The textile industry remains a cornerstone of Pakistan’s economy, contributing nearly 60% to the country’s total exports and providing employment to about 40% of the industrial workforce. From cotton cultivation to high-end garment manufacturing, the sector forms a comprehensive supply chain that plays a critical role in Pakistan’s industrial and economic framework. Despite its immense significance and historical strengths, the textile sector is currently grappling with a series of interconnected challenges that have severely impacted its global competitiveness and long-term sustainability. Pakistan is among the world’s leading cotton producers and has developed an extensive infrastructure encompassing cotton ginning, spinning, weaving, dyeing, finishing, and apparel production. Key export destinations include the United States, the European Union, China, and the UAE. The GSP+ status granted by the EU has been instrumental in boosting textile exports in recent years, providing duty-free access to European markets. In addition to these advantages, Pakistan benefits from a large and relatively low-cost workforce, along with government incentives such as tax exemptions, subsidies, and concessional loans. However, these benefits have been increasingly overshadowed by escalating operational costs, inefficient practices, and global market volatility.
