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Spinning Review | Spinning industry of Pakistan: Prospects and challenges by Dr. Noor Ahmed Memon The textile industry consists of large-scale organized sector and a highly fragmented cottage / small-scale sector. The various sectors that are a part of the textile value chain. Most of the spinning industry operates in an organized manner with in-house weaving, dyeing and finishing facilities. Weaving comprises of small and medium sized entities. The processing sector, consists of dyeing, printing and finishing sub-sectors. in this context, only a part of this sector is operating in an organized state, able to process large quantities while the rest of the units operate as small and medium sized units. The printing segment dominates the overall processing industry followed by textile dyeing and fabric bleaching and now some installation of digital printing technologies. Dr. Noor Ahmed Memon highlights machinery imports, yarn production and export statistics for the interest of our readers. |
The spinning industry is comprised of 440 textile units (50 composite units and 390 spinning units) with 11.4 million spindles and 0.135 million rotors in operation with capacity utilization of 89% and 60% respectively, during the year 2011-12. Import of textile spinning machines and parts decreased from Rs 5.28 billion in 2010-11 to Rs 4.23 billion in 2011-12, thus showing decline of 75% due to the a decrease in textile exports and output capacity in view of law and order situation and severe energy crisis. Import of textile spinning parts are given in Table 1. Table 2: Import of Textile Spinning Machines and Parts Value Rs. in Million | Machines / Parts | 2009-2010 | 2010-2011 | 2011-2012 | Textile spinning machines | 1,296.95 | 4,168,.01 | 3,276.08 | Spindle flyer ring travellers | 466.09 | 454.85 | 431.11 | Spindle textile machines | 226.30 | 366.14 | 341.96 | Spinning rings | 278.89 | 293.35 | 185.88 | Total | 2,268,123 | 5,282.35 | 4,235.03 | Source: Federal Bureau of Statistics, Government of Pakistan. |
Production: Yarn is the primary product of the textile industry. The production and export of the value-added goods in textile sector depend upon the supply of yarn. One of the interesting aspects of textile sector is that the primary products are the output of the capital-intensive industry, while value-added goods might be produced in small-scale sector and even in the cottage industry.Pakistan is the only country with odd fibre-mix at the ratio of 80% cotton and 20% man-made fibre (MMF) against world proportion of 40% cotton and 60% MMF. Polyester cotton (Pc) and Polyester viscose (Pv) blended yarns are mainly produced in Pakistan. The production pattern of the spinning sector of Pakistan remains heavily tilted towards coarse yarn counts. The production of yarn significantly increased from 2.86 billion Kg in 2008-09 to 2.97 million kg in 2011-12, thus showing an average increase only 1% per annum. Production of yarn is given in Table 2. Table 2: Production of yarn | Year | Consumption of Cotton (Million .Kg) | Total Yarn Produced (Million.Kg) | Surplus Yarn (Million.Kg) | 2000-01 | 2,070.1 | 1,721.0 | 1,652.7 | 2001-02 | 2,155.2 | 1,808.6 | 1,731.2 | 2002-03 | 2,371.3 | 1,934.9 | 1,855.4 | 2003-04 | 2,407.6 | 1,938.9 | 1,845.8 | 2004-05 | 2,622.8 | 2,280.6 | 2,175.2 | 2005-06 | 2,932.6 | 2,556.3 | 2,460.5 | 2006-07 | 3,143.5 | 2,727.6 | 2,623.2 | 2007-08 | 3,159.2 | 2,809.4 | 2,700.3 | 2008-09 | 3,195.6 | 2,862.4 | 2,754.0 | 2009-10 | 3,372.4 | 2,881.0 | 2,776.6 | 2010-11 | 3,456.7 | 2,938.6 | 2,831.8 | 2011-12 | 3,439.8 | 2,967.9 | 2,859.9 | Source: Federal Bureau of Statistics, Government of Pakistan. |
Exports: Government has initiated several programmes and during the last three years has distributed Rs 23 billion under various support schemes to increase its exports. Textile is key sector of the economy and the government gives top priority to its promotion. In this regard, the government has initiated Textiles Policy Initiatives, which included Drawback of Local Taxes and Levies Order 2009, Export Finance Mark-up Rate Facility Order 2009, Markup Rate Support for Textile Sector Order 2009, Reimbursement of Employees Old age Benefit Institution (EOBI) and Social Security Contribution Order 2009, Technology Up-gradation Fund Scheme Order 2010, Duty Free Import of Textiles Machinery and Exemption of Income Tax for Foreign Consultants and Experts. Table 3: Export of cotton yarn | Year | Quantity | Value | Unit Value | | (000Kg) | (000 US $) | ($/ Kg) | 2000-01 | 545,134 | 1,076,063 | 1.97 | 2001-02 | 544,217 | 942,359 | 1.73 | 2002-03 | 519,329 | 928,358 | 1.79 | 2003-04 | 499,071 | 1,126,878 | 2.26 | 2004-05 | 504,722 | 1,056,535 | 2.09 | 2005-06 | 671,697 | 1,382,874 | 2.06 | 2006-07 | 665,525 | 1,428,041 | 2.15 | 2007-08 | 554,817 | 1,300,968 | 2.34 | 2008-09 | 523,733 | 1,114,821 | 2.11 | 2009-10 | 625,418 | 1,433,094 | 2.29 | 2010-11 | 536,126 | 2,201,405 | 4.10 | 2011-12 | 572,047 | 1,809,792 | 3.16 | Source: Trade Development Authority of Pakistan. |
Export of yarn decreased from 536 million kg worth US$2.20 billion in 2010-11 to 572 million kg worth US $1.81 billion in 2011-12, thus showing decline of 18% in terms of value Average unit price realization of Pakistani cotton yarn in the international markets is very low compared to that of its competitors. Average unit price of cotton yarn decreased from $4.10/kg in 2010-11 to $ 3.16/kg in 2011-12. Export of cotton yarn is given in Table 3. Pakistan's leading buyers are Hong Kong, South Korea, China, USA, Bangladesh, Japan, Turkey, and Portugal. Export of cotton yarn is given in Table 4. Table 4: Country wise Export of Cotton Yarn Value: US $ 000 | Country | 2011-2012 | 2010-2011 | 2009-2010 | China | 1,086,385 | 914,594 | 634,029 | Hong Kong | 185,678 | 281,113 | 257,025 | Bangladesh | 93,317 | 193,430 | 99,190 | Korea Republic | 63,972 | 135,954 | 65,469 | Portugal | 38,765 | 77,927 | 52,133 | Japan | 58,754 | 68,134 | 30,167 | Italy | 22,775 | 62,350 | 36,162 | U.S.A | 26,378 | 38,305 | 28,386 | Turkey | 29,149 | 71,697 | 33,621 | Egypt | 15,444 | 24,726 | 5,566 | Bahrain | 7,068 | 18,274 | 12,622 | Malaysia | 13,203 | 26,313 | 14,522 | Belgium | 8,841 | 11,996 | 8,471 | All other countries | 160,063 | 276,682 | 154,731 | Total | 1,809,792 | 2,201,405 | 1,433,094 | Source: Trade Development Authority of Pakistan. | | | |

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The Zodiac Killer

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