Pakistan’s textile exports catching up with neighboring apparel making countries

Pakistan textile and apparel industry is expecting a staggering 40% growth in the current 2021-2022 FY. Recently, Abdul Razak Dawood, Commerce Adviser to the Prime Minister of Pakistan said to Bloomberg, “Pakistan textile and apparel export earning is expected to surge 40% from a year earlier to a record $21 billion in the 12 months ending in June bringing cheer to its flailing economy.”

Having said that, Dawood projected that the export figure would expand to $26 billion in the next fiscal year.” Pakistan kept its textile and apparel factories open ahead of India and Bangladesh when the Covid-19 pandemic began back in 2020. Dawood signified that this has given the country edge over neighboring countries. “A lot of orders were shifted from Bangladesh and India to Pakistan,” he added. This move led the textile and apparel industry to get more orders from global brands including Target Corp and Hanesbrands Inc. Dawood highlighted, “The other good thing that’s happening is we are now becoming competitive with Bangladesh. Three, four years ago, Bangladesh was beating us.”

Pakistan’s govt. also plans to announce a proposal next month to provide incentives for exports to new markets such as Africa, South America and Central Asia, the Commerce Adviser added. With boosting measures such as tax breaks, inexpensive loans and supplying electricity at rates equal to competitors in the South Asia region, Pakistan is doubling down to boost its exports.

Abdul Razak Dawood concluded, “Pakistan is also pushing to intensify trade with Central Asian nations by signing agreements and allowing free movement of trucks. Trade has grown to $120 million in six months of the current fiscal year from $14 million of the entire previous year.”