By Farooq Awan
Pakistan textile exports are gaining momentum as the country seeks to reach new global markets. Officials say that using trade agreements and focused economic diplomacy could help the country attract more buyers and expand its presence internationally.
Expanding Global Reach Through Trade Agreements
The government plans to focus on preferential trade frameworks and international partnerships as part of its draft Textile and Apparel Policy 2025–30.
These frameworks include the European Union’s GSP+, the United Kingdom’s Developing Countries Trading Scheme (DCTS), and agreements with China and the Gulf Cooperation Council (GCC).
Reducing Dependence on Traditional Markets
Currently, Pakistan relies heavily on a few traditional markets for textile exports. This concentration makes the industry vulnerable to global changes and economic swings.
The draft policy stresses that spreading exports to new destinations is essential for steady growth and to protect the country’s foreign exchange earnings.
Leveraging EU and UK Trade Opportunities
The European Union’s GSP+ program has been crucial in keeping Pakistan competitive, offering duty-free access to many textile and apparel products.
Maintaining this status requires strict adherence to international labor, governance, and environmental standards. The policy urges better coordination between relevant ministries to meet GSP+ obligations and secure continued access.
Opportunities also exist under the United Kingdom’s DCTS, which provides duty-free access for several textile categories. The policy recommends that exporters improve product quality, obtain proper certifications, and follow sustainable production practices.
Trade promotion campaigns in the UK and other European countries are encouraged to establish Pakistan as a dependable sourcing partner.
Strengthening Ties with China and GCC Markets
China is another key market for expansion. The policy suggests leveraging the second phase of the China-Pakistan Free Trade Agreement (CPFTA) to boost exports of high-value textiles, including garments, home textiles, and blended fabrics.
Partnerships with Chinese importers, retail chains, and e-commerce platforms are recommended to increase visibility for Pakistani textile brands.
The GCC region, including Saudi Arabia and the United Arab Emirates, is seen as an emerging market for Pakistan’s textile products.
The draft policy proposes negotiating tariff reductions and integrating supply chains with these markets. Participation in regional exhibitions and business forums is advised to build long-term trade relationships.
Boosting Institutional Support for Export Growth
Institutional support is also highlighted. The policy calls for strengthening the Trade Development Authority of Pakistan (TDAP) to improve export marketing, branding, and engagement with international buyers.
TDAP has previously organized events like TEXPO and WEXNET and developed online platforms to connect exporters with global clients.
Promoting Sustainability and Global Compliance
Finally, the policy emphasizes that Pakistan must be seen as a sustainable and compliant exporter. Working with development partners to meet international environmental, social, and governance (ESG) standards will help maintain long-term market access.
The draft states that diversifying export destinations, improving market access through trade deals, and promoting Pakistani textiles under a unified branding strategy will strengthen Pakistan’s global trade presence and competitiveness.
Author Profile
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Farooq Awan is a meticulous finance correspondent focused on Pakistan’s growth engines.
His reporting, driven by State Bank data, details the services sector's resilience and 3% expansion as the primary force behind GDP recovery. Awan highlights the critical role of ICT and stable policy in driving this essential economic digital transformation.
