ISLAMABAD, Oct. 30 (INP): Pakistan’s textile exports surged to a 26-month high of USD 1.64 billion in August, up 13% from the same period last year.
China’s decision to establish a textile industrial park under the CPEC will further help enhancing the export, according to a report published by Gwadar Pro on Wednesday.
The textile growth was attributed to supportive government policies and the efforts of the Special Investment Promotion Committee (SIFC).
Data from the Pakistan Bureau of Statistics showed that textile exports were valued at USD 1.46 billion in August last year.
Significant growth was seen across sectors, with knitwear and bedding exports up 15% and ready-made garment exports up 28%.
Shagufta Irshad, a research analyst at JS Global, highlighted that these factors have enhanced Pakistan’s appeal as a favorable market for textile products.
In line with the booming local textile industry, China’s decision to establish a textile industrial park in Pakistan under the CPEC framework marks an important milestone in the country’s journey to becoming a global textile hub.
“Pakistan will benefit greatly from this initiative, with enhanced production capacity, better quality control and focus on value-added products,” said Dr. Liaquat Ali Shah, Executive Director of the CPEC Center of Excellence, in an interview.
“The textile industry, a cornerstone of Pakistan’s economy, has been long struggling with a number of issues, including outdated technology, high production costs and lack of access to international markets,” he said.
“China’s advantage lies in its advanced textile manufacturing technology. Cooperation with Pakistan can give local manufacturers access to the latest machinery and materials, which can greatly reduce production costs.
In addition, strengthening trade agreements that favor sustainable textiles can give Pakistani products a greater competitive advantage in the international market.”
Pakistan’s cotton yarn exports to China reached $166.37 million, an increase of 65.85%, in the first quarter of 2024, according to statistics of the General Administration of Customs, China (GACC).
“China’s increasing demand for Pakistan’s cotton textiles came because the Chinese industry balanced itself with both exports and local downstream orders.
A few years ago, Pakistan’s textile products were in demand only for exports but now it has taken a good market share in China’s domestic market too,” noted Keywin Trading Ltd General Manager of China Operations Sajjad Mazahir.
On the other hand, Mazahir emphasized that for diversification, Pakistan had to provide finished products to the local Chinese market and a lot of effort was required to leverage advantages of the Pakistan-China free trade agreement (FTA).
INP/javed
