An Outlook on Textile companies in Pakistan

The textile industry dominates Pakistan's manufacturing sector, accounting for the country's
largest proportion. In terms of the total value of its textile exports, Pakistan ranks eighth in Asia.
Pakistan's textile sector generates 8.5% of the country's gross domestic product. In addition, the
industry employs around 45 percent of the country's total labor force (and 38 percent of the
manufacturing workforce). Pakistan is the fourth largest cotton grower in the world. It also has
the third largest spinning capacity in Asia, after China and India, and contributes 5% to the
global spinning industry's total capacity. There are now 1,221 ginning units, 442 spinning units,
124 large spinning units, and 425 small spinning units engaged in textile manufacturing. As a
result of unpredictable political conditions, the industry has been forced to struggle with
persistent power shortages and instability. In addition, the quality of Pakistani cotton, the key
raw material for the business, has dropped as a direct result of bad practices.

Additionally, there has been a decline in sector investment. On the other side, the nation has an
abundance of low-cost labor, and its textile and apparel sector has duty-free access to the import
market of the European Union as a result of the Generalized Scheme of Preferences (GSP)
GSP+. These are both excellent characteristics of the nation.

In addition, the administration places special attention on the process of attracting foreign
investment and modernizing existing manufacturing facilities. In addition, the Ministry of
Textile Industry has defined a number of important objectives in a policy document titled Textile
Policy 2020-25 for the five years running up to the conclusion of the fiscal year 2024/25. These
objectives include growing exports and enhancing international competitiveness.

List of top textile companies in Pakistan:

Despite the country's difficult economic state, Pakistan's textile sector is making a return.
Pakistan's textile sector is rapidly developing, especially to record exports during the Covid-19
outbreak. The incredible expansion and advancement of the textile industry is the one thing that
has enabled any of this to be possible. The United States and Europe account for sixty percent of
Pakistan's overall textile exports. This category includes anything from cotton t-shirts to blue
denim jeans. The 10 most successful textile enterprises in Pakistan are as follows:

Fateh Textile Mills

Chenab Limited
Gul Ahmed Textile Mills Limited
Husein Industries Limited
Kohinoor Mills Limited
Nishat Mills Limited
Fazal Cloth Mills Limited
National Silk and Rayon Mills Limited
Safa Textile Limited
The Crescent Textile Mills Limited

Importance of textile industry in economic sector:

Cotton and textile production are extremely important to Pakistan's economy, which is mostly
dependent on them. Cotton is Pakistan's major industrial crop, providing essential income to
rural communities, and the cotton-processing industry and the textile industry together make up
about half of the country's manufacturing base. Cotton is also the country's most important
export crop. Eleven percent of the total GDP and sixty percent of total export revenues are
contributed by the cotton and textile industries together.

Top buyers of Pakistani Textile Goods:

Textile mills in Pakistan create some of the finest textiles in the world. In the first half of 2021,
Pakistan's top five fabric importers were Bangladesh, the United States, Turkey, Italy, and Sri
Lanka, together accounting for around 46.64 percent of Pakistan's total fabric exports. Other
countries that have purchased from us include the United Kingdom, Hong Kong, Japan, Korea,
Saudi Arabia, Germany, Norway, France, Canada, Sweden, Australia, and so on.

Importance of Textile sector:

The importance of Pakistan's textile and garment industry to the country's economy cannot be
overstated. Pakistan's textile and apparel exports account for about 61% of the country's overall
exports, and this sector also accounts for 40% of Pakistan's industrial employment.

Pakistan is the eighth largest exporter of textile items in Asia. Pakistan's primary source of
export revenue is cotton. Next to food, the need for textile items is one of the most fundamental
needs of humans. As a result of Pakistan's dominance in the global raw cotton market, the
corporation supports the livelihoods of more than 10 million families in rural areas. There is a
ready supply of both low-cost labor and raw cotton. With a share of 26% of the global market for
cotton yarn, Pakistan is the second largest provider of this material worldwide. Nonetheless, the
sector has been challenged by recurrent power outages and political instability. Furthermore,
because of these practices, the quality of Pakistani cotton, a vital raw material, has declined.

Investments in the industry have also decreased. Aside from the obvious benefit of easy access to
a large pool of cheap labor, the country also stands to gain from the GSP+ arrangement, which
grants duty-free access to the EU import market for the textile and apparel industries.

Moreover, the government places a high priority on both luring in foreign investment and
updating existing production facilities. In addition, the Ministry of Textile Industry has released
a paper titled Textile Policy 2020-25, in which it lays out a number of vital objectives for the five
years running up to the end of the 2024/25 fiscal year. In this regard, increasing exports and
strengthening global competitiveness are among the primary objectives.

Export performance of textile sector:

Cotton and the textile sector are the two most important contributors to Pakistan's economy,
which is why their production is so important. Cotton is Pakistan's most important industrial
crop, providing vital money to rural communities. The cotton-processing sector and the textile
industry account for more than half of the nation's manufacturing base. Cotton is Pakistan's most
important industrial crop. Cotton is not only the most valuable crop but also the most important
export crop. 11% of the total GDP and sixty percent of the earnings from exports are generated
by the cotton and textile industries, respectively.

Conclusion:
The textile sector is the primary contributor to Pakistan's gross domestic product (GDP). The
Pakistani textile sector is responsible for a sizeable portion of the country's Gross Domestic
Product (GDP), employment, and revenue from exports. One of the most challenging times in
recent history is now being experienced by Pakistan's textile sector. The textile industry in our
country needs to improve its supply chain management, adopt international best practices, and
adapt to rapidly developing technologies in order to become integrated into global value chains.
Only then textile companies in Pakistan will be able to take advantage of the new opportunities
that are becoming available.

FAQ’s

1. How many textile companies are there in Pakistan?

As on June 2021, Pakistan textile industry comprises of 517 textile units (40 composite
units and 477 spinning units).
2. Which city is called City of textile in Pakistan?
Faisalabad. The reason Faisalabad is known as the Manchester of Pakistan is because it is
the largest textile city in Pakistan and all of its industries are related to textiles, just like
Manchester in the United Kingdom. Next to Lahore, Faisalabad is renowned for its
cuisine.
3. Which country is No 1 in textile?
China is the largest textile producing and exporting country in the world.
4. How big is Pakistan textile industry?
Recent statistics indicate that Pakistan's textile industry produces more than 60 percent of
the country's overall exports, or approximately 5,2 billion US dollars. The industry
produces approximately 46% of the nation's total output. Pakistan is the eighth largest
exporter of textile items in Asia.
5. Which is the biggest textile market of Pakistan?
In 1964, Liberty Mills Limited was founded in the industrial core of Karachi, Pakistan. It
is now one of the largest textile processing and production units in Karachi, Pakistan,
with a daily production capacity of approximately 500,000 square meters of cloth, despite
its humble beginnings.
6. What is the role of textile industry in Pakistan?
Pakistan's textile and clothing sector is extremely important to the country's economy.
Textile and clothing exports account for more than 61% of Pakistan's overall exports,
while the industry directly employs approximately 40% of Pakistan's industrial
workforce.
7. Which country is famous for textile industry in Pakistan?
According to Pakistani customs data, China is Pakistan's top supplier of textiles and
apparel imports, accounting for 62 percent of Pakistan's total textiles and apparel imports.
8. What is textile export of Pakistan?
During the fiscal year 2021/2022, textile exports accounted for approximately 61% of
overall exports, which totaled $31.8 billion. Due to Pakistan's reliance on foreign cash,
the textile industry plays a key part in the country's economy and continues to be in the
spotlight.

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