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Towel Manufacturers Association of Pakistan

Pakistan Industry

At the time of independence, Pakistan inherited only 34 industrial units out of 921 industrial units in the subcontinent. They were cotton textile, cigarettes, sugar, rice husking, cotton ginning and flour milling industries; and together they contributed only 7% of GDP and employed a little over 26,000 employees.

Today’s the economy of Pakistan is 22nd largest economy in terms of Purchasing Power Parity. Over the years Pakistan’s Industries flourished. From producing only 7% of GDP, are now contributing to 64% of GDP. Major industries include Cotton textile industry, agriculture, automotive, cement, steel, tobacco, chemicals, machinery and food processing.

Textile Industry

Cotton textile production and apparel manufacturing are Pakistan's largest industries, accounting for about 65% of the merchandise exports and almost 45% of the employed labor force. Cotton and cotton-based products account for 61% of export earnings of Pakistan. By 2010 the spinning capacity increased to 15 million spindles and textile exports hit $15.5 billion.

Pakistan is the 8th largest exporter of textile commodities in Asia. Textile sector contributes 8.5% to the GDP of Pakistan. Pakistan is the 4th largest producer of cotton with the third largest spinning capacity in Asia after China and India and contributes 5% to the global spinning capacity. At present, there are 1,221 ginning units, 442 spinning units, 124 large spinning units and 425 small units which produce textile.

Exports of Textiles during Jul-Nov 19-20 totaled $6,044,536 (Provisional) as against US $5,763,117 during the corresponding period of last year showing an Increase of 4.88 %, rating the textile industry as the top exporter industry for the year 2020.

Cotton is the largest segment of textile production. Other fibers produced include synthetic fiber, filament yarn, art silk, wool, and jute. Cotton spinning is perhaps the most important segment in the Pakistan textile industry with more than 521 units installed and operational.

A huge focus of the textile industry is on skill development and training programs. Institutes such as TIP, PRGTII, SMARTI, PHMA Institute of knitwear and technology, PIFD , PHMA Institute of knitwear and technology, PIFD and many more play a vital role in promoting such skills and as well as providing skill labour to the Textile Industry.

Agriculture Industry

Agriculture constitutes the largest sector of our economy. Majority of the population, directly or indirectly, dependent on this sector. It contributes about 19.3% of Gross Domestic Product (GDP), with a growth rate of 2.67% from last year, and accounts for half of employed labor force and is the largest source of foreign exchange earnings. It feeds whole rural and urban population. Realizing its importance, planners and policy makers are always keen to have reliable area and production statistics of agricultural crops well in time.

Major crops are wheat, cotton, rice, sugarcane, maize etc. However, in recent years, due to persistent hikes in the prices of essential commodities like pulses, onions, potatoes, chilies and tomatoes these crops have also gained in economic importance. This sector is also the largest raw material provider to many industries. The most populated province of Punjab provides the largest share in national agricultural production.

The export of rice in 2020 totaled $2.1 billion, making it the second largest exporter industry in 2020.

Automotive Industry

The automotive industry in Pakistan is the one of the fastest-growing industries of the country, accounting for 4% of Pakistan's GDP and employing a workforce of over 1.8 million people. Currently, there are more than 3,200 automotive manufacturing plants in the country, with an investment of US$570 million producing more than 1.8 million motorcycles and 200,000 vehicles annually. Its contribution to the national exchequer is nearly US$310 million. The sector, as a whole, provides employment to more than 3.5 million people and plays a pivotal role in promoting the growth of the vendor industry. Pakistan's auto market is considered one of the fastest-growing automotive industry in Asia. Over 180,000 cars were sold in the fiscal year 2014–15, rising to 206,777 units fiscal year 2015–16.

At present, the auto market is dominated by Honda, Toyota, Suzuki and KIA. As a result of "Auto Policy 2016-21", which offers tax incentives to new automakers to establish manufacturing plants in the country, Renault, Nissan, Proton Holdings, Kia, SsangYong, Volkswagen, FAW and Hyundai have expressed interest in entering the Pakistani market. MG JW Automobile Pakistan signed Memorandum of Understanding with Morris Garages (MG) Motor UK Limited, owned by SAIC Motor to bring electric vehicles in Pakistan. NLC signed an agreement with Mercedes Benz for the manufacturing of Mercedes Actros trucks in Pakistan. Pakistan has not enforced any automotive safety standards or model upgrade policies. A few old models of vehicles including the Bolan and Ravi continue to be sold by Suzuki.

Chemical Industry

The global chemical industry forms the fabric of the modern world. It converts basic raw materials into more than 70,000 different products, not only for industry, but also for all the consumer goods that people rely on in their daily life. Apart from this the chemical sector contributes in several other fields like agriculture, pharmaceuticals, textile, power, environment, communications, transport, infrastructure, housing, as well as covers thousands of commercial products like paper, paint, plastic products, soap/detergents, perfumes/fragrances, varnishes, pharmaceutical, dyes etc.

Pakistan is blessed with a diverse and vibrant chemical industry having the potential to become a regional/global player.

Pakistan Chemical industry provide for many other industries including Textiles industry, Agriculture industry, Food & Beverages, Leather industry, Paper industry, Pharmaceutical industry, Plastics, Printing, Sugar and many others.

Mining Industry

Mining is an important industry in Pakistan. Pakistan has deposits of several minerals including coal, copper, gold, chromite, mineral salt, bauxite and several other minerals. There are also a variety of precious and semi-precious minerals that are also mined. These include peridot, aquamarine, topaz, ruby, emerald, rare-earth minerals bastnaesite and xenotime, sphene, tourmaline, and many varieties and types of quartz.

The Pakistan Mineral Development Corporation is the responsible authority for the support and development of the mining industry. The Gemstones Corporation of Pakistan looks after the interests of stake holders in gemstone mining and polishing as an official entity. Balochistan has the most mineral deposits among the provinces of Pakistan, with Sindh rich in coal deposit and Khyber Pakhtoonkhwah rich in gems. Oil, gas and minerals used in nuclear energy purposes are mined by the federal government. The mining of other minerals is a provincial concern. Currently around 52 minerals are mined and processed in Pakistan.

Leather Industry

PAKISTAN have been considered to be the hub of producing high quality Leather and Leather Products, and there are more than 800 Tanneries in the country actively engaged in producing best quality finished leather of Cow, Buffalo, Sheep and Goat skins.

Pakistan is rich in agricultural products and has a large livestock population which plays an important role in the economy of Pakistan by producing around 13.0 Million Hides and 47.4 Million Skins per annum (2015-16). The quality of goat skins, cow, buffalo hides in Pakistan is satisfactory. The type of sheep skins we have in Pakistan is better in respect of grain, substance and compactness of fibers. Leather manufacturers & exporters are determined to increase export of quality finished leather and leather products.

Pakistan exported leather worth $190.856 million during July-October (2020) against the exports of $181.338 million during July-October (2019-20), showing the growth of 5.25 per cent, according to the Pakistan Bureau of Statistics (PBS).

The industry is playing their positive role in activating WTO with quality consciousness and full sense of responsibilities to uphold the perfect image of Leather Industry of Pakistan. As being the most significant contributor or the country’s GDP and foreign exchange earnings. The Leather Industry of Pakistan is employing more than 500,000 peoples directly and indirectly. (2009-2010)

Services Industry

The services sector has provided steady support to Pakistan’s economic growth. It share in GDP now stands a more than 50 percent. The growth rate of services sector is higher than the growth rate of agriculture and industrial sector. Services sector accounts for over one-third of total employment. Services sector has strong linkages with other sectors of economy; it provides essential inputs to agriculture sector and manufacturing sector.

The main sectors are construction, computer and software development, engineering services, professional services (marketing, audit/accounts, taxation and legal etc.), banking, insurance, communication, tourism and business services.

Pharmaceutical Industry

There are approximately 759 companies operating in the Pakistani Pharmaceutical market, out of which less than 30 are multinational companies. The Pharmaceutical industry contributes approximately 1% to the GDP of Pakistan annually.

Currently Pharmaceutical industry in fulfilling more than 95% of the domestic Pharmaceutical requirements. Pakistan exports of pharmaceutical products was US$235.75 Million during 2020, according to the United Nations COMTRADE database on international trade.

Pakistan’s pharmaceutical exports rose around 23% year-on-year to $68.1 million during the first quarter of the current fiscal year of 2020/21.