Pakistan's Textile Machinery Imports Fall

Economy

Pakistan's Textile Machinery Imports Fall

Even though there are many factors at play in the demise of Pakistan's textile sector, an often overlooked reason is the failure to invest in balancing, modernisation and replacement activities by textile firms. According to the Research, Development and Advisory Cell (RDA) of the MoTI, Pakistan's spinning sector attracted most of the investments, while processing, apparel and readymade garments got less than 22% of new investment.

The past two years have seen a steep plunge in imports of textile machinery. Textile machinery imports for FY18 clocked in at US$ 325 million which is the lowest since the bottom of US$ 252 million in FY09. Declining textile exports due to a high cost of production and the inability to adapt to evolving international consumer trends have not provided any incentive for further upgradation to textile firms particularly the small and medium sized ones.

Competitor countries including Vietnam and Bangladesh have witnessed a sharp increase in textile machinery imports owing to their robust growth in textile exports. While it might be true that large textile units in Pakistan might be at par with their regional peers in BMR activities, it is the SME's that are most at risk of becoming obsolete.