Pakistan textile industry faces cotton shortages and rising costs

Pakistan’s textile and apparel sectors are facing significant operational challenges due to raw material shortages and rising costs. Domestic cotton production is projected to reach approximately 6.71 million bales this year, a 30.4 percent decrease from the government’s target of 9.64 million bales.

To support the country’s $18 billion textile industry, officials indicate that Pakistan may need to import between 4 and 5 million cotton bales to bridge the gap. The All Pakistan Textile Mills Association estimates the annual national requirement at 14 to 15 million bales.

Simultaneously, the hosiery and knitwear export industry is struggling with surging production expenses, high freight rates, heavy taxation, and liquidity constraints. The Pakistan Hosiery Manufacturers and Exporters Association (PHMA) has called for urgent government intervention, including a 6 to 8 percent duty drawback, to help maintain international competitiveness against regional producers.