Textile is the most important manufacturing sector of Pakistan and has the longest production chain. The textile sector contributes about one-fourth of industrial value-added and provides employment to about 40% of industrial labor force. The share of textiles products in national exports is almost 62%.
The Success of Textile Industry
The success of an industry critically depends on the availability of basic raw material, a key factor in reducing cost of doing business. Fortunately, Pakistan is 4th largest producer of cotton in the world with a huge potential to further increase crop yield.
The textile value chain consists of multiple sub-sectors starting from cotton picking to a finished garment. The end product of one sub-sector is the raw material for the other. And thus, creates larger number of jobs with relatively lower investments.
Pakistan’s largest export item
With all of the above factors, cotton and its manufactured has been the largest export item for several years.