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Textile industry in Pakistan

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Textile industry in Pakistan

The textile industry is Pakistan's largest manufacturing sector, employing nearly 25 million people. As the eighth largest exporter of textile commodities in Asia, the industry contributes 8.5% to the country's gross domestic product.

It accounts for about 45% of the total labor force and 38% of manufacturing workers. Pakistan is the fourth largest cotton producer and holds the third largest spinning capacity in Asia, following China and India, contributing 5% to global spinning capacity. The industry comprises 1,221 ginning units, 442 spinning units, 124 large spinning units, and 425 small units.

The Government of Pakistan oversees this sector through the Ministry of Textile Industry. However, due to the devastating floods in 2022 and the ongoing energy and foreign exchange crises, an estimated 700,000 individuals in the textile industry have lost their jobs in 2023.

The origin of the Indian textiles is thought to be the Indus Valley civilization, situated in modern Pakistan, where people used homespun cotton to weave garments. Historically, the Indus valley region engaged in significant trade with the rest of the world. The silk from the region, for example, is known to have been popular in Rome, Egypt, Britain, and Indonesia.

In the 1950s, textile manufacturing emerged as a central part of Pakistan's industrialization, shortly following independence from the British rule in the South Asia. In 1974, the Government of Pakistan established the Cotton Export Corporation (CEC). The CEC served as a barrier to private manufacturers from participating in international trade. However, in the late 1980s, the role of the CEC diminished and by 1988-89, private manufacturers were able to buy cotton from ginners and sell in both domestic and foreign markets. Between 1947 and 2000, the number of textile mills in Pakistan increased from three to six hundred. In the same time period, spindles increased from 177,000 to 805 million.

There are six primary sectors of the textile production in Pakistan:

Cotton is the largest segment of textile production. Other fibers produced include synthetic fiber, filament yarn, art silk, wool, and jute.

The Textile Institute, the United Kingdom's local section for Lahore has played an extensive role in contributing to development of skill improvement and technology sharing through its various training and latest knowledge sharing platforms.

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