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LAHORE – Realizing Pakistan’s potential as 4th largest cotton producer, the Chinese investors expressed their deep desire to enter into joint ventures with Pakistan for importing high quality fabric to China that would help in improving bilateral trade and economic relations between the two countries.

A Chinese delegation from China National Textile & Apparel Council (CNTAC) led by CEO Textile Mills Management, Shahid Nazir Masood and CEO of Shanghai Challenge Textile Mr Robert, visited Punjab Board of Investment and Trade. The objective of the visit was their keen interest in developing business in Pakistan specifically in the textile sector for changing the economic landscape of the country.

CEO PBIT Burana welcomed the delegation and briefed them about the core functions of PBIT as an Investment Promotion Agency. He stressed on two types of investments, one that is immediate by acquisition of potential points of existing textile industry and the other one of Greenfield Investments. He highlighted that the new government is highly interested in strengthening the economic bond between the two countries in the light of CPEC and OBOR. He told the delegation that a team will be designated from PBIT that will work with them in order to identify potential opportunities in the specific sector. He further said that the Investment Advisory Team of PBIT will facilitate them regarding the entire procedures for establishing or expanding the businesses in Punjab through its Special Economic Zones such as Quaid-e-Azam Apparel Park.

The representatives of Chinese companies said it was their first visit to Pakistan for exploring trade and investment opportunities. They stated that China has now globally established itself as the finest textile producer. The investors showed immense interest in investing in Pakistan as it is amongst the largest cotton producers in the world and their high quality fabric can be exported to China thus enhancing the productivity and boosting trade relations between the two countries.

They requested that Chinese investors should be provided with specific promotion incentives to deepen trade relations. They invited PBIT and potential investors from Punjab for showcasing their products in the biggest textile expos conducted in Shanghai.

CEO PBIT told them that Minister for Industries, Commerce and Investment, Punjab is interested in visiting China with delegates from our textile sector for further economic cooperation. He proposed that a joint working group should be constituted between PBIT and CNTAC to explore possibilities of promotion & cooperation between Punjab and China specifically in textiles. He also proposed a meeting with the said Minister and signing of memorandum of understanding as a concrete step towards mutual efforts for augmenting industrial relations.

 

Source: www.nation.com.pk

Pakistan’s apparel and textile exports edged up only 0.86% in the first quarter with the former sector weighing on overall results.

Pakistan saw the value of its textile and garment exports edge up nearly 1% in the first quarter of the year, with the latter sector weighing on the overall result.

Figures from the Pakistan Bureau of Statistics (PBS) show Pakistan’s textile and ready-made garment exports climbed 0.86% in the July to September period to US$3.28bn from $3.26bn last year.
Separately, ready-made garment exports dropped by 1.5% to $599.3m from $608.7m in the year-ago period, the data revealed.

Textile exports, meanwhile, were up 1.13% to $2.68bn, boosted by 9.8% growth in knitwear exports to $710.2m. Cotton cloth also contributed, increasing 0.09% to $529.1 m.

Raw cotton, however, saw a slump in exports of 76.2% to $7.05m from $29.6m a year earlier, while the export of cotton yarn dropped by 2.25% to $313.7m.

Textiles and apparel contribute nearly 70% to Pakistan’s total export earnings.

According to an overview of the country, Pakistan is the world’s fourth largest cotton producer, one of the world’s largest cotton users, and the sixth largest textile exporter.

The country’s current Textile Policy, which runs from 2015-2019, aims to double textile and clothing exports to US$26bn by 2019. Pakistan benefits from zero duty on exports to the EU under the GSP+ scheme – although business is hampered by safety/security issues and the sector faces mounting pressure from Asian competitors.

 

Source: www.just-style.com

The 11th edition of International Garment, Textile Machinery Exhibition (IGATEX) organized by FAKT Exhibitions (Pvt) Ltd. will take from 26th – 28th April, 2018 at Lahore Expo Centre.
IGATEX PAKISTAN 2018 will be a professionally enriching experience for textile machinery manufacturers, providing them an opportunity to directly make their equipment available to quality buyers and decision makers in an exceedingly competitive global business environment.

This year IGATEX will be much bigger than previous editions as it will be taking place in 3 Halls of Lahore Expo Centre including participation of more than 500 Exhibitors from 30 countries. Participation coming from China, Italy, Germany, France, Japan, Russia, Switzerland, Turkey, UAE, USA, UK etc. There will be thousands of visitors expected to visit this mega event.

The CEO of FAKT Exhibitions, Saleem Khan Tanoli, said that the exhibition will showcase stand-alone demonstrations of various cutting edge industry tools & technology and will display the latest machinery, chemicals and equipment used in the textile industry.

A 2-days high-level conference is also planned on 27th and 28th April’ 2018 where International and local speakers will participate and share their knowledge and experiences with the audience. The conference topics related to Technical Textile, Merchandising and Supply Chain will be discussed by some renowned speakers like Dr. Tanveer – National Textile University, Dr. Yasir Nawab – National Textile University, Dr.Hafsa Jamshaid – National Textile University, Theo Verweerden – Lamoral Coatings B.V., Claudio Bertolotti – Mesdan Spa, Marino Bazzoni – EFI Reggiani, Michael Bo Kristoffersen – Brueckner Textile Technologies, Bruno Caffieri – Picanol N.V. and many more.

Mr. Saleem Khan Tanoli said that IGATEX Pakistan 2018 will provide a premium platform for all textile stakeholders, government regulators, associations and academia to enhance business networking, knowledge sharing and to build profitable relationships in the long run.

The most important objective behind organizing this exhibition under 1 roof is to highlight and find new investment opportunities in Pakistan’s textile sector. This event would be an ideal venue to build and develop business relationships with key professionals so they may discuss the dynamics of development and growth of the industry.

ISLAMABAD – Textile exports witnessed over 7 percent growth during seven months (July 2017 to January 2018) of the current fiscal year due to PM’s incentives package and rupee depreciation against the dollar.

The country exported textile and clothing products worth $7.7 billion during July-January period of the year 2017-18 as against $7.2 billion of the corresponding period of the previous year, according to the Pakistan Bureau of Statistics (PBS). Healthy growth in textile and clothing products exports enhanced the country’s overall exports to $13 billion during July-January of 2017-18 as compared to $11.7 billion of the corresponding period of the last year.

Trade analysts believed that textile exports increased due to the flow of cash under the PM’s incentives package, payment of sales tax refunds as well as depreciation of local currency. Meanwhile, the exporters had recently met Prime Minister Shahid Khaqan Abbasi and submitted number of proposals to enhance exports . PM assured the exporters that government will facilitate them in reducing the cost of doing business and early release of refund claims.

Sources said that government is preparing an incentives package to enhance the country’s exports on the directive of Prime Minister Shahid Khaqan Abbasi, which is likely to be announced within next couple of weeks. The government would likely to reduce the rates of electricity and gas for the industrial sectors. Similarly, the government would also repay tax refunds to the exporters, which is their long lasting demand, he added. However, the official said, the exporters would have to show 20-25 percent growth in their exports to avail the incentive package.

According to the PBS, the main driver of growth was the value-added textile sector. exports of ready-made garments went up by 13.93 percent in the first seven months of the ongoing financial year. Similarly, exports of knitwear increased by 13.27 percent during the period under review. exports of bedwear went up by 5.62pc in value. exports of made-up articles, excluding towels, increased by 6.72 percent. Art, silk and synthetic textile exports grew by 93.54pc during the period under review. exports of cotton yarn witnessed a decline of 1.42 percent and exports of cotton cloth reduced by 1.59 percent. Similarly, exports of cotton carded tumbled by 95.71 percent.

Meanwhile, the exports of food commodities recorded massive increase of 18.83 percent during July-January period of the ongoing financial year.

On the other hand, the imports went up by 18.79 percent and were recorded at $34.5 billion during first seven months of the current financial year as against $29.02 billion during the same period last year. The country spent $7.9 billion on the imports of petroleum group, 35.58 percent higher than a year ago. In the petroleum sector, the government imported petroleum products worth $4.45 billion and spent $2.2 billion on petroleum crude. Similarly, the country imported liquefied natural gas (LNG) worth $1.23 billion and liquefied petroleum gas (LPG) worth $190 million.

The PBS data showed that country had spent $6.68 billion on importing machinery during first seven months of the ongoing financial year. The third biggest component was food commodities whose imports rose 9.77 percent year-on-year to $3.78 billion.

Source: www.nation.com.pk

FAISALABAD: State Minister for Finance Rana Muhammad Afzal Khan on Monday said that gas prices would be further decreased for textile industry to reduce cost of production to maximum extent.

Addressing a meeting at All Pakistan Textile Processing Mills Association (APTPMA) here, the state minister said the government had planned to provide electricity at rate of Rs.7 per unit to textile industries besides introducing weighted average price of RLNG across the country.

He said that owners of textile units had to go in refund claims system due to imposition of sales tax on coal if they used it during gas shortage. Therefore, the government was considering a proposal to launch easy process of zero rated coal for textile industry to save it from additional burden of sales tax refund claims, he added.

The state minister further said that Faisalabad Airport had witnessed heavy rush of air passengers as this was not only third largest city of Pakistan but also textile capital. Therefore, expansion of Faisalabad Airport was need of the hour so that at least three flights could land at a time in addition to facilitate 118 fights in a week here, he added.

Earlier, Chairman APTPMA Sheikh Khalid Habib in his welcome address said that due to high energy cost, textile business was being shifted from Pakistan to India, China and Bangladesh which also caused substantial decrease in textile exports of the country. He demanded immediate payment of refund claims in addition to provision of cheap gas and electricity for textile industry.

APTPMA members Mian Aftab Ahmad, Engineer Rizwan Ashraf and Engineer Ehtisham Javaid also addressed.

Source: www.brecorder.com

ISLAMABAD: The Pakistan government is likely to announce a Rs10-billion research development fund in an effort to boost cotton production next season as the harvest remains unimpressive for the past few years.

Talking to The Express Tribune, a senior government official disclosed that a high-level meeting on Wednesday tried to prepare a plan for enhancing the production of cotton that had been virtually stagnant for the past few years sparking concerns among government circles.

Representatives of major cotton-producing provinces – Punjab and Sindh – attended the meeting held at the Planning Commission. Other stakeholders were also present.

Cotton production has been estimated at 11.1 million bales in the ongoing season against the target of 12.6 million bales. The harvest was even lower at 10.7 million bales last year.

In the huddle, the idea of creating the research development fund was floated which was welcomed by Punjab and Sindh.

Elaborating, the government official said it was a 10-year plan, which would be sent to the federal cabinet for approval. It is likely to be formally announced in next fiscal year’s budget in May this year.

Under the plan, the government will spend Rs1 billion every year on research activities to find out ways of increasing the production of cotton, which feeds the massive textile industry of Pakistan.

The plan came after spinning mills went to court challenging the cotton cess amounting to Rs400 million that they had been paying every year for spending on research work.

However, for the past two years, they had refused to contribute and went into litigation with the federal government.

According to the government official, it was decided in the meeting that the research fund would be disbursed in the form of competition grant to the researchers.

In recent years, the cotton plantation area has shrunk in the wake of setting up of sugar mills in the cotton zone of south Punjab.

Absence of a support price has also pushed cotton farmers towards planting other crops such as wheat and sugarcane for which the government has been announcing support prices to ensure a fair return to the growers.

Cotton farmers have not been able to notch up satisfactory earnings and have switched to sugarcane cultivation in areas where sugar mills have been set up.

Country’s economic managers had decided last year to frame a national sugar policy in a bid to secure the cotton belt that had come under threat from the growing number of sugar mills and planting of sugarcane in such zones.

Almost 70% of sugar mills are located in the core cotton zone of the country, especially in Punjab. The presence of mills in top cotton-growing areas and their increasing crushing capacity have caused a 26% decline in cotton-sowing areas, especially in south Punjab including Rahim Yar Khan and Muzaffargarh.

The Ministry of Textile Industry has also demanded that provinces should stop granting permission for establishing new sugar mills in the cotton-growing areas.

In the meantime, sugarcane cultivation has increased in the wake of improved returns and timely supply of inputs. Simultaneously, the prices of sugar have also gone up from Rs31 to Rs68 per kg over the past 10 years.

According to the Ministry of Textile Industry, the higher sugar prices have been an attraction for setting up more sugar mills, which went up from 45 to 85 across the country. Of these, 45 were located in Punjab, 32 in Sindh and eight in Khyber-Pakhtunkhwa.

Source: www.tribune.com.pk

Pakistan’s exports to the 28-member European Union (EU) posted a growth of nearly 6% in January-September 2017 on a year-on-year basis. This shows that the Generalised System of Preferences-Plus (GSP+) scheme largely failed to boost exports to the EU. Total export proceeds to these countries amounted to €5.07bn during the period under review against €4.79bn a year ago, according to EU official data.

Latest figures show an upward movement compared to the similar period in the preceding calendar year. Annual growth recorded in January-September 2016 was just 3.5pc.
The GSP+ scheme became effective on January1, 2014 and will remain available for the next 10 years.

A product-wise analysis shows large variations. For example, exports of garments and hosiery witnessed a growth of 90.9% to €2.05bn during the period under review. The second biggest export category was home textiles, which grew 72.4% to €1.3bn. The share of these two products stood at 65% in January-September against 37.6% a year ago. The third biggest export category was cotton and intermediary goods of textiles, which increased 16.4% to €640.9mn.

Exports of the articles of leather increased 6% to €254.7m while the rise in rice exports was 11.6% to €109.6mn. Exports of sports goods (footballs) rose 41.8% to €102.7mn while foreign sales of surgical goods grew 22.4% to €58.1mn. There was a 21.1% increase in footwear exports to $58.1mn during the period under review.

Products that generated less than €40mn of export proceeds in January-September include plastics, minerals, machinery, carpets and cutlery. Exports of chemicals, articles of rubber and pharmaceuticals remained less than €10mn.

Country-wise data shows that the highest growth of 37.8% came from the UK as its imports from Pakistan surged to €1.02bn during the period under review. Exports to Germany were up 39% to €995.4mn. Both the UK and Germany have emerged as major export destinations for Pakistani goods under the GSP+ scheme.

The increase in exports to the UK is an encouraging factor. However, exporters fear they will lose the UK market following Brexit. London, however, has assured Islamabad of no change in the post-Brexit scenario.

The third biggest market for Pakistan’s exports is Spain. Exports to Spain went up 99.9% to €663.9mn. Spain was not the third biggest export destination until recently. It became Pakistan’s leading trading partner within the EU in the past couple of years owing to its extensive marketing strategy.

Pakistan’s exports to Italy increased 34.15% to €490.9mn. Exports to the Netherlands went up 56.1% to €480.6mn and those to France rose 24.9% to €353.9mn.

Exports to Belgium increased by 22.7% to €296.9mn, Poland by 121.9% to €112.9mn, Sweden by 46.4% to €111.48mn, Denmark by 81.7% to €103.95mn, Portugal by 22.7% to €86.4mn and the Czech Republic by 98% to €63.6mn.

Export proceeds to the remaining 17 EU countries were far less than €60mn in terms of value. However, the increase in exports to all countries was in double digits in percentage terms.

Pakistan’s exports to Austria increased by 64.8% to €54.05mn, Ireland by 34.6% to €44.7mn, Greece by 47% to €44.13mn, Slovenia by 116.7% to €17.73mn, Romania by 19.86% to €14.81mn, Bulgaria by 82.04% to €14.2mn, Hungary by 98% to €11.7mn, Croatia by 5.2% to €10.4mn, Estonia by 1.02% to €7.46mn, Cyprus by 145% to €4.3mn, Latvia by 41.3% to €3.9mn, Malta by 35% to €2.16mn and Luxemburg by 95.9% to €0.17mn.

Exports to Slovakia declined 6.2% to €14.03mn and those to Lithuania dropped 3.7% to €13.4mn.

Source: www.gulf-times.com

ISLAMABAD: Minister of State for Finance, Rana Muhammad Afzal Khan invited Japan to assist Pakistan to promote its textile through Preferential Trade Agreements (PTA).

During a meeting with Ambassador of Japan, Takashi Kurai, who called on him, Rana said Pakistan highly values its relationship with Japan, a press statement said.

He hoped that the economic cooperation between the two countries would be brought to a much higher level with the passage of time.

The minister informed the ambassador that Pakistan offers numerous opportunities to the potential investors from Japan and they can invest in tourism, processing and packaging of sea food, halal food and its export.

Japan can invest in these sectors and bring in her technology and sanitary and phytosanitary standards with the investment.

On the occasion, Kurai congratulated the minister on assuming his responsibilities and praised the efforts made by Pakistan to eradicate extremism and strengthening of economy.

He said the Japanese government has planned to support the government of Pakistan in export promotion, improvement of security through the provision of security equipment at the airports and diversification of automobile industry.

The ambassador asked the minister to participate in the EXPO 2025 to be held in Kazakhstan.

He suggested that the Joint Government Business Dialogue process between the two countries should be revived for the benefit of both the countries.

The minister assured the ambassador of all possible support from his side.

The meeting was attended by senior officials of the Finance and Economic Affairs Divisions.

Source: www.brecorder.com

The Pakistani Government last week withdrew sales tax and customs duty on cotton imports with effect from January 8 to meet the shortfall of silver fibre, a key input in the country’s textile industry. The Economic Coordination Committee (ECC) of the cabinet approved a proposal regarding the same at a meeting headed by Prime Minister Shahid Khaqan Abbasi.

The textile sector, which contributes more than 60 per cent of the country’s total exports of $20 billion, had been demanding the abolition of 4 per cent customs duty and 5 per cent sales tax since last year to promote value addition.

The ECC meeting also approved financing plan for 1.2 billion cubic feet/day capacity of re-gasified liquefied natural gas (RLNG-III) pipeline project from Karachi to Lahore, according to Pakistani media reports.

The country set up its first RLNG plant in 2015 with a production capacity of 600 million metric cubic feet/day (mmcfd), and another with the same capacity was added recently to reduce the gap between demand and supply of around 2 billion cubic feet per day.

Despite being the world’s fourth largest cotton producer, Pakistan relies on import of cotton to meet local demand, which is estimated at 15 to 16 million tons per year. Cotton production is expected to be around 11.1 million bales of 170kg each during the 2017-18 crop year.

Source: www.fibre2fashion.com

According to the new study published by P&S Market Research, the ASEAN & South Asia dyestuff for textile market is forecasted to Reach $1,938.9 Million by 2023.

The growth of the ASEAN and South Asia dyestuff for textile market is mainly driven by the tremendously high demand of dyestuff from the home textile and automotive textile industries, in emerging economies.

The apparel industry is witnessing tremendous growth in the current scenario, owing to the surge in demand for apparels such as outerwear, jeans, t-shirts, innerwear, shorts, dresses, trousers, children’s wear, and socks, across the world. For instance, as per NDP Group, Inc., in 2016, the apparel sales in the U.S. increased by 19% for men’s, women’s, and children’s apparels. Accordingly, the demand for dyestuff (black color) used in the manufacturing process of these wide range of apparels is also growing.

On the basis of type, the ASEAN and South Asia dyestuff for textile market is segmented into reactive dyes, disperse dyes, vat dyes, direct dyes, acid dyes, sulfur dyes, and others. Reactive dyes held the largest share of the ASEAN and South Asia dyestuff for textile market, in terms of both value and volume, in 2016. The main characteristic of reactive dyes is the formation of a covalent bond with cellulose, which is the key component of cotton fibers, making it the most permanent of all dyes. This makes reactive dyes a preferred choice over other dyes in the ASEAN and South Asia dyestuff for textile market.

In terms of value, disperse dyes are the fastest growing segment in the ASEAN and South Asia dyestuff for textile market, and are expected to maintain the same trend during the forecast period. This is due to the fact that among all types of dyes, only disperse dyes are effective for “Normal” polyester.

India held the largest share of the ASEAN and South Asia dyestuff for textile market, in terms of both revenue and volume, in 2016. There has been a significant growth in the dyestuff industry during the last decade, which has created an export opportunity for India in the ASEAN and South Asia dyestuff for textile market. Due to the enforcement of strict pollution control norms, several units in countries such as the U.S., Germany, France, and the U.K., has resulted in a closure of units, which has given rise to capacity building in India, and has hence, made the country a largest market in dyestuff for textile.

Bangladesh held the second largest share of the ASEAN and South Asia dyestuff for textile market, in terms of both revenue and volume, in 2016. Bangladesh is emerging as an exporting nation of textile products. The demand of dyes in the country has increased significantly in recent years. Low-wage labor and easy raw material availability are some of the prime factors driving the country’s dyestuff for textile market. The dyestuff sector is one of the important segments of the chemical industry in Bangladesh. The country imports almost 95.0% of the textile dyestuff, majorly from China, India, Thailand, Taiwan, Korea, Sri Lanka, U.S., Germany, Italy, Spain, Singapore, Switzerland, and Turkey.

Some of the key players operating in the ASEAN and South Asia dyestuff for textile industry are Huntsman Corporation; Krishna Dyestuff Company; Monarch Dyestuffs Industries and Exports Ltd.; Sumitomo Chemical Company, Limited; Lanxess AG; E.I. du Pont de Nemours and Company; BASF SE; Atul Ltd.; Hangzhou Sunshine Chemicals Co., Ltd; and Arkema Group.

Source: www.globenewswire.com