Report by Engineering Post
The textile sector, a cornerstone of Pakistan’s export economy , faced challenges for quite some time amidst global and domestic shifts.
Textile group exports experienced a slight decline by 0.3 percent , reaching US $ 12.4 billion, which was attributed to various factors , including the aftermath of the continuation of Russia-Ukraine war, market demand contractions, and International Monetary Fund (IMF) conditionality’s, leading to the withdrawal of a number of incentives and support measures by the Federal Government .
Specifically in the home textile segment, bedwear and towels, saw promising growth in quantity (value) by 13.2 percent (2.8 per cent) and 15.1 percent (5.2 percent) respectively. In comparison , knitwear exports surged in quantity by 41.4 percent despite a slight dip in value by 4.4 percent. Conversely, readymade garment exports experienced a decline, highlighting areas for potential improvement.
However, Pakistan lagged behind regional competitors lie Bangladesh and Vietnam in value-added textile exports, disproportionately focusing on home textiles over garments, Bangladesh’s strategic emphasis on garments, with significantly more garment units than Pakistan, underscoring the missed opportunities in diversification.
Despite facing a number of challenges , Pakistan’s textile sector holds immense potential for growth through diversification, strategic alignment with global trends, and targeted policy interventions to enhance competitiveness in value-added exports.
The exports of carpets, rugs and mats registered an increase of 23.0 percent in quantity, whereas its value declined by 21.2 percent during the past few months.
Pakistan’s hand-made carpet industry had somehow lost its footing in the global market on account of elevated prices of raw materials, costly labour , and higher freight charges.
