The Fashion And Apparel Industry Of Pakistan

The fashion and apparel industry in Pakistan is experiencing accelerated growth and youth which comprise approximately 32 percent of Pakistan’s population appear to be the guiding force behind it. In recent years, the apparel sector has witnessed entry of some of the biggest textile groups of the country.These textile groups’ availed opportunities by introducing separate brands, lawns and other fashion related products in the market. Plus the talented designers with innovative ideas and internationally competitive designs are projecting the cultural heritage of Pakistan. There are around 40 plus high-end fashion brands in the country and their annual sales volume runs in billions of rupees. In an extremely competitive market, these brands endeavour to come up with the most creative designs. These brands are targeting the youth and catering to their demands. Fashion products and apparel industry is showing dynamism and diversity in Pakistan. Most of the sales of branded clothing taking place through franchises that have bought the right to sell these products to consumers. The online sale of the clothes is also gaining grounds, mostly youth prefers to buy online.

The textile industry may be languishing because of energy crisis, yet cloth manufacturers are aggressively targeting the emerging middle class and the youth .The vast segment of the middle class that can afford to buy fuels the demand for these branded clothes. The economic slowdown has done nothing to decrease sales in this segment of the market.

Brand consciousness among People, is increasing with every passing day. Especially in youth, television and social media has played an important role in changing the mindsets of the youth. Television viewership has gone up as have the number of television channels. The top ten channels of Pakistan have cumulative viewership of 127 million. On the other hand fashion industry was leading fans following on Facebook followed by beauty, electronics, e-commerce and telecom sectors. By end of February 2015, fashion industry attracted some 28.106 million fans on Facebook. Innumerable billboards displaying mind-blowing latest designer collection and the gorgeous models boost the overall charisma of the brand. Fashion shows are also major contributors in changing the mindset of the youth.

Youth is conscious about brands because they think that they look attractive, funky and more stylish in trademark. Working class wear branded clothes so that they seem to be more decent, adorable and their impression on other people must be good. People are not just following but also they want to compete with each other that they wear the best and the most popular brand from others.
The underlying cause of the trend seems to be a willingness by middle class to be willing to pay higher prices for what they perceive to be higher quality. And given their longer durability, many branded clothes are seen as good value for money.

A Synopsis of Federal Budget 2016-17

The PML-N government has unveiled its fourth budget on Friday, June 3 2016 with a total outlay of Rs 4.42 trillion for the fiscal year 2016-17, indicating 7 percent increase over the outgoing fiscal year. This is a deficit budget with Rs 1.2 trillion gap in income and expenditure. The government once again has set an ambitious growth target at 5.7 percent for the next fiscal year.

Following are the highlights of the budget

  • The total outlay of the budget 2016 17 is Rs 4.42 trillion.
  • The resources availability during 2016 17 has been estimated at Rs 4,442.0 billion.
  • The overall expenditure during 2016 17 has been estimated at Rs 4,894.9 billion.
  • Government has announced a 20 percent increase in the PSDP allocation with Rs1.675 trillion set aside for FY16-17, of which the Federal PSDP makes up Rs800 billion.
  • The development expenditure outside PSDP has been estimated at Rs 156.6 billion in the current budget.
  • Rs 860 billion have been allocated for defence expenses, showing 11 percent increase in the defence budget comparing last year.
  • This year the government has allocated Rs24.95 billion for health sector.
  • The government has allocated Rs108.9 billion for education in the new fiscal year.
  • The government will spend Rs32 billion on new water resources.
  • Overall, the government has allocated Rs380 billion for various energy projects.
  • Government has allocated 188 billion for the construction of highways, bridges and flyovers.
  • The government has allocated Rs.14 billion for the procurement / manufacture of new locomotive engines.
  • Minimum wage has been increased to Rs 14,000, indicating a Rs 1,000 increase from the previous year.

Relief Measures

Agriculture Relief Package

The government has announced following relief measures for the agriculture sector

  • • Off-peak tariff for agriculture tube wells will go down from Rs8.85 per unit to Rs5.35 per unit.
  • • Rs26 billion subsidy would be given on Urea and 10 billion on DAP.
  • • Duty on fish feed, 10 percent customs duty on export of small fish and 7 percent tax on pesticides revoked.
  • • 5 percent duty reduced to 2 percent on import of machinery for dairy, livestock and poultry sectors.
  • • Duty of 7 percent on pesticides has been abolished.

Incentives for Industrial Sector

  • • Customs duty on 2,300 items has been reduced to 3 percent from 5 percent.
  • • The tax exemption on investment in green-field industrial undertakings is extended to June 2019.
  • • The tax credit for making sales to registered persons enhanced to 3 percent from 2.5 percent.

Incentives for Energy Sector

  • • Customs duty on imports of parts of LED lights has been reduced from 20 percent to 5 percent.
  • • Sales tax has been exempted on import of dumper trucks for Thar Coal.
  • • Customs duty exemption extended on import of solar panels and related components till June 2017.

Other Relief Measures

  • • The corporate tax rate has been reduced to 31 percent.
  • • Individuals having taxable income less than Rs1 million have been give a tax relief equal to 5 percent of school fee up to Rs60, 000 per child per annum.
  • • The minimum tax for large trading houses has been reduced to 0.5 percent from 1 percent of the entire turnover up to tax year 2019.
  • • Sales tax exempted on the import of laptops and PCs.
  • • 16 percent federal excise duty exempted on advertisement on cable TV.

New Taxes

The government has set next year’s revenue target Rs3.650 trillion in order to meet the target the government has imposed Rs204 billion worth of new taxes in 2016-17.

The breakup of the new tax shows an amount of Rs145 billion worth income tax measures, Rs45 billion of sales tax and FED and Rs14 billion customs duty.

  • • The existing sales tax rates of Rs500 and Rs1, 000 are increased to Rs1, 000 and Rs1, 500 for medium and high category mobile phones.
  • • 10 percent capital gain tax imposed on selling property within five years.
  • • The customs duty has been increased to 11 percent from 10 percent on 900 items and to 16 percent from 15 percent on 508 items.
  • • Customs duty on import of eggs and chicken rose to 11 percent.
  • • Tax on each bag of cement raised to Rs50.
  • • Customs duty rose to 20 percent on frozen fish.
  • • The government imposed regulatory duty of 25 percent on powdered milk.

Announcement: Political Poll Results

iris communications held a political poll in the five major cities of Pakistan to judge the opinion of urban women on Panama Leaks. The results of the survey “Perceptions of Urban Women on Panama Leaks” will be announced on July 19-2016 on iris communications website and social media pages.

iris communications held a political poll in the five major cities of Pakistan to judge the opinion of urban women on Panama Leaks. The results of the survey “Perceptions of Urban Women on Panama Leaks” will be announced on July 19-2016 on iris communications website and social media pages.

iris communications held a political poll in the five major cities of Pakistan to judge the opinion of urban women on Panama Leaks. The results of the survey “Perceptions of Urban Women on Panama Leaks” will be announced on July 19-2016 on iris communications website and social media pages.

Poll Results-Perceptions of Urban Women on Panama Leaks

We are pleased to announce the results of the poll which iris communications held in five major cities of Pakistan to judge the opinion of Pakistani urban women on Panama Leaks.The results of the part two of the poll will be shared later on.

Perceptions of Urban Women on Panama Leaks by iris communications on Scribd

PTI’s Perception in KPK by KPK

Here, the findings of a perception study is shared, which was carried out in 23 districts of Khyber Pakhtunkhwa (KPK) in the months of July/August 2016. This study analyzes the half term performance of PTI lead government in KPK from the perspective of the people of KPK. Their level of satisfaction towards the performance of PTI was recorded. The study aims in assessing an objective view of the change the people have experienced under PTI government in KPK.

Research Agency

iris communications