Pakistan’s Textile Exports

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June 2, 2023

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The textile industry of Pakistan is one of the world’s most famous and developed industries. It plays a crucial role in the economy of the country. It comprises about 8.5% of the GDP of Pakistan. The textile industry of Pakistan is the 8th largest exporter in Asia. The textile industry is the 4th largest producer and 3rd largest consumer of cotton. In addition, the textile industry plays a role in employment, as 40% of the country’s labor works in the textile sector.

The textile industry noticeably grew during the British colonial era. During British supremacy, Subcontinent was the largest exporter of cotton. They introduced modern technology and machinery, proving a game changer in the textile sector. The first textile mill was opened in Bombay, allowing others to invest in this business sector. After the independence, the government of Pakistan recognized the importance of textiles in the country’s economic condition, and keeping that in mind, they focused on the development of the industry. In 1950, the government introduced industrialization, and the main focus was textiles by providing subsidies, equipment, and investment, which played a key role in the growth and development.

In the 1980-90s, Pakistan became a major exporter of textile goods and was known for its cotton yarn production. Cotton production in the country is due to favorable weather conditions, which help provide raw materials for the industry. Pakistan supplies almost all the textile substances such as Rayon, cotton, and others. Pakistan has a cost advantage to the low-cost price and less energy cost. The workforce used for the textile industry is highly trained and eligible, which are available at low wages. The goods and cloth made in Pakistan are exported to famous brands such as Gucci, LV, and many more. Most of the textile goods are transported to Europe and America.

The government of Pakistan has various policies related to the textile industry. These policies include the tax rate, wages, investment in machinery and technology, ease of doing business, reducing costs, and many more. Pakistan’s textile industry contributes to almost 60% of the country’s exports. However, the law and order situation has greatly affected the country’s business, so foreign investors are not buying material. As a result, there is a decline of 91million$ in exports. Talking about the present time, the cost of business is more than those of neighboring countries. In addition, the Pakistan textile industry faces various challenges, including energy supply, old machinery, limited resources, and the country’s political situation.

The history of the textile industry of Pakistan shows a shift from traditional crafting to modern technology, making it a modern sector. The present condition of the textile industry can be solved by introducing new and updated policies for the growth and development of the country. Innovation and sustainable practices can be done to bring the sector back to its foot.

Export of textile raw material

Pakistan is not only known for its textile industry, but most importantly, the textile raw material is important. Therefore, we will discover those raw materials which are exported to all over the world. The raw material mostly includes cotton, Yarn, fabric, synthetic fabric, dyes, and chemicals, etc.

Cotton

Cotton is considered the king of the textile industry, the main source of most of the manufactured fabric. Pakistan has been producing high-quality cotton for decades and established itself among the largest textile industries in the world. The environment of Pakistan is favorable for the production of cotton. Modern techniques for the growth and production of cotton are used. The export of cotton plays a significant role in the economy of Pakistan. However, the export may fluctuate due to several reasons, including domestic demand, crop production, and global market situation. The countries to which Pakistan exports most of its cotton are Bangladesh, China, Vietnam, Indonesia, Turkey, Thailand, and many more countries.

Yarn

The spinning industry of Pakistan is also famous and exported worldwide. Pakistan has now become a leading exporter of Yarn. The Yarn exported by the Pakistan spinning industry is cotton, Polyester, and blended Yarn. The industry is working on value addition by producing differentiated and high-quality Yarn. Various policies from the government sector are implemented to support the yarn sector.

Fabric

The fabric manufacturing of Pakistan is highly appreciated worldwide. Different fabrics are manufactured in Pakistan, including Knitted, woven and nonwoven fabric. In addition, the manufacturers use their expertise to produce fabrics such as cotton, Polyester, silk, and many more.

Synthetic fiber

The raw material textile of Pakistan also exports synthetic fiber. The synthetic fibers which are exported worldwide include nylon, acrylic, and Polyester. These were a few textile raw materials which are exported.

Export of textile finished goods

Pakistan is known for its textile exports around the world. There are various textile goods that are exported to many countries. Like raw materials, there are textile finished goods that are exported to developed nations of the world. These items are discussed below:

Bags

Pakistan has its own identity when it comes to bag production. There are bags of different materials which are formed in Pakistan and exported to other countries. These bags include tote bags, handbags, shopping bags, and many more. Different kinds of materials are used to manufacture these bags that include cotton, synthetic fabric, jute, etc.

Sheets, towels, and blankets

Sheets, towels, and blankets are other products that are exported to various countries. These products are made of different materials which include linen, cotton, and a blend of different fabrics. These goods are durable, soft, and long-lasting, which is why the demand for these products is high. The blankets are high in demand, according to data the export for blankets stood at 22.9k.

Draperies

The draperies include curtains, window covers, table clothes, and many more things. These products are made according to new trends in the world which are admired by the exporters. According to export data of Pakistan, the export for curtains stood at 1.1k.

Woven and Knitted cloth

Pakistan is also known for its woven and Knitted clothes. The woven fabric is basically a blend of various clothes including silk, cotton, linen, synthetic fiber, etc. These goods are used in the making of different products which may include household stuff, sports kits, shoes, etc.
All of these items mentioned above are exported by different sectors such as the blanket sector, draperies sector, etc. All of the textile finished goods are made of high-quality material and according to the demand of the importers. These products are mostly exported to countries in Europe, USA, Saudi Arab

Pakistan Textile Products Exports by Country

As discussed earlier, Pakistan is one of the largest exporters of textiles in the world. There are big fishes in the list to which it exports the textile products such as cotton, Yarn, garments, and home textiles. The export to these countries is discussed below:

United States

The united states are one of those countries which import textile goods from Pakistan. A significant amount of goods including garments, fabric, fiber, and home textiles is exported to the USA. The United States imports about 3462024 thousand USD with an export product share of 83.59%.

European Union

The European Union is also considered a big market for the export of Pakistan textile products. The countries included in the EU are Germany, the united kingdom, Italy, France, and Spain. The united kingdom has an export of 1365638 thousand USD, Germany has 1048456 thousand USD, Spain has 667984 thousand USD, Italy has 495164 thousand USD, and France has 282012 thousand USD exports.

China

China is the biggest exporter of textile products in the world so it comes in the list of competitors of Pakistan. But China also imports textile goods from Pakistan. China exports goods worth 726846 thousand USD from Pakistan. In return Pakistan exports textile machinery and technology from China.

United Arab Emirates

The United Arab Emirates is a regional center for business. It also exports textile goods from Pakistan and then makes products from the exported material. The Export to UAE has worth 240903 thousand USD.

Afghanistan

Afghanistan is a significant market for the textile exports of Pakistan. The political situation has affected trade greatly in recent years. Afghanistan imports textile goods worth 15339 thousand USD.

Saudi Arabia

Saudi Arabia is also a crucial market for the textile products of Pakistan. Saudi Arabia imports goods worth 107000 thousand of USD.

Impact of Textile Export On Pakistan's Economy

The textile exports of Pakistan have a significant role in its economy as it constitutes the largest part of it. The textile industry is the largest manufacturing sector of the Pakistani economy and hence contributes a major part. Pakistan’s textile sector has almost made an export of 3.5 billion $ in the year 2017-18. It is the eighth-largest exporter of textile goods in Asia. The contribution to the economy is almost 8.5% of the national GDP and the textile industry comprises 57% of the textile revenue of Pakistan. The textile sector provides direct employment to almost 45% of the country’s industrial workforce. In this way, it helps to alleviate poverty and employment. Textile exports are also the main source of foreign exchange earnings for Pakistan. The textile products help generate foreign exchange through trade, which pays for deficit trade. The textile industry is facing challenges on a global level, steps should be taken to improve its performance in the coming years. If problems related to textiles are solved, then Pakistan can compete for the world’s biggest economies.

Recommendations to improve textile exports

Pakistan’s textile and apparel industry has a rich history, and its export potential remains enormous. To further increase the nation’s textile exports and strengthen its position on the global market, the following recommendations are essential:

Enhance Product Diversification:

Pakistan should focus on diversifying its product line to serve various international markets. By investing in research and development, the textile industry can identify new opportunities and trends, thereby enabling the production of innovative and high-value textile products. Furthermore, exploring niche markets and expanding product categories will assist Pakistan in gaining a competitive advantage and attracting more customers.

Enhance Quality Control Measures:

Maintaining high-quality standards is crucial for establishing a solid reputation in the global textile market. Therefore, Pakistan should prioritize implementing stringent quality control measures across the textile supply chain. By guaranteeing consistent product quality, meeting international standards, and adhering to sustainability requirements, Pakistan can enhance its reputation as a dependable sourcing destination for international purchasers.

Invest in Technology and Innovation:

Pakistan’s textile industry must invest in advanced technology and innovation to remain competitive. By employing modern machinery, automation, and digitalization, manufacturers can increase production efficiency, reduce costs, and expedite the delivery of high-quality products. In addition, by nurturing a culture of innovation and encouraging research and development initiatives, the textile industry can produce distinctive textiles with added value to meet evolving consumer demands.

Enhance Supply Chain Integration:

Efficient supply chain management is essential for streamlined operations and timely order fulfillment. Collaboration among diverse stakeholders, such as textile manufacturers, raw material suppliers, logistics providers, and government agencies, is crucial for streamlining the supply chain process. By fostering supply chain integration, Pakistan can decrease lead times, increase productivity, and boost customer satisfaction, bolstering textile exports.

Focus on Skill Development and Training:

Skilled labor is the backbone of any successful industry. Therefore, prioritize skill development and textile industry-specific training programs in Pakistan. The industry can increase productivity, product quality, and creativity by providing employees with technical skills and knowledge. Moreover, nurturing a culture of continuous learning and offering opportunities for career advancement will attract and retain talent in the textile industry.

Strengthen Market Access and Trade Diplomacy:

Pakistan should engage in active international trade diplomacy and negotiate favorable trade agreements with key markets. By eliminating trade barriers, reducing tariffs, and simplifying customs procedures, the country can increase market access for its textile exports. In addition, by collaborating with industry associations, trade organizations, and the government, the PTC can play a pivotal role in advocating for the industry’s interests and fostering an environment conducive to trade.

Conclusion

The Pakistan Textile Council (PTC), which strongly emphasises research, lobbying, and policy dialogues, is in an excellent position to steer the textile and apparel industry toward sustainable expansion. Pakistan can increase the amount of textiles it exports, improve its standing on the international market, and make a positive contribution to the economy and society if it follows the guidelines above. Pakistan’s textile industry, government, and the Pakistan Textile Corporation (PTC) can strive toward a better future for Pakistan’s textile sector, which will position the nation at the forefront of the global textile industry.