The textile industry is the largest industry in Pakistan and the highest contributor to the GDP. This past year, the textile industry has had an overwhelming impact on the economy of Pakistan contributing to 60% of exports. Evidently, making Pakistan the 8th largest exporter of textile products in Asia. Pakistan’s textile exports surged to an all-time high of $6.04 billion in the first four months (July-October) of this fiscal year (2021-22).
Exports of textile products noticed a growth of 25.6% in October for this year in comparison to 2020. The growth recorded was also better than the month of September the same year. In November alone, textile exports were up 36 percent as compared to the same period last year. The growth between the periods of July and November has proved to be good omen for the textile industry.
To encourage growth in the textile sector for the coming year 2022, the government has announced an investment plan which includes $3.5bn for the textile sector. Investments of $1.5bn have been made so far in the textile sector while the rest $2bn would be in place by June 30, 2022. This step will definitely ensure stability in the economy of the country. Meanwhile, the position of Pakistan’s textile exports will also be stronger in the international market.
The concessions on energy tariffs helped the textile sector post high growth in exports. Another reason for the better performance of the textile industry was the increase in demand as the Covid-19 restrictions were lifted. Pakistan’s textile industry was able to capitalize on the increase in demand for textile products in the world.
Since the demand for textile products shifted to regional countries, Pakistan has been able to seize the opportunity. During the Covid-19 restrictions, Pakistan has quoted competitive prices and offered better quality products so that the new buyers could become their customers permanently. Pakistan was able to break a 3-year record in terms of growth in the textile industry. It can sustain for years to come; it all depends on how we steer this industry into the future.
Also read: https://neemopani.com/rewinding-2021-five-pakistani-green-initiatives/