Pakistan apparel exports have achieved a record breaking $6.2 billion in the first eight months of the fiscal year 2024-25, marking a 19% increase compared to the same period last year, this growth was revealed during an internal meeting at the Ministry of Commerce, where Federal Minister for Commerce Jam Kamal Khan received updates from Special Secretary Shakeel Ahmed Mangnejo and Director General (Textile) Mudassar Raza Siddiqi.
Industry Resilience and Challenges
Despite global economic challenges, Pakistan textile sector has demonstrated resilience, with an overall growth rate of 9.3% in the first eight months of the current financial year, but cotton production has declined in Pakistan, dropping the country from the third-largest producer globally to sixth place, Siddiqi noted that Pakistan's cotton yield per hectare is significantly lower than Brazil's due to the latter's use of advanced agricultural techniques.
Strategies for Improvement
To boost cotton production and efficiency, Minister Jam Kamal Khan stressed the importance of disease resistant seeds and improved agricultural practices, the commerce ministry has also unveiled a plan to enhance textile exports by reducing manufacturing costs expanding into new markets and promoting high-value products like technical textiles.
Export Performance in February 2025
In February 2025, Pakistan textile exports experienced a slight increase of 0.4%, reaching $1.41 billion compared to $1.4 billion in the same month last year, but there was a 16.2% month-on-month decline from $1.69 billion in January 2025, knitwear readymade garments and bed wear were key contributors, although their exports saw declines of 21.9%, 17.1% and 13.5%, respectively.
Overall Textile Exports
Over the first eight months of the fiscal year 2025, cumulative textile exports rose by 9.3% to $12.18 billion, compared to $11.15 billion in the same period last year, this indicates a positive trend in the textile sector, despite some monthly fluctuations.
Government Initiatives and Recommendations
The commerce ministry is focused on reducing manufacturing costs, enhancing economies of scale, and diversifying into high value finished products, they are also aiming to simplify trade barriers, access potential markets and develop a national action plan on sustainability and circularity the government is urged to offer competitive energy rates, tax rebates and timely sales tax refunds to support exporters, investing in modern machinery and adopting sustainable practices are also crucial for enhancing productivity and competitiveness.
Challenges and Concerns
Despite the growth in apparel exports, the textile sector faces challenges such as high energy costs and new taxation policies, the import of textile machinery has declined, indicating a lack of investment in modernization projects, high energy costs and tax policy changes have added to the sector’s difficulties. Many textile companies have relocated operations to Dubai due to these challenges.
Industry Resilience and Challenges
Despite global economic challenges, Pakistan textile sector has demonstrated resilience, with an overall growth rate of 9.3% in the first eight months of the current financial year, but cotton production has declined in Pakistan, dropping the country from the third-largest producer globally to sixth place, Siddiqi noted that Pakistan's cotton yield per hectare is significantly lower than Brazil's due to the latter's use of advanced agricultural techniques.
Strategies for Improvement
To boost cotton production and efficiency, Minister Jam Kamal Khan stressed the importance of disease resistant seeds and improved agricultural practices, the commerce ministry has also unveiled a plan to enhance textile exports by reducing manufacturing costs expanding into new markets and promoting high-value products like technical textiles.
Export Performance in February 2025
In February 2025, Pakistan textile exports experienced a slight increase of 0.4%, reaching $1.41 billion compared to $1.4 billion in the same month last year, but there was a 16.2% month-on-month decline from $1.69 billion in January 2025, knitwear readymade garments and bed wear were key contributors, although their exports saw declines of 21.9%, 17.1% and 13.5%, respectively.
Overall Textile Exports
Over the first eight months of the fiscal year 2025, cumulative textile exports rose by 9.3% to $12.18 billion, compared to $11.15 billion in the same period last year, this indicates a positive trend in the textile sector, despite some monthly fluctuations.
Government Initiatives and Recommendations
The commerce ministry is focused on reducing manufacturing costs, enhancing economies of scale, and diversifying into high value finished products, they are also aiming to simplify trade barriers, access potential markets and develop a national action plan on sustainability and circularity the government is urged to offer competitive energy rates, tax rebates and timely sales tax refunds to support exporters, investing in modern machinery and adopting sustainable practices are also crucial for enhancing productivity and competitiveness.
Challenges and Concerns
Despite the growth in apparel exports, the textile sector faces challenges such as high energy costs and new taxation policies, the import of textile machinery has declined, indicating a lack of investment in modernization projects, high energy costs and tax policy changes have added to the sector’s difficulties. Many textile companies have relocated operations to Dubai due to these challenges.
