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Scenario Of Apparel Export Of Pakistan

Pakistan has attained a creditable position in the world because of its large scale textile industry. It ranks fourth in the production of cotton and ranks third in the consumption of cotton in Asia. The share of cotton export is 60% of total export of Pakistan. The government of Pakistan has developed the separate ministry of textile industry in the year 2004 after the outstanding performance of industry in the area of Apparels.

Right now it seems that Pakistan Textile industry is in a stagnant condition. The higher production costs have brought about this regress. Because of the internal competition with other industries the production cost goes high, and the higher cost weakens the conditions of the Pakistan export market in the international market. Exports of Pakistan textiles are not praise-worthy in comparison with those of Bangladesh, China and India. The figures of apparel export of Pakistan, China, India, Bangladesh and Sri Lanka to the US in the first half of the year 2006 are shown in the following chart.

The apparel export rates of China are higher than its other South Asian competitors. The apparel export made by China is at $2.80 per square meter, by Bangladesh is at $2.17 per square meter, by Pakistan is at $1.94 per square meter and by India is at $3.85 per square meter.

The decrease is seen in the rates of apparel export by Pakistan. The apparel export rates of Pakistan were $2.80 per square meter in the first half of the year 2005 and it declined by $1.94 per square meter in the first half of the year 2006. It is -6.72%. In the area of export of knitted clothing of Pakistan to EU is lower than China during the first half of year 2006. The export rate of knitted clothing for India is at 14.08 euros per kilo, for China is at 11.92 euros per kilo, for Bangladesh is at 8.17 euros per kilo and for Pakistan is at 7.46 euros per kilo.

The increase has been seen in the knitted clothing rates of Pakistan exports in European Union. In the previous year it was -10.59% but in this year it reached to 4.66%. In the first half of the previous year the export rate of woven clothing of Pakistan was -4.01 but it is 8.12% in the first half of this year so the increase of 0.34% is seen.

Karachi is main contributor in the economy of country by sharing 67%, though it lacks single industrial area. This gives negative effect to the industry. Along with it also lacks proper roads and sewage systems. The services like electricity, gas and water cost more than other areas and also lacking the recycle plants of waste products. Industries get water supply through tankers which cost high so it directly affects the production cost.

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