The biggest challenge for the past year in global economies
and their supply chains was the COVID-19 itself. One of
South Asia’s textile manufacturing countries, Pakistan also
faced difficulty throughout the period but surprisingly
within a few months, the country’s textile sector was moved
The recent monthly data published by the Pakistan Bureau of
Statistics for the first four months of the current
financial year confirms that the textile and clothing export
shipments are back on the growth of their quantity and
The data shows that the textile shipments have surged by 3.8
percent to $4.8 billion between July and October from $4.6bn
a year ago. The rise in the textile and clothing group has
been faster than the 0.6pc growth in the overall export.
All Pakistan Textile Mills Association (Aptma) Chairman Adil
Bashir described this could not happen automatically.
Bashir told, “Industry’s demand for rationalizing energy
tariff had been accepted by the current government and just
when we were about to take off in early 2020, COVID-19 hit
Around 60% share in total exports of Pakistan’s economy
comes from the textile market. Contributing to the national
gross domestic product (GDP) is 8.5% and with 15 million
people, directly and indirectly.
Stakeholders want to expand Pakistan’s minuscule share in
global textile exports.
The government has recently announced a lucrative energy
package for the industry to help the exporters. The package
does away with peak electricity rates, offers reduced
tariffs on additional power consumption, and fixes power
price at $0.07 a unit and gas tariff at $0.065mmbtu for the
The central bank has reduced interest rates by 625bps,
approved refinancing of wages and deferred payments of the
principal amount of loans, provided relief under the Export
Financing Scheme (EFS) and the Long-Term Financing Facility
(LTFF). Furthermore, the State Bank has also launched a
Like all global players, Pakistani counterparts have been
urged to focus on value addition for a greater share in the
European and American markets. A lack of value addition is
the reason why export figures have been almost stagnant for
In the financial year 2019-20, Pakistan’s textile sector
fetched $12.5 billion in export earnings against $13.33
billion in 2018-19, whereas in 2010-11 the export revenue
stood at $13.8 billion.
In the first five months of 2020-21, the sector posted
export revenue of $6.05 billion against $5.76 billion. Many
exporters and government officials are calling it a huge
success. Most of the textile entrepreneurs are optimistic
about the future, believing Covid-19 has somehow helped
boost the sector.
Currently, the entire value chain is overloaded with export
orders due to lockdown in competing markets and expected the
trend to continue in the future. They need new investment in
It can be done when the government streamlines things for
the sector. A proper textile policy to date implemented in
true letter and spirit along with long-term energy tariffs
to build investors’ confidence can cause this sector to
perform overwhelmingly in the coming years.