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Garments Industry of Pakistan:

Pakistan is basically an agricultural economy, it comprises of almost 1/4th of the total GDP. While manufacturing sector accounts for 18.3% in the GDP. Out of this a major chunk comprises of textile sector.

Pakistan is the 8th largest textile products exporter in Asia. Pakistan is the 4th largest cotton producers in the world and 2nd largest in Asia with 10.3 million bales. China is at the top of the list with 33 million bales, India is at the 2nd place with 27 million bales. Textile sector contributes approximately 9.5% to the GDP and directly and indirectly provides employment to 15 million people. The total exports Pakistan did in the year 2012-2013 were $ 25.05 billion. Major export commodities of Pakistan were textile (yarn, garments, cotton cloths, bed linen etc), rice, chemicals, sports goods, leather goods, rugs and carpets etc. According to the 2012 figures major exports partners of Pakistan were USA 13.6%, China 11.1%, UAE 8.5%, and Afghanistan 7.8%.

There are 1221 ginning units, 442 spinning units, 124 large spinning units and 425 small units producing textile products in Pakistan currently. Pakistan contributes about 5% to the global spinning capacity. World’s textile trade is $18 trillion and is growing with the rate of 2.5% annually but Pakistan’s total share in world’s textile trade is less than 1%.

There are some problems which create hurdles in helping the textile industry to grow like power crises, old technology, lack of infrastructure, security situation, govt. support, high taxes and duties in the export countries and lack of access to the global markets etc. Pakistan gets about $10.2 billion of its $12.5 billion textile export revenue from 20 countries. However, it accounts f...

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... Finance department has 3 members, Export department consist of 2 members, IT has 2 members, PPC has 2 members, Purchase department consist of 2 members, commercial department has 2 members, Merchandizing has 8 members, cutting has 25 members, production department t comprises of 36 members, finishing department is of 44 members, packing department has 20members 200 workers are on wages/piece rate workers in which majority of workers are stitchers, other workers includes clippers and pressmen.

They normally do business on CAD (Cash against Delivery), DA (Documents Arrival) and L/C (Letter of Credit). Budget is normally design on work order to work order basis, consignment to consignment wise. Total dependence is on order receiving. If no orders received they were in serious trouble. Profit margin is normally 10% and in worst case scenario 5 % not less than that.