Everything You Need to Know About Pakistan's Textile Industry

According to the Pakistan Textile Council, Pakistan is the eighth largest textile exporter in Asia, contributing around 8.5% to the country's GDP (PTC 2023). In addition, the textile sector employs 45% of the total labor force in the country (Wikipedia). There are around 464 mills used by more than 2,500 textile-producing businesses. 

Almost 316 of these textile units are in Punjab, while 116 are in Sindh. Mostly, the textile business is present in Karachi and Faisalabad, each having a share of 38% and 28%, respectively. Overall, Pakistan's textile industry has significantly improved its international relationships, as a major portion of its textile products are exported to Western countries. 

Resultantly, Pakistan earned a whopping $11,145.661 million through textile exports in the first 8 months of the financial year 2023 - 2024 (The Nations 2024). The shipped textile products are divided into two categories: raw materials and finished goods. 

Pakistan exports textile raw materials like cotton, yarn, knitted or woven fabric, and synthetic fabric. Currently, Pakistan is ranked fourth in cotton production and holds the third-largest spinning capacity after China and India, contributing 5% to the global spinning capacity (The Express Tribune, 2023).

In addition, the country ships finished textile goods like bags (handbags, tote bags, shopping bags), draperies, sheets, towels, and blankets. In 2022, Pakistan emerged as the third largest exporter of cotton blankets, with exports totalling $47.8 million (OEC World). The primary countries where the blankets were shipped include:

Canada ($2.53 million)

Netherlands ($1.33 million)

Ireland ($1.12 million)

United States ($33.2 million)

Australia ($2.85 million).

Pakistan Textile Industry and Sustainability

Due to climate change and increased greenhouse gas emissions, the world is pursuing green practices. This global shift to sustainability is also encouraging the Pakistan textile industry to adopt eco-friendly strategies to fight environmental issues. This is also important as Pakistan is among the top 10 victims of climate change (UN WPF 2023). 

The country ratified international agreements like the UNFCCC and the Kyoto Protocol. Following the widespread disasters in 2010 and 2011, the Government of Pakistan also developed the National Climate Change Policy (NCCP) to reduce climate change (APTMA 2022).

The NCCP was later updated and made it mandatory to implement Sustainable Development Goals (SDGs) across various sectors, including textiles. Pakistan also updated Nationally Determined Contributions (NDCs) in 2021 to achieve a 50% reduction in GHG emissions and 60% adoption of renewable energy sources. Considering these guidelines, various textile mills like Sarena Textiles and Crescent Bahuman Textiles made efforts to mitigate their GHG release. 

Serena Textiles lowered its coal usage by 76% and achieved remarkable cost savings of 29% using innovative and renewable energy sources. They also lowered water consumption by 33% using special textile manufacturing techniques. On the other hand, Crescent Bahuman Textiles utilises carbon sequestration methods to lower greenhouse gases. 

Besides, they aim to lower their water consumption by a massive percentage of 50% using rainwater harvesting. There's still a lot of work the Pakistan textile industry has to do to enhance its sustainability efforts further and address environmental challenges promptly. Yet, these initiatives are a ray of hope illuminating the path for a greener textile industry. 

History of Pakistan Textile Industry

The roots of the Pakistan textile industry can be traced back to the ancient Indus Valley civilisation, located in present-day Pakistan. At that time, people created garments using homespun cotton and engaged in trade with many regions, such as Rome, Egypt, Britain, and Indonesia. However, the textile sector of today's Pakistan witnessed significant growth during the British colonial era on the subcontinent as they brought advanced technologies and machinery. It wasn't until 1950 that the government of Pakistan recognised the crucial role of textiles in the country's economy. 

The government started industrialisation efforts with a specific focus on textiles, providing subsidies, equipment, and investment incentives to yield economic growth. Later, in 1974, the government established the Cotton Export Corporation of Pakistan (CEC) to regulate cotton manufacturing and exports. The purpose was to restrict private companies from engaging and benefiting from international trade. Nonetheless, by the late 1980s, the role of the Cotton Export Corporation of Pakistan (CEC) completely diminished. 

Private companies directly started procuring cotton from ginners and got permits to sell textile products both domestically and internationally. All in all, the duration from 1947 to 2000 resulted in an exceptional expansion of the Pakistan textile industry. The number of textile mills surged from a mere 300 to 600. Concurrently, the spindles used in textile manufacturing increased from 177,000 to 805 million. 

Textile production in Pakistan comprises six sectors;

1.Spinning

2.Weaving

3.Processing

4.Printing

5.Garment manufacturing

6.Filament yarn manufacturing

As of today, Pakistan exports its textile goods to countries like the United States, the European Union, Afghanistan, Saudi Arabia, China, and the United Arab Emirates (Pakistan Textile Council, 2023). This sector is expected to grow more in the upcoming years by overcoming challenges like the energy crisis and increasing production costs, which will take the country toward success. 

Conclusion

Pakistan is among the leading textile exporters worldwide, shipping textile raw materials and finished goods. Faisalabad and Karachi serve as the central textile hubs of Pakistan, housing over 400 textile mills.

Pakistan is also committed to complying with worldwide sustainability initiatives. This will not only boost its textile sector but also help it combat the adverse effects of climate change on its people.   

However, to maximise exports and trade potential with different countries, Pakistan needs to focus on maintaining a good law and order situation and making the textile sector sustainable. This involves investing in renewable energy sources and efficient manufacturing techniques to minimise water consumption.