The myth that Pakistan is a major global player in textiles and clothing is far
from reality. It ranks 10 in basic textile exports and stands nowhere in
clothing and apparel exports with China leading both textiles and clothing.
Major textile and clothing players are in Asia. This includes China, India,
Vietnam, Bangladesh, Korea and Pakistan. In textiles China leads the world
with exports of $118 billion, followed by India $18 billion, Korea $10 billion,
Vietnam $8 billion and Pakistan $8 billion.
In textiles and clothing combined, China fetches over $250 billion,
Bangladesh $38.73 billion, Vietnam $37.93 billion, India $37.11 billion,
while Pakistan’s textile and clothing exports reached $12.5 billion this fiscal.
Like Pakistan, economic development of India is greatly dependent on
export earning of the textile industry. Textiles provides direct employment
to over 45 million persons in the mill, power-loom and handloom sectors
making it the biggest employer in the country after the agricultural sector
India is the world’s second-largest producer of textiles after China. It is also
the world’s third-largest producer of cotton after China and the US. At
present, a third of India’s textile production is exported.
This means that 70 percent of the textile production in India is consumed
domestically. This explains the robust strength of textiles in India as global
slowdown does not impact the producers as severely as in Pakistan or
Bangladesh where bulk of the production is exported.
Bangladesh has emerged as a major clothing exporter. Starting with zero
exports in 90s, the Bangladeshi textile exports are three times higher than
Pakistan.
COVID-19 impacted the country badly. As Bangladesh''s garment factories
gradually reopen, manufacturers are suffering from weak global demand
amid the pandemic.
Big fashion brands are still cancelling orders, adding to the plight of textile
workers. In response to the call from Bangladesh Exporters Association
President Rubina Haq, the European Union has organised emergency funding to help them, which was a good gesture, but could go only so far in
limiting the damage done to the country''s textile industry.
Textile and clothing account for more than 80 percent of Bangladesh''s
overall exports. Along with downsizing the previously placed order, many of
the buyers have been asking for discounts up to 20 percent to 50 percent as
well. Its textile and apparel, exports have increased at a CAGR of eight
percent over last five years from $25 billion in 2012 to $36 billion.
It imports both yarn and fabric in large quantities. Duty free market access
with China, makes it the largest supplier of T&A commodities to
Bangladesh.
It has a share of about 56 percent in total imports which has grown at a
CAGR of eight percent during the last five years. India and Pakistan are next
top suppliers and together constitute around 25 percent of Bangladesh’s
total T&A import.
T&A import from India has grown at a CAGR of six percent in the last five
years. Pakistan’s textile exports to Bangladesh have remained stagnant in
these five years, which means that its exporters did not benefit from the
expansion in Bangladesh clothing exports.
Vietnam, in recent years has emerged as a major textile player in the world.
It competes for second position with Bangladesh. The country has held its
ground against the COVID-19 pandemic with its best and comprehensive
strategies and implementation.
Vietnam has not reported any deaths from COVID-19. The country’s highly
effective containment of the virus proved to be an advantage for its
investment environment, helping economic recovery and taking the country
in a new position on the global stage.
In 2019, Vietnam reaped roughly $32.60 billion from exporting textiles and
garments. It is the favoured venue for relocation of Chinese textile
industries. Its manpower is more skilled than India, Bangladesh and
Pakistan.
Pakistan’s textile and clothing exports posted a negative growth of over six
percent to $12.526 billion in the fiscal year 2019-20, as compared to $13.3
billion in the corresponding period of 2018-19. According to textile millers,
Pakistan exports one way or the other 80 percent of textiles and clothing it produces. Because of heavy dependence on exports, its textile industry is
severely hurt in any global recession.
The COVID-19 impact however was managed as the orders have started
pouring in. Textiles account for 60 percent of our exports; still total textile
and clothing exports are 1/3 of compared to Bangladesh or Vietnam.
Pakistanis have inferior textile and clothing skills than the competing
economies. It is so because of the outdated technology. The industry is
surviving on government subsidies.
Source: The International News, Pakistan Thursday, 30 July 2020