Pakistan Economy

Textile Sector of Pakistan

By Maham Tahira and Arisha Imran

 Textile Sector Background

Background

 Pakistan textile industry contributed more than

60% to the total exports of $31.8 billion during
the fiscal year FY2022.

 The contribution of this industry to the total GDP

is 8.5%
2

 It provides employment to 38% of the work force

in the country.

01
Textile Sector Background

02
 Pakistan Economy Production processes

Sectors within the Textile industry

03
 Pakistan Economy Production processes

Key processes within the Textile industry

Cotton Ginning Spinning 04

 Pakistan Economy Production processes

Key processes within the Textile industry

05
Weaving Dyeing/Printing
Pakistan Economy Background

Product Variation

The main textile export products

include:

1. cotton yarns
2. cotton fabrics
3. Knitwear 7

4. Bedwear
5. Towels
6. denim fabrics
7. garments.

06
Pakistan Economy Background

Exports FY2022

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P a k i s t a n ’s t e x t i l e e x p o r t s f e l l b y 1 . 4 % i n t h e 4 M F Y 2 3 p e r i o d t o U S D ~ 5 . 9 b l n f ro m l a s t y e a r.
Pakistan Economy -

Textile Sector in 2023

• 15 % mont h- on- mont h decl i n e i n th e

fi rst mont h o f t he new f i sca l y ea r
20 23 -2 4.

• Exp o rt s f or Jul y 2 02 3 st oo d at $ 1.31

b i l l i on , compared to $ 1.54 b i l l i o n f or
th e sa me mont h t he previ ou s y ea r.

• -9 .84 % growt h i n the l ast fi s ca l y ear.

09
Pakistan Economy Reasons

Reasons

• Decline in local cotton production:

• Dependency on cotton imports
• Low level of value addition:
• High Energy Costs:
•
10
Disruption in electricity and gas supply:
• High level of regional competition: International market from Bangladesh, Vietnam,
India, and Thailand

10
 Pakistan Economy Women in textile industry

Women bearing the most burnt of textile industry decline

• Lay of fs o f 7 mi l l i o n wo rkes, most l y

femal e
• Wag e reduct i o n: 30 % redu ct i o n , 2 020
acco rd i n g t o Pa ki st an i nst i t u te of
l ab o r ed ucat i on a nd research (P ILER)
• Women wo rker ’s Al l i ance ( WWA)
p rot es ti ng ma ss l a yof f s and d eman d
fa i r wa ge
• Fear of speaki ng :

11
 Pakistan Economy Women in textile industry

Women bearing the most burnt of textile industry decline

• Fa ce Hara ssment i n the wo rk s et t i n gs

• Accord i n g t o Int erna ti o nal l a b or
orga n i za t i on ILO women fa ces u n sa f e
an d u n h eal t hy envi ro nmen ts.
• Cri si s E co nomi c t ol l o n wo men i n th i s
i n d u st ry ca n hav e severe ef fect s on
th ei r fa mi l i es.
• Red u ced i nco me may resul t i n
i n ab i l i ty t o prov i de for t hei r ch i l d ren
an d f ami l y.

12
 Pakistan Economy Women in textile industry

Women bearing the most burnt of textile industry decline

Gender inequality

13
Pakistan Economy Women in textile industry

15
Pakistan Economy Comparison

Comparison with Bangladesh

• FY 22 Bangladesh net exports were $15.7 billion

• Pakistan exports during the same period were $12.7 billion
• FY 23 Bangladesh saw growth of 11% and reached $42.6 billion
• Pakistan’s exports decline by 15% to $16.5 billion
15

02
Pakistan Economy Comparison

Comparison with India

• FY 20-21 india produced goods worth of approximately $57 billion

• Exports were $33 billion approximately
• India known for its diverse range of products like cotton, silk, wool
• For same year pakistan produced goods worth $ 12 billion and exports were $12 billion
• Pakistan’s focus on cotton and cotton based textile
16 sector

02
Pakistan Economy Recommendation

Recommendations

• Di v ers i fy Product Port fo l i o

• Mark et Di versi fi ca ti o n
• S u st ai n a bl e a nd eco f ri end l y p ro d u ct s
• S k i l l Devel o pment
• Bet t er i n f ra st ruct ure
• In v est i n resea rch and devel op men t
• S EZ acti v at i on s

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Pakistan Economy

Thank You!
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