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Pakistan is looking for investors in the textile industry - textination

Textination Newsline 09/09/2008

PakistanseeksInvestorsFortheTextile industry

Development of an industry park near Karachi is progressing / High competitive pressure

Islamabad (bfai) - A textile park is being built near the Pakistani economic metropolis of Karachi.

This should Investors attract and give the industry new impetus. The textile and

Clothing industry is Pakistans main industry. The exports of the industry stand For

around two thirds of the country's total exports. However, the branch has continued to grow

weakened in recent years. The industry is under high international competitive pressure.

"Textile City" is the name of the new district that is being built near the port of Qasim Karachi. There should

once companies in the textile and clothing industry produce under preferential conditions and

can export duty-free. How the Pakistani daily Dawn reports are the Leveling work

and the construction of the roads on the site is almost complete. Then the

Connection to the Water supply. 80 million liters are needed per day, because that is where

such establishments are located the water For need their production processes.

In total, the industrial park covers an area of ​​over 500 hectares. Around 310 hectares of this are For Industrial settlements

determined with different plot sizes (0.2 to 2 ha). In the 3rd quarter

2008 should the Applications thereFor start. The site will be according to the future

Operator textile companies a modern infrastructure with good transport connections, safe electricity,

Provide water and gas supply and services according to the one-window principle.

Systems are also planned Forthe Wastewater treatment. The power demand of the industrial park

is estimated at 250 MW. HereFor a power plant is also to be built. The total cost

For the project - without the power plant - will cost the equivalent of 103 million euros (11 billion Pakistani

Rupees; 1 euro = 107.07 pR; As of 05/20/08) estimated.

Companies from the PRC, Turkey and South Korea are reportedly in the process of being founded

interested in joint ventures with Pakistani textile companies in the industrial park.

The operator of the industrial park is thePakistan Textile City Limited, a joint venture public

and private investor with a share capital of around 22 million euros. Involved

include the Pakistani state (45.5%), the Sindh Province (9.09%) and the National Bank

NBP (4.55%).

The textile park aims to develop the Pakistani Textile industry give new impulses and help,

improve the international marketing of the industry. Since the expiry of the quota

System of the WTO For Textiles in late 2004 has become the international competitive situation of Textile industry

tightened. New providers are entering the market.

The situation of the Pakistani manufacturers is difficult. Because of the energy crisis in the country, they have

struggling with frequent power outages. In addition, complains theTextile industry above the recently

Increase in energy prices. The state drives the Subsidies for energy sources back. Thereby

weakens the Competitive position of the Pakistani manufacturers in an already highly competitive one

Market. Main competitors are producers from the PRC, Bangladesh and Inthen

as well as manufacturers from the poorest developing countries (least developed countries), their products

are not subject to customs duties in the US and European markets. For high-priced textiles

and clothing is Pakistan still not internationally competitive.

In the first eight months of the fiscal year (July 2007 to February 2008) were Pakistans textile exports

declining. They shrank by 2.9% and reached a value of US $ 6.83 billion. textiles

© Textination GmbH - 1 -


and clothing stand For about two thirds of total Pakistani exports. Also the Imports

of textile machines declined in the period mentioned (-21.7%). In the fiscal year

07/08 is aiming Pakistan an export volume of $ 19.2 billion. If theit can still be achieved

is questionable. However, have the Exports in the non-textile sector in the period July 2007 to February

Pleasingly developed in 2008. They rose nominally by around 27% to $ 4.87 billion. The increase

comes mainly from higher exports of sporting goods, leather goods, medical equipment,

Jewels and precious stones as well as furniture.

Contact address

Pakistan Textile City Ltd. Z

First Floor, Tower B, FTC Building, Sharae Faisal, Karachi

Tel .: 0092 21/111 711 117, Fax: -563 08 50

Internet: www.textilecity.com.pk Email: [email protected]

Source:

Fabian Nemitz

bfai Federal Agency For Foreign trade www.bfai.de

© Textination GmbH - 2 -

Textination Newsline 09.09.2008 Pakistan is looking for investors for the Textile industry Development of an industry park near Karachi is progressing / High competitive pressure Islamabad (bfai) - A textile park is being built near the Pakistani economic metropolis of Karachi. This should attract investors and give the industry new momentum. The textile and clothing industry is Pakistan 's most important branch of industry. The industry's exports account for around two thirds of the country's total exports. However, the branch's growth has slowed in recent years. The industry is under high international competitive pressure. "Textile City" is the name of the new district that is being built near the port of Qasim Karachi. There companies in the textile and clothing industry should be able to produce under preferential conditions and export duty-free. As reported by the Pakistani daily Dawn, the leveling work and the construction of the roads on the site are almost complete. Then the connection to die water supply takes place. 80 million liters are required per day, because primarily those companies are located there that need water for their production processes. In total, the industrial park covers an area of ​​over 500 hectares. Around 310 hectares of this are intended for industrial settlements with different property sizes (0.2 to 2 hectares). The applications for for should begin in the 3rd quarter of 2008. According to the future operator textile companies, the site will offer a modern infrastructure with good transport connections, secure electricity, water and gas supplies and services based on the one-window principle. Systems for the wastewater treatment are also planned. The power requirement of the industrial park is estimated at 250 MW. A power plant is also to be built here for . The total costs for the project - without the power plant - are estimated at the equivalent of 103 million euros (11 billion Pakistani rupees; 1 euro = 107.07 pR; as of May 20, 2008). Companies from the PR China, Turkey and South Korea are reportedly interested in establishing joint ventures with Pakistani textile companies in the industrial park. The operator of the industrial park is Pakistan Textile City Limited, a joint venture of public and private investors with a share capital of around 22 million euros. Participants include the Pakistani state (45.5%), the Sindh Province (9.09%) and the National Bank NBP (4.55%). The textile park should give the development of the Pakistani textile industry new impulses and help to improve the international marketing of the branch. Since the expiry of the WTO quota system for textiles at the end of 2004, the international competitive situation of the textile industry has intensified. New providers are entering the market. The situation for Pakistani manufacturers is difficult. Due to the energy crisis in the country, they are faced with frequent power outages. In addition, the textile industry is complaining about the recent increase in energy prices. The state is cutting back the subsidies for energy sources. This weakens the competitive position of the Pakistani manufacturers in an already highly competitive market. Main competitors are producers from the PR China, Bangladesh and In die n as well as manufacturers from the poorest developing countries (least developed countries), whose products are not subject to customs duties in the US and European markets. When it comes to high-priced textiles and clothing, Pakistan is still not internationally competitive. In the first eight months of the fiscal year (July 2007 to February 2008) Pakistan 's textile exports declined. They shrank by 2.9% and reached a value of US $ 6.83 billion. Textiles © Textination GmbH - 1 -

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Magazine: Pakistan is looking for investors in the textile industry - textination