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Pakistan to expand textile exports to Indonesia
Known as one of the biggest textile exporters in the world, Pakistan plans to further expand its markets , not only to European countries and the United States but also to other Asian countries, including Indonesia
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span>Known as one of the biggest textile exporters in the world, Pakistan plans to further expand its markets , not only to European countries and the United States but also to other Asian countries, including Indonesia.
The South Asian emerging economy organized its second Textile Expo (TExpo) in Lahore from April 11 to 14 by inviting hundreds of businesspeople and foreign delegates from nearly 50 countries to support the market expansion plan.
Through the exhibition, Pakistan expects to be able to expand its exports to new markets, including Asian countries, mainly Japan and Indonesia. At present, Pakistan exports most of its textile and garments to European countries and the US.
“We want to showcase our products to the world, since the textile industry is important for us at least in the next 15 years,” the adviser to the prime minister on commerce, textiles, industry, production and investment, Abdul Razak Dawood, told The Jakarta Post on the sidelines of the event.
The textile industry, which serves as the backbone of the country’s economy, is one the government’s top priorities in its industrial development program. Several policy packages were introduced in the last decade, including the use of the latest technology, which had paved the way for Pakistani products to penetrate further into the global market.
As the world’s fourth-largest cotton producer, Pakistan has the potential to become a leading nation in the textile business, although such potential has yet to be optimally explored, the minister said.
“When we can improve our agriculture to improve the [cotton] productivity, then we have a very big competitive advantage to the rest of the world,” he said.
Pakistan is the eighth-largest exporter of textile commodities in Asia, with exports having grown to US$13.85 billion in 2017-2018. The country is reportedly aiming to raise the figure to $26 billion by the end of 2019.
It contributes 9 percent to Pakistan’s gross domestic product. Involving 15 million Pakistani people, the industry caters to 9 percent of total global textile needs.
By expanding exports to non-traditional markets, including Indonesia, the country is hoping to increase the figure and eventually improve its economy amid fears of economic slowdown.
According to a recent International Monetary Fund report, Pakistan may struggle to improve its GDP growth in 2019.
“Historically, our major market has been the US and European countries. We have always focused on the West and now we’re moving to the East, including China, Japan and Indonesia,” he said.
Pakistani textile products are considered to be of better quality compared to products from other countries. Many of the country’s diaspora are also known for their involvement in running textile businesses in their respective countries.
“Pakistani textile products are not the cheapest in the market, but their quality and supply have been very reliable,” Thomás Velechopsky, a managing director of a textile company in the Czech Republic, said, at the exhibition.
His company spent around $4 million to import textile products from Pakistan annually, which is 25 percent of its total purchase.
Mufti Hamka Hasan, Indonesia’s Chamber of Commerce and Industry vice chairman for Middle Eastern countries, said while Pakistan and Indonesia were generally competitors in the global textile industry, cooperation in the sector could be strengthened as many authentic products from both nations could be received in the respective countries.
