Opportunities for Russian Entrepreneurs in Textile Industry of Pakistan

11.01.2019

Pakistan has inherent advantage of being 4th largest producer of cotton in the world with a huge potential to further increase crop yield. For success of any export led industry, local availability of basic raw material is considered as an added advantage being a key factor in reducing cost of doing business. The textile value chain consists of multiple industrial subsectors. The value chain is quite long starting from cotton picking to a finished garment of the latest fashion. The end product of one sub-sector is the raw material for the other. Each sub-sector in the value chain contributes to value addition and employment generation.

Performance of Textile Industry

Textile is the most important manufacturing sector 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. The sector contributes nearly one-fourth of industrial value-added and provides employment to about 40 percent of industrial labor force. Barring seasonal and cyclical fluctuations, textiles products have maintained an average share of about 60 percent in national exports.

Textile Industry is labor intensive and Pakistan has abundance of trained work-force at a very competitive cost. Around 70% of the population in Pakistan is under the age of 40 years. The wages in Pakistan are much less than Russia. Labor cost and raw material cost makes Pakistan an ideal business opportunity for Russian entrepreneurs.

Ancillary Textile Industry

The ancillary textile industry includes cotton spinning, cotton cloth, cotton yarn, cotton fabric, fabric processing, home textiles, towels, hosiery and knitwear and readymade garments, these components are being produced both in the large scale organized sector as well as in the unorganized cottage / small and medium units.

It makes equally good opportunity for small investor as well as big investor. As a wide range of opportunities, all type of entrepreneurs can be benefitted and can easily find opportunities suitable to their interests, capacities and skills.

Cloth Sector

There exists a huge potential of growth in this sector. The demand for garments is ever increasing in the whole world, especially new designs and fashion is most profitable sector. The space for Russian investors, designers and traders are unlimited. Being the producer of raw material and cheap labor, provides edge Pakistan to penetrate into the global market based on quality and competitive.

Textile Made-Up Sector

Being value added segment of Textile industry made-up sector comprises different sub groups namely towels, tents & canvas, cotton bags, bed wear, hosiery, knitwear & readymade garments including fashion apparels. Demand for this sector is ever increasing and opportunities are very bright.

Hosiery Knitwear

Knitwear exports consists of knitted and processed fabrics knitted garments; knitted bed sheets, socks etc. and has the largest share 35 percent in textile exports. It is also labor intensive task, where Pakistan have edge over other countries due to cheaper labor and abundance of skilled work force.

Readymade Garment Industry

Readymade garment industry has emerged as one of the important small scale industries in Pakistan. Even a small investor can make good profit. Its products have large demand both at home and abroad. The local requirements of readymade garments are almost fully met by this industry. Garment industry is also a good source of providing employment opportunities to a large number of people at a very low capital investment. It mainly uses locally produced raw materials. Most of the machines used by this industry are imported or locally made/assembled.

Towel Industry

There are about 10,000 Towel Looms including shuttle and shuttle-less in the country in both organized and unorganized sector. This industry is dominantly export based and its growth has all the time depended on export outlets. The existing towels manufacturing factories are upgraded to produce higher value towels. Export performance of towel sector during the period is growing regularly.

Canvas/Tents

The production capacity of this sector is more than 100 million Sq. meters. This sector is also known as raw cotton consuming sector. This sector has witnessed a sharp growth in last couples of years.

Synthetic Textile Fabrics

Synthetic fibers Nylon, Polyester, Acrylic and Polyolefin dominate the market. There are currently five major producers of synthetic fibers in Pakistan, with a total capacity of 636,000 tons per annum. Artificial silk resembles silk but costs less to produce, with capacity in country about 9000 looms.

Woolen Industry

The main products manufactured by the woolen industry are carpets and rugs. The exports of carpets belong to high value added sector and has witnessed steady growth.

Jute Industry

The main products manufactured by the jute industries are jute sacks and hessian cloth, which are used for packing and handling of wheat, rice and food grains. It is environment friendly and possess high demands. The installed and working capacity of jute industry is at 48,851 metric tons and growing sharply.

Pakistan enjoys GSP status and can export to EU without limit of any quota. Russian entrepreneurs may also utilize Pakistan’s GSP status and promote business activities to unlimited scale and volume.

Trust, cooperation between Pakistan and Russia in the Textile Sector may benefits both. Let’s work-hard together, and prosper together, as we are two nations facing similar challenges and with the “shared destiny”. Pakistan has edge in Textile Sector and offers all possible facilitation to Russia.