While China has seen a year-on-year growth in its textile export by 51.3%, Pakistan is observing a decline of 15% year-on-year. The reported revenue from textile export was $1.07 billion in August 2020 according to the textile industry of Pakistan.
While textile has been one of the leading industries for Pakistan, the sector is not performing well lately. China seems a little concerned as the textile import of Pakistan has almost doubled as compared to the last year.
Shi Qiwen, a representative from the Chinese textile company Fujian Jinxing Group says in an interview:
We are competing to export [to Pakistan] as the supply is falling short of the demand,
Export orders declined dramatically in the first half of this year, and it bounced in the recent two months with more orders placed than the same period of last year. It may be a result of a long-time shutdown of business [due to the Covid-19]
While in another interview, a representative from Litai Xingshi Holding Company said:
Pakistan has been getting many orders from Turkey and other European countries, and home textile and grey cloth are their favorite. In this condition, there is a huge demand for cotton yarn, especially 40s and 60s yarn
While the export of textile finished goods to Turkey and others seem in favor of the textile industry of Pakistan, in the long run, it’s absolutely inappropriate for the economy. The industry was once one of the key industries bringing export revenue in the country.
Huang Xifeng also added:
Each month our company exports 10 to 20 containers of cotton yarn to Pakistan, with each carrying 20 tons of 40s yarn. While the finer 60s yarn takes a longer time to manufacture and, of such kind we could only produce 500 or 600 tons per month, an output smaller than other types. And of all the production, half is exported to Pakistan.
There are more such exporters from China claiming the same. While China is enjoying its export, Pakistan on the other hand is utilizing the imports and waiting for export orders from other countries.
One of the key reasons for this decline is the shortage of power resources. However, the new plans with Siemens Gamesa to install windmills in eight new wind farms in Pakistan could help reduce this shortage.
It’s also suspected that export will increase in the coming year as this year was taken away by COVID19. Xu Leilei from CHTC Helon (Weifang) New Materials Co., Ltd. told:
The European and American markets have witnessed poor demand this year, so did Pakistan’s. We kept getting quotations, but in fact the trade volume shrank by 70 to 80 percent from January to August. There were signs of improvement in July and August, but it is not expected to return to normal until next year,