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.     

Pakistan Textile Exports Growth. Source: Javed Memon

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

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.

International Comparison of Textile Machinery Imports. Source: Busi...
History of Pakistan Textile Machinery Imports 2004-2021 in Millions...

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. 

Related Links:

Haq's Musings

South Asia Investor Review

Pakistan's Debt Crisis

Declining Investment Hurting Pakistan's Economic Growth

Brief History of Pakistan Economy 

Can Pakistan Avoid Recurring IMF Bailouts?

Pakistan's Lost Decade 2010-20

CPEC Financing: Is China Ripping Off Pakistan?

Information Tech Jobs Moving From India to Pakistan

Pakistan is 5th Largest Motorcycle Market

"Failed State" Pakistan Saw 22% Growth in Per Capita Income in Last...

CPEC Transforming Pakistan

Pakistan's $20 Billion Tourism Industry Boom

Home Appliance Ownership in Pakistani Households

Riaz Haq's YouTube Channel

PakAlumni Social Network

Views: 1103

Comment by Riaz Haq on July 14, 2023 at 1:30pm

Cotton Production Expected To Cross 10 Million Bales

https://propakistani.pk/2023/07/12/cotton-production-expected-to-cr...


Cotton exports season is on a promising start with the ginning industry confirming early orders for 600 tons.

Chairman of the Cotton Ginners Forum Ihsanul Haq revealed that a major cotton ginner from Sindh has been able to confirm early orders for cotton exports of up to 600 tons to Indonesia and Vietnam with shipments scheduled in early August.

He explained that if the weather remains favorable, Pakistan’s cotton production is expected to cross 10 million bales in the upcoming year which is a sign of relief for the textile sector and reflects the potential of the cotton industry.


Though, Ihsanul Haq added that the delayed procurement by ginners is also increasing cotton prices with Rs. 17,500 per 40kg in Sindh and Rs. 17,000 per 40kg in Punjab while the dollar exchange rate fluctuation may further impact the prices in the coming days.

It is worth noting that cotton quality and quantity have improved significantly over the last year due to an ideal environment of low rainfall and warm temperatures in coastal Sindh. Because of this, the industry has confirmed early orders and is expecting record-breaking exports

Comment by Riaz Haq on July 31, 2023 at 8:06am

The rise in global cotton production is led by the US, Pakistan, and India, with a drop in China's output due to cooler weather conditions.

https://www.fibre2fashion.com/news/textile-news/global-cotton-produ...

Global cotton production in FY24 is forecast to reach a four-year high of 116.7 million bales, up slightly from the previous year, as per USDA.
The rise is led by the US, Pakistan, and India, with a drop in China's output due to cooler weather conditions.
Australia's FY24 cotton production is projected at 5.8 million bales, 300,000 bales above FY23.


World cotton production is projected to reach a four-year high of 116.7 million bales in 2023-24 (FY24), according to the US Department of Agriculture (USDA). The expected growth in production represents a slight increase of 400,000 bales from the previous year.
The increase is predominantly driven by the major cotton-producing countries, with the US and Pakistan leading the charge. Both countries are projected to see a significant rise in production, each adding 2 million bales to the global yield. India is also expected to contribute to the surge, albeit on a lesser scale, with an additional half a million bales.

However, these gains will be partially offset by a reduction in output from China, the world's leading cotton producer. The Chinese crop is anticipated to shrink by 3.7 million bales in the 2023-24 season due to cooler than normal temperatures early in the growing season in China's Xinjiang region, which could limit yield potential. This decrease means China's contribution to global cotton production is expected to shrink from 26 per cent in 2022-23 to 23 per cent in 2023-24, as per USDA’s Cotton and Wool Outlook: June 2023 report.

Meanwhile, India is set to buck this trend with a projected 2-per cent increase in cotton production from the 2022-23 crop. This rise comes despite an expected reduction in harvested area, with alternative crops predicted to reduce cotton acreage to 12.4 million hectares. A rebound in yield is set to offset this, with the national yield forecast at 448 kg per hectare, the highest in three years. India's share in global cotton production is set to remain steady at approximately 22 per cent.

Outside of the US, other countries including Brazil, Pakistan, and Australia are also projected to see an increase in cotton production. Brazil's output is expected to hit 13.25 million bales, slightly above the 2022-23 figure and second only to 2019-20's record of nearly 13.8 million bales.

Pakistan's cotton production is set to rebound from the nearly four-decade low of 3.9 million bales recorded in 2022-23 due to flood damage. The forecast production of 5.9 million bales for 2023-24 will account for 5 per cent of global production.

Lastly, Australia's 2023-24 cotton production is projected at 5.8 million bales, 300,000 bales above 2022-23 and close to 2021-22’s record of 5.85 million bales, supported by above-average reservoir levels.

Comment by Riaz Haq on November 20, 2024 at 12:58pm

Pakistan's textile exports climb 10% to $6.146 billion in first 4 months of FY24-25

https://arynews.tv/pakistans-textile-export-climbs-to-6-146-billion/


ISLAMABAD: Textile exports witnessed an increase of 10.44 percent during the first four months of the current financial year (2024-25) as compared to the corresponding period of last year, Pakistan Bureau of Statistics (PBS) reported.

The textile exports from the country were recorded at US $ 6,146.105 million during July-October (2024-25) against the exports of US $ 5,565.058 million during July-October (2023-24).

The textile commodities that contributed in trade growth included cotton cloth the export of which increased by 5.25 percent to $ 679.427 million from $ 645.535 million while the export of knitwear surged by 18.69 percent to $ 1,759.991 million from $ 1,482.862 million.

The other commodities that witnessed growth in trade included bed wear, the export of which rose by 13.17 percent to $ 1,069.690 million from $ 945.181 million, towels by 5.47 percent to $ 356.461 million from $ 337.987 million, tents, canvas, and tarpaulin up by 7.02 percent to $ 40.412 million this year compared to the exports of $ 37.763 million last year.

Similarly, the export of readymade garments grew by 25.40 percent to $ 1,358.890 million from $ 1,083.679 million, art, silk and synthetic textile rose by 12.26 percent to $ 131.614 million from $ 117,241 million, made up articles (excl. towels and bed wear) increased by 12.46 percent to $ 263.777 million from $ 234.555 million while the export of other textile materials surged by 7.48 percent to $ 252.630 million from $ 235.054 million.

The textile commodities that witnessed negative trade growth included cotton yarn, the exports of which declined by 45.49 percent, from $ 407.564 – million to $ 221.759 million whereas the export of raw cotton dipped by 100 percent from 23.346 million to zero export during the months under review.

Meanwhile, year-on-year basis, the textile exports witnessed an increase of 13.11 percent during October 2024 as compared to the same month of last year. The textile exports from the country during October 2024 were recorded at US $ 1,625.782 million against the exports of US $ 1,437.287 million in October 2023.

On a month-on-month basis, the textile exports from the country however witnessed a nominal decrease of 1.30 percent during October 2024 as compared to the exports of $ 1,604.856 million recorded in September 2024, according to the data.

Comment by Riaz Haq on January 25, 2025 at 9:03am

Pakistani exporters secure $3 Billion orders at Heimtextil

https://profit.pakistantoday.com.pk/2025/01/24/pakistani-exporters-...

Faisalabad textile sector’s operations tied to key international orders; SMEs urged for incentives to drive export growth

Pakistani exporters clinched $3 billion in export orders at Heimtextil, the world’s largest textile trade fair held in Frankfurt, Germany, according to Imran Mehmood, Central Chairman of the All Pakistan Bed-sheets & Upholstery Manufacturers Association (APBUMA).

Mehmood hailed the achievement as a vital boost to Pakistan’s textile sector, emphasizing that Faisalabad’s year-long textile operations depend heavily on orders secured during this event. He also highlighted the government’s ambitious plan to increase exports from $30 billion to $100 billion over the next five years, while urging for immediate measures to support the sector.

Stressing the critical role of Small and Medium Enterprises (SMEs) as the “growth engine” of the economy, he called for low-interest loans to counter rising input costs, including electricity, gas, and yarn. Additionally, he suggested assigning the State Bank of Pakistan and APBUMA to oversee loan disbursements, ensuring effective utilization to maximize output and employment in the textile sector.

Comment by Riaz Haq 6 hours ago

Arif Habib Limited
@ArifHabibLtd
- Despite prolonged rainfall and flooding across key cotton-growing regions, cotton arrivals at factories and imports in Pakistan surged by 55% YoY in 1QFY26.

- This is reflected in strong volumetric growth and higher export earnings in the textile sector. Textile exports increased by 4.0% in quantity terms and 7.3% in USD value terms during 1QFY26.

------

https://www.brecorder.com/news/40388249/weekly-cotton-review-produc...



KARACHI: A significant increase of 22.37 percent has been recorded in cotton production across the country. When examined at the provincial level, Sindh province has witnessed a 39.76 percent increase in cotton production, while Punjab province has experienced a growth of 28.20 percent.

However, experts have indicated that the initial increase observed in cotton production has now begun to slow down. Sajid Mahmood expressed concern over this situation, stating that the declining trend in cotton production is worrying.

Kamran Arshad, Chairman of the All Pakistan Textile Mills Association (APTMA), has drawn attention to the severe challenges facing the textile industry. He emphasised that if the textile industry is to be saved, a significant reduction in interest rates must be implemented.



Kamran Arshad further stated that the current electricity prices are unbearable and are causing severe damage to the textile sector. He urged the government to take immediate measures to rescue the industry.

Dark clouds of crisis are hovering over the textile industry. The Pakistan Textile Council (PTC) has issued a warning regarding the decline in exports. According to sources, the downward trend in textile exports continues, which is concerning for the national economy.

The Federal Board of Revenue (FBR) has issued an important notification. According to the notification, video camera monitoring of production will be implemented in textile spinning mills starting from November first.

This measure is being taken to ensure transparency and obtain accurate production information. All textile spinning mills are required to implement this system before November first.

According to a report issued by the Pakistan Cotton Ginners Association (PCGA), cotton arrivals across the country have witnessed a notable increase up to October 15, 2025. Overall cotton arrivals have been better compared to the same period last year, indicating that this year’s crop is yielding relatively improved production.

The report reveals that a total of 3,795,675 bales of cotton have reached factories across Pakistan. This figure represents an increase of 693,894 bales compared to 3,101,781 bales during the same period last year, showing a rise of 22.37 percent.

This increase is being attributed to improved cotton production, favourable weather conditions, and better agricultural management practices.

Punjab has recorded a remarkable improvement in cotton production. By October 15, 2025, total cotton arrivals in the province reached 1,520,095 bales, which is 334,489 bales more than last year’s 1,185,607 bales. This represents a 28.20 percent increase in cotton arrivals in Punjab.

Sindh has also shown significant improvement in cotton production. Total cotton arrivals in the province stood at 2,275,546 bales, representing an increase of 646,898 bales compared to last year’s 1,628,648 bales. This marks a 39.76 percent increase in cotton arrivals in Sindh.

During the last week, the local cotton market witnessed overall stability in cotton prices. Textile mills continued their cautious purchasing approach. Meanwhile, ginners are also showing interest in selling cotton, but due to relatively low supply of lint, ginners are showing less interest in selling cotton at lower prices. Nevertheless, trading in Sindh province remained at 14,900 to 15,500 rupees per maund. In Balochistan, cotton prices according to quality are running at 15,100 to 15,300 rupees. However, the trading volume is relatively low, which is attributed to decreased demand and prices for cotton yarn.

Comment

You need to be a member of PakAlumni Worldwide: The Global Social Network to add comments!

Join PakAlumni Worldwide: The Global Social Network

Pre-Paid Legal


Twitter Feed

    follow me on Twitter

    Sponsored Links

    South Asia Investor Review
    Investor Information Blog

    Haq's Musings
    Riaz Haq's Current Affairs Blog

    Please Bookmark This Page!




    Blog Posts

    Improved US-Pakistan Ties: F-1 Visas For Pakistani Students Soaring

    The F-1 visas for Pakistani students are soaring amid a global decline, according to the US government data. The US visas granted to Pakistani students climbed 44.3% in the first half of Fiscal Year 2025 (October 2024 to March 2025) with warming relations between the governments of the two countries. The number of visas granted to Indian students declined 44.5%, compared to  20% fewer US visas given to students globally in this period.  The number of US visas granted to Pakistani…

    Continue

    Posted by Riaz Haq on October 19, 2025 at 10:00am

    Major Hindu American Group Distances Itself From Modi's India

    "We are not proxies for India in the US", wrote Suhag Shukla, co-founder and executive director of the Hindu American Foundation (HAF) in a recent article for The Print, an Indian media outlet.  This was written in response to Indian diplomat-politician Shashi Tharoor's criticism that the Indian-American diaspora was largely silent on the Trump administration policies hurting India. …

    Continue

    Posted by Riaz Haq on October 11, 2025 at 2:00pm

    © 2025   Created by Riaz Haq.   Powered by

    Badges  |  Report an Issue  |  Terms of Service