The textile and clothing industry is the backbone of Pakistan’s economy. Pakistan’s role as one of the world’s leading cotton producers has provided the basis for the textile and clothing industry’s development.

Pakistan's textile sector is the principal industry, contributing more than 67% to the country's total export earnings, and accounting for about 46% of total manufacturing. The sector employs over 38% of the manufacturing labor force. More than US$4 billion of textile and garment machinery has been imported in Pakistan in the last few years. The textile industry is today based almost entirely in the private sector.

Textile Machinery Industry:

Overview:

The Spinning Sector had grown with export demand & growth in cotton production. Weaving & Processing Sector followed. The major concentration of industry is in Karachi, Hyderabad, Multan, Lahore and Faisalabad. Unlike Spinning Sector the Weaving Sector comprises of large number of small units of power looms mainly clustering in Faisalabad – Hafizabad – Kasur and Multan. Recent trend is to set up Air-Jet loom units either as independent units are integrating it with spinning or processing units. Given economic stability as well as the importance of the industry to Pakistan's economy, the spinning sector is expected to grow by 8-10 percent over the next three years.

Though textile industry maintains its ranking of the single largest manufacturing sector in Pakistan, unfortunately indigenous manufacturing of its machinery could not develop along with the growth of textile industry. Resultantly, demand for textile machinery still is almost entirely met through global imports.

The usual and most effective channel for sale of machinery, equipment and spares is through a reliable agent. Foreign firms appoint local agents for the Pakistan market to provide them with market intelligence and to follow-up on sales. The most popular and possibly the most effective distributorship arrangement in Pakistan is the exclusive agency agreement. The exclusive agent receives commission on all sales of the product within the country, regardless of the channels through which they were ordered. The agent often imports and stocks spare, that are regularly required by end-users. He may also provide after-sales service.

Import- Export scenario:

Pakistan textile industry is facing problem of Low productivity due to its obsolete textile machineries. To overcome this problem and to stand in competition, Pakistan Textile Industry will require high investments. Pakistan is on the road to invest in processing sector, but traditional sector are also demanding high amount of investments. There is a continuous trend of investing in spinning since many years. Although, trend towards investment in Air Jet weaving segment is increasing day by day.

“Pakistan's textile industry estimates that around Rs1, 400 billion (US$32 billion) of investment was required till 2010 in order to achieve the government's export target." - Former federal secretary and chairman of the National Tariffs Commission Masud Daher (Pakistan)