Musharraf Era Textile Boom Returning to Pakistan?

[RiazHaq]

Pakistan textile exports more than doubled from $5.2 billion to more than $11 billion during Musharraf years. Exports soared 19.43% in 2001, 20% in 2004, 24.5% in 2005 and 11.23% in 2006, all on President Musharraf's watch, according to "The Rise and Fall of Pakistan's Textile Industry: An Analytical View" published by Javed Memon, Abdul Aziz and Muhammad Qayyum.

Musharraf Era Textile Boom Returning to Pakistan?

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[Ghessan]

Textiles are highly competitive, with thin margins, and easily fungible. Pakistan is clearly benefitting from rupee devaluation which makes its exports much cheaper than competitors. But will it last?

very true and not until we do take some revolutionary steps.
the biggest disadvantage we have is cheap electricity which we are giving to the textile sector for some time now but it will not last long since IMF is exerting pressure, besides prices in international market are rising at fast pace for fuel.

what Pakistan can do is to rapidly establish market in EU in particular for their value added goods.
and keep textile sector provided with power at competitive rates for a certain period.
they need to sit together make a policy, it is not that industry is given all the benefits and industry in return fill their pockets and go home. there must be return in way to support economy besides labor hiring.

 

[RiazHaq]

Musharaf era boom was a favor by the west to support us due to the 2005 earthquake and 2010 floods by giving us GSP plus status to export textiles to the west. This time, it's a market-based boom as Pakistan provided an alternate supply source due to covid impact in India, Bangladesh, and other textile producing countries. the comparison is not fair.

GSP plus is worthless if the textile industry can not deliver product. It takes significant investment in building production capacity to achieve double digit growth.

Pakistan textile exports more than doubled from $5.2 billion to more than $11 billion during Musharraf years. Exports soared 19.43% in 2001, 20% in 2004, 24.5% in 2005 and 11.23% in 2006, all on President Musharraf's watch, according to "The Rise and Fall of Pakistan's Textile Industry: An Analytical View" published by Javed Memon, Abdul Aziz and Muhammad Qayyum.

Musharraf Era Textile Boom Returning to Pakistan?

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[Ghessan]

The most concerning figure in this data is the 71% increase in cotton yarn, while our local finished goods industry, which has the highest per unit price, profit and subsequently earns the highest revenue, is suffering due to high raw material prices, spinners are earning huge profits while generating the lowest revenue by exporting yarn. Govt. needs to put checks in place on export of cotton and cotton yarns and should encourage local sales.

this is because after the demand is met locally for the value added sector it is exported also export oriented spinning mills prefer it instead of selling it locally. they are exporting since decades.
there is another thing, cotton yarn producers are getting a very good price locally too.
it also shows we have potential and can export value added goods to level of USD30 Billion, we need to work together by taking all the stake holders into confidence.

 

[Ghessan]

Pakistan textile exports more than doubled from $5.2 billion to more than $11 billion during Musharraf years. Exports soared 19.43% in 2001, 20% in 2004, 24.5% in 2005 and 11.23% in 2006, all on President Musharraf's watch, according to "The Rise and Fall of Pakistan's Textile Industry: An Analytical View" published by Javed Memon, Abdul Aziz and Muhammad Qayyum.

Musharraf Era Textile Boom Returning to Pakistan?

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by putting such data one has to scrutinize it too.
Pakistan was exporting a huge part of it being raw material (cotton yarn & grey fabric) during Musharraf times and later, we had a very good market. courser yarn counts in which we were very competitive until we hammer our foot ourselves and lose that competitiveness to India and other countries.
we were never good at value added products and that is a hopeless development, for decades we did not look into it to convert our textile industry into value added goods exporter.
1990s was the time to do this when Cambodia, Bangladesh, Vietnam, Taiwan, China even Srilanka were working on it and we were erecting spinning mills. who produces value added goods more than China and Bangladesh?

 

[Maula Jatt]

 

[F86 Saber]

Bro, “Under construction” has got nothing to do with increasing export capacity.

I am in the industry and know very well how much IK’s ft FBR’s policies have impacted the textile industry ever since 2019.

Many big names have cut down their workforce to less than 50% ever since and nothing is sustainable

Why are you spreading lies? I have been in the industry for the last 14 years, right now there is even shortage of labor especially skilled labor. The only problem facing the industry right now is shortage of cotton and high chemical prices

 

[F86 Saber]

this is because after the demand is met locally for the value added sector it is exported also export oriented spinning mills prefer it instead of selling it locally. they are exporting since decades.
there is another thing, cotton yarn producers are getting a very good price locally too.
it also shows we have potential and can export value added goods to level of USD30 Billion, we need to work together by taking all the stake holders into confidence.

Imagine if our Saith Sahiban had invested in setting up garment units instead of spinning mills, the same pound of yarn which sells for cents, when converted to garments, sells for dollars.
APTMA is a Spinning sector controlled Mafia that prefers to export instead of sell locally because export earns dollars and rebate. Imagine how much revenue would Pakistan earn if all the excess yarn which is being exported is converted locally into finished fabric or garments.

 

[Ghessan]

Imagine if our Saith Sahiban had invested in setting up garment units instead of spinning mills, the same pound of yarn which sells for cents, when converted to garments, sells for dollars.
APTMA is a Spinning sector controlled Mafia that prefers to export instead of sell locally because export earns dollars and rebate. Imagine how much revenue would Pakistan earn if all the excess yarn which is being exported is converted locally into finished fabric or garments.

very true, but the credit goes to every stake holder including successive governments to mess this up who did not take initiative by supporting and promoting value added sector. we were busy in erecting mills on loans in 90s and later "qarz maaf"
Bangladesh is a good example they really exponentially develop their textiles on value added products. their garment export already crossed 3 billion mark and are now targeting 50 billion and set the goal.

 

[S.Y.A]

Federal Government (Prime Minister Imran Khan's Government ) provisioned the money to Sindh , and one of the items was enablement of KCR for Transportation , and legal avenue to enforce the laws and orders of Government is thru Police and Courts who are servants for Government

The legal channel ensures Federal Government pressures projects are completed on time

No Gulu Butt show up on Sindh Parliment to ensure projects get done

Seems normal process that courts are , helping enforce completion of Projects from Local Bodies which lie outside the sphere of influence of Federal Authorities


Federal Government
>Parliament/Senate (Make new Bills and Laws)
>Release Funds for Projects
>Appoint leaders for State Entities (i.e Railways)
>Supreme Court help enforce law when possible if it is felt Province is not putting in effort

Provincial Body
> Provincial High Courts
> Police

SC ordered sindh govt and PR to get KCR up and running, the funding (or the promise of it) came wayyyyyyyyy later. dude, do you have selective amnesia?

 

[R Wing]

Govt is promoting value added sector otherwise what are they exporting to EU? raw material never goes to EU.

regarding your point towards APTMA, or raw material producers, remember no industrialist plays politics for their own factory to get losses. even when we were not exporting value added goods during last five years, there was a huge demand for this raw material within the country.

and no we cannot stop importing raw material, raw cotton we produce cannot make high quality product until we revolutionize the cotton produce by introducing new seed with high output and long staple fiber as well , this is a bit technical. we need to import high quality raw cotton to make high quality value added products which we are doing

You are making my point, even though you think you are disagreeing with me.

Mills under the APTMA banner (which are mostly spinning mills, i.e. not value added) have had DECADES to invest in better seeds, set up R&D units, etc., as is the case worldwide. Sure, governments help --- but you can't just sit on your *** and wait for a miracle, especially in a place like Pakistan.

I am not saying we stop importing raw material right now. I am saying it should be our goal. The (very wealthy) spinning mill owners should invest some of that wealth in the right seeds/yields/training of farmers/etc. A tiny minority of mills do this.

If an agricultural country like Pakistan that has not reached proper widespread industrialization can't even be self sufficient in cotton, wheat and sugar (?!), you really need to step back and figure out what the F is going on.

 

[BATMAN]

not until local industrialists adopt new technologies and global best practices, and at the same time setting up more units.

It's more of a case of low cost production, expensive electricity is offset by cheap labor.

 

[Thorough Pro]

What are you trying to say? What investment in the textile sector happened in the Musharraf era?
My point was the reason for the growth in the two eras are due to two totally different reasons. The growth in the Musharraf era was due to GSP plus status to help Pakistan (being the front line alley in WOT) when it was hit by a massive earthquake in 2005 and then massive flooding in 2010.

Growth in 2020/2021 is due to the traditional value-added textile suppliers i.e. China, Bangladesh, and India being locked down due to COVID and their inability to meet the demand, thus the buyers reaching out to other countries including Pakistan as an alternate supply point.

Which point do you not agree with?

GSP plus is worthless if the textile industry can not deliver product. It takes significant investment in building production capacity to achieve double digit growth.

Pakistan textile exports more than doubled from $5.2 billion to more than $11 billion during Musharraf years. Exports soared 19.43% in 2001, 20% in 2004, 24.5% in 2005 and 11.23% in 2006, all on President Musharraf's watch, according to "The Rise and Fall of Pakistan's Textile Industry: An Analytical View" published by Javed Memon, Abdul Aziz and Muhammad Qayyum.

Musharraf Era Textile Boom Returning to Pakistan?

News, analysis and opinions about India, Pakistan, US, Canada, Europe, Mid East, South Asia, Silicon Valley, High Technology, Economy, Politics, World

www.riazhaq.com

 

[Ghessan]

You are making my point, even though you think you are disagreeing with me.

Mills under the APTMA banner (which are mostly spinning mills, i.e. not value added) have had DECADES to invest in better seeds, set up R&D units, etc., as is the case worldwide. Sure, governments help --- but you can't just sit on your *** and wait for a miracle, especially in a place like Pakistan.

I am not saying we stop importing raw material right now. I am saying it should be our goal. The (very wealthy) spinning mill owners should invest some of that wealth in the right seeds/yields/training of farmers/etc. A tiny minority of mills do this.

If an agricultural country like Pakistan that has not reached proper widespread industrialization can't even be self sufficient in cotton, wheat and sugar (?!), you really need to step back and figure out what the F is going on.

i understand your point and agree, the problem is in an unstable economy like Pakistan which we are since decades now, our industrialists develop a habit of playing safe. they do not innovate, improvise or take risks at all due to instability either it is economic or political.

it is govt who provides environment, make policies and give incentive to industry and the farmers. as you said and very truly that industrialists can take a step improving cotton crop. but they face instability and frequent changes in govt policies force them to avoid.

we really need a strong economy to help resolve such issues.

 

[RiazHaq]

What are you trying to say? What investment in the textile sector happened in the Musharraf era?
My point was the reason for the growth in the two eras are due to two totally different reasons. The growth in the Musharraf era was due to GSP plus status to help Pakistan (being the front line alley in WOT) when it was hit by a massive earthquake in 2005 and then massive flooding in 2010.

Growth in 2020/2021 is due to the traditional value-added textile suppliers i.e. China, Bangladesh, and India being locked down due to COVID and their inability to meet the demand, thus the buyers reaching out to other countries including Pakistan as an alternate supply point.

Which point do you not agree with?

Musharraf Era Textile Boom Returning to Pakistan?

News, analysis and opinions about India, Pakistan, US, Canada, Europe, Mid East, South Asia, Silicon Valley, High Technology, Economy, Politics, World

www.riazhaq.com