INTRODUCTION:

The global knitting industry is growing at a fast rate and numerous technological
innovations contribute to the success of the knitwear industry. Today, knitwear is also
synonymous with trendy, fashionable wear for casual, sportswear as well as smart casual
work wear. Pakistan knitwear (hosiery) industry is playing a vital role in value addition
of textile sector. In the export field, the hosiery knitwear industry of Pakistan has
managed to make a big name in many countries of the world.
Pakistan's knitwear industry is almost completely export-oriented, however domestic
use of garments such as vests and underwear are common in all urban groups. The
products made in Pakistan include T-shirts, jogging suits, jerseys, sport shirts, children
wear, gloves, tracksuits, sweaters, socks etc.

PRODUCTION:

Today this industry is a source of direct employment to more than 20,000 workforce. 

Pakistan has exported 113 million dozens of knitted goods worth of US$ 2.36 billion in
2016-17. Pakistan is the fourth largest cotton producer in the world, and is an important
player in the global textile market. Its knitwear industry is the highest value-added
textile sector in the country, and is distinguished by high quality of raw material and
competitive value of end product. Total knitwear capacity in Pakistan is above 50
million dozens of pieces. There are about 600 knitwear factories of various sizes in
Pakistan. Today this industry is a source of direct employment to more than 20,000
workforce.
At present hosiery and knitwear units of Pakistan comprise 3,500 large, medium and
small units, 85% of which are small enterprises, 10% medium ventures and only 5%
largely integrated factories. With 13,372 circular knitting machines, 10,646 flat knitting
and 23,241 socks knitting machines spread all over the country .
Presently hosiery and knitwear industrial network comprised 3,500 large, medium and
small units, 85% of which were small enterprises, 10% medium ventures and only
5% large integrated factories.

About 12,000 circular knitting machines, 10,000 flat knitting and 18,000 socks knitting
machines spread all over the country and the capacity utilization is approx. 70%. Out of
total production, 60% comprises jersey, knitted fabric, T-shirts, sweat shirts, polo shirts,
jogging suits, and track suits and children outer wear.

There is greater reliance on the development of this industry as there is substantial

value addition in the form of knitwear. The capacity utilization of this sector is
approximately 70% and besides locally manufactured machinery, liberal import of
machinery under different modes and increase capacity will increase the exports.
The most important skill that the leaders and managers in the knitwear industry need to
be equipped with is how to manage change. Change is an ongoing phenomenon for the
textile industry, in particular for knitwear due to a rapid change in consumers' fashion,
styles and demands. The rate at which technology is moving forward also necessitates of
consumers. Major portion of the country's entire production of knitwear,
valued at nearly US$ 742million in 1998-99, is exported.

Major Production Areas in Pakistan:, Style, Klash and Sapphire in Faisalabad

and Lahore. While leading knitting companies such as Eastern Garments , Proline , Al-
Abbas, Haji Adam & sons: JB Industries are based in Karachi.
READY-MADE GARMENT SECTOR: The ready-made garments sector is
comprised of 4,000 small, medium and large-scale units that altogether have
approx. 160,000 industrial and 450,000domestic sewing machines. Garments
Sector is divided in to some sub-sectors:
 Men's Wear (Woven & Knit),
 Women's Wear (Woven & Knit)
 Babies wear 
 Sports wear 
 T-Shirts & Pull Overs
 Hosiery

HISTORY:
 The knitwear industry in Pakistan has grown fairly rapidly after the
independence. Since the industry is closely related to the textile industry its
development and growth has closely followed the footsteps of the textile industry.
Starting with 2 or 3 units in 1950 today there are 700 units with more than
15000 machines, of these 700 units, more than 50 are fully integrated. In
early years the industry produced simple items such as socks and undergarments but
with the passage of time it has increasingly produced more sophisticated items and
there is more value addition in the sector.
Knitwear export is a major foreign exchange head for Pakistani economy. In 1999-2000,
Pakistan exported US$8754 million worth of knitwear as compared to only US$274
million in 1989-1990. This marks about 20 percent per year increase in terms of value.

The realization of Agreement on Textile and Clothing on January 1, 2005 (abolishment

of quota on textile imports to America and European Union) poses a major challenge to
Pakistan's knitwear industry. This challenge is in the form of a massive potential for
growth, coupled with the risk of a major loss in case this sector is unable to maintain its
competitiveness in the post-2005 era. Pakistan's knitwear industry can stand up to this
challenge by becoming fully compliant with the global quality standards; by employing
efficient work and human resource practices; and being responsive to the market trends
in production and export. This prerequisites an electric flow of information between the
nerve centers in key export markets (USA and EU). This information must also be linked
between the Government and the knitwear industry.

CURRENT SITUATION:

LAST YEAR’S SITUATION (2018)

Despite a slight dip in overall textile exports, the knitwear garment sector has
maintained a steady pace of growth in its shipments and led the sector with an
increase of 16.13% in its exports for October 2018.
Pakistan’s overall textile exports were recorded at $1.13 billion in October, down 0.12%
compared with $1.132 billion in the same month last year.
However, the knitwear garment sector stood on top with the highest exports in the
textile chain as well as in total national exports with a growth of 16% compared with
October 2017. Knitwear garment exports grew 10.41% in July-October 2018 against
the corresponding period of previous year. “

The sector alone earned $2.719 billion for the country in fiscal year 2017-18, which
included knitted products like hoodies, shirts, t-shirts, jerseys, pullovers, trousers,
jackets, etc. The sector has ranked high in the textile group over the past three years.
THIS YEAR (2019): The knitwear garment export sector, while maintaining its top
position in textile exports, recorded a growth of 16.25% in shipments in January 2019
compared to the same period of previous year.

Exports of knitted garments reached $249 million in January 2019 compared to $214
million in January 2018, according to the Pakistan Bureau of Statistics (PBS).

“If the government facilitates our sector [garments], it can alone earn foreign exchange
equal to overall textile exports,” said Muhammad Jawed Bilwani, Central Chairman of
the Pakistan Hosiery Manufacturers and Exporters Association (PHMA). “The knitting
sector has a great potential for enhancing its exports.”

Moreover, knitwear garment exports grew 11.35% in July-January 2018-19 compared

with the corresponding period of previous year.

Total textile exports from Pakistan stood at $7.8 billion in the first seven months of the
current fiscal year, up 1.19% from $7.7 billion in the same period of last year.

“World imports $225 billion of knitwear garment products annually and we can
possibly grab $10 billion out of it,” Bilwani said, adding it depended on the adoption
and implementation of the sector’s proposals by the government.

With continued support from the government, the knitwear garment sector could
achieve new milestones and its export could be enhanced 20% every year, he stated.

Bilwani said the knitwear garment sector had topped the list of the textile group for
the past three years since 2015-16 and it also provided the highest employment in the
textile group.

He praised the government for taking all necessary measures for the enhancement of
exports by according priority to the export sectors and introducing separate tariffs of
gas and electricity, enabling them to enhance export efficiency. 

PROBLEMS FACED BY INDUSTRY:

Pakistan’s knitwear industry faces many challenges, as the Indian government recently
has announced 13% rebate on knitwear exports.
Pakistan’s knitwear industry is surviving without getting any benefit of the GSP Plus
status because India has effectively utilized this advantage. Indian knitwear exporters
would get a rebate to compete with Pakistan, while the knitwear exporters are running
from pillar to post for the billions of genuine sales tax refunds lying with the state for
more than two years.
The main prerequisite for achieving major growth is export competitiveness.
Weaknesses include low productivity, poor human resources training, poor
infrastructure, low value-added goods, low sophistication, lack of technology and almost
no value chain integration.
On the other hand, knitwear exports suffered a shortage of gas and electricity for the
past few years. Resultant effect was a decline in production and increase in the cost of
production rendering Pakistani knitwear uncompetitive in international markets. China,
India, Sri Lanka, Vietnam, Bangladesh and Korea are among major competitors in the
industry. Small units face more challenges, as they get no facilities with regards to
electricity services and financing.

Pakistani value-added textile export associations have welcomed the approval of the
export package for 2017-18, but suggest it is a short-term solution to a long-term
problem. The long-term solution is to reduce the cost of inputs like electricity, gas and
water tariffs.

CONCLUSION:
Pakistan Knitwear Industry plays a vital role in economy of Pakistan. The production of
high quality raw material added value in our products in international markets. Today
this industry is a source of direct employment to more than 20,000 workforce. . There
are about 600 knitwear factories of various sizes in Pakistan. In October 2018 the
knitwear industry recorded a growth in exports 16.13%ͺ which is no doubt a good
margin. While maintaining its top position in textile exports, recorded a growth of
16.25% in shipments in January 2019 compared to the same period of previous year.
Despite all these ͺ the industry needs more improvement as it facing many Problems
which needs to solve for adequate exports & revenue.

References
1. Pakistan Bureau of Statistics.
2. Pakistan Economic Survey- 2016-17.
3. Pakistan Knitwear & Sweater
Exporters Association (PAKSEA).
4. Trade Development Authority of
Pakistan.