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Pakistan’s Textile Industry – Back on Track

All indicators show that the textile industry of Pakistan is recovering from the worst. The global buyers are back in business after the corona Pandemic stands curtailed a bit. 

The smart lockdown strategy of the Pakistan Government for controlling and curtailing the pandemic proved a great success. The policy proved fruitful by helping the significant decline in Covid-19 cases. The control strategy received a vast appreciation from the world. The success restored the confidence of textile buyers who started returning by partially placing orders from Pakistan. Textile export is the single largest sector contributing to exchange earning of the country. Its share in annual export earnings stands around 60%. 

Reasons for Recovery

The Corona pandemic control is, however, not the only reason for this upsurge. The big jump in production growth in the textile sector is because of the import of raw materials such as cotton and man-made yarn. It helped in meeting the shortfall of cotton caused by the heavy rainfall and pest attacks. The reports indicate that the textile industry has recovered back at the level of pre-COVID-19. The safeguard measures helped the industry in taking the production at its full capacity. The units closed during the pandemic were not included in the study, are on the recovery lane taking steps to start production soon. The number of closed units is not considerable.      


The situation is termed satisfactory by the industry experts claiming that Pakistan’s textile industry is operating exceptionally, much better to its regional competitors. The world buyers who stopped buying from Pakistan are reverting by diverting their orders to Pakistan from China, India, and Bangladesh. There are many reasons behind this move, but the major ones are the US-China trade-tussle and the production halt in India caused by the severe Covid-19 crisis there.


The number of export orders is expected to increase gradually with the US & Europe fully recovering from the Corona crisis. They are still fighting the second wave of the pandemic by imposing partial lockdowns. Normalcy will prompt the traders to place orders as early as their stocks start depleting during the winter sales. 

Government Support

Another significant reason behind the recovery of the Textile industry of Pakistan is the support of the Government in the shape of rationalizing of energy price to a regional competitive level, the continued supply of raw materials, and subsidized financing for the expansion of production and setting up new units.

Cotton Production / Import

Pakistan needs to import five million bales (of 225 kilograms each), which comes equal to the estimated local production of eight million bales (of 150 kilograms each) this year. The cost of imports is estimated at around $1.8 billion.

Image by Siggy Nowak from Pixabay 

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