1992 183599 90048 49.05 36195 19.71
1993 187787 98543 52.48 44550 23.72
1994 255200 122176 47.88 49366 19.34
1995 252714 134641 53.28 52686 20.85
1996 335313 177473 52.93 70029 20.88
1997 359046 189455 52.77 77489 21.58
1998 382477 196295 51.32 81546 21.32
1999 399329 199695 50.01 91799 22.99
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Source: International Trade Statistics (Various Issues); International Financial Statistics, Yearbook
(1997, 1999).
Table 2 : Performance of Textile and Clothing Exports of Pakistan Internationally
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Textile Exports Clothing Exports
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World Pakistan %Share of World Pakistan %Share of pak.
Years (Million US$) (million US $) pak. In world (Million US $) (million US$) In world
total total
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1970 12418 320 2.58 6440 5 0.08
1971 14309 281 1.96 7650 8 0.10
1972 16898 270 1.60 9785 10 0.10
1973 23189 444 1.91 12582 17 0.14
1974 27958 375 1.34 14924 30 0.20
1975 26477 378 1.43 16758 31 0.18
1976 30720 434 1.41 20750 46 0.22
1977 33913 457 1.35 23560 54 0.23
1978 40711 589 1.45 28340 54 0.19
1979 49665 991 2.00 34360 79 0.23
1980 54990 876 1.59 40590 103 0.25
1981 55380 1293 2.33 41097 136 0.33
1982 50604 929 1.84 39942 144 0.36
1983 51105 1316 2.58 40301 226 0.56
1984 54256 1001 1.84 45723 245 0.54
1985 55690 972 1.75 47111 256 0.54
1986 68025 1265 1.86 60903 463 0.76
1987 83513 1855 2.22 77557 607 0.78
1988 85120 1803 2.12 86030 623 0.72
1989 90530 2018 2.23 92670 722 0.78
1990 104750 2663 2.54 106450 1014 0.95
1991 109430 3200 2.92 115830 1209 1.04
1992 117480 3590 3.06 131480 1443 1.10
1993 114867 3506 3.05 132094 1585 1.20
1994 132330 3997 3.01 146313 1615 1.10
1995 152421 4255 2.79 160460 1665 1.04
1996 151969 4919 3.24 171274 1941 1.13
1997 172341 4616 2.68 190560 1888 1.00
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Source: International Trade Statistics (Various Issues).
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Table 3: TEXTILE & CLOTHING EXPORTS OF ASIAN COUNTRIES
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S.No. Country 1995 2000 2005 2007
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Textile Clothing Total Textile Clothing Total Textile Clothing Total Textile Clothing Total
%age %age US$ mln %age %age US$ mln %age %age US$ mln %age %age US$ mln
============================================================================================================================================================
1 China 36.66 63.34 37,967 30.91 69.09 52,206 35.63 64.37 115,213 32.69 67.31 171,206
2 Hong Kong 39.34 60.66 35,112 35.7 64.3 37,655 33.63 66.37 41,122 31.81 68.19 42,182
3 Turkey 29.23 70.77 8,646 35.98 64.02 10,205 37.42 62.58 18,909 38.41 61.59 22,732
4 Rep. Korea 71.3 28.7 17,270 71.66 28.34 17,737 80.1 19.9 12,972 84.42 15.58 12,287
5 India 51.46 48.54 8,468 48.31 51.69 11,530 49.08 50.92 16,880 49.45 50.55 19,101
6 Pakistan 72.54 27.46 5,867 67.88 32.12 6,676 66.29 33.71 10,691 65.95 34.05 11,177
7 Indonesia 44.56 55.46 6,089 42.54 57.46 8,239 40.34 59.66 8,312 39.48 60.52 9,699
8 Japan 100 0 7,178 92.93 7.07 7,557 93.31 6.69 7,400 93.15 6.85 7,631
9 Thailand 27.89 72.11 6,945 34.25 65.75 5,717 40.36 59.64 6,849 43.33 56.67 7,187
10 Bangladesh 17.99 82.01 2,401 7.2 92.8 5,460 6.29 93.71 8,014 6.66 93.34 10,778
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Percentage figures calculated from figures of Textile Asia -October 2008.
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