Pakistan

Once our own, East Pakistan now called Bangladesh has seen a remarkable growth in their
economy. More specifically exports and narrowing down in exports, textile. Pakistan’s
cousin didn’t have the infrastructure and no adequate bureaucracy the way West Pak had.
Every industry and technological bit was in West Pakistan. Fast forward a few decades, in
2014 Bangladesh earned $21 billion in revenue by exporting garments/value added textile
goods while Pakistan earned $2.6 billion. This is even more surprising when we look at the
figures of 2002; both countries had garment exports of $2.5 billion. In those 12 years,
Pakistan increased its garment exports by $.1 billion while Bangladesh had a stark increase
of $18 billion. The question is how and why this happened?
Was it technology; was it labor force; was it cotton production?
Frankly, Pakistan is ahead on everything mentioned above. Bangladesh imports 70% of the
raw cotton that is used to make value added goods. Pakistan has a much higher labor force
than Bangladesh and far better technology.
According to the Tribune, main reason for our poor state is the security situation
prevailing in Pakistan. Or, maybe the vision of these two countries is different. Bangladesh
is more focused on Human development and economy while we are more focused on our
military, recently becoming 10th largest importers of arms. Well, we can argue about our
geographical location and danger from our neighbours.

Bangladesh
Bangladesh is a major competitor to Pakistan in the textile sector. Us, Germany, UK, Spain and
France are the top exporting partners of Bangladesh textile and clothing.
Total exports of Bangladesh in 2018-2019 were 38.4 billion which make it the third largest
exporters of textile. The major reasons for development in this sector is plenty of resources ,
beneficial government policies and low labor cost. The government has made policies to
encourage use of local fabrics and yarn production by adding tax on imported yarn.
Furthermore, the in new policies by the government there is no tariffs on this sector. In additions
to these the quota free textile rule introduces in 2005 has helped to improve this sector
substantially. Bangladesh currently enjoys duty-free, quota-free access for all products except
arms and ammunition in the EU market as a least developed country under the EBA (Everything
But Arms) facility.(copied)
Further more “Bangladesh as a Least Developed Country (LDC) is enjoying duty free market
access or reduced tariff rate facilities to export to various developed and developing countries in
the world.” It is also a member of of different global trade blocks.
China
Pakistan and china have been trading partners for a very long time and recently the trading bond
has grown more stronger as a result of the CPEC. Specifically, the textile industry is one of the
major profits earning sectors for both the countries. China being the largest textile exporting
country exports its major textile products to Pakistan. The bilateral trade between the countries is
growing in the sector of textile just because of the reason that Pakistan is well known for making
denim but the product used to make denim, viscous staple fiber, is made chin. So, Pakistan
imports it from china and if we look at the states almost 1000 tones of viscous fiber is imported
to Pakistan per months.
Also, Chinese products are welcome in Pakistan because they are characterized by high cost
effectiveness, elasticity and resilience, which are prerequisites for the manufacturing of denim.

Turkey
Textiles account for most of Pakistan's export earnings, and Pakistan's failure to expand a viable
export base for other manufactures has left the country vulnerable to shifts in world demand.
From the Dawn article one can see the performance of Pakistan’s textile industry.
Our exports are declining the main reason to this is that our trade partners has decided to trade
with our competitors.
On one hand our exports are declining while turkey succeed too rise its exports the main reasons
behind that were:

In terms of logistics, Turkey has a strategic location as it is the gateway to European markets.
The county is a rich source of the raw materials that are used for the production. Turkey ranks
number 7 in global cotton production.
With its liberal trade policies equipped with the highly skilled labor force, the country is able to
have a well-developed industry that can produce quality products.
The country has entered customs union agreement with EU and free trade agreements with other
countries.
Turkey is also noted for giving importance and priority to the working conditions of their labor
force.
Turkey continues to invest in utilizing advanced technologies to grow their industry.

Germany
Germany is the 2nd largest exporter and 3rd largest importer. Germany is the world largest
technical textile exporter with an estimated EUR 7.1 bn of exports in 2015. In the last few
decades, the German textile and clothing industry has undergone continuous structural changes.
Firms are also concentrating more on technically demanding textiles, innovative products, and
strong brands.
German companies are global leaders in the technical textile segment, their market share is
around 45%. The demand of production of technical textiles in Germany has grown by 40 pc
since the mid-1990s. Problems in sourcing textile raw materials and their increasing prices are
currently a challenge to the sector.
Pakistan exports to Germany was US$1.34 Billion during 2019, according to the United Nations
COMTRADE database on international trade. Germany provides Pakistan technical assistance
worth 1.95 billion rupees for promoting resilience against impacts of natural disasters and
improvement of labor, social and environmental standards in textile industry.