ed problems in all sectors of the world, but it proved to be beneficial for Pakistan's declining textile industry. Due to the severe lockdown in India and Bangladesh compared to Pakistan, their export sector, especially the textile sector, has been badly affected, which the global markets have started ordering Pakistani traders to fill.
Recently, Prime Minister Imran Khan tweeted that the year 2020 will be a revolutionary year for the textile industry. He said that the textile industry is at its highest level and it is becoming difficult for them to fulfill orders. This is great news for our economy, for which the current government deserves congratulations. But the question is, has Pakistan's textile sector really recovered? If so, how sustainable is this rehabilitation?
According to the data provided by the All Pakistan Textile Mills Association, textile exports in 2020 were کی 11.67 billion, down 77 770 million from 2019. These figures contradict government claims and prove that textile exports are in a gradual decline. The lockdown during Corona affected the textile sector less than other sectors, which cannot be attributed to improvement. In addition, no official figures have been released to gauge what percentage of the industry is operating. What does it mean to work at full capacity? If there has been a 50 per cent increase in the working of industries, then there should have been a 50 per cent increase in exports, which is not visible.
Pakistan's neighbor India exports 36 36 billion worth of textiles annually, three times more than Pakistan. If we compare Pakistan with Bangladesh in terms of area, population, resources and economy, its textile exports are more than ارب 34 billion. Over the past 15 years, Pakistan's energy industries have shifted rapidly to Bangladesh and India due to the energy crisis and the deteriorating peace situation. The secret to Bangladesh's and India's textile development is that electricity rates for industries there are half that of Pakistan, uninterrupted and free water is provided, and cheap labor is available. Due to Bangladesh being less developed, tariffs are also discounted in world markets. Thus, Bangladesh and India produce goods at a 20% lower cost than Pakistan, which is also available in world markets at cheaper prices than Pakistan. That is why buyers instead of buying expensive Pakistani goods
Like every other sector in Pakistan, textiles lack branding and innovation. Since most of the textile industry's goods are consumed in the local market, no attention is paid to producing world-class goods. Compared to Bangladesh and India, we have only a few multinational brands of textiles and garments. That is why we have almost no foreign investment in the export sector. The government has set a target of doubling textile exports by 2025 and has announced a new policy with billions of rupees in subsidies. Under this policy, electricity and gas tariffs will be reduced. In addition to long-term financing for the textile industry and increasing access to new markets, it is also proposed to increase the efficiency of human resource development.
The textile sector accounts for 46% of Pakistan's manufacturing services, employing 1.5 million people. The development of this sector is directly linked to the production of cotton. Until a few years ago, Pakistan was in the fourth place with an annual production of 1.5 million bales, but now this production is limited to only 700,000 bales. The situation of cotton has deteriorated to such an extent that the cotton exporting country is now forced to import, at an additional cost. Factors leading to a decline in cotton production include climate change, agricultural interventions such as the high cost of seeds, sprays, fertilizers and water, as well as the government's inattention.
Cotton production per acre in Pakistan is much lower than other countries in the world due to lack of research and development. Farmers do not have access to cotton seeds that can withstand climate change and disease and produce good yields. Research by agricultural research institutes and universities is limited to paperwork only. That is why most varieties fail in the field at a temperature of 38 degrees Celsius. Cotton is not part of the agricultural emergency program, nor is there a minimum support price for this important crop. In contrast, subsidies and minimum support prices are announced for the sugarcane crop, which is why cotton growers are rapidly moving towards sugarcane.
If we want sustainable development of the textile sector, we have to take revolutionary steps for the revival of cotton as well as the textile industry.
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