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Pakistan Textile Industry

Pakistan’s textile industry

Pakistan’s textile industry is a major contributor to the national economy in terms of exports and employment. Pakistan holds the distinction of being the world’s 4th largest producer of cotton as well as the 3rd largest consumer in the world. The textile sector is considered the backbone of the economy.




Exports 60%                      Manufacturing 46%                       Employment 38%


A newly elected Chairman of All Pakistan Textile Mills Association Yasin Sadique has announced to unveil vision APTMA 2020 under which the textile exports would be projected to fetch $26 billion by the year 2020 from the present level of $13 billion. He said about frequent increases in taxes and levies and utilities’ prices, the association would take up these issues with the government and ask the power corridors to extend at least some breathing space for the industry’s survival. The electricity rate in Pakistan is highest with 15 cents per unit while it costs 12 cents in India, 10 cents in Sri Lanka, and 9 cents in Bangladesh while gas per MMBTU in Pakistan is $4.94, $4.20 in India and $2.05 is in Sri Lanka. Similarly, the markup rate in Pakistan is highest as compared to other countries in the region with 10.50 percent and it is feared to increase further whereas it is charged at 6.56 percent in China, 7.74 percent in Bangladesh, and 7.75 percent in Sri Lanka.

He said APTMA would speed up its efforts for the Generalized System of Preferences Plus by the European Union as Pakistan becomes eligible for the preferential tariff in January next year.


Textile industries are the backbone of the Pakistan economy and the Pakistan government always taking interest in the textile sector. The share of the textile industry in the economy along with its contribution to exports, employment, foreign exchange earnings, investment, and value-added makes it the single largest manufacturing sector for Pakistan. It contributes around 8.5 percent to GDP, employs 38 percent of the total manufacturing labor force, and contributes between 60-70 percent to total merchandise exports.

So that way Government starts many projects in the textile sector with the support of the ministry of textile and some other private investors, for achieving a peak position in the world.

Near about 6 to 7 textile projects are under the process that will be completed in the next coming years. Name lists of the project are given below.

    • Export development plan implementation unit (EDPI)
    • Pak-Korea Garment technology instituted (PKGTI)
    • Lahore Garment city (LGC)
    • Faisalabad Garment city (FGC)
    • Karachi Garment city (KGC)
    • Pakistan textile city limited (PTCL)

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