Pakistan is the 4th largest cotton producer and 3rd largest cotton user in the world. The textile sector is the largest manufacturing industry in Pakistan and contributes one fourth of the total value added produce of the manufacturing sector. The industry derives its competitiveness from availability of cheap raw material i.e. cotton, a pool of skilled manpower and widespread ancillary support from dyeing, chemical and other industries.
• The world cotton market is subject to price and supply fluctuations, to cater to which, there is a need to develop wide-spread cotton warehousing especially in Punjab.
• The textile industry is energy intensive and thus negatively affected by shortages in energy and power. This presents an opportunity for widening the scope of available alternative energy sources that specifically cater to the needs of the industry.
• The textile sector lays a large portion of its current focus on increasing exports. However, the local market presents a huge number of opportunities in terms of greater integration and extension of forward linkages such as expanding the retail textile sector.
In terms of exports, the textile industry is heavily reliant on the markets in the USA and EU.Thus, there lies a potential for the textile industry to diversify and export to other markets such China, Malaysia and Sri Lanka where Free Trade Agreements and MFNs have been awarded.