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Addition of 100 new plants in textile industry to create 0.5 million jobs

hydrabadi_arab

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ISLAMABAD, Oct 6 (APP):All Pakistan Textile Mills Association (APTMA) has announced that the textile industry is all set to invest $5 billion by adding 100 new textile plants which will help create 500,000 jobs for the youth of the country beside increasing the existing volume of textile exports.

It was said during the annual general meeting of the association held last week by the APTMA Patron-in-Chief Gohar Ejaz who also hoped to achieve the current year’s textile export target of $21 billion. He said that the majority of the plants would be completed by February 2022.


The APTMA as a trade organization representing the largest sector of Pakistan – Textile – encompassing more than 400 textile companies has always played a pivotal role in safeguarding the business interests of not only textile companies but of other sectors to enable their contribution in country’s economic prosperity.

According to the data, the State Bank of Pakistan has provided financial support to the industry through Temporary Economic Refinance Facility (TERF) and Long Term Financing Facility (LTFF).

The TERF showed significant growth until March 2021 as reflected by increase in the requested amount from Rs. 36.1 billion by end of April 2020 to Rs. 690 billion at maturity while over the same period approved financing has reached to Rs. 435.7 billion from mere Rs. 0.5 billion.

According to official source, “For every dollar investment in the textile industry, there is $1 to $1.5 increase in the exports expected.” It stated that the textile sector exports reached a new peak, recording $1.49 billion during the first month of the current fiscal year 2021-22.

The recent expansion is attributed to unprecedented investment in expansion and new projects – a direct consequence of the government’s regionally competitive energy pricing policy. The export-oriented sectors are highly labor intensive – particularly the textile sector – and create jobs at every tier of the economy, it added.


According to the available data, the textile industry has witnessed an unprecedented growth as depicted by an increase of 22% in exports in FY21 as compared to FY20 and 15% when compared to FY19. The resulting hike in exports was the direct result of enabling environment provided by the current government.

It is pertinent to mention that FY20 was the year of Covid-19 where prices plummeted due to black swan event. Thus, we must compare prices with previous year i.e., FY19 where A-index prices decreased by 4.24 percent from 86.07 in FY19 to 82.42 in FY21. Given the fact that orders and prices are booked 6-8 months in advance, the earnings is certainly not the result of increased prices.

According to officials the demand in the domestic market maybe on the rise and there are more than 400 textile mills in the country – not all of them are exporters – to cater for rising demand. It is only viable to sell a value-added product for dollars rather than rupees. Those hard-earned dollars have significantly contributed to Pakistan’s economic growth – Balance of Payment (BoP) improved, rupee appreciated, and it also funded our imports.

Meanwhile the exports of textile commodities surged by of 28.67 percent during the first two months of the current fiscal year as compared to the corresponding period of last year and surged by 45.19 percent on year-on-year basis (YoY). The textile exports were recorded at $2933.938 million in July-August (2021-22) against the exports of $2280.119 million in July-August (2020-21), showing growth of 28.67 percent, according to latest data of Pakistan Bureau of Statistics (PBS). The textile commodities that contributed in trade growth included cotton yarn, the exports of which increased from $115.136 million last year to $193.389 million during the current year, showing growth of 67.97 percent.

Likewise, the exports of yarn cotton cloth increased by 24.74 percent, from $294.724 million to $367.624 million whereas, exports of cotton (carded of combed) increased by 100 percent to 0.770 million.

The exports of yearn (other than cotton yarn) increased by 123.73 percent, from $3.473 million to $7.770 million whereas the exports of knitwear went up by 34.12 percent, from $564.343 million to $756.883 million and bed wear by 24.50 percent, from $424.187 to $528.109 million.

The exports of towels during the period under review increased by 20.67 percent, from $133.104 million to $160.612 million, ready-made garments by 22.57 percent, from $477.216 million to $584.913 million, art, silk and synthetic textile by 34.08 percent, from $51.613 million to $69.202 million, made up articles (excluding towels and bed wear) by 21.26 percent from $109.846 million to $133.194 million whereas exports of other textile materials increased by 37.44 million, from $86.743 million to $119.222 million.

 
I would wait for end of May 2023 for the official export & GDP numbers. As they say proof is in the pudding.
 
I would wait for end of May 2023 for the official export & GDP numbers. As they say proof is in the pudding.
The export is 1.5 billion dollars more then previous year in first quarter.
If we assume all quarters have 1.5 billion more exports then quarters in previous year. Then simply we can export 6 billion dollars more.
That validate the point of textile industry that they would increase their exports from 15 billion dollar to 21 billion dollar in this current year.
They have proved in first quarter by earning 1.5 billion more.
If they would earn the same in all quarters then would be fine. But we all know exports in the end of the financial year is much higher then the first quarters.
There are not shortcuts. Only hardwork.
 
I am not disagreeing with anyone here. Its just there are too many moving parts in an economy and unforeseen things can happen.

Like everything was hunky dory till two moths ago and then BAMM .. USD went up to 172 PKR, without anyone having a clue.
 
Textiles and IT are going good but we are not seeing any substantial growth in electronics and pharma
 
True, we should bring back Nawaz Sharif Bhagora for improvement in pharma and electronics.
wtf.gif

Wth does it have to do with anything?
 
ISLAMABAD, Oct 6 (APP):All Pakistan Textile Mills Association (APTMA) has announced that the textile industry is all set to invest $5 billion by adding 100 new textile plants which will help create 500,000 jobs for the youth of the country beside increasing the existing volume of textile exports.

It was said during the annual general meeting of the association held last week by the APTMA Patron-in-Chief Gohar Ejaz who also hoped to achieve the current year’s textile export target of $21 billion. He said that the majority of the plants would be completed by February 2022.


The APTMA as a trade organization representing the largest sector of Pakistan – Textile – encompassing more than 400 textile companies has always played a pivotal role in safeguarding the business interests of not only textile companies but of other sectors to enable their contribution in country’s economic prosperity.

According to the data, the State Bank of Pakistan has provided financial support to the industry through Temporary Economic Refinance Facility (TERF) and Long Term Financing Facility (LTFF).

The TERF showed significant growth until March 2021 as reflected by increase in the requested amount from Rs. 36.1 billion by end of April 2020 to Rs. 690 billion at maturity while over the same period approved financing has reached to Rs. 435.7 billion from mere Rs. 0.5 billion.

According to official source, “For every dollar investment in the textile industry, there is $1 to $1.5 increase in the exports expected.” It stated that the textile sector exports reached a new peak, recording $1.49 billion during the first month of the current fiscal year 2021-22.

The recent expansion is attributed to unprecedented investment in expansion and new projects – a direct consequence of the government’s regionally competitive energy pricing policy. The export-oriented sectors are highly labor intensive – particularly the textile sector – and create jobs at every tier of the economy, it added.

According to the available data, the textile industry has witnessed an unprecedented growth as depicted by an increase of 22% in exports in FY21 as compared to FY20 and 15% when compared to FY19. The resulting hike in exports was the direct result of enabling environment provided by the current government.

It is pertinent to mention that FY20 was the year of Covid-19 where prices plummeted due to black swan event. Thus, we must compare prices with previous year i.e., FY19 where A-index prices decreased by 4.24 percent from 86.07 in FY19 to 82.42 in FY21. Given the fact that orders and prices are booked 6-8 months in advance, the earnings is certainly not the result of increased prices.

According to officials the demand in the domestic market maybe on the rise and there are more than 400 textile mills in the country – not all of them are exporters – to cater for rising demand. It is only viable to sell a value-added product for dollars rather than rupees. Those hard-earned dollars have significantly contributed to Pakistan’s economic growth – Balance of Payment (BoP) improved, rupee appreciated, and it also funded our imports.

Meanwhile the exports of textile commodities surged by of 28.67 percent during the first two months of the current fiscal year as compared to the corresponding period of last year and surged by 45.19 percent on year-on-year basis (YoY). The textile exports were recorded at $2933.938 million in July-August (2021-22) against the exports of $2280.119 million in July-August (2020-21), showing growth of 28.67 percent, according to latest data of Pakistan Bureau of Statistics (PBS). The textile commodities that contributed in trade growth included cotton yarn, the exports of which increased from $115.136 million last year to $193.389 million during the current year, showing growth of 67.97 percent.

Likewise, the exports of yarn cotton cloth increased by 24.74 percent, from $294.724 million to $367.624 million whereas, exports of cotton (carded of combed) increased by 100 percent to 0.770 million.

The exports of yearn (other than cotton yarn) increased by 123.73 percent, from $3.473 million to $7.770 million whereas the exports of knitwear went up by 34.12 percent, from $564.343 million to $756.883 million and bed wear by 24.50 percent, from $424.187 to $528.109 million.

The exports of towels during the period under review increased by 20.67 percent, from $133.104 million to $160.612 million, ready-made garments by 22.57 percent, from $477.216 million to $584.913 million, art, silk and synthetic textile by 34.08 percent, from $51.613 million to $69.202 million, made up articles (excluding towels and bed wear) by 21.26 percent from $109.846 million to $133.194 million whereas exports of other textile materials increased by 37.44 million, from $86.743 million to $119.222 million.

No jeans factory please
 
Investment is good but Pakistan needs to diversify. This strategy means it is forcing itself into an economic fight against Bangladesh which currently has an advantage over Pakistan in this space ...
 
Investment is good but Pakistan needs to diversify. This strategy means it is forcing itself into an economic fight against Bangladesh which currently has an advantage over Pakistan in this space ...

Pakistan share in textile is small. Even $21b is nothing. It can be increased much more and take advantage of land by producing 15 million bales of cotton like in the past. Remember BD import cotton and their LDC status will soon be over. We can diversify while also encouraging textile bcz god have given us good land for cotton crop.
 

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