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TEXTILE SHIFT FROM

PAKISTAN TO
BANGLADESH
Presented by: M. Bilawal Khan
Anum Ahmad.
M. Hassan.
Mian Qadeer.
Umar Ali.

Textile Industry of Pakistan.

Employs 38% of Countrys Industrial Labor


Force.
Generates 54% of export Earnings.
Constitutes 8.5% of total GDP.
Sports textile ranks 12th Globally.
5th largest producer of cotton.
Ranked third in terms of spinning capacity
in Asia.

Textile Industry of
Bengladesh.
Why Bangladesh attractive market
for garments manufacturing Biz:

Good production capacity exists in the sector.


Having Price advantage against other
countries.
Provide not only a cheap labor force but they
are also unparallel in stitching capability.
Bangladeshi Knitwear is exported to 90
countries of the world.

Labor Cost Comparison..


Labor cost incurred in the textile industry is
the lowest compared to its competitors;
Thailand $ 1.00/Hour
India $ 0.60/Hour
Sri Lanka $ 0.45/Hour
Vietnam $ 0.40/Hour
Indonesia$ 0.40/Hour
Pakistan $ 0.40/Hour
China $ 0.35/Hour
Bangladesh $ 0.25/Hour

Energy Cost Comparison.


Energy cost in Bangladesh is
lower compared to India &
Pakistan:
India $0.095/KwH
Pakistan $0.08/KwH
Bangladesh $0.07/KwH

Fact & Figures of the


Bangladesh Knitwear Sector:
Contribution in National Economy

Share of Knitwear in RMG Export (FY 2012-13): 48.69%


CAGR Growth (FY 2008-09 FY 2012-13): 12.98%
Share of Knit Garments in GDP (FY 2012-13): 8.07%
Net Retention amount (2012-13)- US$ 11833.65 million
Net retention rate - 55% (Highest)
Value addition - 70% (Highest)
Labor Force Employed

Direct - 4.0 million; about 70% of them are women.


Indirect - 0.70 million

Fact & Figures Cont


Region
EU
USA & Canada
European Free Trade
Association
Latin American
Integration
Association
Emerging Markets
Others

2011-12
6928.69
1415.77

2012-13
7306.28
1592.87

113.77

125.98

163.04

216.81

700.84
164.28

937.81
296.13

Comparative Analysis (2011)


Pakistan
Bangladesh
GDP (US$bn)
202.8
115.4
Labour Force(M)
56
74
Textile Share
8.5%
13%
To GDP
Contribution
56%
81%
To Exports
Direct Employment
3.5
5
(Millions )
Textile Mills
439
376

Comparative Cont
Pakistan (Mn; $) Bangladesh(Mn; $)

TEXTILE EXPORTS

13,805

Interest Rate (%)


Bank Spread 6-7 5.2

12

20,221

6.75

Pakistan Textile Exports to Bangladesh (Value in 000$):

JULY-JUNE
2006-07
Cotton Yarn

2005-06

VAR.

67,405

74,323

(6,918)

3,359

1,749

1,610

18,160

27,927

(9,767)

119,155

113,451

5,704

1,169

3,696

(2,527)

Readymade Garment

989

1,096

(107)

Textile made ups (excl bed wear &


Towel)

387

282

105

Knitwear

271

840

(569)

Bed Ware

328

511

(183)

101

(101)

10,220

6,514

3,706

221,443

230,490

(9,047)

Yarn other than Cotton Yarn


Raw Cotton
Cotton Fabric
Knitted/Croached Knitted

Towels
Synthetic Textile

Energy Crisis & Other


Issues.

Gas Load Shedding three days a week.


Factories are working at 30% of their
total capacity.
Gas short fall of nearly 2 billion of cubic
feet per day.
Total electricity demands outstrips 22%
or 6000 MW.
Energy deficit are lowering real growth
by 2% annually.

Why moving to Bangladesh.

Comparatively Cheap Labour


30 % higher profit margins for the textile exporters

Uninterrupted power supply


Free Tariff Access to European Union and US Markets
(Preferential Trade Agreement)
Tax free status for textile industries for first ten years
International Manufacturers have set their base at Dhaka
Political Instability
Bangladesh as a least developed country, has tax-free
access to 37 countries including the European Union,
Canada and Australia, which is one of the key reason why a
large number of Pakistani textile units have relocated there
in recent times.

Textile Owners Shifted to Bangladesh.

Tauseef Enterprises
K&M Textiles
Cosy International
More than 40 percent of the Pakistani
textile industry and 200,000 power looms
have shifted
Leaving 200,000 families in Punjab
unemployed

Solutions for Textile - Pakistan


Replacing Thermal Power Fuels.
A. 81% of the electricity has been produced
through oil and gas. Costing 9.4 billion
dollars.
B. Replacing Oil and Gas with Coal. (Not the thar
Coal) But import.
C. Stand Alone power projects.
. Nuclear Power Generation.
. Solar Energy.
. Wind Energy.

Thank You

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