Essay About Import Of Textile Machinery And Textile Industry

Gul Ahmed
Gul Ahmed
During the year 2009-10, the import of textile machinery recorded 41% growth to $297million as compared to $211 million in the corresponding period of last year. In the currenttough and disappointing scenario, investment in textile industry is like a silver line at the endof the tunnel and reflects that still there are chances of revival in this important sector of theeconomy.The government has already granted exemption of customs duty on import of a widerange of textile machinery and equipments including machines for extruding, drawing, textur-ing or cutting manmade textile materials and textile winding (including weft-winding) or reel-ing machines under the SRO 809(I)/2009 of September 19, 2009.The textile machinery has been showing decreasing trend in a row since 2004-05. Pakistanimported textile machinery worth $928.6 million during 2004-05. However a decline of 12%in the import of textile machinery was witnessed in 2005-06 worth $817.2 million. In 2006-07 imports further declined by 38.4% and totalled $502.9 million while machinery worth$438.3 million with a decrease of 12.8% was imported during 2007-08. During the last twofinancial years, textile machinery imports decreased heavily when textile industrialists haltedmaking investments in their units due to falling export of textile goods.During the last eleven years (1999-2010) textile industry has made an investment of aboutUS$ 7.8 billion. The total investment to be divided in various sub sectors of textile industry,indicates that 50.2% in spinning sector followed by 17% in textile processing, 15% in weav-ing while the investment and other sectors namely like knit wear, made ups and synthetic tex-tile at respective rate of 7.02%, 4.71% and 5.76%. This investment includes both investmentthrough bank loan as well as own sources. This investment has been made in the form ofBalancing Modernization Replacement (BMR) expansion and new capacity.Pakistan is the fourth largest producer of cotton and third largest consumer. It contributes9% of GDP and employs 38% of the workforce in the manufacturing sector and claims ashare of about 60% of countrys exports.The stiff competition put up by the competitors in the global markets dented the Pakistanitextile sector, which became uncompetitive in its traditional markets due to high tariff slabs onPakistans textile goods in comparison to its competitors like Bangladesh and Vietnam, whichhave greater market access by enjoying preferential treatment in the European and Americanmarkets. Furthermore, the major issues of high financing cost,