Islamabad: Assalam-o-Alaikum and a very Good Afternoon…!
It is my privilege to be present at the Inauguration Ceremony of 9th Textile Asia 2012 Int’l Exhibition, the largest annual Textile and Garment Machinery Show of Textile Industry of Pakistan.
I am delighted to learn that this year 276 Exhibitors from 39 countries representing 369 international brands are participating in Textile Asia 2012. I am also pleased to learn that in addition to a large number of Textile Sector representatives along with 271 foreign delegates are attending the exhibition which is indeed an excellent participation and express the interest of the buyers and sellers. I welcome the foreign delegates to capitalize the immense potential of fast growing Textile Industry of Pakistan.
THE POTENTIAL OF OUR TEXTILE SECTOR
Pakistan is transforming itself from being a stagnant economy to fast-paced emergent economy as a result of the structural reforms introduced by the present government in the areas of investment, business and trade in addition to covering social, political, judiciary and security.
The geographical location of Pakistan warrants unique proposition to make investments here. As Pakistan lies at crossroads to South Asia, Gulf and Central Asia, it gives direct market access to more than half a population of the world that lives here.
Investors enjoy full legal protection for their investment; have 100 per cent equity with no bar on transfer of dividends which is a proof that Pakistan has one of the most congenial business environments in the region. It is noteworthy that 500 to 600 foreign firms are successfully operating in Pakistan, generating higher profits.
LITTLE ABOUT OUR TEXTILE INDUSTRY
The present Global Scenario of Textile Industry with particular reference to the position of Pakistan in the International Textile Market. The demand for textiles in the world is around $18 trillion, which is likely to be increased by 6.5%. China is the leading Textile exporter of the world’s total exports of US$ 400 billion. Country wise major market shares of the textile exporting countries are: China: $55 billion, Hong Kong: $38 billion, Korea: $35 billion, Taiwan: $16 billion, Indonesia and Pakistan:$14 billion.
Though Pakistan has emerged as one of the major cotton textile product suppliers in the world market with a share of world yarn trade of about 30% and cotton fabric about 8%, having total export of $ 13.8 billion, which accounts for only 1.2% of the overall share. Out of this Cotton fabric is 0.02%, Made-ups is 0.18% and Garments is 0.15%.
Textile sector is the backbone of our economy having 56% of our total exports and 38% job creation in the manufacturing sector and holds great importance as it significantly contributes to our exports and foreign exchange earnings. Nearly all the world renowned brands are manufactured in Pakistan keeping high standard of international quality and competitiveness.
4th largest producer of Cotton Yarn and Cloth in the World after China which is No. 1
We have signed MOU with Monsanto for BT cotton to improve the yield per acre which is low and at 13th position in the world.
Ranks 2nd in export of yarn and 3rd in export of cloth and 4th largest producer and consumer of raw cotton.
We have large spinning capacity – with major part of European, US, Japanese and Chinese Machinery
Ample availability of cheap skilled labour
Large domestic market
PERFORMANCE OF OUR TEXTILE SECTOR
Pakistan has achieved higher ever total exports of US $25 Billion last year out of which 56% exports amounting to US $13.8 Billion were from textile sector.
I think it is worth mentioning that the textile sector has registered last year an impressive growth of 38% and we are aiming more.
We have the highest production of cotton this year for more than 14 Million bales and I hope and pray that the production may reach to 50 Million bales in the current season.
I am pleased to inform you that in order to support our economy effected by the devastated flood, European Union has allowed Duty Free export of 75 products from Pakistan out of which 65 are textile products. The facility is initially for 2 years, extendable for third year after which Pakistan will InshAllah quality for GSP Plus status to export Duty Free to EU as per revised criteria agreed with EU.
The government is focusing on regional trade and signed FTA with China and Sri Lanka. We are also opening trade with India and giving them Most Favoured Nation (MFN) status. All these majors will certainly boost our textile sector and exports.
GOVERNMENT INITIATIVES TO TEXTILE SECTOR
Pakistan has also embarked on a wide-ranging initiative to increase its attractiveness to foreign investors in the textile sector.
Our present government has identified textile as a key priority area and is making all possible efforts to set the right policies and incentives that encourages private sector investment in value addition and expansion in a bid to gain wider access to the international markets. We have fixed an ambitious target of US $25 Billion till 2014 in the new five years Textile Policy with 2 times value addition target. In addition, it would also help create jobs; alleviate poverty and assist the present government fight terrorism and extremism.
In order to accelerate the growth of textile sector and value addition, the Government has taken a number of proactive measures to bring newer technologies and brands in Pakistan. Textile Asia is one of those initiatives which is being held for the 9th consecutive year and it is a successful public-private partnership model.
The new Textile Policy 2009-2014 announced by the government of Pakistan allows various incentives including concessional financing (LTF) to encourage capital investment in value added textile sector.
The government of Pakistan has also withdrawn custom duty and sales tax on import of plant and machinery by the manufacturing industries.
Our Textile Industry has invested US $ 6 Billion under BMR during 1999 to 2003 and with the present hefty profits, textile sector continues to do the capital invest in this sector.
Textile City project to be launched in Karachi on Port Qasim with most modern facilities
Garment Cities in Karachi, Lahore and Faisalabad
Industrial Park in Karachi
Dedicated Economic Zones
Distinguished guests and delegates;
I would like to invite the participants in joint ventures to take advantage of investment friendly environment in Pakistan and exploit the untapped potential textile sector offers as we gear up for increasing our share of value added textile products in the world market. I assure you that the government of Pakistan will leave no stone unturned to provide an environment that guarantees security of your investment in Pakistan.
I also urge textile and garment sector to adapt new media marketing technologies to reach the potential markets of the world.
Last year, business of value 31 million US dollars was negotiated in Textile Asia and I am confident that it would be further enhanced this year.
In the end, I would like to appreciate the efforts of Dr. Khursheed Nizam and the team of Ecommerce Gateway for organizing this successful event. Organization of such exhibitions not only plays an important role in furthering present government’s agenda to attract foreign investment and promote business but also highlights the corrective image of Pakistan as a safe and secure place for business.
I wish Textile Asia 2012 a great success and Foreign Delegates a pleasant stay in Pakistan.
Pakistan – Paindabad.
For more information, contact:
Government of Pakistan
Ministry of Textile Industry
2nd Floor, Federal Cooperative Building, G-5/2,
Islamabad – Pakistan.
Tel: 051-9212799 – 9217242