APTMA concerned over alarming decline in textile exports

Chairman All Pakistan Textile Mills Association (APTMA) has expressed deep concerns over alarming decline in textile exports during November 2011 due to energy shortage and high interest rate.

He said the five major sectors of textile industry, including cotton yarn, cotton cloth, knitwear, bed wear and towel have registered steep fall in quantity terms during November 2011.

Chairman APTMA said the textile exports of cotton yarn have declined by 11 percent in November 2011 against corresponding period, followed by 22 percent drop in cotton cloth, 38 percent in knitwear, 40 percent bed wear and 20 percent in towel in quantity terms.

He said the decline is worsening with every passing month since the start of new fiscal year, which means there is less production for exports in the country due to obvious reasons.

According to him, the APTMA has been crying over the situation since day one and the latest report of the SBP annual report has corroborated the APTMA concerns.

The SBP annual report has pointed out that the manufacturing sector has suffered a serious setback. The industrial growth was negative 0.1 percent in financial 2011 due to prolonged power outages and reduction in gas supplies.

However, he said, the SBP report must also mention that high interest rate has also played havoc with the industrial growth besides the energy shortage. He said the cost of credit has been unbearable for industry and it was only the government having benefited from the credit available in the country.

Mohsin said the APTMA has been pointing time and again that non-availability of credit was putting textile industry growth in limbo and all demands of bringing it to single digit were falling on deaf ear.

According to him, the constant closure of textile mills was enough to prove the fact that sustainability of textile industry was doubtful in present situation. The NPLs are therefore piling up fast, he added.

Chairman APTMA has urged the government to take stock of the situation and engage the stakeholders to support the stumbling exports as Pakistan’s industrial growth was poor among all South Asian States.

Pakistan urged to up textile trade with ECO countries

Pakistan has been called on to utilise its political and diplomatic ties to boost its trade with the Economic Cooperation Organization (ECO) nations to support its domestic value added textile industry. The ECO is an intergovernmental regional organization for promoting economic, technical and cultural cooperation among its ten Member States, viz. Afghanistan, Azerbaijan, Iran, Kazakhstan, Kyrgyzstan, Pakistan, Tajikistan, Turkey, Turkmenistan and Uzbekistan.

Currently, Pakistan’s textile item exports to ECO countries are not satisfactory and they stood at just US$ 49.81 million during 2010.

Dr. Shahzad Arshad, Chairman of Pakistan Cotton Fashion Apparel Manufacturers and Exporters Association (PCFA) said the Pakistani value added textile industry is enduring difficult times as while exports volumes are dropping, inflation and fiscal deficit are mounting. Thus, it has become vital for the domestic textile industry to find access to new markets so as to ensure its sustenance, and ECO nations could play a vital part in this, he added. Dr. Arshad said that though Pakistan has earned access to some of the ECO countries, pursuant to inking of Transit Trade Agreement (TTA) with Afghanistan, it is essential that the Pakistan Government acts to speed up its efforts to ink the TTA with Central Asian countries by way of finalising the procedural protocols with Governments of respective countries.

Pakistan is in an advantageous situation as it is situated at the crossroads of Central Asia and Northern Asia, two of the world’s most rapidly developing economic poles, and this for centuries has benefited the region where Pakistan exists today. According to Dr. Shahzad, as majority of the ECO nations use TIR carnet convention, which has proved helpful in the promotion of intra-regional trade, Pakistan should also become a signatory to the same. He recommended that Government of Iran should be urged to speed up the process of ratifying the mutual road transport agreement, which would open up road access for Pakistani exports to the EU and Turkish markets.

APTMA chairman concerned over drop in textile exports

Chairman All Pakistan Textile Mills Association (APTMA) Mohsin Aziz has expressed concerns over drop in exports of textile quantity worth $305 million in December 2011 comparing with the corresponding period.

He said unprecedented energy shortage was prime reason behind the substantial drop in exports.

According to him, the situation may be alarming further in the month of January, as the textile industry in Punjab is denied electricity and gas supplies since December 25 till date.

He said the textile exports were 40% down in December 2011 in quantity terms. In November 2011, textile exports were also 32% down in quantity terms, he added.

It may be noted that exports of cotton yarn, cotton cloth, yarn other than cotton yarn, knitwear, bed wear and towel are declined by 23%, 26%, 44%, 38%, 33% and 8% respectively in the month of December 2011, causing a loss of $305 million loss to the exports.

Chairman APTMA said traditionally the textile industry was crossing $1 billion mark exports monthly but it is becoming impossible since last three months

He said the APTMA is repeatedly showing concerns over the situation, but unfortunately all of its hue and cry was falling on deaf ears of the policy makers. He deplored that the government was not addressing the reasons behind the drop in exports.

Mohsin said the government policymakers were not serious in resolving gas supply issue of the textile industry. Instead, he lamented that the available gas is being supplied to the unproductive sectors and segments, causing a loss in terms of foreign exchange.

He said the situation is becoming unbearable for industry and a constant inefficiency was plaguing the viability of production units. The textile industry is heading towards disaster due to non-availability of energy, he added.

He said the textile industry has lost $1 billion exports in first half of current fiscal and is likely to lose another $2 billion in second half of it. This drop on exports would have dire impact on economy with already under pressure current account balance and Pak rupee value.

He said the industry was committed to achieve $16 billion exports during current fiscal it would not be able to achieve more than $12 billion exports if energy crisis persists.

Mohsin further said the interest rate is also highly unaffordable, causing negative impact on industry.

He said the textile industry is a premier industry of Pakistan earning foreign exchange and providing jobs to millions of workers.

Chairman APTMA had urged the President and Prime Minister to take stock of the situation and ensure smooth supply of electricity and gas to textile industry immediately to avoid further loss of exports.

Lakhani Textiles is the leading exporter of yarn, fabric and woven textiles from Pakistan. We endeavor for 100% customer satisfaction. Competitive price and excellent service is our motto.

Textile Manufacturing Process for Pakistani exporters

Textile manufacturing process for Pakistani exporters is a complex process. The range of textile manufacturing in Pakistan is so long. A lot of money and time goes into textile manufacturing process for Pakistani exporters. The textile manufacturing process starts from fiber and ends at the finished product.

Pakistani Exporters pay a lot of attention to details that go into textile manufacturing in Pakistan. Without all the attention to details, no one can achieve the status of being the leading garments and home textiles manufacturer of Pakistan. The process flow chart of textile manufacturing starts with spinning. It is based on the conversion of fiber into yarn, then fabric and finally textiles. Most common type of yarn used in Pakistan is Cotton. Most spinning to produce textile in Pakistan is done using break or open end spinning. Staples are blown by air into a rotating drum, where they attach themselves to the tail of formed yarn that is continually being drawn out of the chamber.

Next process used by the leading exporters of garment and home textiles in Pakistan is weaving. Weaving process in Pakistan uses Looms. After being spun and plied, the cotton thread is taken to a warping room where the winding machine takes the required length of yarn and winds it onto warpers bobbins. Racks of bobbins are set up to hold the thread while it is rolled onto the warp bar of a loom. Because the thread is fine, often three of these would be combined to get the desired thread count. All these steps are standard for all Pakistani garment and textile exporters.

Dyeing, finishing and printing follows as the next textile manufacturing process for leading exporters of garments and home textile in Pakistan. Dyeing is the coloring process for garment which is commonly carried out with an anionic direct dye by completely immersing the fabric (or yarn) in an aqueous dyebath according to a prescribed procedure. Printing on the other hand is the application of color in the form of a paste or ink to the surface of a fabric, in a predetermined pattern.

All these steps make up the garment manufacturing process in Pakistan. Any leading exporter of garment and home textiles in Pakistan follows these basic steps to create excellent quality products for exports all over the world.