INP-WealthPk

Pakistan’s Spinning Sector Has Huge Growth Potential

February 16, 2022

By Faiza Tehseen ISLAMABAD, Feb 16 (INP-WealthPK): The spinning sector in Pakistan has grown due to high demand of yarn, especially of cotton yarn, and it has further capacity of growth if focus remains on quality production. Pakistan produces natural as well as handmade fibres. Natural fibres include cotton, wool and silk among which cotton yarn is the most common textile fibre. Pakistan is a producer of cotton yarn with 442 functional spinning units. Other fibres for textile purpose, produced in Pakistan, are synthetic fibres, e.g. nylon, polyester, acrylic, and polyolefin, with the production capacity of 636,000 tons per annum produced by multiple functional units, filament yarn (acetate rayon yarn, polyester filament yarn and nylon filament yarn from six functional units; artificial silk or art silk (mainly produced from 90,000 looms), and wool yarn (acrylic yarn). Textile industry of Pakistan is a shining star of the economy and its spinning sector has a large scope of growth. The main importers of Pakistani cotton yarn are China, Bangladesh, Turkey, Portugal, Japan, Republic of Korea, US, Italy, Germany, others (with about 7 percent share in imports). China procures huge quantities of cotton yarn from Pakistan. Textile industry is the largest manufacturing entity in Pakistan contributing 8.5 percent to GDP. At least 45 percent of Pakistani workforce is related to the textile industry.  Pakistan is the eighth largest cotton commodities exporter in Asia.  The export of cotton yarn increased by 67.97 percent (worth $193.389 million) in July-August 2021 compared to the corresponding period of 2020 when it was worth $115.136 million, according to a leading fashion magazine. Chart of Pakistan’s imports and exports globally concerning sewing thread of manmade filaments whether or not put up for retail sale (values are quoted in US$ and value growth is given by YoY in % for years 2009-2021). According to above-described chart, Pakistan exported textile fibres worth $542,320 in 2020 and sales of commodity group 5401 from Pakistan soared up by 545 percent as compared to 2019. Pakistan produces 8.50 percent cotton fibre of the total global produce. Pakistan itself is a large producer and consumer of textile fibres, e.g. natural and synthetic. The first value addition step to cotton is spinning or the conversion of ginned cotton into yarn. Spinning is the foundation step in the subsequent value addition, i.e. weaving, knitting, processing. So, it would be justified to say that any variation in yarn or in its quality directly disturbs the whole textile value adding chain. Handmade or synthetic fibres including polyester staple fibre (PSF) and viscose rayon staple fibre (VRSF) are also highly consumed in Pakistan to manufacture blended yarns. With a considerable spinning capacity in Asia, Pakistan is the largest producer of textile products and related items, e.g. cotton yarn, synthetic yarn and art silk, after China and India. Currently, Pakistan keeps about 422 spinning mills, 1,260 ginning, 600 knitwear production units, 2,550 garment manufacturing companies and 423 textile industries with a handsome supply base for almost manmade and natural yarns and fabrics including rayon, cotton and others all over the country. China is the largest producer of cotton yarn at world level, while still enhancing its capacity and bringing regular innovations to boost its spinning sector for increased output by making it superbly productive. The Chinese model can be a good example to be followed regarding textile products industry, specially in spinning sector. In April 2021 alone, China earned $12.15 billion from the generous export of textile yarns, fabrics and related products, while apparel and related accessories fetched $11.12 billion for the state wallets of China, according to the publication. Cotton Export Corporation of Pakistan (CEC) is responsible to look after, develop and enhance the spinning industry for production of other fibre produce, e.g. synthetic fibre, filament yarn, art silk, wool and jute. Spinning industry in Pakistan makes the basic raw material for the downstream industry, fulfilling the export demand in moderate quantities each year. It is high time for the Government of Pakistan to take action regarding the spinning sector of the textile industry. The government may review its policies regarding the import of required raw material, highly productive cultured seed must be provided to farmers for better and disease-free cotton yield, subsidies, energy, the strict applications of international quality and standard etc. The government must take bold decisions vital for the smooth running of the industry. The government should introduce friendly and easy conditions to attract more investors towards the textile industry. The cotton processing, yarn and textile products are all different aspects giving it a form of industry making up almost half of Pakistan’s manufacturing base. The future of such industry with sombre vitality must be certain to flourish.