Textile Industry In Pakistan Case Study

TEXTILE INDUSTRIES OF PAKISTAN

RESEARCH STUDY PURPOSE & METHODOLOGY

The report is intended to analyze the Textile Sector in the Pakistan and its potential of productivity and investment and more specifically the capacity to generate revenue for the
Government of Pakistan in the form of Taxes. The study highlights the economic effects of the textile industry in the country as a whole. The transformation brought about by the textile sector in the social fabric of the nation has also been studied. The impact of prevailing socio-economic condition and law and order situation has also been highlighted. The performance of textile sector vis-à-vis production and revenue generation has been compared with that of the neighboring countries. Finally

This sector contributes
9.5%12 to the GDP and provides employment to about 15 million people i-e 30% of the 49 million work force of the country. Pakistan’s share is less than one percent in the volume of total world textile trade of about US$18 trillion per annum. Pakistan is the 4th largest producer of cotton (~12mln bales/yr), with the third largest spinning capacity in Asia after China and India, and contributes 5% to the global spinning capacity12. Since the founding of Pakistan, the development of the Manufacturing Sector has been given the highest priority with major stress on Agro-Based Industries. For Pakistan which was one of the leading producers of cotton in the world, the development of a Textile Industry making full use of its abundant resources of cotton has been a priority area towards industrialization. At present, there are 1,221 ginning units, 442 spinning units, 124 large spinning units and 425 small units which produce textile products.12
Despite these troubles the textile industry total export is around 10.2 billion US

Garments = 4%,
b. Made-ups = 2%;
c. Processed fabric = 1%

(4) Since 1st July 2015, Export Refinance Facility and Long Term Finance Facility will be available for textile-exporters at the most reasonable rates of the history i.e. at 4.5% and 6% respectively.

(5) The Custom Duty on import of textile machinery under SRO 809 is zero for the Year 2015-16 as well.

(6) In order to facilitate and incentivize the investments in plants and machinery, Technology Up-gradation Fund Scheme will be launched in the FY 2015-16, as per the provisions of Textiles Policy 2014-19.

(7) Government is committed to introduce latest seed technology. To this end, amendments in Seed Act have been passed by the National Assembly, whereas Plants Breeders Right Act will be also be promulgated on priority basis.

(8) Spadework has been completed on a mega project worth Rs 4.4 billion for training of 120,000 unskilled men and women over a period of 5 year. This scheme shall be launched in FY