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Prospects for the textile and clothing industry in Pakistan, 2022
published in Issue 49, January 2022
The textile and clothing industry in Pakistan is of major importance for the country's economy. Textile and clothing exports account for over 61% of Pakistan's total exports and the industry provides direct employment for about 40% of the country's total industrial workforce. The industry also provides support for over 10 mn farming families, reflecting Pakistan's status as a major producer of raw cotton. On the downside, the industry has had to grapple with chronic power shortages and turmoil stemming from volatile political circumstances, and the quality of Pakistani cotton—its main raw material—has been lowered through bad practices. Also, investment in the industry has fallen. But on the positive side, the country has an abundant supply of low cost labour, and the textile and clothing industry benefits from duty-free access to the EU import market under the Generalised Scheme of Preferences (GSP) GSP+ arrangement. Also, the government places particular emphasis on attracting foreign investment and modernising existing production facilities. Furthermore, in a policy document entitled Textile Policy 2020-25, the Ministry of Textile Industry outlines a number of key objectives for the five years to the end of the 2024/25 financial year—including becoming more competitive in the international marketplace and stepping up exports. This report looks at the development of the textile and clothing industry in Pakistan, its size and structure, and its production and consumption of textiles and clothing. The report also features: a geographical, political and economic profile; a detailed look at Pakistan's imports and exports of textiles and clothing; a review of the policies and investment incentives provided by the Pakistani government; an appraisal of Pakistan's infrastructure and human resources; and an examination of the industry's strengths, weaknesses, opportunities and threats (SWOT).
Global Apparel Markets provides intelligence, analysis and insight on the global apparel and fashion industries.
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