Pakistan Textile Industry Crisis

Pakistan's textile industry is facing fierce competition with Asian countries, with its declining position.

The majortextile-exporting countries are China, Germany, Bangladesh, Vietnam, and Pakistan.

Pakistan is the world's fifth-largest cotton exporter, with its textile industry accounting for 60% of the country's total exports.They are facing a crisis due to rising energy costs and national political conditions caused by the war in Ukraine.

Textile exports fell about 15% from $19.3 billion in Fiscal Year 21/22 to $16.5 billion in Fiscal Year22/23.

Pakistan Textile supplies cotton, knitwear, and linen to global brands such as ZARA, H&M, and Adidas.

Production fell to an all-time low, particularly as the worst downpour in 2022 flooded 45% cotton crops. As a result, exports were difficult due to a shortage of raw materials and an increase in production costs.

The clothing and textile sector accounts for about 40% of Pakistan's manufacturing workers.Unfortunately, it is estimated that 25-30% of textile factories are currently out of operation and about 700,000 jobs have been lost.

The Pakistani government announced plans to increase textile exports to $25.3 billion in 2025 and raise cotton production to 20 million bales by 2027.

However, Pakistani textile producers said that due to political instability and economic turmoil, it would not be possible to meet the textile export target.