Key Insights
Essential data points from our research
Pakistan’s textile industry accounts for approximately 60% of the country’s total exports
The textile sector employs about 40% of Pakistan’s total labor force
Textile exports reached $19.32 billion in FY22
Cotton production was 8.33 million bales in FY22
The textile sector contributes 8.5% to Pakistan’s GDP
Pakistan is the 8th largest exporter of textile products in Asia
Pakistan is the 4th largest cotton producer globally
70% of textile exports are made to the EU and USA
Ready-made garments accounted for $3.9 billion in exports in FY22
Knitwear contributed $4.4 billion to textile exports in FY22
Bedwear exports reached $3.3 billion in FY22
Towel exports were valued at $1.1 billion in FY22
Yarn exports amounted to $1.2 billion in FY22
Economic Contribution and Investment
- The textile sector contributes 8.5% to Pakistan’s GDP
- Around 455 textile industries operate under large-scale manufacturing
- Pakistan’s textile industry uses 38% of the country’s industrial electricity
- Textile machinery imports stood at $503 million in FY21
- The textile value chain contributes more than 46% to the manufacturing sector
- Textile investment under the TERF scheme crossed Rs. 400 billion
- Textile sector received over Rs. 50 billion in energy subsidies in FY21
- BMR (Balancing, Modernization and Replacement) investment reached $3.5 billion in a decade
- Over $4 billion FDI was attracted by the textile sector over 10 years
- The synthetic textile sector growth was 6% YoY in FY22
- Pakistan has over 30 textile mills listed on PSX
- Over 1,000 new textile units registered between FY18–FY22
- Textile sector received Rs. 26 billion in concessional loans under TERF
Interpretation
Pakistan’s textile industry is the power-loom behind the nation's economy—spinning 8.5% of the GDP, consuming 38% of industrial electricity, and threading together billions in investment, subsidies, and foreign capital to keep both looms and livelihoods humming.
Employment and Workforce
- The textile sector employs about 40% of Pakistan’s total labor force
- Readymade garment units employ over 600,000 workers
- Approximately 1.5 million farmers are involved in cotton farming
- Women constitute nearly 30% of textile industry labor force
- Textile employment declined by 2.5% in FY20 due to COVID-19
- Average monthly wage in the textile sector is PKR 18,000
- Yarn spinning industry accounts for 23% of textile employment
- There are over 150 textile training institutes in Pakistan
- Direct employment in large-scale textile firms is 2.15 million
Interpretation
Pakistan’s textile industry may be the nation's economic fabric employing millions—from cotton farmers to garment workers—but with wages unraveling at PKR 18,000 a month and COVID-19 pulling threads loose, it’s a sector in need of both reform and reinforcement.
Environmental Impact and Sustainability
- Waste from the textile sector accounts for 10% of industrial waste
- Textile industry uses 70 billion liters of water annually
- Carbon emissions from the textile industry are estimated at 9 million tons annually
Interpretation
While stitching profits, Pakistan’s textile industry is silently unraveling environmental threads—spinning out 10% of industrial waste, draining 70 billion liters of water, and weaving 9 million tons of carbon into the atmosphere each year.
Exports and Trade Performance
- Pakistan’s textile industry accounts for approximately 60% of the country’s total exports
- Textile exports reached $19.32 billion in FY22
- Pakistan is the 8th largest exporter of textile products in Asia
- 70% of textile exports are made to the EU and USA
- Ready-made garments accounted for $3.9 billion in exports in FY22
- Knitwear contributed $4.4 billion to textile exports in FY22
- Bedwear exports reached $3.3 billion in FY22
- Towel exports were valued at $1.1 billion in FY22
- Yarn exports amounted to $1.2 billion in FY22
- Pakistan exports textiles to over 100 countries
- Pakistan exported more than 470 million knitwear pieces in FY22
- Home textiles account for approximately 20% of the total textile exports
- Textile industry saw 37% export growth in FY21 over FY20
- Pakistan’s textiles contribute over 8% to global cotton yarn exports
- 20% of textile production is used domestically, 80% is exported
- 90% of Pakistan's textile exports are cotton-based
- Value-added textile products constitute over 40% of total textile exports
- Textile exports to EU grew by 33% in FY22
- Apparel sector benefited the most from GSP+ status
- Pakistan imports over $1 billion worth of synthetic fibers annually
- More than 70% of Pakistan’s textile units are export oriented
- Pakistan exported more than 230 million pieces of bed linen in FY22
- In 2021, textile imports stood at $3 billion, including fibers and machinery
- The export of tents and canvas was $93 million in FY22
- Export of towels rose by 8.6% in FY22
- The average export price of knitwear is $8.32 per piece
- Textile exports saw 5% growth in FY23 compared to FY22
- Textile machinery imports fell by 5% in early FY23
- Exports of garments grew at CAGR of 7% from FY17 to FY22
- Pakistan had a global textile market share of 2% in 2022
- Technical textiles show annual export potential of $2 billion
- Between FY20 and FY22, textile exports increased by 55%
- More than 15% of Pakistan's total export earnings come from bed linen
Interpretation
Threaded through Pakistan’s economy like a backbone in cotton, the booming $19.32 billion textile industry—powered by knitwear, bed linens, and EU-bound garments—proves that while 80% of its stitches head overseas, the industry's real fabric is its unmatched export resilience.
Production and Raw Materials
- Cotton production was 8.33 million bales in FY22
- Pakistan is the 4th largest cotton producer globally
- Over 13 million spindles are installed across the spinning industry
- The processing sector has a finishing capacity of 5.2 billion square meters
- The garment sector has over 50,000 stitching machines installed
- Synthetic textile production increased by 5.8% in FY21
- The average cotton yield is 580 kg per hectare in Pakistan
- Over 60% of textile mills are located in the province of Punjab
- Around 400 textile processing units are operational in Pakistan
- Powerloom sector comprises over 300,000 looms
- Cotton sowing covered around 6.9 million acres in FY22
- Spinning industry has over 1,200 units nationwide
- Pakistan ranks 3rd in world denim production
- Local cotton production meets only 60% of industry's demand
- Textile sector consumes 40% of Pakistani gas supply for captive power
- 1 kg of Pakistani cotton sells at approx. PKR 500
- Production of blended fabrics increased by 9.1% in FY22
- Hosiery units produce over 100 million dozen per year
- Textile sector power cost is $0.09/kWh under concessional tariff
- Over 90% of cotton ginning is done in Punjab and Sindh
- COVID-19 caused a 10% drop in textile output in 2020
Interpretation
Despite being the world’s fourth-largest cotton producer with a vast textile infrastructure—from 13 million spindles to 300,000 looms—Pakistan’s textile industry still battles low yields, energy dependency, and raw material shortfalls, weaving a complex fabric of both promise and pressure.