- Textile production and consumption cause climate pressures, requiring circular business models and policy support
Textile Industry
International researchers record that the worldwide textile industry is a massive sector with a market size estimated at USD 1,837.27 billion in 2023, projected to reach USD 3,047.23 billion by 2030. The industry is experiencing significant growth, with a projected CAGR of 7.4 percent between 2024 and 2030. It’s a key part of the world economy, driven through production and consumption centers in Asia, Europe, and North America. China, India, and Bangladesh are major players in textile production and export.
| Pakistan: Production and Export of the Clothing Sector | |||
|---|---|---|---|
| Production | July-March 2024-25 | July-March 2023-24 | % Change |
| Mill Sector (000. Sq. Mtrs) | 657,853 | 652,748 | 0.78 |
| Non-Mill Sector (000. Sq. Mtrs) | 5,248,167 | 5,245,782 | 0.05 |
| Total | 5,906,020 | 5,898,530 | 0.13 |
| Cotton Cloth Exports | |||
| Quantity (Million. Sq. Mtrs) | 264.664 | 278.837 | -5.08 |
| Value (M.US $) | 1,424.503 | 1,422.886 | 0.11 |
| Source: Textile Commissioner’s Organization | |||
The industry involves designing, producing, and distributing various flexible materials and clothing. In the last few decades, the textile industry has evolved towards a “fast fashion” approach: inexpensive clothes, made of cheap materials, to be worn only for one season or less and then discarded. The production and consumption of textiles cause significant pressures on the environment and climate change. These can range from the land and water used to produce the fibres and the energy and chemical dyes used in its manufacturing and production, to its retailing and disposal. At the same time, worldwide, the textiles sector is the third largest employer, after food and housing, with almost 13 million full-time equivalent workers employed worldwide in the supply chain to produce the amount of clothing, textiles and footwear consumed only in the EU-27 in 2020. Most production takes place in Asia, where low production costs often come at the expense of workers’ health and safety. Circular business models and design can reduce the negative impacts of textile production and consumption by retaining the value of textiles, extending their life cycles and increasing the usage of recycled materials. This requires technical, social and business innovation, supported by policy, education and changes in consumer behaviour.
According to the Ministry of Finance-government of Pakistan statement reported that the textiles show the most vital segment of Pakistan’s manufacturing sector, featuring the longest production chain with significant potential for value addition at every stage from cotton cultivation through ginning, spinning, weaving, dyeing, and finishing, to the production of made-ups and garments. The sector accounts for nearly one-fourth of the total industrial value-added and offers employment to approximately 40 percent of the industrial labor force. Textile products maintained a consistent average share of around 55.2 percent in Pakistan’s total exports during July–March FY 2025, reflecting the sector’s strong and stable export performance.
Ancillary textile industry
The report also showed that the ancillary textile industry includes cotton spinning, cotton cloth, cotton yarn, cotton fabric, fabric processing, home textiles, towels, hosiery, knitwear, and readymade garments. These components are being produced both in the large-scale organized sector and in the unorganized cottage / small and medium units.
Cotton spinning sector
Furthermore, 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. Out of which 9.5 million spindles and 126,583 rotors are in operation, with capacity utilization of 70.8 percent and 63.7 percent, respectively, during July-March FY 2025.
Cloth sector
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 6,384 presently in operation. Production of cloth in the mill sector is reported, whereas the non-mill sector is not reported and taken as estimated. The production of cotton cloth has slightly increased while the exports have decreased in terms of quantity.
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 readymade garment industry has emerged as a key small-scale industry in Pakistan, fulfilling almost the entire domestic demand for garments. Its products are in high demand both locally and internationally. This industry offers career opportunities to a large number of people with minimal capital investment. It primarily relies on locally produced raw materials, while most of the machinery used is either imported or assembled locally.
Synthetic textile fabrics
Synthetic fibers like nylon, polyester, acrylic, and polyolefin dominate the domestic market in Pakistan. Presently, five major producers operate in Pakistan with a combined production capacity of 636,000 tons per annum. Artificial silk, which imitates the look and feel of natural silk at a significantly lower cost, is manufactured using approximately 9,000 looms nationwide.
Woolen industry
In our country the woolen industry primarily produces carpets and rugs. However, locally available wool is generally not suitable for the production of high-quality woolen fabrics and hosiery items.
Jute industry
The jute industry in Pakistan primarily manufactures jute sacks and hessian cloth, which are widely used for packaging and handling wheat, rice, and other food grains.