- The country’s textile secure 54.5pc of exports, as garments, bedwear and knitwear lead an impressive export growth
According to a government report, textiles are Pakistan’s most important manufacturing sector. This industry has the longest production chain, with potential for value addition at every stage — from cotton processing to ginning, spinning, fabric production, dyeing and finishing, to the final made-ups and garments. The textile sector contributes nearly a quarter of the country’s industrial value-added and employs about 40 per cent of the industrial labour force. Excluding seasonal and cyclical fluctuations, textile products have maintained an average share of approximately 54.5 per cent of national exports.
Sources recorded that our country’s textile exports grew by 18 per cent year-on-year (YoY) in October 2024, standing at $1.6 billion. However, month-on-month (MoM) exports declined by 2 per cent, reflecting the sector’s ongoing volatility. This brings total textile exports for Q1FY2025 to $4.5 billion, marking a 10 percent YoY rise as against the corresponding period previous year. The export growth was driven by market stability, shifting demand from Bangladesh because of supply disruptions, and the lingering effects of a strong cotton crop. Furthermore, a stable Pakistani rupee against the US dollar supported export competitiveness. In terms of product segments, value-added textiles contributed 73 percent to total exports, with garments, knitwear, and bedwear leading the charge. Garment exports grew by 23.17 percent in the first quarter, with knitwear up 14.13 percent and bedwear climbing by 13.31 percent. However, yarn exports saw a steep 48.45 percent fall, showing persistent problems within basic textile segments.
Global view
International experts note that the global textile industry encompasses the manufacturing and distribution of fabrics and textile products on a worldwide scale. This industry includes a diverse range of products, such as clothing, home textiles, technical textiles, and industrial textiles. Statistics indicate that the global textile market was valued at approximately USD 1,094.65 billion in 2022. The market is projected to grow at a compound annual growth rate (CAGR) of 4.5 per cent, reaching nearly USD 1,425.53 billion by 2028. Key drivers of this growth include rising disposable incomes, a growing population, the continuous expansion of major textile companies in emerging economies, and increased awareness of the benefits of various textile products, such as natural fibres and polyester.
Global trade in textiles is influenced by free trade agreements and tariffs. China remains the largest exporter, holding a 33.7% market share, followed by India, Germany, Bangladesh, and Vietnam. The USA, Germany, the UK, Japan, and China are the top importers. Cotton represents about 40% of the global textile market, primarily due to demand from the apparel and home furnishing sectors.
The statistics from the Pakistan Bureau of Statistics (PBS) corroborate these trends, showing a nearly 9.51 percent YoY increase in textile and clothing exports for the first quarter. Raw cotton imports also grew by 21.17 per cent YoY in Q1FY2025, suggesting a showing reliance on imported inputs to sustain production levels. Meanwhile, synthetic fiber imports dropped by 19.65 percent, reflecting shifts in the textile sector’s sourcing strategies. However, the industry faces long-term structural issues. Textile exporters have reported that, despite having a $25 billion installed capacity, exports have been relatively stagnant over the last two years. This underlines the need for reforms to fully unlock the sector’s potential and compete with regional rivals. Experts recorded that experts warn that Pakistan’s textile growth may slow in the second half of FY2025 because of a weaker projected cotton crop, though ongoing demand shifts from Bangladesh and currency stability could offer some cushion. The government of Pakistan’s support will be crucial in navigating these issues and sustaining the sector’s upward momentum.
Cotton spinning sector
The government of Pakistan also mentioned that the spinning sector is the backbone of textile production. It comprises 408 Textile Units (40 Composite and 368 Spinning units), 13.409 million Spindles, and 198,800 rotors installed. 9.70 million spindles and 126,583 rotors are in operation, with capacity utilization of 72.3 percent and 63.7 percent, respectively, during July-March FY 2024.
Cloth sector
Furthermore, this sector produces comparatively low value-added grey cloth of mostly inferior quality because of poor technology, scarcity of quality yarn, and lack of institutional financing for its development from an unorganized sector to an organized one. The number of Looms installed in cotton textile mills is 9,084, with 6,398 presently in operation. Production of cloth in the mill sector is reported, whereas the non-mills sector is not reported and taken as estimated. The production of cotton cloth decreased while the exports increased in quantity only.
Textile made-up sector
As a value-added segment of the textile industry, the made-up sector comprises different subgroups: towels, tents and canvas, cotton bags, bedwear, hosiery, knitwear and readymade garments, and fashion apparel. The garment industry is also a good source of career opportunities for many people at meager capital investment. It chiefly uses locally produced raw materials. The readymade garment industry has emerged as one of the essential small-scale industries in the country. This industry almost meets the local requirements for readymade garments.
Synthetic textile fabrics
There are currently five major producers of synthetic fibers in Pakistan, with a total capacity of 636,000 tonnes per annum.
Woolen industry
The main products manufactured by the woolen industry are carpets and rugs.
Jute industry
The main products by the jute industries manufacture are jute sacks and hessian cloth, which are used for packing and handling wheat, rice, and food grains.