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Musharraf Era Textile Boom Returning to Pakistan?
Pakistan textile industry is booming with exports soaring 27% to more than $6 billion in the first four months (July-October) of the current fiscal year. “We believe that $5 billion investment (in textile industry) in the Musharraf era would be matched in the next six to eight months” says Zubair Motiwala, a leading textile industrialist and chairman of Businessmen Group (BMG), as quoted in the Pakistani media reports. Pakistan textile exports more than doubled from $5.2 billion to more than $11 billion during Musharraf years. Exports soared 19.43% in 2001, 20% in 2004, 24.5% in 2005 and 11.23% in 2006, all on President Musharraf's watch, according to "The Rise and Fall of Pakistan's Textile Industry: An Analytical View" published by Javed Memon, Abdul Aziz and Muhammad Qayyum.
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Pakistani government officials report that the textile sector has invested $3-3.5 billion on modernization and expansion in the last 2-3 years and the investment is likely to match the $5 billion that was witnessed during Musharraf era when the sector was undergoing major modernization, balancing and replacement (BMR). Textile machinery imports jumped 110% in the last four months, according to the Pakistan Bureau of Statistics (PBS). Capital equipment imports are contributing to Pakistan's widening trade gap.
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| Pakistan Textile Exports Boom. Source: Bloomberg |
All sectors of the textile industry from yarn to fabric to ready-made garments are experiencing double digit growth. Ready-made garments exports jumped 22.34% during July-Oct 2021, knitwear exports soared 35.45%, bed-wear posted positive growth of 21.30%, towel exports were up by 14.17%, cotton cloth rose 18.54%. Among primary commodities, cotton yarn exports surged by 71.39%, while yarn other than cotton by 114%. The export of made-up articles — excluding towels — rose by 11.55%, and tents, canvas and tarpaulin dipped by a massive 23.98% during the 4-month period.
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| International Comparison of Textile Machinery Imports. Source: Business Recorder |
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| History of Pakistan Textile Machinery Imports 2004-2021 in Millions of US$. Source: Ali Khizar |
The textile industry is very important for Pakistan's economy. It is a very large employer and contributes nearly 10% of GDP. Textile exports account for more than half of Pakistan's exports. Unfortunately, the textile industry has stagnated in the last 12 years. Textile boom is good news for the country's economy.
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Riaz Haq
https://www.arabnews.com/node/2643380/pakistan
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KARACHI: Pakistan is seeking to attract more Chinese export-oriented manufacturing as a Chinese apparel company plans a major expansion in the country targeting up to $500 million in annual exports, according to a commerce ministry statement released on Wednesday.
The development comes as Pakistan pushes to position itself as a regional manufacturing and export hub amid shifting global supply chains and growing Chinese interest in lower-cost production bases abroad. Textile and apparel products remain Pakistan’s largest export category and a key source of foreign exchange for the cash-strapped South Asian economy.
Against this backdrop, Federal Commerce Minister Jam Kamal Khan met a Chinese business delegation from Challenge Fashion Group, led by Chairman Huwang Weiguo and Karen Chen, a senior executive associated with the group’s Pakistan operations.
According to the statement, the Chinese company is establishing a major manufacturing facility in Pakistan under international production standards, with the first phase expected to be completed later this year.
“The long-term expansion plan envisions one of the largest industrial operations of its kind, with the potential to create up to 20,000 employment opportunities and generate annual exports of approximately $400–500 million,” the ministry said, citing the Chinese delegation.
The statement said the two sides discussed investment opportunities in textiles, apparel and other sectors, as well as industrial facilitation, logistics, energy access and tariff rationalization.
“The government is actively working to improve the investment climate, simplify regulatory procedures, and facilitate foreign investors through coordinated institutional support,” the minister said, according to the statement.
He said changing global supply chains and economic conditions were creating new opportunities for countries such as Pakistan.
“Pakistan’s strategic location, industrial potential, and regional connectivity make it an increasingly attractive destination for export-oriented investment,” he said.
Pakistan has increasingly sought to attract Chinese industrial relocation under broader economic cooperation initiatives with Beijing, including projects linked to the China-Pakistan Economic Corridor (CPEC), a multi-billion-dollar infrastructure and connectivity program.
The Chinese delegation highlighted Pakistan’s “competitive workforce” and strategic geographic position linking regional and international trade routes, the statement said.
The investors also raised concerns related to specialized industrial construction materials and manufacturing inputs not currently produced locally, seeking facilitation for imports required to meet international production and safety standards.
Khan said Pakistan was undertaking a phased tariff rationalization process aimed at improving industrial competitiveness and reducing costs for manufacturers.
The meeting also reviewed land approvals, infrastructure development, utility access and reforms related to Pakistan’s Special Economic Zones, the ministry said.
May 15
Riaz Haq
Pakistan’s readymade garment exports climbed to a record $4.18 billion in FY2025-26, marking a 5.5 percent year-on-year increase and setting a new all-time high for the country’s value-added textile sector.
This is almost as much as Pakistan's IT exports of record $4.6 billion reported during the same period,
Read More: https://propakistani.pk/2026/08/02/pakistans-readymade-garment-expo...
Pakistan’s readymade garment exports climbed to a record $4.18 billion in FY2025-26, marking a 5.5 percent year-on-year increase and setting a new all-time high for the country’s value-added textile sector.
This is almost as much as Pakistan’s IT exports of record $4.6 billion reported during the same period,
The latest figures show that readymade garment exports have more than doubled over the past decade from $1.97 billion in FY2015-16 to $4.18 billion in FY2025-26.
According to Topline Securities, the sector recorded a compound annual growth rate (CAGR) of 7.8 percent during the 10-year period.
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Pakistan's ready-made garment exports reached a record $4.18 billion in FY2025–26, marking a 5.5% year-on-year increase and demonstrating strong global demand for value-added textile products. Over the past decade, these apparel shipments have more than doubled from $1.97 billion in FY2015–16.Key Export MarketsUnited States: Top destination for Pakistani apparel and value-added textiles.European Union: Major buyers include Germany, the UK, Spain, France, and Italy.Sector Performance & ProductsProduct Range: Includes T-shirts, tracksuits, denim, hosiery, knitwear, and customized casual wear.Growth Drivers: Higher production volumes, shifting global sourcing trends, and an increased focus on value-added finished clothing rather than raw cotton.Challenges: Rising local energy tariffs, heavy operational taxes, and global cost pressures affecting overall profit margins.
Aug 3
Riaz Haq
Artistic Milliners to invest over $18mn in Port Qasim 400-acre Garments City - Business & Finance - Business Recorder
https://www.brecorder.com/news/40435168
Pakistan will establish a 400-acre Garments City at Port Qasim in Karachi to expand textile exports and create jobs, Federal Minister for Maritime Affairs Junaid Anwar Chaudhry said on Monday.
Under the plan, a Pakistani textile and denim manufacturing company, Artistic Milliners, would establish a manufacturing unit with an investment of more than $18 million, incorporating vertical integration and green technologies, read a statement.
Chairing a meeting on a proposed garment city project, the minister said the export-oriented manufacturing cluster would focus on high-value apparel production and attract private investment.
According to the project plan, the first phase would cover 250 acres, with 35% allocated for internal roads, utilities and green areas. The project is envisaged as a public-private partnership.
The proposed commercial structure comprises 32 industrial plots of five acres each, although the plot size could be reduced to two or three acres to accommodate more investors and manufacturing units.
The Port Qasim Authority (PQA) would provide infrastructure and utilities. Each industrial unit would have access to up to 400,000 gallons of water per day, two megawatts of on-grid electricity, and 23,100 pounds of industrial gas per day at 8 pounds per square inch (PSI), enough to support the requirements for 10 tonnes of steam.
Pakistan to establish 150-acre auto processing zone at Port Qasim
For the overall project, planned utility capacity includes 13 million gallons of water a day, 64MW of on-grid electricity and 750,000 pounds of industrial gas a day.
Chaudhry said private-sector participation would be a key component of the project.
The project would also have a one-window mechanism for exporters, including streamlined export processing, specialised customs desks and dedicated transport corridors.
Projections presented at the meeting put first-phase employment at 138,125 jobs and annual exports at $2.2 billion. The project also aims to raise the average export value of garments to around $8 per piece.
The minister said the initiative was part of efforts to expand Pakistan’s industrial base and export capacity, with port infrastructure, utilities, customs facilities and private investment integrated into the proposed apparel zone.
Pakistan’s textile and garment sector is the country’s largest export earner but has faced challenges from high energy costs, outdated technology and competition from regional rivals. The government has been seeking to develop industrial zones and special economic areas to attract investment and move up the value chain.
Days ago, Chaudhry announced plans to establish an automotive processing zone on 150 acres at Port Qasim, Karachi, with the facility to be expanded in phases according to market demand.
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