The textile sector, which has the highest weight in the Large Scale Manufacturing, grew by 3.2% during July-March in fiscal year 2021-22 as compared to 8% in the same period last year, showing a significant slowdown in growth, according to the Economic Survey 2021-22 unveiled on Thursday.
Textile sector's weight has been reduced from 20.9 to 18.16% in QIM 2015-16 but it is still the highest among all sectors of LSM.
Major growth originated from woolen segment production with the highest surge of 38.9% in blankets, 27.9% growth in woolen and carpet yarn, and 19.1% in woolen worsted cloth. Production of yarn and cloth showed marginal growth of 0.7% and 0.3%, respectively.
“Congruent production units, invariant capacity and elevated cotton prices owing to demand and supply gap disruptions have moderated the growth momentum of the cotton sector,” stated the Economic Survey 2021-22 document, unveiled by Finance Minister Miftah Ismail.
Key highlights of the Pakistan Economic Survey 2021-22
“Depreciation of rupee restrained the production of jute, as most of the raw material is imported from Bangladesh. However, surge in imports of textile machinery, rising demand for concessionary financing from textile firms and high exports of this sector showing a sizable improvement in the textile sector,” it added.
Wearing apparel has been separated from the textile sector with 6.08 weight in the LSM. It showed a significant growth of 34% against the contraction of 35.6%.
The sector has gained traction locally as well as in the international market as garments production grew at 34% during the period. The export of garments also escalated with 33.9% growth in terms of quantity.
Textile is the most important manufacturing sector of Pakistan and has the longest production chain, with inherent potential for value addition at each stage of processing, from cotton to ginning, spinning, fabric, dyeing and finishing, made-ups and garments.
This sector contributes nearly one-fourth of industrial value-added and provides employment to about 40% of the industrial labour force. Barring seasonal and cyclical fluctuations, textiles products have maintained an average share of about 61.24% in national exports.
Meanwhile, the export of knitwear showed a contraction of 4.8% in quantity terms, while it increased by 34.1% in terms of value during the period under review.
The ready-made garment industry has emerged as one of the important small-scale industries in Pakistan and is a good source of providing employment opportunities to many people at a very low capital investment.
Owing to huge potential and demand, its exports show a massive growth of 33.9% in quantity and 26.2% in value from 27.8 million dozen to 37.3 million dozen worth $2.8 billion as compared to $2.27 billion for the same period last year.
Exports in the towel sector stood at $819.6 million against $692.1 million, showing an increase of 18.4% in terms of value and 5.1% in terms of quantity.
Meanwhile, Pakistan exported synthetic textile fabrics worth $343.59 million as compared to $269.20 million the same period last year - showing an increase of 27.6%. In quantitative terms, the exports of synthetic textile decreased by 33.6%.
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