Spinning Sector Overview

SPINNING | SWOT ANALYSTS • Local cotton better suited for coarser counts • . Large installed capacity Integrated into textile value chain as key raw material • Government protection from tariff & duty structure • Strong sector association resulting in high lobbying power PKR depreciation leading to improved • Recent international competitiveness Geographical export concentration • Strong bargaining power of buyers Withdrawal of tax credits for expansion and replacement has hindered new investments Possible withdrawal of subsidies on electricity and gas Strengths Weaknesses PACRA Presence of large unorganized segment resulting in quality variations. • Low BMR resulting in technological obsolescence • Low value addition/commodity product • Periodic imposition of import duties on import of cotton . • Lower focus on synthetic fibers Restrictions on sales to unorganized segment creating hurdles Opportunities • Threats • Forward and horizontal integration to produce value added and differentiated products Opportunity to increase efficiency through technological upgrade • Special Economic Zones provide incentives to sector

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