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Grand Challenge Fund

Grand Challenge Fund

Textile is the biggest organized industrial sector In Pakistan contributing 58% to exports. 8.5% of the GDP and 45% of the total employment In the country. However, textile exports remained stagnant at about 14.0 billion USD In the last decade, which badly affected the economy. the lack of innovation, product diversification, value addition, low productivity, market diversification, absence of Pakistani brands in the global market, and inconsistent government policies are among the main reasons for failure.​

National Textile University

National Textile University

National Textile University is a premium textile institute that serving the nation for decades by nourishing the young minds of the textile and clothing industry of Pakistan with its world-class research facilities and highly qualified PhD researchers., iIt is assisting the export-oriented textile to shift to value-added products and grow at a good rate by providing quality human resources and world-class R&D support.​

Project Description

Textile is the biggest organized industrial sector in Pakistan contributing 58% to exports, 8.5% to the GDP, and 45% to the total employment in the country. After Bangladesh, Pakistan is 2nd most dependent country on Textile with respect to exports. During the last ten (10) years, the growth in Pakistan’s textile exports was 28% which is quite lower in comparison to growth in regional countries. In the same period, the textile exports of Bangladesh (36.6 B USD) increased by 177%, Vietnam (36.16 B USD) by 256%, India (37.01 B USD) by 64%, and China (266.5 B USD) by 48%. The slow growth in the textile sector is badly affecting the overall exports, current account deficit, and new employment generation.
As per (International Trade Centre) ITC’s export potential map, Pakistan has an untapped export potential of 12.2 billion USD out of which the untapped export potential of textile and clothing is about 7.0 billion USD. Pakistan’s textile and clothing export product range is very narrow i.e. 97% of the textile exports are in 4 product groups. In the biggest export categories (HS code 61 and 62 worth 474 billion USD), Pakistan’s position is 18th and 17th (with a share of 5.4 billion USD) respectively as an exporter. Pakistan’s exports are mainly concentrated to USA (22%) and European Union (>40%). Pakistan is not tapping markets like Japan, Russia, Korea, Mexico, Switzerland, etc. which are importing more than 100 billion USD of textiles and clothing.
The lack of innovation, product diversification, value addition, low productivity, market diversification, absence of Pakistani brands in the global market, and inconsistent government policies are among the main reasons for failure. Instead of solving the actual issues, the main focus in the recent past remained to provide subsidies to become competitive globally which further made the industry “cheap, not unique”. This research project is designed to facilitate the Pakistani textile industry to shift to knowledge-based textile industry for a sustainable enhancement of exports.
The main constituents of the project are:
-Indigenization includes exploration of high-value local fibers such as Hemp, Flax, Banana, etc., and Pakistani (Baluchi) wool for use – in textile products, & upgradation of local power looms for production of quality fabrics.
-Knowledge-based textiles, which include the development of technical procedures and knowledge bases for shifting to synthetic textiles and the introduction of high-end conventional and technical textile products, are currently not produced by the Pakistani Industry. This will help Pakistan to gain a considerable share in high-end textiles.
Productivity enhancement, using scientific methods of training at a pilot scale.
-Branding, showcasing, and policy recommendation, to devise a strategy for better showcasing the Pakistani textile products followed by a recommendation for industry and Govt organizations.The consortium for this project, composing of six universities (from Punjab, Sindh, KPK, and Baluchistan) & one research institute supported by the Ministry of Commerce Government of Pakistan, SMEDA, TUSDIC, Three Textile Associations (including All Pakistan Textile Mills Association, Pakistan Ready Made Garments and Exporters Association) and 15 major textile industries. Twenty-two (22) researchers belonging to textile engineering, chemistry, management sciences, agricultural science, computer science, and mechanical engineering are working on the various aspect impacting textile exports.
We are expecting that this project, once implemented nationwide, will create a positive impact on the lives of at least 500,000 Pakistanis and may create an export enhancement of about 1.0 billion USD within 3-5 years.
Overall, this project will help in improving the global competitiveness of Pakistan’s textile exports based on scientific knowledge. The use of high-value indigenous resources, well-trained human resources, product diversification, and development of high-end textiles should clearly translate into a globally competitive textile sector.

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