By Ayesha Saba ISLAMABAD, Dec 07 (INP-WealthPK): Wool is harvested through the hair of animals and is then spun into yarn. It is then woven into cloth. The product portfolio of wool is very diversified as it can be used in many textile products as intermediaries and finished products like knitwear, blankets and carpets. It is labor-intensive and combines industry with livestock. It generates quick returns on low investment, is also a source of self-employment and earns foreign currency through  exports. The woollen industry in Pakistan is generally rural-based, but at the same time it is an important export-oriented sector. Sheep-rearing and the making of woollen products like blankets, shawls and carpets is one of the oldest household occupations on this subcontinent, especially in the mountainous regions of Pakistan. Colder temperatures in the highlands necessitate the adoption of means to rear sheep and produce woollens to stay warm. Wool can play an important role in Pakistan’s fiber mix as it is a necessary part of the country’s winter clothing and carpet industry. Pakistan is the 10th largest sheep-rearing and 13th largest wool producing country in the world. Today, the country has over 70 large, medium-sized and small woollen clothing production units, plus 16 wool spinning mills. Balochistan, Bahawalpur, tribal districts of Khyber Pakhtunkhwa and Cholistan in Punjab are the main wool-producing regions. The wool produced there is only carpet grade. Khyber Pakhtunkhwa produces fine quality wool which is used in shawl making, handicraft and the cottage industry. According to Food and Agriculture Organisation (FAO), Balochistan has an estimated sheep population of 14.7 million, with the potential value of wool standing at around Rs2.2 billion per year. Though Balochistan is the main wool-producing region, there exists no formal industry to exploit the province’s potential. Generally, wool has four types, long and coarse, of medium quality and fine. Pakistan is mainly producing the rough and coarse type, which is considered average  on the world market and used only for making carpets, rugs, blankets and other handicrafts. The country has to import finer-quality wool (Merino wool) to be competitive globally. The dependence on imports makes the sector vulnerable to price fluctuations internationally. Due to inadequate sources of technology and knowledge for classification, grading, cleaning and mixing of wool fibers for better market access, the local farmers generally follow the traditional methods of production. The government needs to introduce and promote small and medium-sized enterprises in remote areas for the sorting and classification of wool to retain fiber quality. This step will greatly benefit the local communities as they will be incentivised to produce abundant raw materials, and have their incomes boosted. The government should establish a central wool development board, which should be tasked with launching integrated wool improvement and development programmes. The woolen sector can play a bigger role in the country’s economy, if livestock keepers are given incentives to help increase the number of herds and are assured that they will be paid a maximum price for their product. So, development of the rural economy in this value chain holds the key to development of this sector on a strong footing.