Textile & Value Added Garments

Textile is the leading manufacturing and value addition sector of Pakistan. Over the years, Faisalabad has established itself as one of the largest textile clusters in the world with a complete and well-integrated value chain from farm to wardrobe. The textile sector contributes nearly one-fourth of the total industrial value-added exports and employs about 40% of the industrial labour force. On average, textile products have maintained a share of about 61.24% in national exports.

The existing global market for textile and apparel is around $1.2 trillion with a projected CAGR of 2% for the ongoing year. Given the positive demand outlook, Pakistan has a significant opportunity to earn foreign exchange through textile exports. Moreover, Pakistan also enjoys the advantageous relocation of labour-intensive textile and garment industry from China which has strong global market access, including re-exports of finished goods to China under the China-Pakistan Free Trade Agreement Phase II (CPFTA II).

With 13.414 million spindles and 198,801 rotors installed and 11.338 million spindles and 126,583 rotors in operation, the capacity utilization has remained 84.55% and 63.67% respectively.

Depicting a huge potential and demand, the ready-made garment’s exports recorded a massive growth of 33.9% in quantity and 26.2% in value during July - March FY 2022.

Other value-added products such as socks, towels, bed linen, tents/canvas, and industrial grey cloth also strongly contribute to the sustained growth of the textile sector.

Key Facts

• 60% of the total exports of Pakistan comprise of textile / value added textile products and raw cotton
• Pakistan’s textile sector exports were USD 17 billion in the year 2021
• Textile sector exports have been growing at 7% on a year-on-year basis for the last 5 years
• Cotton spinning sector comprises of 517 textile units (40 composite units and 477 spinning units)
• Pakistan is the 4th largest yarn producer in the world

Investment Opportunities

• Upgradation of Existing Quality Testing & Certification Lab Facilities in Punjab to Enhance Scope and Efficiency
  • Ensuring Quality Standards
  • Outreach to Local Producers and Investors to International Markets
  • Utilization of Existing Setup and Infrastructure
  • Upgradation of Obsolete Testing Technologies and Machinery
  • Capacity Building of Existing Staff
  • Developing Punjab as the Testing Hub of Pakistan
  • Symbolizing Improved Quality Control for Pakistani Products
• Large / High Quality Buying House Presence in All Major Textile Clusters of Punjab to Support the Exports
• Establishment of Artificial Fiber (Man Made Fiber) Production Plant to Meet the Increased Demand of Global Apparel Industry
• Buying House Facility / Sourcing / Trading for High Value
• Establishment of Textile Finished Products Testing Labs